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Shire Reports 7% Product Sales Growth: Anticipating Double Digit Non GAAP Earnings Growth In 2013

July 25, 2013

Shire (LSE: SHP, NASDAQ: SHPG) announces results for the three months to June 30, 2013.

Financial Highlights Q2 2013 Reported Growth(1)
Product sales $1,230 million +7%
Total revenues $1,275 million +6%
     
Non GAAP operating income $452 million +8%
US GAAP operating income $342 million +13%
     
Non GAAP diluted earnings per ADS $1.79 +6%
US GAAP diluted earnings per ADS $1.36 +10%
     
Non GAAP cash generation $374 million -28%
Non GAAP free cash flow $241 million -44%
US GAAP net cash provided by operating activities $259 million -44%

(1) Percentages compare to equivalent 2012 period.

The Non GAAP financial measures included within this release are explained on page 24, and are reconciled to the most directly comparable financial measures prepared in accordance with US GAAP on pages 19 - 23 of the full release.

GOOD PROGRESS: INCREASING GROWTH AND STRONG OPERATIONAL LEVERAGE IN Q2

  • Product sales growth increased to 7% year on year as expected
  • Non GAAP Operating Income +8% reflecting strong operating leverage in Q2 2013 and year to date
  • Non GAAP earnings per ADS +6%, held back by the timing of quarterly tax charges

EXECUTING OUR STRATEGY

  • Further enhanced organic growth and improved operating margins
  • Progression of our late stage pipeline addressing unmet needs including:
    • Lifitegrast for dry eye disease and LDX for binge eating and major depressive disorders
    • Continued but focused R&D investment in other development opportunities
  • Focus on growth and value-driving business development
  • Good progress integrating three divisions into a simplified ‘One Shire’ organization to create operating leverage, drive fast decisions and focus on growth-driving products

Flemming Ornskov, M.D., Chief Executive Officer, commented:

“We are pleased with our Q2 results, have made good progress and have returned to higher growth.

We’re successfully executing our strategy, which is to grow by focusing on innovation-driven specialty products through both R&D and M&A. We've sharpened our focus on commercial excellence and we're enhancing our pipeline productivity. Our late Phase 3 projects lifitegrast and LDX for BED are progressing well and are programs in which we have increasing confidence.

Our strategy has been designed to deliver further enhanced growth. We anticipate delivering full year double digit Non GAAP earnings growth in 2013 and are confident in our ability to grow operating margins going forward.”

Click here for the PDF version of this press release.