The market has given Shire's new chief executive, Flemming Ornskov, a warm welcome, sending the shares up by nearly 60 per cent since he took over last April. That probably reflects relief that the group's growth story remains intact after a period of underperformance in 2012. Product sales grew by 12 per cent in 2013 - just as they did in 2012 - led by 19 per cent growth for Shire's blockbuster drug Vyvanse, which treats attention deficit hyperactivity disorder.
But news of more management changes dominated proceedings: chief financial officer Graham Hetherington will step down in March. That follows last month's announcement that chairman - and former chief executive - Matthew Emmens is preparing to leave in April.
The only black mark on the new chief's record is the post-period termination of clinical depression trials using Vyvanse. Mr Ornskov admitted the outcome was "disappointing" but the group will continue to expand Vyvanse's remit by testing the drug's efficacy in the treatment of binge eating disorder.
This, the sale of skin substitute business Dermagraft and the acquisition of ViroPharma prompted ambitious 2014 EPS guidance from management. Upgrades to earnings forecasts are expected, but analysts at Deutsche Bank currently predict 2014 adjusted pre-tax profits of $2.21bn, giving EPS of 300ȼ.
| SHIRE PHARMACEUTICALS (SHP) | ||||
|---|---|---|---|---|
| ORD PRICE: | 3,128p | MARKET VALUE: | £18bn | |
| TOUCH: | 3,127-3,129p | 12-MONTH HIGH: | 3,180p | LOW: 1,853p |
| DIVIDEND YIELD: | 0.4% | PE RATIO: | 43 | |
| NET ASSET VALUE: | 913ȼ* | NET CASH: | $2.23bn | |
| Year to 31 Dec | Turnover ($bn) | Pre-tax profit ($m) | Earnings per share (ȼ) | Dividend per share (ȼ) |
|---|---|---|---|---|
| 2009 | 3.01 | 643 | 93 | 11.40 |
| 2010 | 3.12 | 769 | 108 | 13.10 |
| 2011 | 4.26 | 1,090 | 157 | 15.10 |
| 2012 | 4.53 | 1,008 | 145 | 17.33 |
| 2013 | 4.93 | 1,694 | 257 | 19.93 |
| % change | +10 | +68 | -10 | +15 |
Ex-div: 5 Mar Payment: 8 Apr *Includes intangible assets of $2.94bn, or 500ȼ a share £1=$1.67 | ||||
