On track to deliver double digit full year earnings growth
Shire (LSE: SHP, NASDAQ: SHPG) announces results for the three months to June 30, 2012.
|Financial Highlights||Q2 2012(1)|
|Product sales||$1,148 million||+16%|
|Total revenues||$1,208 million||+14%|
|Non GAAP operating income||$420 million||+23%|
|US GAAP operating income||$302 million||+7%|
|Non GAAP diluted earnings per ADS||$1.68||+26%|
|US GAAP diluted earnings per ADS||$1.24||+15%|
|Non GAAP cash generation||$520 million||+18%|
|Non GAAP free cash flow||$433 million||+84%|
|US GAAP net cash provided by operating activities||$466 million||+64%|
(1) Percentages compare to equivalent 2011 period.
The Non GAAP financial measures included within this release are explained on page 25, and are reconciled to the most directly comparable financial measures prepared in accordance with US GAAP on pages 20 - 24 of the full release.
Angus Russell, Chief Executive Officer, commented:
“Shire delivered strong results in the second quarter, with product sales up 16% and Non GAAP operating income up 23%.
The ADHD market in the US is maintaining healthy growth; our lead products VYVANSE and INTUNIV both increased share and we’re advancing our plans for the continued international rollout of both these products. Although of decreasing importance in our ADHD portfolio, we believe that branded ADDERALL XR will remain competitive in the US marketplace despite the approval of a new generic product.
We are delighted with the continued adoption of FIRAZYR by patients in the US, which is driving strong sales growth. We also continue to see new patient demand for all our enzyme replacement therapies ELAPRASE, REPLAGAL and VPRIV.
We benefited from sales of DERMAGRAFT in the quarter, compared to the same period last year, and we have announced our plans to invest in a new campus in the San Diego area, including a second manufacturing facility for our Regenerative Medicine business.
Our diversified and increasingly international business generated higher cash flow during the quarter and we’re continuing our disciplined approach to invest in a growing range of exciting late stage opportunities in our pipeline, as well as business development opportunities, to bring further valuable treatments to patients. We’re building on our lead positions in our main franchise areas of behavioral health, gastro-intestinal, HGT and regenerative medicine as well as forging alliances and investing in novel technology platforms. We look forward to continued growth across our business.
Based on the market dynamics we are anticipating and the actions we have taken, Shire is on track to deliver double digit full year earnings growth in 2012. Our objective is to deliver sound earnings growth in 2013, and increased growth beyond that, driven by our young and diversified product portfolio and the significant market opportunities we have identified.”