Shire reveals 13% third quarter growth despite generic competition

Ireland-headquartered drugmaker Shire (LSE: SHP) has announced results for the third quarter of 2013, beating forecasts and sending the stock up 9.3% to £27.60 in morning trading.

Product sales reached $1,195 million with a 13% growth, with eight products delivering double digit growth in the quarter – including Vynase (lisdexamfetamine dimesylate) which was up 21%. Non Generally Accepted Accounting Practice (GAAP) diluted earnings per share were $1.77 with US GAAP diluted earnings per share at $1.46.

Flemming Ornskov, chief executive, said:“This has been a strong quarter with good growth in revenues, earnings and cash generation. We’re demonstrating execution of our strategy, which is putting Shire on a path of sustainable growth. Our focus on commercial excellence is improving product sales and we’re excited about the opportunities in our pipeline. We're confident in our prospects for the longer term as we continue to execute on commercial delivery, progress our prioritized pipeline and focus on targeted M&A. The benefits of our ‘One Shire’ reorganization are already evident in our year to date performance, we have a simpler, more efficient business and now expect Non GAAP R&D and SG&A spend to be lower than current consensus expectations for this year and in 2014 and 2015.”