Shire share price soNYSE:ABBVars as pharmco’s earnings top expectations

Shares in Shire Plc (LON:SHP) have jumped nearly three percent in afternoon trade since the rare disease specialist delivered forecast-beating quarterly earnings. Separately, the blue-chip group announced that its interim CFO would take the top finance job at the company.

As of 13:36 BST, Shire’s share price had jumped 2.93 percent to 5,445.00p. The pharmco’s shares have gained more than 60 percent over the past year.
Shire announced in a statement today that its earnings excluding some items had climbed 16 percent to $683 million (£444 million) in the first quarter.

Bloomberg reports that the result was above the average analyst estimate of $604 million (£393 million). The London-listed company’s first-quarter product sales surged nine percent to $1.42 billion, lifting Shire’s total revenues to $1.49 billion, up 11 percent year-on-year.

Sales of Shire’s flagship attention deficit hyperactivity disorder drug Vyvanse, which was also cleared for binge-eating disorder earlier this year, rose 19 percent to $417 million.

Commenting on the results, Shire’s chief executive Flemming Ornskov said that the rare disease specialist had “continued to exemplify the characteristics of a leading biotechnology company, delivering strong revenue growth and cash generation”. The Dane added that Shire remained confident in delivering earnings growth in the mid-single digits this year.

Shire, which last year was the subject of a failed £32-billion takeover by US pharma group AbbVie Inc (NYSE:ABBV), earlier this year snapped up New Jersey-based NPS Pharmaceuticals Inc, expanding its rare disease portfolio with NPS’ short bowel syndrome treatment Gattex and hypoparathyroidism drug Natpara.

Shire said in today’s statement that Gattex’s first-quarter sales stood at $14.9 million, while Natpara, approved by US Food and Drug Administration in January, was launched on April 1.

In a separate statement, Shire announced that it had appointed Jeff Poulton as Chief Financial Officer. Poulton has been interim CFO since December last year.

As of 14:34 BST, Thursday, 30 April, Shire PLC share price is 5,427.50p.