Shire plc (SHPG) Misses Q3 EPS by 4c

Shire plc (NASDAQ: SHPG) reported Q3 EPS of $3.17, $0.04 worse than the analyst estimate of $3.21. Revenue for the quarter came in at $3.45 billion versus the consensus estimate of $3.57 billion.

Financial highlights

• Very strong launch results for XIIDRA; 64,732 scripts written through October 21, with a market share of 16%.
• Product sales growth of 110% in Q3 2016 to $3.3 billion, driven by record legacy Shire product sales and the inclusion of legacy Baxalta franchises.
• Underlying growth in Q3 2016 hematology and immunology businesses largely in line with overall market trends; pro forma sales growth of legacy Baxalta products impacted by the timing of large orders.
• Q3 2016 year to date growth for legacy Shire product sales was 15% (16% on a Non GAAP CER basis) and legacy Baxalta was 7% on a pro forma basis (8% on a Non GAAP CER pro forma basis), in line with our expectations.

Baxalta integration

• Operating expense synergy initiatives ahead of schedule, including manufacturing footprint optimization review.
• Sharp focus on transitioning legacy Baxalta products onto Shire’s commercial platform and operating execution.
• Issued $12.1 billion aggregate principal debt at a weighted average interest rate of 2.6%; net proceeds used to fully repay bridge facility for financing Baxalta transaction.

Pipeline progress

• Pipeline continuing to deliver with U.S. Food and Drug Administration (FDA) approval of CUVITRU, and European Commission (EC) Marketing Authorization for ONIVYDE accompanied by Orphan Drug Designation.
• Fully enrolled Phase 3 study for SHP643 in prophylaxis of hereditary angioedema with results expected in the first half of 2017.
• FDA resubmission of SHP465 for the treatment of ADHD on track to be made in Q4 2016.

GUIDANCE:

Shire plc sees FY2016 EPS of $12.70-$13.10, versus the consensus of $12.98. Shire plc sees FY2016 revenue of $10.8-11.0 billion, versus the consensus of $11.41 billion.

For earnings history and earnings-related data on Shire plc (SHPG) click here.

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