Shire's Q1 earnings and revenue beat expectations
Updated : 13:01
Pharmaceutical company Shire posted better-than-expected first-quarter revenue and earnings on Friday as it said its acquisition of US-based Baxalta was on track.
In the three months to the end of March, total revenue was up 17% to $1.71bn, surpassing analysts’ expectations of $1.69bn.
Meanwhile, non-GAAP earnings per share came in at $3.19, up 12% and beating forecasts of $3.04.
Product sales grew 14% in the quarter to $1.63bn, driven in part by hyperactivity drug Vyvanse.
Chief executive officer Flemming Ornskov said: “Shire is off to a strong start in 2016, delivering double-digit product sales and non-GAAP earnings per ADS growth, and advancing our innovative pipeline.
“While we maintain our sharp focus on Shire’s business, we closed the acquisition of Dyax during the quarter and we are making excellent progress with the Baxalta integration planning. Our shareholder vote is scheduled for May 27 and the closing is anticipated to follow in early June. We look forward to officially welcoming our Baxalta colleagues to Shire, and creating a global biotechnology leader focused on rare diseases and other highly specialized conditions.”
At 1220 BST, Shire shares were up 4.1% to 4,358p.
On Thursday, Shire's shareholders approved the directors' remuneration report at the company's annual general meeting, but only just, with 49% rejecting it.
Ahead of the AGM, shareholder advisory groups Institutional Shareholder Services and Glass Lewis expressed concern over the scale of the chief executive’s pay rise, advising Shire investors to vote against the remuneration report.
ISS pointed out the decision to award CEO Ornskov a 25% pay rise last July would increase future bonus payments, as base pay is used as a starting point.