Shire share price sinks as pharmco cuts full-year guidance

on Nov 1, 2016
Updated: Oct 21, 2019

Shares in Shire (LON:SHP) have posted a hefty fall in London this afternoon after the rare disease specialist cut its full-year guidance as it updated investors on its third-quarter performance. The company, which acquired Baxalta earlier this year, has been hit by heavy spending on the integration of the US blood disease specialist.

As of 13:31 GMT, Shire’s share price had tumbled 5.23 percent to stand at 4,407.00p, having traded more than one percent higher earlier in the session. The group’s shares are underperforming the broader London market, with the benchmark FTSE 100 index currently 0.06 percent better off at 6,958.31 points. The pharmco’s shares have lost just under 10 percent of their value over the past year, and are down by some five percent in the year-to-date.

Shire announced in a statement today that it would post a diluted loss per American Depository Share (ADS) of between 70 cents and $1.10 this year, having previously said it would post between zero earnings per ADS and a 40-cent loss. The company, however, reiterated its guidance for non-GAAP diluted earnings of between $12.70 and $13.10.
The London-listed rare disease specialist, which acquired US peer Baxalta earlier this year, also posted a net loss of $387 million for the three months to September 30. The group’s revenue, however, more than doubled to $3.5 billion, from $1.7 billion a year earlier. The Wall Street Journal reports that analysts had expected net profit of $903 million and revenue of $3.6 billion.
Shire meanwhile noted that Baxalta’s integration was on track, and reiterated its cost savings estimate of at least $700 million within three years. The FTSE 100 rare disease specialist is scheduled to hold an Investor Day on November 10.
As of 14:01 GMT, Tuesday, 01 November, Shire PLC share price is 4,777.00p.

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