Shire falls by over 5% on reduced revenue targets

Shire falls by over 5% on reduced revenue targets

Shares in Dublin-based drugmaker Shire yesterday fell more than 5% after it reined in its medium-term revenue targets, writes Geoff Percival.

The biotech giant, which is headquartered in Ireland for tax purposes, expects total revenues to reach $17bn-$18bn by 2020; a downgrade from its previous target of $20bn by that date. The latter aim was set out when Shire acquired biopharmacutical firm Baxalta two years ago.

However, the company said it expects continued revenue growth, “driven by a diverse portfolio of leading brands,” including those in its immunology division which increased sales 21% in the first three quarters of 2017. The company said it continues to have “a promising” late-stage product pipeline, with 15 ‘programmes’ in Phase-3 trial status.

Shire has also confirmed while attending this year’s annual JP Morgan Healthcare Conference in San Francisco that it will split its neuroscience business into two divisions; one focusing on neuroscience and the other on rare diseases.

The confirmation marks the result of the first stage of a strategic review of the neuroscience arm which began in August.

“The board believes this will be an important first step in enabling both divisions to maximise mid- to-long-term product sales, cash generation and innovation,” Shire said.

The second stage of the strategic review will include an evaluation of “all strategic alternatives,” including a possible stockmarket listing for the neuroscience business.

“Shire has undergone a significant transformation over the last five years, creating two market-leading businesses with distinct profiles and future needs,” said the chief executive Flemming Ornskov.

More in this Section

Central Bank chief warns any form of Brexit will be damaging for IrelandCentral Bank chief warns any form of Brexit will be damaging for Ireland

Dyson advert banned over ‘misleading’ hose length claimDyson advert banned over ‘misleading’ hose length claim

Aston Martin unveils first SUVAston Martin unveils first SUV

EasyJet shares fly higher despite profit turbulenceEasyJet shares fly higher despite profit turbulence


Lifestyle

Ed Power says there are some terrific children’s movies to enjoy as a family so sit back and get zapping.The best children's movies to enjoy as a family this winter

This week I am going to devote my entire column to cakes and baking.Darina Allen on cakes and baking: Buy the finest ingredients and always use butter

WE went shoe shopping for the kids at the weekend. To be honest, I couldn’t see anything wrong with the old shoes.Learner Dad: 'I’m afraid of being in a shop with my kids'

Well first and foremost, it depends what type of cold you have, as Prudence Wade discovers.Should you exercise when you’ve got a cold?

More From The Irish Examiner