Shire raises outlook after Q1 earnings beat

Reuters - UK Focus

LONDON, May 1 (Reuters) - Shire (LSE: SHP.L - news) , a pharmaceuticalgroup created by acquisition, soundly beat expectations with a38 percent rise in first-quarter earnings, underlining its ownappeal as a target in the latest wave of deal making in thesector.

Shire, which has franchises in drugs to treat hyperactivityand rare diseases, reported earnings per share-ADS of $2.36, itspreferred measure, on revenue of $1.35 billion, boosted bystrong sales across its portfolio.

The group raised its outlook for earnings growth this yearto mid-to-high 20 percent growth from its previous prediction ofsimilar growth to the 23 percent it recorded in 2013.

Allergan Inc (NYSE: AGN - news) , the botox maker, is preparing atakeover approach for Dublin-based Shire, Reuters reported onTuesday.

Shire, which has a market capitalization of $33 billion, haslong outpaced its big pharma rivals growing revenues andprofits. Its base in Dublin, which has a lower rate ofcorporation tax than many countries including the United States,adds to its appeal.

Analysts expected Shire to post revenue of $1.38 billion andnon-GAAP earnings per ADS of $2.22, according to a companycompiled poll of 19 brokers.

(Reporting by Paul Sandle; editing by Kate Holton)

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