July 23, 2015
Shire (LSE: SHP, NASDAQ: SHPG) announces unaudited results for the three months to June 30, 2015.
| Financial Highlights | Q2 2015 | Growth(1) | Non GAAP CER(1)(2) |
| Product sales | $1,476 million | +0% | +6% |
| Product sales excluding INTUNIV® | $1,467 million | +7% | +12% |
| Total revenues | $1,558 million | +4% | +9% |
| Non GAAP operating income | $614 million | -3% | +0% |
| US GAAP operating income from continuing operations | $133 million | -61%(3) | |
| Non GAAP EBITDA margin (excluding royalties & other revenues)(4) | 39% | -5pps(5) | |
| US GAAP net income margin(6) | 10% | -25pps(3) | |
| Non GAAP diluted earnings per ADS | $2.63 | -2% | +3% |
| US GAAP diluted earnings per ADS | $0.81 | -70% | |
| Non GAAP cash generation | $505 million | -23% | |
| Non GAAP free cash flow | $432 million | -48% | |
| US GAAP net cash provided by operating activities | $452 million | -46% |
(1) Percentages compare to equivalent 2014 period.
(2) On a Constant Exchange Rate (“CER”) basis, which is a Non GAAP measure.
(3) Q2 2015 includes a net charge of $243 million related to impairment of SHP625 & SHP608. Impairment charges of $523 million are partially offset by the associated credits of $280 million relating to a change in the fair value of contingent consideration liabilities.
(4) Non GAAP earnings before interest, tax, depreciation and amortization (“EBITDA”) as a percentage of product sales, excluding royalties and other revenues.
(5) Percentage point change (“PPS”).
(6) US GAAP net income as a percentage of total revenues.
The Non GAAP financial measures included within this release are explained on pages 29 - 30 of the full release, and are reconciled to the most directly comparable financial measures prepared in accordance with US GAAP on pages 21 - 26 of the full release.
Highlights:
- Q2 product sales growth of 7% excluding INTUNIV (12% on a Non GAAP CER basis); first half product sales excluding INTUNIV up 11% (16% on a Non GAAP CER basis)
- Product sales this quarter driven by strong performance from VYVANSE®, FIRAZYR®, LIALDA®/MEZAVANT®
- Early positive momentum from NPS Pharmaceuticals (“NPS”) products, NATPARA® and GATTEX®/REVESTIVE®; NPS commercial integration complete
- Significant Q2 investment in future growth drivers including the launch of the Binge Eating Disorder (“BED”) adult indication, market expansion of VYVANSE in adults and behind GATTEX/REVESTIVE and NATPARA acquired with NPS
- Innovative pipeline advancing, with SHP465 pediatric Phase 3 initiated ahead of schedule, favorable FDA feedback on path forward for Maribavir Phase 3, and OPUS 3 for lifitegrast fully enrolled
- SHP625 Phase 2 studies in two rare cholestatic liver indications (PBC, PFIC) did not meet primary endpoints; totality of data under review to determine path forward
- Non-cash impairments for SHP625 and SHP608 affect US GAAP operating income; payments related to purchase of NPS impact cash generation(1)
- Non GAAP diluted earnings per ADS growth guidance increased to mid-to-high single digit percent range for the full year (2015)
Flemming Ornskov, M.D. Chief Executive Officer, commented:
Alongside our strong performance in the first half of 2015, we are progressing our transformation to becoming a leading global biotech company and are confident in delivering on our 10x20 ambitions. During the second quarter, we delivered 7% product sales growth on a reported basis and 12% on a Non GAAP CER basis, in both cases excluding INTUNIV. This is a solid performance, achieved amid continued investment in future innovation and growth drivers. I am especially pleased with the performance of VYVANSE both in the adult ADHD market and with the launch of the new adult indication for moderate to severe Binge Eating Disorder. The early performance of the products we gained from NPS underscores our ability to acquire and integrate assets and deliver value. Given our first half performance and confidence in the underlying business, we are increasing our full-year earnings guidance, and now expect Non GAAP diluted earnings per ADS growth to be in the mid-to-high single digit percent range for 2015. Additionally, we expect to meet our 10x20 target of $6.5 billion of product sales in 2016, and exceed it with the contribution from our recent acquisition of NPS.
Download the PDF for the full release
For further information please contact:
| Investor Relations | ||
| - Sarah Elton-Farr | seltonfarr@shire.com | +44 1256 894 157 |
| Media | ||
| - Michele Galen | mgalen@shire.com | +1 781 482 1867 |
| - Brooke Clarke | brclarke@shire.com | +44 1256 894 829 |
Dial in details for the live conference call for investors at 14:00 BST / 09:00 EDT on July 23, 2015:
| 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: | 25841912# |
| Live Webcast: | Click here |
(1) Q2 2015 includes a net charge of $243 million related to impairment of SHP625 & SHP608. Impairment charges of $523 million are partially offset by the associated credits of $280 million relating to a change in the fair value of contingent consideration liabilities.
The quarterly earnings presentation will be available today at 13:00 BST / 08:00 EDT on:
- Shire.com Investors section
- Shire's IR Briefcase in the iTunes Store
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