Shire (LSE: SHP, NASDAQ: SHPG) announces unaudited results for the three months to June 30, 2015.
|Financial Highlights||Q2 2015||Growth(1)||Non GAAP CER(1)(2)|
|Product sales||$1,476 million||+0%||+6%|
|Product sales excluding INTUNIV®||$1,467 million||+7%||+12%|
|Total revenues||$1,558 million||+4%||+9%|
|Non GAAP operating income||$614 million||-3%||+0%|
|US GAAP operating income from continuing operations||$133 million||-61%(3)|
|Non GAAP EBITDA margin (excluding royalties & other revenues)(4)||39%||-5pps(5)|
|US GAAP net income margin(6)||10%||-25pps(3)|
|Non GAAP diluted earnings per ADS||$2.63||-2%||+3%|
|US GAAP diluted earnings per ADS||$0.81||-70%|
|Non GAAP cash generation||$505 million||-23%|
|Non GAAP free cash flow||$432 million||-48%|
|US GAAP net cash provided by operating activities||$452 million||-46%|
(1) Percentages compare to equivalent 2014 period.
(2) On a Constant Exchange Rate (“CER”) basis, which is a Non GAAP measure.
(3) Q2 2015 includes a net charge of $243 million related to impairment of SHP625 & SHP608. Impairment charges of $523 million are partially offset by the associated credits of $280 million relating to a change in the fair value of contingent consideration liabilities.
(4) Non GAAP earnings before interest, tax, depreciation and amortization (“EBITDA”) as a percentage of product sales, excluding royalties and other revenues.
(5) Percentage point change (“PPS”).
(6) US GAAP net income as a percentage of total revenues.
The Non GAAP financial measures included within this release are explained on pages 29 - 30 of the full release, and are reconciled to the most directly comparable financial measures prepared in accordance with US GAAP on pages 21 - 26 of the full release.
Alongside our strong performance in the first half of 2015, we are progressing our transformation to becoming a leading global biotech company and are confident in delivering on our 10x20 ambitions. During the second quarter, we delivered 7% product sales growth on a reported basis and 12% on a Non GAAP CER basis, in both cases excluding INTUNIV. This is a solid performance, achieved amid continued investment in future innovation and growth drivers. I am especially pleased with the performance of VYVANSE both in the adult ADHD market and with the launch of the new adult indication for moderate to severe Binge Eating Disorder. The early performance of the products we gained from NPS underscores our ability to acquire and integrate assets and deliver value. Given our first half performance and confidence in the underlying business, we are increasing our full-year earnings guidance, and now expect Non GAAP diluted earnings per ADS growth to be in the mid-to-high single digit percent range for 2015. Additionally, we expect to meet our 10x20 target of $6.5 billion of product sales in 2016, and exceed it with the contribution from our recent acquisition of NPS.
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Dial in details for the live conference call for investors at 14:00 BST / 09:00 EDT on July 23, 2015:
|UK dial in:||0808 237 0030 or 020 3139 4830|
|US dial in:||1 866 928 7517 or 1 718 873 9077|
|International Access Numbers:||Click here|
|Live Webcast:||Click here|
(1) Q2 2015 includes a net charge of $243 million related to impairment of SHP625 & SHP608. Impairment charges of $523 million are partially offset by the associated credits of $280 million relating to a change in the fair value of contingent consideration liabilities.
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 Rare Diseases, Neuroscience, Gastrointestinal and Internal Medicine and are developing treatments for symptomatic conditions treated by specialist physicians in other targeted therapeutic areas, such as Ophthalmics.
Statements included herein that are not historical facts, including without limitation statements concerning our 10x20 ambitions and targets, are forward-looking statements. Such 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:
other risks and uncertainties detailed from time to time in Shire’s filings with the Securities and Exchange Commission, including those risks outlined in “Item 1A: Risk Factors” in Shire’s Annual Report on Form 10-K for the year ended December 31, 2014.