Drugmaker Shire reports 19% rise in 3d-quarter revenue

Posted: October 28, 2006

Shire P.L.C. yesterday reported a 19 percent rise in third-quarter revenue as it continues to expand its share of the U.S. market for attention deficit hyperactivity disorder medicines.

The British drugmaker, which has major operations in Wayne, makes the world's best-selling ADHD drug, Adderall XR. Shire said its total share of the U.S. ADHD market rose to 29 percent from 26 percent at the end of June.

For its third quarter that ended Sept. 30, Shire posted net income of $87.2 million, or 17 cents a share, compared with a loss of $630.7 million, or $1.26, in the same quarter last year. Revenue rose to $449.4 million from $376.1 million a year ago, as Shire introduced products such as the attention-deficit patch Daytrana.

Shire lost nearly $631 million in the year-earlier quarter after writing off research and development related to its $1.6 billion acquisition last year of Transkaryotic Therapies Inc., of Cambridge, Mass.

"It's been an excellent quarter across all areas of our business," said Wayne-based chief executive officer Matthew Emmens.

The company is now projecting 2006 revenue growth of between 12 and 14 percent, up from earlier predictions in the "low double-digit range." Shire employs about 600 people in the Chesterbrook Corporate Center.

Adderall XR sales rose 25 percent, to $207.6 million from $165.9 million in the same quarter a year ago. Adderall XR accounts for half of Shire's product revenues. Combining Adderall XR and Daytrana sales, Shire said its share of the U.S. ADHD market was 29 percent.

Shire reported revenue in the third quarter from three new products: Daytrana, the ADHD patch, with $9.9 million in sales; Elaprase for the rare Hunter syndrome, with sales of $4.3 million; and Replagal, a therapy for a rare genetic disorder called Fabry disease, with $32.4 million in sales.

Shire and partner New River Pharmaceuticals Inc. are planning to launch an ADHD drug, known by FDA number NRP104, in the second quarter of 2007.

Shire and New River said NRP104 delivers the same kind of stimulant as the most popular hyperactivity drugs, but through a process in which the medicine can be activated only by a stomach enzyme. The drug is designed to be more difficult to abuse.

American depositary shares of Shire closed down 31 cents at $54.04 yesterday on the Nasdaq.

Contact staff writer Linda Loyd at 215-854-2831 or lloyd@phillynews.com.

Company (Symbol) Exchange

Shire P.L.C (SHPGY) NASD

3 qtr. '06 3 qtr. '05 Pct.

end 9/30 end 9/30 chg.

Revenue (millions) $449.4 $376.1 +19

Net income (millions) $87.2 $630.7 N.C.

Per share $0.17 $1.26 N.C.

9 mo '06 9 mo '05 Pct.

Revenue (millions) $1,299.5 $1,134.4 +15

Net income (millions) $209.6 $505.4 N.C.

Per share $0.41 $1.01 N.C.

N.C. = not calculable

The pharmaceutical company, which has North American headquarters in Wayne, posted a third-quarter profit because one-time acquisition costs in the 2005 third quarter were not repeated.

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