LONDON, April 26 (Reuters) - Shire, theLondon-listed drugmaker targeted by Takeda Pharmaceutical, reported a 6 percent rise in first-quarter earnings onThursday, while keeping its cautious outlook for the year in theface of increasing drug competition.
Shire is willing to recommend a $64 billion offer fromTakeda to shareholders, in what would be the biggest acquisitionof a drug company since 2000, but investors see risks to theambitious deal being consummated.
Currency factors flattered Shire sales in the quarter asShire felt the impact of falling sales of its flagshipulcerative colitis drug Lialda. Early generic competition toLialda has added to Shire's recent problems.
Earnings in the quarter were helped by higher sales of drugsfor rare diseases and a lower tax rate, partially offset bylower gross margins.
Quarterly revenue of $3.77 billion was slightly ahead ofanalysts' forecasts of $3.72 billion, generating non-GAAPdiluted earnings per American Depository Share of $3.86.
In the 30 years since it started out as small businessselling calcium supplements from above a shop in southernEngland in 1986, Shire became a poster child for a nimblespecialty drugs firm, driven by smart dealmaking.
But the stock lost its lustre two years ago after itsbiggest ever deal, the $32 billion acquisition of Baxalta, whichincreased its exposure to the haemophilia treatment market at atime of major uncertainty.
The shares were 0.5 percent higher following the results.(Reporting by Paul Sandle and Ben Hirschler; editing by SarahYoung)
