Shire share price: Pharmco to update investors on Baxalta savings next month
Shire (LON:SHP) will update investors on the savings from the acquisition of Baxalta when it reports its second-quarter results early next month, Reuters has reported, quoting the pharmco’s chief executive. The comments have fuelled speculation that more costs than initially forecast will be eliminated as a result of the tie-up.
Shire’s share price has surged in London this morning, having gained 1.22 percent to stand at 4,914.00p as of 09:57 BST, outperforming the blue-chip FTSE 100 index which is currently flat in percentage terms at 6,680.83 points. The group’s shares have gained 4.6 percent in the year-to-date, as compared with a 7.01-percent rise in the Footsie.
Shire’s chief executive Flemming Ornskov told Reuters yesterday that the rare disease specialist would update investors on savings from its tie-up with Baxalta when it reports second-quarter results on August 2. Shire completed its $32-billion takeover of the US blood disease specialist last month, flagging over $20 billion in annual projected revenues by the end of the decade.
“All along we’ve said the $500 million was a risk-adjusted number, the Dane told the newswire. “At the second-quarter results meeting we will give an updated number for synergies and I think we will show we are focused on delivering appropriate synergies for a deal of this size.”
Reuters reported that some industry analysts believed that Shire was being conservative in its synergy estimates and the actual figure could be more than $750 million.
The comments came as US regulators the recent purchase of rights to an experimental bowel drug from Pfizer.
As of 10:27 BST, Wednesday, 13 July, Shire PLC share price is 4,910.00p.