Shire's second-quarter earnings beat analysts' forecasts

Ireland-based drugmaker Shire (LSE: SHP) reported a 6% to $1.275 billion increase in total revenues for the second quarter of 2013, with product sales up 7% to $1.23 billion on a reported basis for the period, with the news pushing its shares 6.3% higher to £23.56 in mid-afternoon trading on July 25.

Non-Generally Accepted Accounting Principles (GAAP) operating income rose 8% to $452 million reflecting strong operating leverage in the second quarter 2013 and year to date, with US GAAP operating income up 13% to $342 million, and respective diluted earnings per share of $1.79 (+6%), beating analysts’ predictions of  $1.64. and $1.36 (+10%).

Flemming Ornskov, chief executive, commented: “We are pleased with our Q2 results, have made good progress and have returned to higher growth. We’re successfully executing our strategy, which is to grow by focusing on innovation-driven specialty products through both R&D and M&A. We've sharpened our focus on commercial excellence and we're enhancing our pipeline productivity. Our late Phase III projects lifitegrast and LDX for BED are progressing well and are programs in which we have increasing confidence. Our strategy has been designed to deliver further enhanced growth. We anticipate delivering full year double digit Non GAAP earnings growth in 2013 and are confident in our ability to grow operating margins going forward.”