Shire annual revenue rises by a third, cost pressures seen in 2018
Source - SMW
Pharmaceuticals group Shire said revenue jumped by about a third in 2017, buoyed by a large contribution from its immunology division.
Revenue rose by 33% to $15.2bn, while net income increased more than ten-fold to $4.27bn.
The company's adjusted earnings per share, its preferred profit measure, grew by 16% to $15.15, also assisted by it hitting cost-reduction targets ahead of schedule.
Shire forecast adjusted earnings per share to be lower than revenue growth in 2018, mainly due to costs incurred from the start-up of a new US plasma manufacturing site, intensifying genericization, and lower royalties.
'With the already disclosed manufacturing and SG&A cost reduction initiatives, we are on track to achieve mid-forties Non GAAP EBITDA margin by 2020,' the company said.
The company also reaffirmed its 2020 revenue target of $17bn-to-$18bn.
'Of particular note are the strong performance of our immunology franchise and the significant contribution from recently launched products, as well as growth in international markets,' chief executive Flemming Ornskov said.
"2018 is a year of continued focus on commercial execution and targeted investment in our manufacturing infrastructure, new product launches, and pipeline to drive future growth.
'We expect to deliver mid-single digit product sales growth in 2018 after absorbing the anticipated impact of generics.'
At 1:13pm: (LON:SHP) Shire PLC share price was -35.25p at 3145.75p