After Strong Results In 2013, Shire Looks Forward To Further Growth In 2014
Shire released its 2013 financial results today boasting of double digit product sales growth and 23% increase in its Non GAAP earnings per ADS. The company is looking forward to similar growth this year. “Shire has delivered excellent financial results in 2013 and now has the foundations in place for further future growth. Our sharpened strategic focus and strong operational discipline have enabled us to deliver double digit product sales growth and non GAAP earnings per ADS growth in excess of 20%,” said Shire CEO Flemming Ornskov, M.D. “We’ve generated strong cash flows during the year, which have helped us to strengthen our balance sheet.”
The company reported a 12% increase in its product sales at $4,757 million for the full year 2013. Total revenues were up 9% at $4,934 million. US GAAP operating income skyrocketed to 66% at $41,734 million, while non GAAP operating income also rose 23% at $1,860 million.
CEO Ornkov said Shire’s restructuring into One Shire resulted in tighter cost management and drove improved margins. The company also highlighted its acquisitions and divestments. “We’re particularly excited to have closed the acquisition of ViroPharma and to be progressing well with the integration of this business, which will drive further growth in our Rare Diseases business. We’ve prioritized our investments, including executing the recent divestment of DERMAGRAFT, and have a promising pipeline of innovative products. We expect further news flow from our pipeline in 2014 from mid and late stage clinical studies.”
The report outlined several highlights in its outlook for 2014:
- Non GAAP earnings per ADS in 2014 are expected to grow at a similar level to 2013 (2013: up 23%). This growth in 2014 benefits from ViroPharma’s earnings, with estimated accretion of approximately 7% for the eleven months post closing.
- Mid-to-high teens product sales growth in 2014 are anticipated, including ViroPharma’s product sales.
- Royalties and other revenues are expected to be 10-15% lower than 2013.
With the completion of the ViroPharma acquisition, the company said it is well positioned for further growth in 2014 after its strong performance last year.