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.
|01Mar17 17:20||PRN||Total Voting Rights - Amendment|
|01Mar17 12:00||PRN||Total Voting Rights|
|01Mar17 09:00||PRN||Director/PDMR Shareholding|
|24Feb17 14:30||PRN||Elections for the interim dividend|
|24Feb17 10:00||PRN||Director/PDMR Shareholding|
|21Feb17 14:33||PRN||Director/PDMR Shareholding|
|17Feb17 12:00||PRN||Director/PDMR Shareholding|
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.
Consistently strong growth at a sensible price
24 Feb 17
In “Alice in Wonderland”, Lewis Carroll tells the story of a girl, who falls through a rabbit hole into a world populated by peculiar, anthropomorphic creatures. Here, Alice crosses swords with the Queen of Hearts, meets the Cheshire Cat and is invited to the "Mad Hatters” tea party, which she subsequently discovers is “stupid”.
Hardman & Co Monthly: March 2017
01 Mar 17
Most major pharmaceutical companies have reported results for 2016 during the last few weeks, providing the opportunity to update our industry statistics. For an industry that requires a long investment cycle, decisions made many years ago have consequences on current financial performance. Being able to look at performance over 20 years highlights how strategic decisions have panned out.
£21m equity raise to accelerate growth
22 Feb 17
Blindly following what others do is often a recipe for disaster. However, when an army of ‘super smart’ fund managers snap-up a big holding in a rapidly expanding small-cap that owns ‘disruptive’ technology addressing multi-$billion markets, then it is usually worth taking note. This is exactly what has happened at Kromek, a next generation radiation detection firm. Having just successfully completed its oversubscribed £20m placing and £1m open offer at 20p/share - supported by esteemed investors such as Gervais Williams at Miton (largest shareholder at 19.0%) and Katie Potts (Herald 5.35%), as well as several others such as Schroders (5.0%) and Killik (4.1%).
Interim results – adhering to international growth strategy
23 Feb 17
Interim results showed a strong performance for Tristel, 6% ahead of its AGM statement on 12 December at which it indicated adjusted pre-tax profits to be no less than £1.6m. Revenues increased by 22% (16% at constant exchange rates – CER or 12% CER excluding the impact of the Australian acquisition) and adjusted pre-tax profits were up 15% to £1.71m. Despite the strong half, we leave our full-year forecasts unchanged, given FX uncertainty and a one-off stocking order in H1 from the NHS, although at current FX rates the risk to our forecasts is considered to be to the upside. However, we raise our target price by 10% to 165p to reflect the solid progress as well as rolling forward our multiples to calendar-adjusted 2017.
N+1 Singer - Anpario - Feed for growth
24 Feb 17
Anpario’s natural animal feed additive product offering is well placed to benefit from the increasing demand for animal protein and tightening regulations around antibiotic use as growth promoters. The group is in a transition phase, building strong commercial relationships with end users, which we believe should benefit the margin. Anpario’s geographical diversity is a key positive and with a strong balance sheet there is potential for acquisitive as well as organic growth. We initiate coverage with a 354p Target Price and a Buy recommendation ahead of FY results on 8th March.
N+1 Singer - Morning Song 23-02-2017
23 Feb 17
Genus (GNS LN) Interim results: R&D step-up, disappointing ABS performance | Howden Joinery Group (HWDN LN) Prelims and net cash better than expected but conditions weaken | Oxford Pharmascience Group (OXP LN) Encouraging interim OXPzero™ Ibuprofen exploratory PK data | StatPro Group (SOG LN) Increased majority shareholding in Infovest Consulting | Wilmington Group (WIL LN) Interims slightly ahead, move to focus on 3 verticals