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New Chief Executive Reports Q1 Results And Sets Out Strategy For Growth

Stocks in this article: SHPSHPG

DUBLIN, May 2, 2013 /PRNewswire/ --

Shire delivers 10% increase in Non GAAP earnings; full year EPS guidance in line with consensus (1)

Shire (LSE: SHP, NASDAQ: SHPG) announces results for the three months to March 31, 2013.

                                                                     Reported
    Financial Highlights                                  Q1 2013    Growth(2)
                                                              $1,117
    Product sales                                            million    +1%(3)
                                                              $1,162
    Total revenues                                           million    -1%(3)

    Non GAAP operating income                           $393 million    +9%(3)
    US GAAP operating income                            $129 million   -56%(4)

    Non GAAP diluted earnings per ADS                          $1.63   +10%(3)
    US GAAP diluted earnings per ADS                           $0.35   -72%(3)

    Non GAAP cash generation                            $257 million   -17%(3)
    Non GAAP free cash flow                             $113 million   -54%(3)
    US GAAP net cash provided by operating
    activities                                          $160 million   -38%(3)

(1)    See page 4 for assumptions.

(2)    Percentages compare to equivalent 2012 period.

(3)    Percentage growth on a Constant Exchange Rate ("CER") basis is in line with the reported growth for the quarter.

(4)    US GAAP operating income includes the impact of goodwill impairment, see page 11 for details.

The Non GAAP financial measures included within this release are explained on page 21, and are reconciled to the most directly comparable financial measures prepared in accordance with US GAAP on pages 18 - 20.

Flemming Ornskov, M.D., Chief Executive Officer, commented:

"In Q1 2013 we experienced continued strong performance from VYVANSE, INTUNIV, LIALDA, VPRIV and FIRAZYR offset by the challenge of lower sales of DERMAGRAFT and REPLAGAL which we are actively managing. We generated $257 million of cash during the quarter and delivered 10% Non GAAP earnings growth while investing in our R&D pipeline.  

Shire has consistently delivered growth significantly above the industry levels of mid single digit and we intend that this will be the case in the future. As we look forward to the remainder of the year, we continue to expect to deliver earnings growth in line with current consensus earnings expectations for 2013 (1).

On becoming Shire Chief Executive Officer, I am pleased to confirm the direction we will take, in order to continue to deliver significantly above industry average growth. We intend to continue to be a high-growth innovation business providing differentiated specialist medicines in areas of high unmet need for patients treated by specialist physicians. Shire's strategic priorities are to grow sales of our existing portfolio and to bring new innovative treatments to market through both R&D and Business Development.

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