Shire reiterates full-year guidance despite decline in profit in the third quarter

Pharmaceuticals group Shire reported a decline in pre-tax profit for the third quarter but reiterated its full-year earnings guidance.

In the three months to the end of September, the Irish firm posted a 20.8% year-on-year drop in pre-tax profit to $455.5m, as an increase in integration and acquisition costs offset a 3.7% increase in revenue to $1.66bn.

In a statement released on Friday, the FTSE 100 company said its research and development costs surged 11% year-on-year, as a result of continued investment in the group’s pipeline product and the costs related to its acquisition of NPS Pharmaceuticals.

Shire added sales were driven higher by a strong performance from its biggest seller, Vyvanse, and from its hereditary angiodema portfolio, although currency headwinds held sales growth by approximately 4%.

Meanwhile, the group said it remained committed to acquire American sector peer Baxalta, indicating it believes the deal would help deliver its targeted $20bn sales by 2020.

In June, the US-listed company rejected a $30bn takeover offer, claiming the offer was not in the best interest of its shareholders.

Based on the strength of our core business, we are reiterating our recently upgraded full year Non GAAP diluted EPS guidance of mid-to-high single digit growth," said group chief executive Flemming Ornskov.

Shire shares were up 3.33% to 4,593.00 at 1244 BST on Friday.