Very strong U.S. launch for XIIDRA; marks outstanding entry into ophthalmics
Baxalta integration progressing well with synergy initiatives ahead of plan
November 1, 2016 – Shire plc (Shire) (LSE: SHP, NASDAQ: SHPG) announces unaudited results for the three months ended September 30, 2016.
|Financial Highlights ||Q3 2016(1)||Growth(1)||Non GAAP CER(1)(2)|
|Product sales||$3,315 million||+110%||+111%|
|Product sales excluding Baxalta products||$1,769 million||+12%||+13%|
|Total revenues||$3,452 million||+109%||+109%|
|US GAAP operating loss from continuing operations||($406 million)||(189%)|| |
|Non GAAP operating income(2)||$1,254 million||+73%||+71%|
|US GAAP net income margin(3)(4)||(11%)||(38ppc)|
|Non GAAP EBITDA margin(2)(4)||38%||(5ppc)|| |
|US GAAP net loss||($387 million)||(185%)|
|Non GAAP net income(2)||$962 million||+50%|
|US GAAP diluted losses per ADS||($1.29)||(156%)|
|Non GAAP diluted earnings per ADS(2)||$3.17||(2%)||(3%)|
|US GAAP net cash provided by operating activities||$526 million||(6%)|
|Non GAAP cash generation(2)||$830 million||+41%|
|Non GAAP free cash flow(2)||$395 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 2015 period.
(2)The Non GAAP financial measures included within this release are explained on pages 27 – 28, and are reconciled to the most directly comparable financial measures prepared in accordance with US GAAP on pages 21 – 23.
(3)US GAAP net income as a percentage of total revenues.
(4) Percentage point change (“ppc”).
- Very strong launch results for XIIDRA; 64,732 scripts written through October 21, with a market share of 16%.
- Product sales growth of 110% in Q3 2016 to $3.3 billion, driven by record legacy Shire product sales and the inclusion of legacy Baxalta franchises.
- Underlying growth in Q3 2016 hematology and immunology businesses largely in line with overall market trends; pro forma sales growth of legacy Baxalta products impacted by the timing of large orders.
- Q3 2016 year to date growth for legacy Shire product sales was 15% (16% on a Non GAAP CER basis) and legacy Baxalta was 7% on a pro forma basis (8% on a Non GAAP CER pro forma basis), in line with our expectations.
- Operating expense synergy initiatives ahead of schedule, including manufacturing footprint optimization review.
- Sharp focus on transitioning legacy Baxalta products onto Shire’s commercial platform and operating execution.
- Issued $12.1 billion aggregate principal debt at a weighted average interest rate of 2.6%; net proceeds used to fully repay bridge facility for financing Baxalta transaction.
- Pipeline continuing to deliver with U.S. Food and Drug Administration (FDA) approval of CUVITRU, and European Commission (EC) Marketing Authorization for ONIVYDE accompanied by Orphan Drug Designation.
- Fully enrolled Phase 3 study for SHP643 in prophylaxis of hereditary angioedema with results expected in the first half of 2017.
- FDA resubmission of SHP465 for the treatment of ADHD on track to be made in Q4 2016.
Flemming Ornskov, M.D., M.P.H., Shire Chief Executive Officer, commented:
“During the third quarter, we made rapid progress integrating our new company while delivering record quarterly product sales growth and remaining on track to meet our full year Non GAAP guidance. The launch of XIIDRA is off to a very strong start, and we are using this momentum to build a leadership position in pharmaceutical ophthalmics. Commercial execution remains a top priority across the business. Also, our robust pipeline is continuing to advance, and we look forward to highlighting key programs during our upcoming Investor Day. The changes we are applying to the legacy Baxalta business are similar to the One Shire initiative we undertook in 2013-2014, which set off a period of strong growth and profitability. I am highly confident about Shire’s future growth prospects.”
Download the PDF for the full announcement
For further information please contact:
Dial in details for the live conference call for investors at 14:00 GMT / 10:00 EDT on November 1, 2016:
|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|| |
|Password/Conf ID:||42020034#|| |
|Live Webcast:||Click here || |
The quarterly earnings presentation will be available today at 13:00 GMT / 09:00 EDT on:
- Shire.com Investors section
- Shire's IR Briefcase in the iTunes Store