Shire outstrips hopes

Shire, the British drugmaker buying Belgium's Movetis , beat second-quarter expectations as its rare disease franchise capitalised on production troubles at United States rival Genzyme.
By The Newsroom
Published 5th Aug 2010, 11:12 BST
Updated 5th Aug 2010, 11:12 BST

The strong performance prompted the company to increase its full-year forecast. Chief executive Angus Russell said he now expected underlying 2010 earnings to grow 15 percent from 2009.

Shire's drugs for hyperactivity also performed better than expected, as sales of Vyvanse gathered pace, offsetting pressure on former blockbuster Adderall XR from generic competition.

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Product sales were up thirty-seven per cent at $764m (510m).

Shire has agreed to buy Movetis for 428m euros (355.3m), including its 100m euro cash pile, bolstering its gastrointestinal business, the smallest of its three major franchises.

Shire has been quick to take advantage of Genzyme's problems, with its Fabry disease drug Replagal taking share from Genzyme's Fabrazyme, and its Gaucher medicine Vpriv replacing Cerezyme.

Difficulties at the US company have left it vulnerable to a takeover approach from French company Sanofi-Aventis, which sources say has tabled a takeover proposal valued at about $18.4bn (12.3bn).

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