Shire's fourth-quarter sales more than double, lifted by Baxalta

Shire's fourth-quarter revenue more than doubled year-over-year to $3.8 billion, in line with analyst estimates, boosted by the purchase of Baxalta, the company reported Thursday. Net income in the three-month period jumped 63 percent to $457 million. 

In the quarter, product sales climbed by 123 percent year-over-year to $3.6 billion, including $1.8 billion in legacy Baxalta revenue. For 2016, sales surged 78 percent to $11.4 billion, benefiting from the acquisition of Dyax, while net income slipped 75 percent to $327 million. 

Shire indicated that product sales for the full year excluding legacy Baxalta products improved by 15 percent, with all legacy Shire products generating double-digit sales growth. Additionally, revenue from royalties and other sources climbed 61 percent to $511 million, fuelled primarily by contract manufacturing activities related to the Baxalta acquisition.

Shire noted that revenue from the dry-eye disease therapy Xiidra, which was cleared by the FDA in July last year, totalled $54 million for the year. The drugmaker said the drug captured 19 percent of the US market for the indication in the four months after its launch in August. 

CEO Flemming Ornskov remarked "2016 was a transformational year for Shire as we became the world leader in rare diseases." The executive added "with multiple product launches planned in 2017, we remain focused on execution and expect to generate strong top and bottom-line growth." 

For the current year, Shire indicated that sales are expected to be between $14.5 billion and $14.8 billion, with earnings per share in the range of $14.60 to $15.20. Analysts predict earnings of $15.22 per share.