Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on SHIRE PLC. We currently have 12 research reports from 3 professional analysts.
|28Mar17 15:45||PRN||Director/PDMR Shareholding|
|23Mar17 12:00||PRN||2016 Annual Report - DTR 6.3.5 Disclosure|
|13Mar17 16:00||PRN||Director/PDMR Shareholding|
|10Mar17 12:00||PRN||Elections for the interim dividend|
|03Mar17 12:00||PRN||Director/PDMR Shareholding|
|02Mar17 07:00||PRN||Director/PDMR Shareholding|
|01Mar17 17:20||PRN||Total Voting Rights - Amendment|
Frequency of research reports
Research reports on
Shire, The Drugs Are Working… Buy
16 Feb 17
Shire PLC (SHP.L) reported strong Q4-16 results today, with growth across all therapeutic areas contributing towards double digit underlying earnings growth, strong cash generation and a very positive 2017 outlook statement. Two key business areas, those of Genetic Diseases & Internal Medicines grew by 14% and 17% respectively, ahead of management’s expectations. Trading on only 11.6x FY-17 EV/EBITDA, this company is undervalued we believe. Putting it on the multiple it deserves, around 14x, we arrive at our target price of 6200p and thus reiterate our Buy recommendation.
Haemophilia fears mask Baxalta integration and strong initial uptake of Xiidra
07 Nov 16
Weakness in the haematology business, arising from the phasing of some large orders, largely dominated the otherwise strong Q3 results of Shire. Total product sales more than doubled to $3.3bn, due to the Baxalta contribution, with the legacy Shire pulling off 13% growth but Baxalta’s heritage business declining by 1% on a pro forma basis. All top-line growth numbers are at CER unless specified otherwise. Business-wise, haematology was down 6% (pro forma), genetic diseases up 6%, neuroscience up 16%, immunology up 5% and internal medicines up 16%. These numbers were below consensus estimates but we see no reason to worry and expect some of the loss due to tender timing to be reversed in the next quarter. The loss totalled 5% in haematology and 6% in biotherapeutics (within immunology). Royalties and other income added another $137m to bring the sales total to $3.4bn. Margins, as expected, showed the full consolidation impact of the lower-margin Baxalta contribution and the high-powered investments behind the Xiidra launch. Additional investments are now likely to go into the launch of Cuvitru. These, we believe, are reflected in the lower guidance for (US-GAAP) net loss per ADS (from 0-40 cents loss to $0.7- $1.10 in 2016). Guidance has been maintained for product sales of $10.8-11bn, other income of $490-530m, the non-GAAP gross margin of 77-79% (vs above 85% historically), non-GAAP net interest expense of $400-500m and a non-GAAP diluted EPS at the higher end of $12.7-13.1 per ADS.
Strong results, accretion/synergy targets upped
17 Aug 16
The consolidated results of Shire and Baxalta exceeded both the Street and our expectations. Total revenue staged a growth of 56% to $2.4bn, o/w 19% ($1.8bn) came from Shire’s standalone portfolio and the remaining from Baxalta’s one month contribution (c.$559m). Growth was seen across Vyvanse (+22%), Cinryze (+25%), Firazyr (+31%), Adderall XR (+18%), Lialda (+23%), Pentasa (+10%), Gattex/Revestive (+19%), and Natpara. Royalties and other revenue also improved 30% yoy, mainly benefiting from $21m of Baxalta’s contract manufacturing revenue. Forex had a negative impact of 1%. Profitability, however, was negatively impacted by higher integration/acquisition costs, Xiidra’s launch costs, amortisation of inventory and acquired intangibles and provision for legal settlements related to the divested Dermagraft business, all culminating into a loss of $162m at the net level. The outlook for FY16 has been revised upwards, due to Baxalta’s numbers, with product sales guidance of $10.8-11bn. The target for synergies from the integration has also been revised upwards from $500m to $700m by 2019. The 2020 sales target of $20bn has been reiterated; however, we estimate ~$18bn in our model. In effect, the EPS accretion target has been revised upwards from mid-to-high single-digits to double-digits.
Life Science Sector review
11 Jul 16
And then worst of all, you never get approval when you say you will. There is nothing that causes investor whiplash more than a sudden announcement of an unsuccessful clinical trial. Whether you are the onedrug wonder on AIM or the multi-drug portfolio NASDAQ darling, the market never takes too kindly to unsavoury news from the FDA on clinical results. But should investors lambast these two scenarios similarly based on poor trial results? The variables are endless but in this example the clear answer is no. Investors who invest in one-drug companies edging ever closer to FDA decision day do not have much cause for complaint as they are rolling the dice. But what of the company with many drug candidates in the clinic? Surely the usual knee-jerk reaction of a mass selloff is not rational when a company has a singular failure amongst a well-developed and advanced portfolio?
Another strong quarter
04 May 16
Shire reported another power-packed quarter, with product sales growth of 16% yoy (all sales growth numbers at CER, unless specified otherwise) to $1.6bn. Robust performance of Vyvanse (+23%), Lialda/Mezavant (+14%), Replagal (+12%), HAE portfolio (Firazyr: 40%; Cinryze: +11%) as well as drugs acquired from the NPS acquisition (Gattex/Revestive: sales of $52m; Natpara: sales of $16m), were slightly offset by Intuniv (-39%) and Pentasa (-19%). Higher royalties (+26%), on account of Sensipar (part of NPS acquisition), pushed up total revenue growth to 17% to $1.7bn; negative forex impact of 2ppts limited reported growth to 15%. Core operating income grew by 16% at CER (+17% in $) to $797m, despite higher R&D and marketing expenses associated with the Dyax acquisition and anticipated launch of Lifitegrast, respectively. However, reported net income was up only 2% to $419m, impacted by higher amortisation of acquired intangible assets, interest expense (due to increase in debt taken to fund the Dyax acquisition) and effective tax rate (due to one-off tax charges at the net level). Management maintained its FY 16 guidance of product sales growth of 13-17% (11-14% in $) and adjusted diluted EPS growth of 9-13% at CER (7-10% in $). As a reminder, this includes a contribution from the Dyax acquisition (completed on 22 January 2016), but excludes the proposed Baxalta, which is expected to be completed by early June 2016.
Strong Q4 but biotech and Baxalta angles continue to weigh
11 Mar 16
Shire reported a strong quarter with Vyvanse, HAE portfolio (Cinryze and Firazyr) and GI (Lialda, Gattex and Natpara) driving the 12% CER product revenue growth (all revenue growth numbers at CER unless specified) to $1.6bn, pretty much in line with our expectations. Total revenue was up 13% to $1.7bn during the quarter. For the full year, product sales grew by 9% to $6.1bn, with double-digit growth by Vyvanse (+21%), Lialda (+10%), Cinryze (+24%) and Firazyr (+25%); growth in the US was predominantly driven by volume. 65% growth in royalties and other revenue on the back of $114.5m from Sensipar (NPS acquisition) culminated into 11% growth in total revenue to $6.4bn. Negative fx, which primarily hits the lysosomal storage disease portfolio (Elaprase, Replagal and Vpriv) took away four percentage points of growth both during Q4 as well as the full year. Net profit ($1.3bn) was below our expectation due to higher-than-anticipated exceptionals, primarily associated with re-organisation and acquisition/integration costs. Not much update was given regarding the Baxalta acquisition (mainly on the tax status), while the Dyax acquisition has been completed and Lifitegrast has been re-submitted to the FDA. Management’s outlook for 2016 indicates product sales growth of 13-17% at CER, royalty sales growth of 5-10% and non-GAAP diluted earnings per ADS growth (including dilutive impact of Dyax acquisition) of 9-13%. The top-line guidance is below our previous estimate but so is the guidance on opex, meaning that it balances out at the net level. The cost-base should increase, due to the integration of NPS (which has lower margins currently with both Gattex and Natpara being relatively new) and Dyax (where the R&D cost is heavy). The combined R&D and SG&A are guided to increase by 12-14%. Forex is guided to dent both the top-line as well as bottom-line by 2-3% points.
Interim results lead to upgrades
27 Mar 17
Bioventix reported a strong set of interim results with revenues increasing by 32% (c.12-17% at constant exchange rates (CER)), driven largely by the continued roll-out of its customers’ Vitamin D assay products. This, in turn, led to a 41% increase in pre-tax profits and a 40% increase in adjusted EPS; which is reflective of the operational gearing of the business. We are upgrading our adjusted EPS to 78.7p (+5%) and, consequently, are raising our target price to 1750p. At this price level, the shares would trade on a 22.4x FY 2018 P/E and an EV/EBITDA of 17x. We await confirmation of Siemen’s high sensitivity troponin assay launch, expected in FY 2018.
27 Mar 17
Elecosoft* (ELCO): Steadily building profits (CORP) | Bioventix* (BVXP): Interim results lead to upgrades (CORP) | Hurricane Energy (HUR): Halifax discovery (BUY) | KBT Business Technology* (KBT): interims and contract win (CORP) | Independent Oil & Gas* (IOG): Licence updates (CORP)
28 Mar 17
ClearStar* (CLSU): Building a background for growth (CORP) | Sound Energy (SOU): TE-8 results (HOLD) | LiDCO* (LID): 2017 should be a transformative year (CORP) | Proteome Sciences* (PRM): FY 2016 in line. Moving towards breakeven (CORP) | Fulcrum (FCRM): Significant market potential, rising margins and a strong balance sheet (BUY) | Mortgage Advice Bureau (MAB1): Strong and growing intellectual property (BUY) | 7digital* (7DIG): Open offer result (CORP)
Small Cap Breakfast
28 Mar 17
Path Investments—Publication of prospectus from the Energy Investment Company. Raising £1.4m. Admission due on or around 30 March | Franchise Brands—Schedule 1 detailing £28m reverse takeover of Metro Rod. Admission expected 11 April | Alpha FX Group— Schedule 1 from the foreign exchange provider focused on managing exchange rate risk for UK corporates that trade internationally. Fundraise TBC. Admission expected 7 April. | K3 | Capital Group—Schedule 1 from the Group of business and company sales specialists across business transfer, business brokerage and corporate finance. Admission date and fundraise details TBC. | Integumen— Schedule 1 from the personal health company developing and commercialising technology and products for the human integumentary system. Raising £2.16m at 5p. Expected market cap £8.16m. Admission expected 5 April. Tufton | Oceanic Assets– Offer extended to 9 May to enable investors to complete further due diligence.
Sinclair Pharma - Aesthetically Positioned to Continue Double-Digit Growth
23 Mar 17
With an innovative and differentiated product portfolio of injectable devices addressing the fast-growing aesthetics market, Sinclair is best positioned to continue to achieve double-digit revenue growth in the medium term.