The year 2013 was strong for
). The company repositioned its business in 2013 undertaking a
realignment program with strategic focus on rare diseases and
greater operational discipline.
Shire recently updated its guidance for 2013 at the JP Morgan
Healthcare Conference. The company now expects to report earnings
at the upper end of the mid-to-high teens guidance range provided
earlier with the third quarter results.
In a bid to strengthen its portfolio of rare disease drugs,
Shire announced that it will acquire
) for approximately $50 per share or $4.2 billion in Nov
Shire remains confident, that if the potential acquisition
goes through, will augment both its top line and bottom line.
ViroPharma's lead drug Cinryze is approved in the U.S. for
routine prophylaxis against angioedema attacks in adolescent and
adults with hereditary angioedema (HAE). Cinryze
complements Shire's Firazyr which is indicated for the on-demand
treatment of acute HAE attacks. The potential acquisition is
expected to generate synergies over $150 million in 2015.
Meanwhile, Shire's expects data from various studies on its
key pipeline candidates in 2014 - attention deficit and
hyperactivity disorder (ADHD) drug Vyvanse for major depressive
disorder, data from dry eye disease candidate lifitegrast, label
expansion of Xagrid (essential thrombocythemia), data on ADHD
drug Intuniv among others.
With an aim to reduce overlap, Shire has merged its three
autonomous divisions into one. Shire has decided to pursue
development programs with a focus on rare diseases only. Hence,
it discontinued all other development programs. We believe
Shire's efforts to build a leaner organization with better focus
on rare diseases should lead to improved margins.
Shire carries a Zacks Rank #3 (Hold). Investors may consider
Questcor Pharmaceuticals Inc
), which carry a Zacks Rank #2 (Buy).
FOREST LABS A (FRX): Free Stock Analysis
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