Shire plc (ADR) (NASDAQ:SHPGY)
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A pharmaceutical company that focuses on meeting the needs of the specialist physician.
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A pharmaceutical company that focuses on meeting the needs of the specialist physician.
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Shire Pharmaceuticals Group plc operates as a specialty pharmaceutical company engaged in the research, development, manufacture, and distribution of pharmaceutical products concentrating the central nervous system, gastrointestinal, and human genetic therapies.
The company’s primary focus has always been to develop treatment of diseases for which medication is rare. Following this strategy, Shire continues to develop treatments for Attention Deficit Hyperactivity Disorder (ADHD). The potential of this market is enormous as the global market for ADHD is set to grow from $2.7 billion in 2005 to $3.3 billion by 2015. This is also a very important segment for the company as it contributed 64% to the top line of the company in FY 2005. Adderall XR drug for the treatment ADHD, the largest selling drug of the company, has shown healthy growth and with patent expiry in 2018, it is expected to be a blockbuster drug for the company in the coming years. Moreover, the company has two investigational drugs for the treatment of ADHD awaiting the approval of FDA. In addition, the company is also on the verge of launching its recently approved NRP104 for ADHD by the second quarter of 2007.
Shire is also devoted to the treatment for Inflammatory Bowel Disease (IBD). The gastrointestinal (GI) disorders market is one of the largest and most important in the pharmaceutical industry, generating revenues of over $16 billion in 2004. With the launch of Mesavance in 2007, Shire will be able to penetrate into this huge market. Furthermore, the company is also set to launch its newly approved drug, Elaprase, for the treatment of Hunter Syndrome in early 2007.
Outlook for 2007 looks very appealing for Shire as it is aiming to launch six new products in the next twelve months, the most important being NRP104. Consequently, it is believed that the launch of important drugs and their growing markets will drive the company in 2007.
Shire plc has grown into a niche biotechnology product company on the back of a mix of organic and inorganic growth. Over the years the company has done acquisitions whenever required to build up its ability, be it the TKT acquisition in 2005 or the New River Transaction that gave Shire access to Carrier wave technology in 2007.
The company also boasts of a strong in house research department, which is reflected by the 9 different molecules, which are in the various stages of trials and developments. The transformation from product pipeline to commercialization is also strong for the company with the likes of Adderal XR, Daytrana making deep inroads into the markets. Adderal XR, which brings in close to half of the revenue is the leading brand in the U.S Attention deficit and hypertension disorder market (ADHD), one of the areas, which the company focuses. The market share of the company here is close to 26 percent as on March 2007. The company, which derives its revenues mainly from product sales, saw a 21 percent growth in product sales along with a 5 percent U.S prescription growth.
The company has one of the strongest product pipeline in the industry is expected to see seven new releases over the next 30 months period Vyvnase the most prominent among them. Vyvnase has been classified as a scheduled II controlled substance by U.S Drug Enforcement Administration, the final step before the drug can be sold in the country.
Already the positive news is trickling in with the positive result of investigational medication gunafacine, intended to treat ADHD in children aged 6 to 17 from two phase III clinical studies. These factors indicate a steady growth for the company in the future.