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Last Update: 01-Aug-12 09:19 ET
Shire shares spike 7% following beat on earnings
Shire plc (SHPG $92.31 +6.13) reported second quarter non-GAAP EPADS of $1.68 versus the $1.52 consensus; rev +14% to $1.2 bln vs. the $1.19 bln consensus. "We have made a strong start to the year and Shire is on track to deliver double digit full year earnings growth in 2012 (consensus +24%), while continuing to invest in our business to support sustained future growth from the significant market opportunities that we have identified. For the full year we now expect product sales growth to be in the low teens. This reflects the fact that foreign exchange movements are impacting the reported growth of some of our products, but also our expectation that ADDERALL XR will remain competitive in the US market following the approval of a generic competitor. Full year royalties and other revenues are now expected to be 25% to 35% lower year on year, a change from previous guidance as a result of lower royalties from Impax Laboratories Inc. Taken together, we expect that total revenues will still show double digit growth in 2012 (consensus +10.6%). We still anticipate marginal dilution of Non GAAP gross margins in the full year. We will continue to invest in the longer term growth prospects of the business but we are reducing the 2012 rate of year on year growth of combined Non GAAP R&D and SG&A expenditure to between 10% and 12%."
