Shire plc (ADR) (NASDAQ:SHPGY)

Overall a great company

Good looking chart with a catalyst,Firazyr, on the near term horizon.

Investors.com 99 Composite Rating

Going to be bought by a large company

watch

As Genzyme continues to suffer with FDA and EU concerns, Shire is swooping in and displacing a captive market. This company is amping up a significant manufacturing base and jumping at the opportunity to gill Genzyme's market.

If they get the nod from FDA, this stock will take-off. With GENZ dealing with manufacturing issues, SHPGY can take on some market share with their new drug in the same category.

This stock should out perform in the next few months due the shut down and production stop forced by the FDA on Genezyme and Shire is the only other manufacture that is getting back flow to fill orders.

Still looks overpriced. Trying to get patients to switch to Vyvanse will be difficult with generic Adderall available.

Speciality

Possible buyout by PFE

A rise in Vyvanse market share will drive the value up. Potential takeover.

Vyvanse, their new drug for ADHD, will likely get an Adult indication from the FDA within 4-6 months, and its 12 hour duration on one pill a day is a real improvement in this area

New longer lasting ADD/ADHD drug (Vyvanse) with FDA approval entering the market. While Adderall may be generic soon, Vyvanse is a once per day dosing as apposed to typically twice per day with Adderall XR.

Also, Shire's HGT (Human Genetic Therapy) division is the exclusive supplier of therapies for some genetic conditions (such as Hunter's Syndrome). Pipeline seems to be undervalued as well.

more than fair value. will normalize soon.

Shire is set to lose the bulk of its Adderall XR sales when generic competitors enter the market by early 2009. In 2006, the drug accounted for roughly 45% of Shire's total sales. Also, the firm's royalty income is expected to decline over the next couple of years.

Easy double on massive near-term growth. Market is slow to catch on, and this stock is grossly undervalued.

Leader in the neurostimulant market. If this prodrug lives up to expectations, it will lead the market in sales.

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.