Shire: strong 1st qtr, wary over new drug

UK-based drugmaker Shire has announced positive first-quarter 2008 results based on above-market growth of its attention-deficit hyperactivity disorder franchise, yet its guidance over key new ADHD drug Vyvanse (lisdexamfetamine dimesylate) has analysts confused.

The UK firm, which will move its tax headquarters to Ireland next month, reported a GAAP net income of $128.6 million, up 14% on the first quarter of 2007, giving profit of $0.23 per share. This was driven by high revenues, up 33% to $702.2 million, $632.0 million of which was from product sales, advancing 37% on the like period of the previous year. Over a third of that figure, $262.0 million, came from sales of the company's leading product Adderall XR (mixed amphetamine salts) for the treatment of ADHD.

The soon off patent drug will be replaced by Vyvanse, which achieved $54.4 million revenue in its debut quarter, a market share of 6.9%. However, despite reaffirming its full-year 2008 guidance for the product, the firm has recommended the lower end of the $350.0 million to $400.0 million range, leading Lehman Brothers' analysts to label the guidance "confusing at best."