Shire sets out strategy for growth in 2013

Shire has released its quarter one results and outlined its strategy for growth.

The company has earned a ten per cent increase in non GAAP earnings, while growth has been delivered substantially higher than the mid-single digit industry levels.

It also stated that it intends to deliver earnings growth in line with its expectations for the year by evolving its business processes, including a flatter and more scalable structure of five commercially focussed business units.

Within the first quarter of 2013, the company added Lotus Tissue Repair, Premacure and SARcode Biosciences to its pipeline, with the final two providing the foundation to develop a potential new business unit in ophthalmology, where there are numerous unmnet patient needs.

Flemming Ornskov, chief executive officer of Shire, said: “In Q1 2013 we experienced continued strong performance from VYVANSE, INTUNIV, LIALDA, VPRIV and FIRAZYR offset by the challenge of lower sales of DERMAGRAFT and REPLAGAL which we are actively managing. We generated $257 million (£165 million) of cash during the quarter and delivered ten per cent Non GAAP earnings growth while investing in our R&D pipeline.”

After releasing the results, Mr Ornskov outlined the company’s strategy for the future, which will deliver a bigger focus on the two priorities of commercial excellence and pipeline innovation.

These two priorities will also be underpinned by a simplification of the business structure as a means of driving commercial excellence and pipelines innovation, with Shire launching an “in-line” marketed product and “pipeline” groups.

The pipeline group will prioritise its activities towards late stage development programs, with the pre-clinical development focus specifically targeting rare diseases.

“On becoming Shire Chief Executive Officer, I am pleased to confirm the direction we will take, in order to continue to deliver significantly above industry average growth.

“We intend to continue to be a high-growth innovation business providing differentiated specialist medicines in areas of high unmet need for patients treated by specialist physicians,” Mr Ornskov explained.

Posted by Ben Evans