Shire posts strong first quarter results

Shire Pharmaceuticals has turned in a strong performance for the first quarter of 2004. The company, a global pharmaceutical company focusing in the areas of central nervous system, gastrointestinal, and renal diseases, saw revenues up 7% to $326.3m, compared with Q1 2003.

Despite increased competition within the Attention Deficit Hyperactivity Disorder (ADHD) market, Shire's Adderall XR continues to maintain 23% of the total US ADHD market, while sales increased by 21% to $139.5m.

Royalties were up 18% to $56.1 million, and cash flows from operating activities totalled $130.9m, resulting in a net cash position of $1,157.4m. The company also expects the first European launches of Fosrenol, its drug to treat hyperphosphataemia, by the end of 2004. Worldwide patents rights were acquired, with an option for Japan, from AnorMED Inc.

Shire has also signed an agreement to sell the assets of its vaccines business to ID Biomedical Corporation, hence reducing the risk profile of the group; focusing r&d resources on later stage projects; and re-allocating funds to the company's core therapeutic projects. Shire says it has currently six projects in registration, two projects in Phase III and two projects in Phase II, and expects revenue growth to be in the high single digit range, despite the loss of exclusivity on Proamatine, its treatment for symptomatic orthostatic hypotension, in Q3 2003, and the anticipated loss of exclusivity on Agrylin, a treatment for myeloproliferative disorders, in the US in Q4 2004.

In respect of Shire's continuing operations, the company remains committed to 'our stated aim of achieving earnings growth, on average, in the mid-teens range and maintaining consistent operating margins.'

Matthew Emmens, Shire's chief executive officer, commented: 'Shire's solid first quarter performance shows that the company continues to deliver robust sales from its underlying portfolio. The recent announcement of our first European approval for Fosrenol is an important milestone for Shire and with seven further promising projects in registration or in late stage of development, we look forward to the ongoing successful progress of our pipeline.

'In July 2003, we announced that we would re-focus our business activities by implementing a new strategy. Since then, we have advanced our pipeline considerably and consolidated ownership of our portfolio by both acquiring the patents rights for Fosrenol and by buying back the UK commercialisation rights for Reminyl. We have also taken active steps to improve operating efficiency and create a unified culture by integrating our development and commercial activities. Continuing our increased focus and reduced risk profile, we announced our intention to sell our vaccines business to ID Biomedical Corporation.

'We remain committed to achieving our target of earnings growth, on average, in the mid-teens range and maintaining consistent operating margins beyond 2004.'