Shire share price: Pharmco continues to hunt for deals
Shire Plc (LON:SHP) still sees opportunities for acquisitions, the pharmco’s chief executive has told the Financial Times. The comments come in the wake of the Dublin-based group’s quarterly results which failed to meet analyst expectations.
Shire’s share price has lost ground in morning trade, having shed 1.60 percent to 5,550.00p as of 08:23 BST, and underperforming the flat London market. The shares have appreciated more than 12 percent over the past year.
The FT last night quoted Shire’s chief executive Flemming Ornskov as saying that the rare disease specialist continued to hunt for deals which could accelerate its push to join the top ranks of global biotech companies.
“There are lots of exciting opportunities out there,” the Dane said, adding that the group had rejected some deals due to high valuations and stressing that Shire would remain financially disciplined. The FTSE 100 group, whose merger with US pharma giant AbbVie Inc (NYSE:ABBV) collapsed about a year ago, has focused on acquisitions, snapping up NPS Pharmaceuticals and Meritage Pharma earlier this year.
Ornskov’s comments came as Shire updated investors on its second-quarter performance, reporting earnings per share of $2.63, which fell short of analyst estimates of $2.80 per share. The company, however, increased its full-year earnings guidance, forecasting growth in the mid-to-high single digits. The pharma group also expects to exceed its sales target next year with the contribution from the NPS acquisition.
Reuters yesterday quoted analysts at Deutsche Bank as commenting that Shire’s investment behind new launches was more first-half weighted than anticipated.
“(But) importantly, cost guidance has been maintained and overall cost growth is expected to moderate in the second half,” the analysts pointed out. “More significantly, strong performance has allowed management to raise full-year guidance.”
As of 09:04 BST, Friday, 24 July, Shire PLC share price is 5,550.00p.