LONDON (Alliance News) - Shire PLC on Thursday updated its guidance and said its revenue grew in the third quarter of of 2018 as a result of strong Immunology division growth, recent product launches, and international expansion.
Shares in the FTSE 100-listed pharmaceutical company were down 0.8% at 4,643.00 pence.
In the three months ended September 30, Shire's revenue was USD3.87 billion, rising from USD3.70 billion year-on-year.
This was largely attributed to Immunology sales, which grew to USD1.19 billion in the quarter, a 12% year-on-year jump from USD1.07 billion. Furthermore, Shire also launched new products, including its hereditary angioedema drug Takhzyroin in August which boosted sales by USD51 million, as well as expanding internationally.
Net income for the period was USD537 million, dropping from USD550.8 million the prior year. This was attributed to a significant surge in reorganisation costs to USD254.8 million from just USD5.4 million and a slight elevation in research & development costs to USD407.2 million from USD402.8 million.
Shire Chief Executive Flemming Ornskov said: "We continue to deliver solid growth and pay down our debt while advancing our late-stage pipeline. Our focus on commercial execution led to 6% growth in product sales to USD3.8 billion in the third quarter overcoming foreign exchange headwinds. Our growth was once again driven by our Immunology franchise, recently-launched products, and expansion in international markets. Proceeds from the sale of our Oncology franchise coupled with strong free cash flow allowed us to reduce net debt by USD3.9 billion year to date."
The acquisition of Shire by Takeda Pharmaceutical Co Ltd is on track to complete in the first half of 2019, subject to shareholder approval, and integration planning is ongoing.
Shire updated its guidance to adjust for the sale of its Oncology franchise, which closed August 31. Its 2018 US total revenue outlook is between USD13.3 billion and USD15.8 billion, on both a generally accepted accounting principles basis and non GAAP basis.
Its 2020 revenue target has also been altered to between USD16.5 billion and USD17.5 billion, reflecting the removal of USD500 million of Oncology sales from its original projection.
The drug maker expects to achieve a mid-40% earnings before interest, taxation, depreciation, and amortization margin by 2020 - on a non GAAP basis, unchanged despite the Oncology unit sale.
