Shire Delivers Record Quarterly Revenues

Shire has announced unaudited results for the 3 months to 30 September 2014.

Financial Highlights Q3 2014 Growth(1)

Product sales $1,552 million +33%(2)
Total revenues $1,597 million +32%
    
Non GAAP operating income $717 million +60%
US GAAP operating income from continuing operations $572 million +49%
    
Non GAAP EBITDA margin
(excluding royalties & other revenues)(3) 46% n/a
US GAAP net income margin(4) 30% n/a
    
Non GAAP diluted earnings per ADS $2.93 +60%
US GAAP diluted earnings per ADS $2.43 +66%
    
Non GAAP cash generation $612 million +27%
Non GAAP free cash flow $575 million +48%
US GAAP net cash provided by operating activities $593 million +37% 

(1) Percentages compare to equivalent 2013 period. The 2013 comparatives in this release have been recast to exclude the DERMAGRAFT® business from continuing operations following its divestment on January 17, 2014.

(2) Product sales from continuing operations, including ViroPharma Incorporated (“ViroPharma”) acquired January 24, 2014, and excluding the DERMAGRAFT business. Product sales excluding products acquired with ViroPharma were up 19% in Q3 2014.

(3) Non GAAP earnings before interest, tax, depreciation and amortization (“EBITDA”) as a percentage of product sales, excluding royalties and other revenues.

(4) US GAAP net income as a percentage of total revenues.

The Non GAAP financial measures included within this release are explained on page 27, and are reconciled to the most directly comparable financial measures prepared in accordance with US GAAP on pages 20 - 25 of the full release.

Susan Kilsby, Shire's Chairman, commented: “Shire is well-positioned for future growth as we implement our plan to double product sales to $10 billion by 2020. I am confident that Shire, as an independent company, will deliver long-term value to our shareholders and improved outcomes for patients. On behalf of the Board of Directors, I would like to thank the Shire management team and employees for the achievement of outstanding financial results during the third quarter.”

Flemming Ornskov, M.D., Shire’s Chief Executive Officer, commented: “Our third quarter results demonstrate our exceptional track record of delivering value and growth.  We continue to implement our clear and focused strategy, as we:

• Generated record quarterly product sales of $1,552 million, growing at 33%
• Grew Non GAAP diluted earnings per ADS by 60%, and
• Delivered Non GAAP cash generation of over $600 million.
These results are a testament to our ability to drive top line growth and our continued emphasis on operational discipline.

"We have seen strong sales performance across our portfolio with all of our top ten products delivering double digit growth in the quarter. Rare Diseases, our largest business unit, grew by 66%, aided by our acquisition of ViroPharma. In our Hereditary Angioedema portfolio, CINRYZE performed strongly with quarterly sales of $145 million and FIRAZYR was up 57%.

"Our Neuroscience and Gastrointestinal business units also contributed to the record quarter with VYVANSE sales up 19% and LIALDA up 24%.

"We continue to build our international presence and our expansion into the Japanese market with the approval of VPRIV and AGRYLIN.

"Our strong momentum and performance this quarter is evidence of our ability to deliver growth, efficiency and innovation through our commitment to addressing significant unmet need in Rare Diseases and high-value specialty conditions.  As a result, I am pleased to once again increase our guidance for 2014.  We now expect to deliver Non GAAP diluted earnings per ADS growth in the high thirty percent range in 2014.”