Commercial execution, efficiency improvements, and debt pay-down remain top priorities
May 2, 2017 – Shire plc (Shire) (LSE: SHP, NASDAQ: SHPG) announces unaudited results for the three months ended March 31, 2017.
Flemming Ornskov, M.D., M.P.H., Shire Chief Executive Officer, commented:
"In the first quarter we delivered strong top-line growth with quarterly product sales of $3.4 billion. I am especially pleased to see that our sales growth came from across our broad portfolio, with genetic diseases growing 14%, our recently launched XIIDRA product achieving a 22% market share and the Baxalta business growing at 8% on a pro forma basis. We also improved our operational efficiency, and are ahead of plan on integrating Baxalta.
"Our priorities for the rest of 2017 remain unchanged: launching new products while driving commercial excellence, generating operational efficiencies, and advancing our pipeline of novel therapies. Additionally, we continue to prioritize paying down debt, and we are on track to achieve our full-year financial guidance.
“Looking ahead, I see tremendous opportunity for further growth as we continue to build on our position as the global leader in treating patients with rare diseases.”
|Financial Highlights||Q1 2017(1)||Growth(1)||Non GAAP CER(1)(2)|
|Product sales||$3,412 million||+110%||+110%|
|Product sales excluding legacy Baxalta||$1,807 million||+11%||+11%|
|Total revenues||$3,572 million||+109%||+110%|
|Operating income from continuing operations||$497 million||(9%)|
|Non GAAP operating income(2)||$1,454 million||+82%||+82%|
|Net income margin(3)(4)||10%||(15ppc)|
|Non GAAP EBITDA margin(2)(4)||44%||(5ppc)|
|Net income||$375 million||(11%)|
|Non GAAP net income(2)||$1,102 million||+74%|
|Diluted earnings per ADS(5)||$1.23||(42%)|
|Non GAAP diluted earnings per ADS(2)(5)||$3.63||+14%||+14%|
|Net cash provided by operating activities||$459 million||+18%|
|Non GAAP free cash flow (2)||$247 million||(27%)|
(1) Results include Baxalta Inc. (Baxalta) (acquired on June 3, 2016) and Dyax Corp. (Dyax) (acquired on January 22, 2016), unless otherwise noted. Percentages compare to equivalent 2016 period.
(2) The Non GAAP financial measures included within this release are explained on pages 25 – 26, and are reconciled to the most directly comparable financial measures prepared in accordance with US GAAP on pages 19 – 21.
(3) US GAAP net income as a percentage of total revenues.
(4) Percentage point change (ppc).
(5) Diluted weighted average number of ordinary shares 911.8 million.
Product and Pipeline Highlights
Download the PDF for the full announcement
|Ian Karp||[email protected]||+1 781 482 9018|
|Robert Coates||[email protected]||+44 1256 894874|
|Lisa Adler||[email protected]||+1 617 588 8607|
|Debbi Ford||[email protected]||+1 617 949 9083|
Dial in details for the live conference call for investors at 14:00 GMT / 9:00 EDT on May 2, 2017:
|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|
The quarterly earnings presentation will be available today at 13:00 BST / 8:00 EDT on:
- Shire.com Investors section
- Shire's IR Briefcase in the iTunes Store
Stephen Williams, Deputy Company Secretary is responsible for arranging the release of this announcement.
This announcement contains inside information.
Shire is the leading global biotechnology company focused on serving people with rare diseases. We strive to develop best-in-class products, many of which are available in more than 100 countries, across core therapeutic areas including Hematology, Immunology, Neuroscience, Ophthalmics, Lysosomal Storage Disorders, Gastrointestinal / Internal Medicine / Endocrine and Hereditary Angioedema; and a growing franchise in Oncology.
Our employees come to work every day with a shared mission: to develop and deliver breakthrough therapies for the hundreds of millions of people in the world affected by rare diseases and other high-need conditions, and who lack effective therapies to live their lives to the fullest.
THE “SAFE HARBOR” STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
Statements included herein that are not historical facts, including without limitation statements concerning future strategy, plans, objectives, expectations and intentions, the anticipated timing of clinical trials and approvals for, and the commercial potential of, inline or pipeline products, 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, the following:
a further list and description of risks, uncertainties and other matters can be found in Shire’s most recent Annual Report on Form 10-K and in Shire’s subsequent Quarterly Reports on Form 10-Q, in each case including those risks outlined in “ITEM 1A: Risk Factors”, and in subsequent reports on Form 8-K and other Securities and Exchange Commission filings, all of which are available on Shire’s website.
All forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by this cautionary statement. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. Except to the extent otherwise required by applicable law, we do not undertake any obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise.