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Shire Takes Forecast Higher

The outlook comes after the drug company swings to a profit.

British pharmaceutical company

Shire

(SHPGY)

swung to a profit in the third quarter and boosted its guidance for the year.

The company earned $87.2 million, or 17.3 cents per ordinary share, up from a loss of $630.7 million, or $1.26 a share, a year ago.

Last year's third quarter included acquisition and reorganization costs, including expenses related to the acquisition of Transkaryotic Therapies.

Revenue in the most recent quarter rose to $449.4 million from $376.1 million thanks to strong sales of Adderall, a treatment for attention deficit hyperactivity disorder.

Sales of the extended-release version of the drug, Adderall XR, were $207.6 million, up 25% from a year ago.

Shire said sales of its epilepsy drug Carbatrol grew 27% to $20.4 million, and revenue from the blood drug Fosrenol climbed 26% to $12.2 million.

Analysts surveyed by Thomson First Call were expecting total revenue of $437.4 million.

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Looking ahead, Shire now expects revenue growth between 12% and 14% this year, up from its previous estimate of low double-digit growth.

However, the company believes earnings will be impacted by development and marketing costs during the remainder of 2006 and in the first half of 2007.

Shire's forecast excludes, among other expenses, a $50 million milestone payment to

New River Pharmaceuticals

(NRPH)

and a $25 million payment to

Barr Pharmaceuticals'

(BRL)

subsidiary Duramed.

"As 2007 approaches, we remain focused on implementing our strategy, and we are on track to deliver several more new products to market," said Shire CEO Matthew Emmens.