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Shire share price subdued as pharmco updates on performance

Shares in Shire (LON:SHP) have fallen into the red in today’s session, with investors digesting the pharmco’s third-quarter results which have revealed a fall in earnings per share. The update comes after Japan’s Takeda recently proposed the sale of the FTSE 100 company’s prospective treatment for inflammatory bowel disease as it looks to gain the European Commission’s approval for its proposed acquisition of the UK rare disease specialist.

As of 13:34 BST, Shire’s share price had given up 0.46 percent to 4,659.00p. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index having climbed into positive territory and currently standing 0.24 percent higher at 7,144.96 points.

Shire updates on performance

Shire announced in a statement today that its product sales had climbed six percent to $3.75 billion in the third quarter of the year. The group’s diluted earnings per American Depository Share, however, dipped three percent to $1.75. The FTSE 100 group further updated its 2020 revenue target to between $16.5 billion and $17.5 billion, to reflecting the removal of $0.5 billion of Oncology sales in its original projection. 

“We continue to deliver solid growth and pay down our debt while advancing our late-stage pipeline,” Shire’s chief executive Flemming Ornskov commented in the statement, adding that Takeda’s proposed acquisition of the rare disease specialist remained “on track to close in H1 2019, subject to shareholder approval of both companies and additional regulatory approvals”.

Analysts on blue-chip pharmco

Credit Suisse reiterated its ‘outperform’ rating on the London-listed rare disease specialist today, without specifying a price target on the shares. According to MarketBeat, Shire currently has a consensus ‘buy’ rating and an average price target of 4,725.30p.

As of 13:50 GMT, Thursday, 01 November, Shire PLC share price is 4,663.00p.

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