Shire reports full year 2016 results with record revenue; positioned for continued strong growth driven by best-in-class rare disease pipeline
Key growth contributions from all therapeutic areas
Baxalta integration progressing ahead of schedule; Shire now the world leader in rare diseases
February 16, 2017 – Shire plc (Shire) (LSE: SHP, NASDAQ: SHPG) announces unaudited results for the year ended December 31, 2016.
Full Year 2016(1)
Non GAAP CER(1)(2)
Product sales excluding legacy Baxalta
Operating income from continuing operations
Non GAAP operating income(2)
Net income margin(3)(4)
Non GAAP EBITDA margin(2)(4)
Non GAAP net income(2)
Diluted earnings per ADS(5)
Non GAAP diluted earnings per ADS(2)(5)
Net cash provided by operating activities
Non GAAP cash generation(2)
Non GAAP free cash flow(2)
(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 28 – 29, and are reconciled to the most directly comparable financial measures prepared in accordance with US GAAP on pages 22 – 24. (3) US GAAP net income as a percentage of total revenues. (4) Percentage point change (ppc). (5) Diluted weighted average number of ordinary shares 776.2m.
- Delivered product sales growth of 78% to $10.9 billion, driven by record legacy Shire product sales and inclusion of legacy Baxalta sales since June 2016.
- Achieved combined pro forma sales growth of 11% (12% at Non GAAP CER); 15% sales growth (15% at Non GAAP CER) for legacy Shire and 6% pro forma sales growth (8% at Non GAAP CER) for legacy Baxalta.
- Generated Non GAAP diluted earnings per ADS of $13.10 (11% Non GAAP CER growth), at top end of financial guidance.
- Delivered strong Non GAAP cash generation in Q4 2016 enabling a $0.9 billion reduction in Non GAAP net debt.
Product and Pipeline Highlights
- Expanded commercial portfolio with 4 new product launches: XIIDRA, ONIVYDE, VONVENDI and CUVITRU.
- Delivered strong performance for XIIDRA in dry eye disease, capturing 19% U.S. market share within four months since launch.
- Progressed pipeline of innovative, novel therapies with approximately 20 programs in Phase 3 or registration.
- Received Prescription Drug User Fee Act (PDUFA) date of June 20, 2017 for SHP465 in Attention Deficit Hyperactivity Disorder (ADHD); completed enrollment for SHP643 in prophylaxis of Hereditary Angioedema (HAE) with results expected in the first half of 2017.
- Completed Dyax integration.
- Progressed Baxalta integration with operating expense synergy initiatives ahead of schedule and legacy Baxalta products transitioning quickly onto Shire’s commercial platform.
Flemming Ornskov, M.D., M.P.H., Shire Chief Executive Officer, commented:
“2016 was a transformational year for Shire as we became the world leader in rare diseases. Our innovative portfolio and sharp focus on commercial excellence enabled us to generate double digit pro forma top-line growth, with reported sales of $10.9 billion, while materially advancing the pipeline, successfully integrating Dyax and progressing the Baxalta integration ahead of schedule.
“In August we launched XIIDRA in the U.S. with an exceptional new drug launch, demonstrating our strength in commercial excellence and capturing 19% of market share within four months. This marks an outstanding entry into ophthalmics and we aim to further build a leadership position in this therapeutic area.
“With multiple product launches planned in 2017, we remain focused on execution and expect to generate strong top- and bottom-line growth. Our pipeline has never been stronger with multiple programs in Phase 3 or registration. We remain extremely optimistic about Shire’s long-term growth prospects.”
Download the PDF for the full announcement
Dial in details for the live conference call for investors at 14:00 GMT / 9:00 EDT on February 16, 2017:
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:
The quarterly earnings presentation will be available today at 13:00 GMT / 8:00 EDT on:
- Shire.com Investors section
- Shire's IR Briefcase in the iTunes Store
NOTES TO EDITORS
Stephen Williams, Deputy Company Secretary is responsible for arranging the release of this announcement.
This announcement contains inside information.
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NOTES TO EDITORS
Shire is the leading global biotechnology company focused on serving people with rare diseases and other highly specialized conditions. We strive to develop best-in-class products, many of which are available in more than 100 countries, across core therapeutic areas including Hematology, Immunology, Neuroscience, Ophthalmics, Lysosomal Storage Disorders, Gastrointestinal / Internal Medicine / Endocrine and Hereditary Angioedema; and a growing franchise in Oncology.
Our employees come to work every day with a shared mission: to develop and deliver breakthrough therapies for the hundreds of millions of people in the world affected by rare diseases and other high-need conditions, and who lack effective therapies to live their lives to the fullest.