Increases Non GAAP diluted earnings per ADS growth guidance to the high thirty percent range for the full year (2014).
Shire (LSE: SHP, NASDAQ: SHPG) announces unaudited results for the three months to September 30, 2014.
|Financial Highlights||Q3 2014||Growth(1)|
|Product sales||$1,552 million||+33%(2)|
|Total revenues||$1,597 million||+32%|
|Non GAAP operating income||$717 million||+60%|
|US GAAP operating income from continuing operations||$572 million||+49%|
|Non GAAP EBITDA margin
(excluding royalties & other revenues)(3)
|US GAAP net income margin(4)||30%||n/a|
|Non GAAP diluted earnings per ADS||$2.93||+60%|
|US GAAP diluted earnings per ADS||$2.43||+66%|
|Non GAAP cash generation||$612 million||+27%|
|Non GAAP free cash flow||$575 million||+48%|
|US GAAP net cash provided by operating activities||$593 million||+37%|
(1) Percentages compare to equivalent 2013 period. The 2013 comparatives in this release have been recast to exclude the DERMAGRAFT® business from continuing operations following its divestment on January 17, 2014.
(2) Product sales from continuing operations, including ViroPharma Incorporated (“ViroPharma”) acquired January 24, 2014, and excluding the DERMAGRAFT business. Product sales excluding products acquired with ViroPharma were up 19% in Q3 2014.
(3) Non GAAP earnings before interest, tax, depreciation and amortization (“EBITDA”) as a percentage of product sales, excluding royalties and other revenues.
(4) US GAAP net income as a percentage of total revenues.
The Non GAAP financial measures included within this release are explained on page 27, and are reconciled to the most directly comparable financial measures prepared in accordance with US GAAP on pages 20 - 25 of the full release.
Susan Kilsby, Shire's Chairman, commented:
“Shire is well-positioned for future growth as we implement our plan to double product sales to $10 billion by 2020. I am confident that Shire, as an independent company, will deliver long-term value to our shareholders and improved outcomes for patients. On behalf of the Board of Directors, I would like to thank the Shire management team and employees for the achievement of outstanding financial results during the third quarter.”
Flemming Ornskov, M.D., Shire’s Chief Executive Officer, commented:
“Our third quarter results demonstrate our exceptional track record of delivering value and growth. We continue to implement our clear and focused strategy, as we:
These results are a testament to our ability to drive top line growth and our continued emphasis on operational discipline.
We have seen strong sales performance across our portfolio with all of our top ten products delivering double digit growth in the quarter. Rare Diseases, our largest business unit, grew by 66%, aided by our acquisition of ViroPharma. In our Hereditary Angioedema portfolio, CINRYZE performed strongly with quarterly sales of $145 million and FIRAZYR was up 57%.
Our Neuroscience and Gastrointestinal business units also contributed to the record quarter with VYVANSE sales up 19% and LIALDA up 24%.
We continue to build our international presence and our expansion into the Japanese market with the approval of VPRIV and AGRYLIN.
Our early and late stage pipeline continues to be strengthened, both internally, and through business development providing us with new investments in Ophthalmology (BIKAM) and Rare Diseases (ArmaGen). The US Food and Drug Administration accepted with priority review our supplemental new drug application for VYVANSE as a treatment for adults with binge eating disorder and we expect to learn about the potential expanded indication in February 2015.
Our strong momentum and performance this quarter is evidence of our ability to deliver growth, efficiency and innovation through our commitment to addressing significant unmet need in Rare Diseases and high-value specialty conditions. As a result, I am pleased to once again increase our guidance for 2014. We now expect to deliver Non GAAP diluted earnings per ADS growth in the high thirty percent range in 2014.”
For further information please contact:
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+1 781 482 0460
+1 484 595 9836
Dial in details for the live conference call for investors at 14:00 BST / 09:00 EDT on October 24, 2014:
UK dial in: 0808 237 0030 or 0203 139 4830
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Live Webcast: Click here
The quarterly earnings presentation will be available today at 13:00 BST / 08:00 EDT on:
- Shire's IR Briefcase in the iTunes Store
NOTES TO EDITORS
Shire enables people with life-altering conditions to lead better lives.
Our strategy is to focus on developing and marketing innovative specialty medicines to meet significant unmet patient needs.
We focus on providing treatments in Neuroscience, Rare Diseases, Gastrointestinal, and Internal Medicine and we are developing treatments for symptomatic conditions treated by specialist physicians in other targeted therapeutic areas, such as Ophthalmology.
FORWARD - LOOKING STATEMENTS - "SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
Statements included in this announcement that are not historical facts are forward-looking statements. Forward-looking statements involve a number of risks and uncertainties and are subject to change at any time. In the event such risks or uncertainties materialize, Shire’s results could be materially adversely affected. The risks and uncertainties include, but are not limited to, that:
and other risks and uncertainties detailed from time to time in Shire’s filings with the US Securities and Exchange Commission, including its most recent Annual Report on Form 10-K
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