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Oct. 28 (Bloomberg) -- Shire Plc’s third-quarter profit rose 10 percent, helped by increased sales of attention-deficit drug Adderall XR, its successor pill Vyvanse and longer-than- expected manufacturing delays at rival Sanofi’s Genzyme unit.
Earnings excluding some items was $1.28 per American depositary receipt, up from $1.16 a year earlier, the Dublin- based company said today in a statement. That missed the $1.29 average estimate of 13 analysts surveyed by Bloomberg.
Shire has been benefiting from a delay in Genzyme’s return to normal production levels after contamination at a Genzyme plant in 2009 cut supplies of drugs that compete with Shire’s Replagal and Vpriv. The shortage, along with an expanding market for Adderall and Vyvanse, led Shire to raise its full-year forecast in July. The company is awaiting regulatory approval to expand capacity for Vpriv and Replagal.
“There might be some concern that Vpriv and Replagal have reached a bottleneck,” Peter Welford, an analyst at Jefferies International Ltd. in London, said in a phone interview. “Perhaps people are a little disappointed that they’re not able to fully capitalize on Genzyme’s shortages. Other than that, the results were pretty solid.” Welford has a “hold” rating on Shire shares.
Shire fell 0.6 percent to close at 1,962 pence in London. The stock has returned 28 percent this year.
Sales increased 20 percent to $1.09 billion from $874.3 million, compared with the average analyst estimate of $1.05 billion. Adderall XR sales advanced 50 percent to $149.9 billion, beating the $116 million average analyst estimate. Revenue from Vyvanse rose 32 percent to $199.7 million, exceeding the average analyst estimate of $197 million.
Vpriv sales climbed 31 percent to $64.6 million, while Replagal gained 40 percent to $129 million.
Shire supplies about 20 percent of the market for Vpriv and is awaiting inspection of the new manufacturing facility in Boston before an expected regulatory approval in the first quarter of next year, Chief Executive Officer Angus Russell said on a conference call with reporters.
“Technically, we’re in a position to supply Vpriv and Replagal to the entire market,” Russell said. “I say ‘technically’ because in reality, these products have a few months’ lead time. We have to build up inventory over several months. It’s very much a fluid situation.”
--Editors: Kristen Hallam, Tom Lavell
-0- Oct/28/2011 12:39 GMT
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