Shire to separate ADHD drugs before possible spin-off, cuts 2020 target
London-listed pharmaceutical group Shire said on Monday it would create two distinct business units for its rare disease and hyperactivity medicines before deciding later this year whether to spin off the latter into a separately listed group.
The company also said its total revenue would reach $17-18 billion a year by 2020, a downgrade of its previous ambition of achieving $20 billion in revenue by that date, a forecast made two years ago when it acquired Baxalta.
Shire said that following a review it had decided its neuroscience business, which makes the attention deficit hyperactivity disorder (ADHD) blockbuster Vyvanse, warranted additional focus and investment.
“Shire has undergone a significant transformation over the last five years creating two market-leading businesses with distinct profiles and future needs,” chief executive Flemming Ornskov said.
“Our new Rare Disease and Neuroscience Divisions will be well positioned for growth, profitability, innovation, and serving the needs of patients.”
The company said it would continue to evaluate the merits of an independent listing for each of the two divisions, and would update the market in the second half of 2018.
Shire said in August it was considering spinning off its hyperactivity drugs into a standalone group that analysts said could be worth as much as $8.5 billion.
Shares in the group fell more than 4 percent in London after the business update. They were trading down 4.3 percent at 37.08 pounds at 1504 GMT.
(Reporting by Paul Sandle; editing by Kate Holton and Adrian Croft)