99.01
|
Press Release dated October 24, 2013, reporting Shire plc’s financial results for the three month period ended September 30, 2013.
|
SHIRE PLC
|
|||
By:
|
/s/ T May
|
||
Name: |
Tatjana May
|
||
Title: |
General Counsel
|
EXHIBIT INDEX
|
|
Number
|
Description
|
99.01
|
Press release dated October 24, 2013
|
Press Release
|
![]() |
www.shire.com
|
Financial Highlights
|
Q3 2013
|
Growth(1)
|
Product sales
|
$1,195 million
|
+13%
|
Total revenues
|
$1,237 million
|
+12%
|
|
|
|
Non GAAP operating income
|
$422 million
|
+30%
|
US GAAP operating income
|
$341 million
|
+25%
|
|
|
|
Non GAAP diluted earnings per ADS
|
$1.77
|
+30%
|
US GAAP diluted earnings per ADS
|
$1.46
|
+23%
|
|
|
|
Non GAAP cash generation
|
$482 million
|
+36%
|
Non GAAP free cash flow
|
$388 million
|
+49%
|
US GAAP net cash provided by operating activities
|
$434 million
|
+50%
|
|
|
|
|
·
|
Product sales +13% – with eight of our products delivering double digit growth in the quarter – including VYVANSE® (+21%), LIALDA®/MEZAVANT® (+36%) and FIRAZYR® (+107%)
|
|
·
|
Non GAAP operating income +30% reflecting strong operating leverage
|
|
·
|
Non GAAP earnings per ADS +30%
|
|
·
|
Non GAAP cash generation +36%
|
|
·
|
Guidance increased to mid-to-high teens Non GAAP earnings growth for the full year in 2013
|
·
|
Focused on growth: excellence in commercial execution and investment in newly prioritized pipeline
|
·
|
‘One Shire’ reorganization well underway driving greater efficiencies and resetting cost base to deliver sustainable improved operating leverage
|
·
|
Revenue growth and effective cost management underpins increased guidance for 2013
|
|
|
Q3 2013
|
|
|
Q3 2012
|
|
||||||||
|
US GAAP
|
Adjustments
|
Non GAAP
|
|
US GAAP
|
Adjustments
|
Non GAAP
|
|
||||||
|
|
$M
|
|
$M
|
|
$M
|
|
|
$M
|
|
$M
|
|
$M
|
|
Total revenues
|
|
1,237
|
|
-
|
|
1,237
|
|
|
1,100
|
|
-
|
|
1,100
|
|
Operating income
|
|
341
|
|
81
|
|
422
|
|
|
273
|
|
52
|
|
325
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per ADS
|
|
$1.46
|
|
$0.31
|
|
$1.77
|
|
|
$1.19
|
|
$0.17
|
|
$1.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
·
|
Product sales in Q3 2013 grew strongly (up 13% to $1,195 million). On a Constant Exchange Rate (“CER”) basis, which is a Non GAAP measure, product sales were up 13%.
|
|
·
|
Total revenues were up 12% to $1,237 million (Q3 2012: $1,100 million) as the growth in product sales was partially offset by lower royalties.
|
|
·
|
On a Non GAAP basis:
|
|
·
|
Non GAAP diluted earnings per American Depository Share (“ADS”) increased 30% to $1.77 (Q3 2012: $1.36) primarily due to higher Non GAAP operating income.
|
|
·
|
Cash generation, a Non GAAP measure, increased by 36% to $482 million (Q3 2012: $355 million) due to both higher cash receipts from product sales and lower operating expense payments in Q3 2013 as compared to Q3 2012. Cash generation partially benefited from the timing of some receipts from large distributors in the US.
|
|
·
|
Net cash, which is a Non GAAP measure, was $577 million at September 30, 2013 (December 31, 2012: $373 million).
|
|
·
|
This program has been discontinued as part of the prioritization of Shire’s pipeline.
|
·
|
On October 22, 2013 Shire announced that it had decided to discontinue the construction of its new manufacturing facility in San Diego. Shire will continue to manufacture DERMAGRAFT in its existing facility in La Jolla, and Shire’s ability to meet expected future demand for DERMAGRAFT is not impacted by this decision. Shire is currently assessing possible disposal opportunities in relation to this facility.
|
·
|
In Q4 2012 Shire commenced a share buy-back program, for the purpose of returning funds to shareholders, of up to $500 million, through both direct purchases of Ordinary Shares and through the purchase of Ordinary Shares underlying American Depositary Receipts. As of October 22, 2013 Shire had made on-market repurchases totaling 9,807,835 Ordinary Shares at a cost of $299 million (excluding transaction costs).
|
·
|
On October 23, 2013 Shire announced that Dominic Blakemore will join the Shire Board of Directors effective January 1, 2014. On joining the Board, Dominic will become a member of the Shire Audit, Compliance & Risk Committee. Dominic’s career experience includes finance and strategy roles with global corporations. He is currently Group Finance Director of Compass Group plc.
|
|
Page
|
Overview of Third Quarter 2013 Financial Results
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6
|
Financial Information
|
10
|
Non GAAP Reconciliation
|
19
|
Notes to Editors
|
23
|
Safe Harbor Statement
|
24
|
Explanation of Non GAAP Measures
|
24
|
Trade Marks
|
25
|
Investor Relations
|
|
|
|
|
- Eric Rojas
|
erojas@shire.com
|
+1 781 482 0999
|
|
- Sarah Elton-Farr
|
seltonfarr@shire.com
|
+44 1256 894 157
|
Media
|
|
|
|
|
- Jessica Mann
|
jmann@shire.com
|
+44 1256 894 280
|
|
- Gwen Fisher
|
gfisher@shire.com
|
+1 484 595 9836
|
|
- Jessica Cotrone
|
jcotrone@shire.com
|
+1 781 482 9538
|
UK dial in:
|
0808 237 0030 or 0203 139 4830
|
US dial in:
|
1 866 928 7517 or 1 718 873 9077
|
International Access Numbers:
|
http://wpc.1726.planetstream.net/001726/FEL_Events_International_Access_List.pdf
|
Password/Conf ID:
|
71566006#
|
Live Webcast:
|
http://www.shire.com/shireplc/en/investors
|
1.
|
Product sales
|
|
|
|
|
|
Year on year growth
|
US Exit
Market
Share(1)
|
|||
Product sales
|
|
Sales $M
|
|
|
Sales
|
|
Non GAAP
CER
|
US Rx(1)
|
|
|
|
|
|
|
|
|
|
|
|
VYVANSE(2)
|
|
299.2
|
|
|
+21%
|
|
+21%
|
+7%
|
17%
|
LIALDA/MEZAVANT
|
|
141.9
|
|
|
+36%
|
|
+36%
|
+23%
|
27%
|
ELAPRASE
|
|
129.1
|
|
|
+17%
|
|
+17%
|
n/a(3)
|
n/a(3)
|
REPLAGAL
|
|
108.5
|
|
|
-11%
|
|
-10%
|
n/a(4)
|
n/a(4)
|
VPRIV
|
|
87.8
|
|
|
+17%
|
|
+17%
|
n/a(3)
|
n/a(3)
|
ADDERALL XR
|
|
81.4
|
|
|
-20%
|
|
-20%
|
-2%
|
5%
|
INTUNIV
|
|
80.8
|
|
|
+17%
|
|
+17%
|
+8%
|
4%
|
PENTASA®
|
|
70.6
|
|
|
+5%
|
|
+5%
|
+1%
|
14%
|
FIRAZYR
|
|
62.6
|
|
|
+107%
|
|
+106%
|
n/a(3)
|
n/a(3)
|
DERMAGRAFT
|
|
23.9
|
|
|
-29%
|
|
-29%
|
n/a(3)
|
n/a(3)
|
OTHER
|
|
109.1
|
|
|
+16%
|
|
+15%
|
n/a
|
n/a
|
Total
|
|
1,194.9
|
|
|
+13%
|
|
+13%
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Data provided by IMS Health National Prescription Audit (“IMS NPA”) relates solely to US-based prescriptions. Exit market share represents the average monthly US market share in the month ended September 30, 2013.
|
(2)
|
Lisdexamfetamine (“LDX”) currently marketed as VYVANSE in the US & Canada, VENVANSE® in Latin America and ELVANSE® in certain territories in the EU.
|
(3)
|
IMS NPA Data not available.
|
(4)
|
Not sold in the US in Q3 2013.
|
2.
|
Royalties
|
|
|
|
|
|
Year on year growth
|
|||
Product
|
|
Royalties to
Shire $M
|
|
|
Royalties
|
|
|
CER
|
|
|
|
|
|
|
|
|
|
FOSRENOL®
|
1.00
|
13.8
|
|
|
-1%
|
|
|
-2%
|
3TC® and ZEFFIX®
|
1.00
|
10.1
|
|
|
-5%
|
|
|
-5%
|
ADDERALL XR
|
1.00
|
6.2
|
|
|
-45%
|
|
|
-45%
|
Other
|
1.00
|
7.5
|
|
|
+25%
|
|
|
+23%
|
Total
|
1.00
|
37.6
|
|
|
-10%
|
|
|
-10%
|
|
|
|
|
|
|
|
|
|
3.
|
Financial details
|
|
Q3 2013
|
|
% of
product
sales
|
|
Q3 2012
|
|
% of
product
sales
|
|
$M
|
|
|
$M
|
|
||
Cost of product sales (US GAAP)
|
197.1
|
|
16%
|
|
167.9
|
|
16%
|
Depreciation
|
(11.0)
|
|
|
|
(9.4)
|
|
|
Cost of product sales (Non GAAP)
|
186.1
|
|
16%
|
|
158.5
|
|
15%
|
|
|
|
|
|
|
|
|
|
Q3 2013
|
|
% of
product
sales
|
|
Q3 2012
|
|
% of
product
sales
|
|
$M
|
|
|
$M
|
|
||
R&D (US GAAP)
|
229.1
|
|
19%
|
|
224.7
|
|
21%
|
Depreciation
|
(6.3)
|
|
|
|
(5.5)
|
|
|
R&D (Non GAAP)
|
222.8
|
|
19%
|
|
219.2
|
|
21%
|
|
|
|
|
|
|
|
|
|
2013
|
|
% of
product
sales
|
|
2012
|
|
% of
product
sales
|
|
$M
|
|
|
$M
|
|
||
SG&A (US GAAP)
|
441.1
|
|
37%
|
|
437.4
|
|
41%
|
Intangible asset amortization
|
(44.4)
|
|
|
|
(50.0)
|
|
|
Legal and litigation costs
|
(8.5)
|
|
|
|
(4.5)
|
|
|
Depreciation
|
(16.5)
|
|
|
|
(14.2)
|
|
|
SG&A (Non GAAP)
|
371.7
|
|
31%
|
|
368.7
|
|
35%
|
|
|
|
|
|
|
|
|
|
Page
|
|
|
Unaudited US GAAP Consolidated Balance Sheets
|
11
|
|
|
Unaudited US GAAP Consolidated Statements of Income
|
12
|
|
|
Unaudited US GAAP Consolidated Statements of Cash Flows
|
14
|
|
|
Selected Notes to the Unaudited US GAAP Financial Statements
|
|
(1) Earnings per share
|
16
|
(2) Analysis of revenues
|
17
|
|
|
Non GAAP reconciliation
|
19
|
|
September 30,
|
|
December 31,
|
|
2013
|
|
2012
|
|
$M
|
|
$M
|
ASSETS
|
|
|
|
Current assets:
|
|
|
|
Cash and cash equivalents
|
1,686.1
|
|
1,482.2
|
Restricted cash
|
16.6
|
|
17.1
|
Accounts receivable, net
|
1,037.8
|
|
824.2
|
Inventories
|
480.5
|
|
436.9
|
Deferred tax asset
|
210.6
|
|
229.9
|
Prepaid expenses and other current assets
|
282.3
|
|
221.8
|
|
|
|
|
Total current assets
|
3,713.9
|
|
3,212.1
|
|
|
|
|
Non-current assets:
|
|
|
|
Investments
|
36.7
|
|
38.7
|
Property, plant and equipment ("PP&E"), net
|
965.1
|
|
955.8
|
Goodwill
|
621.3
|
|
644.5
|
Other intangible assets, net
|
2,976.0
|
|
2,388.1
|
Deferred tax asset
|
40.4
|
|
46.5
|
Other non-current assets
|
34.5
|
|
31.5
|
|
|
|
|
Total assets
|
8,387.9
|
|
7,317.2
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
Current liabilities:
|
|
|
|
Accounts payable and accrued expenses
|
1,581.6
|
|
1,501.5
|
Convertible bonds
|
1,100.0
|
|
-
|
Other current liabilities
|
163.2
|
|
144.1
|
|
|
|
|
Total current liabilities
|
2,844.8
|
|
1,645.6
|
|
|
|
|
Non-current liabilities:
|
|
|
|
Convertible bonds
|
-
|
|
1,100.0
|
Deferred tax liability
|
722.0
|
|
520.8
|
Other non-current liabilities
|
652.3
|
|
241.6
|
|
|
|
|
Total liabilities
|
4,219.1
|
|
3,508.0
|
|
|
|
|
Equity:
|
|
|
|
Common stock of 5p par value; 1,000 million shares authorized; and 562.9 million shares issued and outstanding (2012: 1,000 million shares authorized; and 562.5 million shares issued and outstanding)
|
55.8
|
|
55.7
|
Additional paid-in capital
|
3,045.6
|
|
2,981.5
|
Treasury stock: 14.5 million shares (2012: 10.7 million)
|
(466.6)
|
|
(310.4)
|
Accumulated other comprehensive income
|
101.3
|
|
86.9
|
Retained earnings
|
1,432.7
|
|
995.5
|
|
|
|
|
Total equity
|
4,168.8
|
|
3,809.2
|
|
|
|
|
Total liabilities and equity
|
8,387.9
|
|
7,317.2
|
|
3 months to
|
|
3 months to
|
|
9 months to
|
|
9 months to
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
$M
|
|
$M
|
|
$M
|
|
$M
|
Revenues:
|
|
|
|
|
|
|
|
Product sales
|
1,194.9
|
|
1,054.5
|
|
3,541.8
|
|
3,309.1
|
Royalties
|
37.6
|
|
41.8
|
|
112.4
|
|
154.4
|
Other revenues
|
4.1
|
|
4.1
|
|
18.8
|
|
16.5
|
Total revenues
|
1,236.6
|
|
1,100.4
|
|
3,673.0
|
|
3,480.0
|
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
Cost of product sales
|
197.1
|
|
167.9
|
|
528.7
|
|
478.8
|
R&D(1)
|
229.1
|
|
224.7
|
|
713.4
|
|
683.6
|
SG&A(1)
|
441.1
|
|
437.4
|
|
1,337.4
|
|
1,448.4
|
Goodwill impairment charge
|
-
|
|
-
|
|
198.9
|
|
-
|
Gain on sale of product rights
|
(3.6)
|
|
(5.7)
|
|
(14.6)
|
|
(16.5)
|
Reorganization costs
|
13.7
|
|
-
|
|
57.6
|
|
-
|
Integration and acquisition costs
|
18.4
|
|
2.7
|
|
39.9
|
|
15.1
|
Total operating expenses
|
895.8
|
|
827.0
|
|
2,861.3
|
|
2,609.4
|
|
|
|
|
|
|
|
|
Operating income
|
340.8
|
|
273.4
|
|
811.7
|
|
870.6
|
|
|
|
|
|
|
|
|
Interest income
|
0.4
|
|
0.9
|
|
1.6
|
|
2.3
|
Interest expense
|
(9.0)
|
|
(9.2)
|
|
(27.0)
|
|
(29.0)
|
Other income/(expense), net
|
0.6
|
|
3.5
|
|
(1.9)
|
|
3.6
|
Total other expense, net
|
(8.0)
|
|
(4.8)
|
|
(27.3)
|
|
(23.1)
|
|
|
|
|
|
|
|
|
Income before income taxes and equity in (losses)/earnings of equity method investees
|
332.8
|
|
268.6
|
|
784.4
|
|
847.5
|
Income taxes
|
(54.3)
|
|
(41.6)
|
|
(183.9)
|
|
(144.6)
|
Equity in (losses)/earnings of equity method investees, net of taxes
|
(0.3)
|
|
0.2
|
|
0.6
|
|
0.5
|
Net income
|
278.2
|
|
227.2
|
|
601.1
|
|
703.4
|
|
(1)
|
R&D includes intangible asset impairment charges of $19.9 million for the nine months to September 30, 2013 (2012: $27.0 million). SG&A costs include amortization and impairment charges of intangible assets relating to intellectual property rights acquired of $44.4 million for the three months to September 30, 2013 (2012: $50.0 million) and $136.1 million for the nine months to September 30, 2013 (2012: $146.6 million).
|
|
3 months to
|
|
3 months to
|
|
9 months to
|
|
9 months to
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Earnings per ordinary share – basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Ordinary Share – basic
|
50.7c
|
|
40.9c
|
|
109.3c
|
|
126.6c
|
|
|
|
|
|
|
|
|
Earnings per ADS – basic
|
152.1c
|
|
122.7c
|
|
327.9c
|
|
379.8c
|
|
|
|
|
|
|
|
|
Earnings per Ordinary Share – diluted
|
48.8c
|
|
39.6c
|
|
106.2c
|
|
122.4c
|
|
|
|
|
|
|
|
|
Earnings per ADS – diluted
|
146.4c
|
|
118.8c
|
|
318.6c
|
|
367.2c
|
|
|
|
|
|
|
|
|
Weighted average number of shares:
|
|
|
|
|
|
|
|
|
Millions
|
|
Millions
|
|
Millions
|
|
Millions
|
|
|
|
|
|
|
|
|
Basic
|
548.4
|
|
555.9
|
|
549.8
|
|
555.5
|
Diluted
|
585.7
|
|
593.1
|
|
587.5
|
|
594.0
|
|
|
3 months to September 30,
|
|
9 months to September 30,
|
||||
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
$M
|
|
$M
|
|
$M
|
|
$M
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
278.2
|
|
227.2
|
|
601.1
|
|
703.4
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
78.2
|
|
79.1
|
|
229.4
|
|
231.5
|
|
Share based compensation
|
18.8
|
|
21.6
|
|
55.2
|
|
65.0
|
|
Change in fair value of contingent consideration
|
14.7
|
|
1.2
|
|
28.4
|
|
3.3
|
|
Impairment of intangible assets
|
-
|
|
-
|
|
19.9
|
|
27.0
|
|
Goodwill impairment charge
|
-
|
|
-
|
|
198.9
|
|
-
|
|
Gain on sale of product rights
|
(3.6)
|
|
(5.7)
|
|
(14.6)
|
|
(16.5)
|
|
Other, net
|
(2.8)
|
|
(0.7)
|
|
4.4
|
|
1.8
|
Movement in deferred taxes
|
(5.1)
|
|
(6.3)
|
|
16.1
|
|
(30.4)
|
|
Equity in losses/(earnings) of equity method investees
|
0.3
|
|
(0.2)
|
|
(0.6)
|
|
(0.5)
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Increase in accounts receivable
|
(112.6)
|
|
(45.4)
|
|
(215.2)
|
|
(23.0)
|
|
Increase in sales deduction accrual
|
68.7
|
|
8.5
|
|
108.7
|
|
36.1
|
|
Decrease/(increase) in inventory
|
14.0
|
|
(14.9)
|
|
(39.9)
|
|
(81.9)
|
|
(Increase)/decrease in prepayments and other assets
|
(4.4)
|
|
(14.3)
|
|
(70.9)
|
|
17.8
|
|
Increase/(decrease) in accounts payable and other liabilities
|
89.3
|
|
38.3
|
|
(71.4)
|
|
72.7
|
Returns on investment from joint venture
|
-
|
|
-
|
|
3.2
|
|
4.9
|
|
Net cash provided by operating activities(A)
|
433.7
|
|
288.4
|
|
852.7
|
|
1,011.2
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Movements in restricted cash
|
|
1.0
|
|
(4.5)
|
|
0.5
|
|
1.7
|
Purchases of subsidiary undertakings and businesses, net of cash acquired
|
|
-
|
|
-
|
|
(227.8)
|
|
(97.0)
|
Purchases of non-current investments
|
|
(3.1)
|
|
(7.4)
|
|
(9.9)
|
|
(12.1)
|
Purchases of PP&E
|
|
(45.3)
|
|
(27.2)
|
|
(110.3)
|
|
(91.6)
|
Purchases of intangible assets
|
|
-
|
|
-
|
|
-
|
|
(43.5)
|
Proceeds received on sale of product rights
|
|
4.7
|
|
3.3
|
|
15.0
|
|
13.7
|
Other, net
|
|
1.0
|
|
0.1
|
|
11.5
|
|
13.2
|
Net cash used in investing activities(B)
|
|
(41.7)
|
|
(35.7)
|
|
(321.0)
|
|
(215.6)
|
|
3 months to September 30,
|
|
9 months to September 30,
|
||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
$M
|
|
$M
|
|
$M
|
|
$M
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments to acquire shares under the share buy-back program
|
(12.8)
|
|
-
|
|
(190.5)
|
|
-
|
Payment of dividend
|
-
|
|
-
|
|
(79.2)
|
|
(70.7)
|
Payments to acquire shares by the Employee Benefit Trust ("EBT")
|
-
|
|
(40.2)
|
|
(50.3)
|
|
(50.9)
|
Excess tax benefit associated with exercise of stock options
|
3.4
|
|
3.5
|
|
9.5
|
|
38.6
|
Contingent consideration payments
|
(2.5)
|
|
(3.0)
|
|
(11.3)
|
|
(3.0)
|
Other, net
|
1.7
|
|
(0.3)
|
|
(5.5)
|
|
(2.6)
|
Net cash used in financing activities(C)
|
(10.2)
|
|
(40.0)
|
|
(327.3)
|
|
(88.6)
|
Effect of foreign exchange rate changes on cash and cash equivalents (D)
|
2.4
|
|
(3.5)
|
|
(0.5)
|
|
(5.1)
|
Net increase in cash and cash equivalents(A) +(B) +(C) +(D)
|
384.2
|
|
209.2
|
|
203.9
|
|
701.9
|
Cash and cash equivalents at beginning of period
|
1,301.9
|
|
1,112.7
|
|
1,482.2
|
|
620.0
|
Cash and cash equivalents at end of period
|
1,686.1
|
|
1,321.9
|
|
1,686.1
|
|
1,321.9
|
|
3 months to
|
|
3 months to
|
|
9 months to
|
|
9 months to
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
$M
|
|
$M
|
|
$M
|
|
$M
|
|
|
|
|
|
|
|
|
Numerator for basic EPS
|
278.2
|
|
227.2
|
|
601.1
|
|
703.4
|
Interest on convertible bonds, net of tax
|
7.6
|
|
7.5
|
|
22.7
|
|
23.7
|
|
|
|
|
|
|
|
|
Numerator for diluted EPS
|
285.8
|
|
234.7
|
|
623.8
|
|
727.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares:
|
|
|
|
|
|
|
|
|
Millions
|
|
Millions
|
|
Millions
|
|
Millions
|
Basic(1)
|
548.4
|
|
555.9
|
|
549.8
|
|
555.5
|
Effect of dilutive shares:
|
|
|
|
|
|
|
|
Share based awards to employees(2)
|
3.5
|
|
3.7
|
|
3.9
|
|
5.0
|
Convertible bonds 2.75% due 2014(3)
|
33.8
|
|
33.5
|
|
33.8
|
|
33.5
|
|
|
|
|
|
|
|
|
Diluted
|
585.7
|
|
593.1
|
|
587.5
|
|
594.0
|
|
(1)
|
Excludes shares purchased by the EBT and under the share buy-back program and presented by Shire as treasury stock.
|
|
(2)
|
Calculated using the treasury stock method.
|
|
(3)
|
Calculated using the “if converted” method.
|
|
3 months to
|
|
3 months to
|
|
9 months to
|
|
9 months to
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Millions
|
|
Millions
|
|
Millions
|
|
Millions
|
Share based awards to employees(1)
|
0.5
|
|
6.6
|
|
4.5
|
|
4.9
|
|
(1)
|
Certain stock options have been excluded from the calculation of diluted EPS because (a) their exercise prices exceeded Shire’s average share price during the calculation period or (b) the required performance conditions were not satisfied as at the balance sheet date.
|
3 months to September 30,
|
2013
|
|
2012
|
|
2013
|
|
2013
|
|
|
|
|
|
%
|
|
% of total
|
|
$M
|
|
$M
|
|
change
|
|
revenue
|
Net product sales:
|
|
|
|
|
|
|
|
VYVANSE
|
299.2
|
|
247.1
|
|
21%
|
|
24%
|
LIALDA/MEZAVANT
|
141.9
|
|
104.4
|
|
36%
|
|
11%
|
ELAPRASE
|
129.1
|
|
110.5
|
|
17%
|
|
10%
|
REPLAGAL
|
108.5
|
|
121.7
|
|
-11%
|
|
9%
|
VPRIV
|
87.8
|
|
74.9
|
|
17%
|
|
7%
|
ADDERALL XR
|
81.4
|
|
102.2
|
|
-20%
|
|
7%
|
INTUNIV
|
80.8
|
|
69.0
|
|
17%
|
|
7%
|
PENTASA
|
70.6
|
|
67.0
|
|
5%
|
|
6%
|
FIRAZYR
|
62.6
|
|
30.3
|
|
107%
|
|
5%
|
FOSRENOL
|
51.9
|
|
38.1
|
|
36%
|
|
4%
|
XAGRID®
|
24.2
|
|
22.0
|
|
10%
|
|
2%
|
DERMAGRAFT
|
23.9
|
|
33.7
|
|
-29%
|
|
2%
|
Other product sales
|
33.0
|
|
33.6
|
|
-2%
|
|
3%
|
Total product sales
|
1,194.9
|
|
1,054.5
|
|
13%
|
|
97%
|
|
|
|
|
|
|
|
|
Royalties:
|
|
|
|
|
|
|
|
FOSRENOL
|
13.8
|
|
14.0
|
|
-1%
|
|
1%
|
3TC and ZEFFIX
|
10.1
|
|
10.6
|
|
-5%
|
|
1%
|
ADDERALL XR
|
6.2
|
|
11.2
|
|
-45%
|
|
<1%
|
Other
|
7.5
|
|
6.0
|
|
25%
|
|
1%
|
Total royalties
|
37.6
|
|
41.8
|
|
-10%
|
|
3%
|
|
|
|
|
|
|
|
|
Other revenues
|
4.1
|
|
4.1
|
|
0%
|
|
<1%
|
|
|
|
|
|
|
|
|
Total revenues
|
1,236.6
|
|
1,100.4
|
|
12%
|
|
100%
|
9 months to September 30,
|
2013
|
|
2012
|
|
2013
|
|
2013
|
|
|
|
|
|
%
|
|
% of total
|
|
$M
|
|
$M
|
|
change
|
|
revenue
|
Net product sales:
|
|
|
|
|
|
|
|
VYVANSE
|
897.9
|
|
773.3
|
|
16%
|
|
24%
|
LIALDA/MEZAVANT
|
379.9
|
|
288.5
|
|
32%
|
|
10%
|
ELAPRASE
|
392.6
|
|
358.3
|
|
10%
|
|
11%
|
REPLAGAL
|
336.6
|
|
379.3
|
|
-11%
|
|
9%
|
VPRIV
|
251.9
|
|
229.3
|
|
10%
|
|
7%
|
ADDERALL XR
|
293.5
|
|
347.5
|
|
-16%
|
|
8%
|
INTUNIV
|
248.9
|
|
206.6
|
|
20%
|
|
7%
|
PENTASA
|
215.2
|
|
196.7
|
|
9%
|
|
6%
|
FIRAZYR
|
153.8
|
|
81.7
|
|
88%
|
|
4%
|
FOSRENOL
|
136.3
|
|
126.8
|
|
7%
|
|
4%
|
XAGRID
|
74.1
|
|
70.7
|
|
5%
|
|
2%
|
DERMAGRAFT
|
64.7
|
|
134.9
|
|
-52%
|
|
2%
|
Other product sales
|
96.4
|
|
115.5
|
|
-17%
|
|
2%
|
Total product sales
|
3,541.8
|
|
3,309.1
|
|
7%
|
|
96%
|
|
|
|
|
|
|
|
|
Royalties:
|
|
|
|
|
|
|
|
FOSRENOL
|
33.6
|
|
37.0
|
|
-9%
|
|
1%
|
3TC and ZEFFIX
|
33.9
|
|
34.8
|
|
-3%
|
|
1%
|
ADDERALL XR
|
19.2
|
|
62.2
|
|
-69%
|
|
<1%
|
Other
|
25.7
|
|
20.4
|
|
26%
|
|
1%
|
Total royalties
|
112.4
|
|
154.4
|
|
-27%
|
|
3%
|
|
|
|
|
|
|
|
|
Other revenues
|
18.8
|
|
16.5
|
|
14%
|
|
1%
|
|
|
|
|
|
|
|
|
Total revenues
|
3,673.0
|
|
3,480.0
|
|
6%
|
|
100%
|
3 months to September 30, 2013
|
US GAAP
|
|
Adjustments
|
|
Non
GAAP
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
(b)
|
(c)
|
(d)
|
(e)
|
|
|
|
$M
|
|
$M
|
$M
|
$M
|
$M
|
$M
|
|
$M
|
Total revenues
|
1,236.6
|
|
-
|
-
|
-
|
-
|
-
|
|
1,236.6
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
Cost of product sales
|
197.1
|
|
-
|
-
|
-
|
-
|
(11.0)
|
|
186.1
|
R&D
|
229.1
|
|
-
|
-
|
-
|
-
|
(6.3)
|
|
222.8
|
SG&A
|
441.1
|
|
(44.4)
|
-
|
-
|
(8.5)
|
(16.5)
|
|
371.7
|
Gain on sale of product rights
|
(3.6)
|
|
-
|
-
|
3.6
|
-
|
-
|
|
-
|
Reorganization costs
|
13.7
|
|
-
|
-
|
(13.7)
|
-
|
-
|
|
-
|
Integration and acquisition costs
|
18.4
|
|
-
|
(18.4)
|
-
|
-
|
-
|
|
-
|
Depreciation
|
-
|
|
-
|
-
|
-
|
-
|
33.8
|
|
33.8
|
Total operating expenses
|
895.8
|
|
(44.4)
|
(18.4)
|
(10.1)
|
(8.5)
|
-
|
|
814.4
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
340.8
|
|
44.4
|
18.4
|
10.1
|
8.5
|
-
|
|
422.2
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
0.4
|
|
-
|
-
|
-
|
-
|
-
|
|
0.4
|
Interest expense
|
(9.0)
|
|
-
|
-
|
-
|
-
|
-
|
|
(9.0)
|
Other income, net
|
0.6
|
|
-
|
-
|
-
|
-
|
-
|
|
0.6
|
Total other expense, net
|
(8.0)
|
|
-
|
-
|
-
|
-
|
-
|
|
(8.0)
|
Income before income taxes and equity in losses of equity method investees
|
332.8
|
|
44.4
|
18.4
|
10.1
|
8.5
|
-
|
|
414.2
|
Income taxes
|
(54.3)
|
|
(14.1)
|
(1.0)
|
(4.2)
|
(3.1)
|
-
|
|
(76.7)
|
Equity in losses of equity method investees, net of tax
|
(0.3)
|
|
-
|
-
|
-
|
-
|
-
|
|
(0.3)
|
Net income
|
278.2
|
|
30.3
|
17.4
|
5.9
|
5.4
|
-
|
|
337.2
|
Impact of convertible debt, net of tax
|
7.6
|
|
-
|
-
|
-
|
-
|
-
|
|
7.6
|
Numerator for diluted EPS
|
285.8
|
|
30.3
|
17.4
|
5.9
|
5.4
|
-
|
|
344.8
|
Weighted average number of shares (millions) – diluted
|
585.7
|
|
-
|
-
|
-
|
-
|
-
|
|
585.7
|
Diluted earnings per ADS
|
146.4c
|
|
15.6c
|
9.0c
|
3.0c
|
2.7c
|
-
|
|
176.7c
|
|
(a)
|
Amortization and asset impairments: Amortization of intangible assets relating to intellectual property rights acquired ($44.4 million), and tax effect of adjustments;
|
|
(b)
|
Acquisition and integration activities: Costs primarily associated with the integration of SARcode and Premacure ($3.7 million), charges related to the change in fair value of contingent consideration ($14.7 million), and tax effect of adjustments;
|
|
(c)
|
Divestments, reorganizations and discontinued operations: Re-measurement of DAYTRANA contingent consideration to higher fair value ($3.6 million), costs relating to the “One Shire” reorganization announced at Q1 2013 and the collective dismissal and closure of Shire’s facility at Turnhout, Belgium ($13.7 million), and tax effect of adjustments;
|
|
(d)
|
Legal and litigation costs: Costs related to litigation, government investigations, other disputes and external legal costs ($8.5 million), and tax effect of adjustments; and
|
|
(e)
|
Depreciation reclassification: Depreciation of $33.8 million included in Cost of product sales, R&D costs and SG&A costs for US GAAP separately disclosed for the presentation of Non GAAP earnings.
|
3 months to September 30, 2012
|
US GAAP
|
|
Adjustments
|
|
Non
GAAP
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
(b)
|
(c)
|
(d)
|
(e)
|
|
|
|
$M
|
|
$M
|
$M
|
$M
|
$M
|
$M
|
|
$M
|
Total revenues
|
1,100.4
|
|
-
|
-
|
-
|
-
|
-
|
|
1,100.4
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
Cost of product sales
|
167.9
|
|
-
|
-
|
-
|
-
|
(9.4)
|
|
158.5
|
R&D
|
224.7
|
|
-
|
-
|
-
|
-
|
(5.5)
|
|
219.2
|
SG&A
|
437.4
|
|
(50.0)
|
-
|
-
|
(4.5)
|
(14.2)
|
|
368.7
|
Gain on sale of product rights
|
(5.7)
|
|
-
|
-
|
5.7
|
-
|
-
|
|
-
|
Integration and acquisition costs
|
2.7
|
|
-
|
(2.7)
|
-
|
-
|
-
|
|
-
|
Depreciation
|
-
|
|
-
|
-
|
-
|
-
|
29.1
|
|
29.1
|
Total operating expenses
|
827.0
|
|
(50.0)
|
(2.7)
|
5.7
|
(4.5)
|
-
|
|
775.5
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
273.4
|
|
50.0
|
2.7
|
(5.7)
|
4.5
|
-
|
|
324.9
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
0.9
|
|
-
|
-
|
-
|
-
|
-
|
|
0.9
|
Interest expense
|
(9.2)
|
|
-
|
-
|
-
|
-
|
-
|
|
(9.2)
|
Other income, net
|
3.5
|
|
-
|
-
|
-
|
-
|
-
|
|
3.5
|
Total other expense, net
|
(4.8)
|
|
-
|
-
|
-
|
-
|
-
|
|
(4.8)
|
Income before income taxes and equity in earnings of equity method investees
|
268.6
|
|
50.0
|
2.7
|
(5.7)
|
4.5
|
-
|
|
320.1
|
Income taxes
|
(41.6)
|
|
(14.3)
|
(1.1)
|
-
|
(1.5)
|
-
|
|
(58.5)
|
Equity in earnings of equity method investees, net of tax
|
0.2
|
|
-
|
-
|
-
|
-
|
-
|
|
0.2
|
Net income
|
227.2
|
|
35.7
|
1.6
|
(5.7)
|
3.0
|
-
|
|
261.8
|
Impact of convertible debt, net of tax
|
7.5
|
|
-
|
-
|
-
|
-
|
-
|
|
7.5
|
Numerator for diluted EPS
|
234.7
|
|
35.7
|
1.6
|
(5.7)
|
3.0
|
-
|
|
269.3
|
Weighted average number of shares (millions) – diluted
|
593.1
|
|
-
|
-
|
-
|
-
|
-
|
|
593.1
|
Diluted earnings per ADS
|
118.8c
|
|
18.0c
|
0.9c
|
(3.0c)
|
1.5c
|
-
|
|
136.2c
|
|
(a)
|
Amortization and asset impairments: Amortization of intangible assets relating to intellectual property rights acquired ($50.0 million), and tax effect of adjustments;
|
|
(b)
|
Acquisition and integration activities: Costs associated with the acquisition of FerroKin and the integration of ABH ($1.5 million), charges related to the change in fair value of contingent consideration ($1.2 million), and tax effect of adjustments;
|
|
(c)
|
Divestments, reorganizations and discontinued operations: Re-measurement of DAYTRANA contingent consideration to higher fair value ($5.7 million);
|
|
(d)
|
Legal and litigation costs: Costs related to litigation, government investigations, other disputes and external legal costs ($4.5 million), and tax effect of adjustments; and
|
|
(e)
|
Depreciation reclassification: Depreciation of $29.1 million included in Cost of product sales, R&D costs and SG&A costs for US GAAP separately disclosed for the presentation of Non GAAP earnings.
|
9 months to September 30, 2013
|
US GAAP
|
|
Adjustments
|
|
Non GAAP
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
(b)
|
(c)
|
(d)
|
(e)
|
|
|
|
$M
|
|
$M
|
$M
|
$M
|
$M
|
$M
|
|
$M
|
Total revenues
|
3,673.0
|
|
-
|
-
|
-
|
-
|
-
|
|
3,673.0
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
Cost of product sales
|
528.7
|
|
-
|
-
|
-
|
-
|
(28.8)
|
|
499.9
|
R&D
|
713.4
|
|
(19.9)
|
-
|
-
|
-
|
(15.2)
|
|
678.3
|
SG&A
|
1,337.4
|
|
(136.1)
|
-
|
-
|
(18.0)
|
(49.3)
|
|
1,134.0
|
Goodwill impairment charge
|
198.9
|
|
(198.9)
|
-
|
-
|
-
|
-
|
|
-
|
Gain on sale of product rights
|
(14.6)
|
|
-
|
-
|
14.6
|
-
|
-
|
|
-
|
Reorganization costs
|
57.6
|
|
-
|
-
|
(57.6)
|
-
|
-
|
|
-
|
Integration and acquisition costs
|
39.9
|
|
-
|
(39.9)
|
-
|
-
|
-
|
|
-
|
Depreciation
|
-
|
|
-
|
-
|
-
|
-
|
93.3
|
|
93.3
|
Total operating expenses
|
2,861.3
|
|
(354.9)
|
(39.9)
|
(43.0)
|
(18.0)
|
-
|
|
2,405.5
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
811.7
|
|
354.9
|
39.9
|
43.0
|
18.0
|
-
|
|
1,267.5
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
1.6
|
|
-
|
-
|
-
|
-
|
-
|
|
1.6
|
Interest expense
|
(27.0)
|
|
-
|
-
|
-
|
-
|
-
|
|
(27.0)
|
Other expense, net
|
(1.9)
|
|
-
|
-
|
-
|
-
|
-
|
|
(1.9)
|
Total other expense, net
|
(27.3)
|
|
-
|
-
|
-
|
-
|
-
|
|
(27.3)
|
Income before income taxes and equity in earnings of equity method investees
|
784.4
|
|
354.9
|
39.9
|
43.0
|
18.0
|
-
|
|
1,240.2
|
Income taxes
|
(183.9)
|
|
(43.2)
|
(3.1)
|
(13.1)
|
(6.5)
|
-
|
|
(249.8)
|
Equity in earnings of equity method investees, net of tax
|
0.6
|
|
-
|
-
|
-
|
-
|
-
|
|
0.6
|
Net income
|
601.1
|
|
311.7
|
36.8
|
29.9
|
11.5
|
-
|
|
991.0
|
Impact of convertible debt, net of tax
|
22.7
|
|
-
|
-
|
-
|
-
|
-
|
|
22.7
|
Numerator for diluted EPS
|
623.8
|
|
311.7
|
36.8
|
29.9
|
11.5
|
-
|
|
1,013.7
|
Weighted average number of shares (millions) – diluted
|
587.5
|
|
-
|
-
|
-
|
-
|
-
|
|
587.5
|
Diluted earnings per ADS
|
318.6c
|
|
159.1c
|
18.7c
|
15.1c
|
6.0c
|
-
|
|
517.5c
|
|
(a)
|
Amortization and asset impairments: Impairment of IPR&D intangible assets acquired with Movetis ($19.9 million), impairment of goodwill relating to Shire’s Regenerative Medicine Business ($198.9 million), amortization of intangible assets relating to intellectual property rights acquired ($136.1 million), and tax effect of adjustments;
|
|
(b)
|
Acquisitions and integration activities: Costs primarily associated with acquisition of SARcode, Lotus and Premacure ($11.5 million), charges related to the change in fair value of contingent consideration ($28.4 million), and tax effect of adjustments;
|
|
(c)
|
Divestments, reorganizations and discontinued operations: Re-measurement of DAYTRANA contingent consideration to higher fair value ($14.6 million), costs relating to the “One Shire” reorganization announced at Q1 2013 and the collective dismissal and closure of Shire’s facility at Turnhout, Belgium ($57.6 million), and tax effect of adjustments;
|
|
(d)
|
Legal and litigation costs: Costs related to litigation, government investigations, other disputes and external legal costs ($18.0 million), and tax effect of adjustments; and
|
|
(e)
|
Depreciation reclassification: Depreciation of $93.3 million included in Cost of product sales, R&D costs and SG&A costs for US GAAP separately disclosed for the presentation of Non GAAP earnings.
|
9 months to September 30, 2012
|
US GAAP
|
|
Adjustments
|
|
Non
GAAP
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
(b)
|
(c)
|
(d)
|
(e)
|
|
|
|
$M
|
|
$M
|
$M
|
$M
|
$M
|
$M
|
|
$M
|
Total revenues
|
3,480.0
|
|
-
|
-
|
-
|
-
|
-
|
|
3,480.0
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
Cost of product sales
|
478.8
|
|
-
|
-
|
-
|
-
|
(23.6)
|
|
455.2
|
R&D
|
683.6
|
|
(27.0)
|
(23.0)
|
-
|
-
|
(18.3)
|
|
615.3
|
SG&A
|
1,448.4
|
|
(146.6)
|
-
|
-
|
(40.4)
|
(42.3)
|
|
1,219.1
|
Gain on sale of product rights
|
(16.5)
|
|
-
|
-
|
16.5
|
-
|
-
|
|
-
|
Integration and acquisition costs
|
15.1
|
|
-
|
(15.1)
|
-
|
-
|
-
|
|
-
|
Depreciation
|
-
|
|
-
|
-
|
-
|
-
|
84.2
|
|
84.2
|
Total operating expenses
|
2,609.4
|
|
(173.6)
|
(38.1)
|
16.5
|
(40.4)
|
-
|
|
2,373.8
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
870.6
|
|
173.6
|
38.1
|
(16.5)
|
40.4
|
-
|
|
1,106.2
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
2.3
|
|
-
|
-
|
-
|
-
|
-
|
|
2.3
|
Interest expense
|
(29.0)
|
|
-
|
-
|
-
|
-
|
-
|
|
(29.0)
|
Other income, net
|
3.6
|
|
-
|
-
|
-
|
-
|
-
|
|
3.6
|
Total other expense, net
|
(23.1)
|
|
-
|
-
|
-
|
-
|
-
|
|
(23.1)
|
Income before income taxes and equity in earnings of equity method investees
|
847.5
|
|
173.6
|
38.1
|
(16.5)
|
40.4
|
-
|
|
1,083.1
|
Income taxes
|
(144.6)
|
|
(42.0)
|
(10.1)
|
-
|
(14.5)
|
-
|
|
(211.2)
|
Equity in earnings of equity method investees, net of tax
|
0.5
|
|
-
|
-
|
-
|
-
|
-
|
|
0.5
|
Net income
|
703.4
|
|
131.6
|
28.0
|
(16.5)
|
25.9
|
-
|
|
872.4
|
Impact of convertible debt, net of tax
|
23.7
|
|
-
|
-
|
-
|
-
|
-
|
|
23.7
|
Numerator for diluted EPS
|
727.1
|
|
131.6
|
28.0
|
(16.5)
|
25.9
|
-
|
|
896.1
|
Weighted average number of shares (millions) – diluted
|
594.0
|
|
-
|
-
|
-
|
-
|
-
|
|
594.0
|
Diluted earnings per ADS
|
367.2c
|
|
66.6c
|
14.1c
|
(8.4c)
|
13.2c
|
-
|
|
452.7c
|
|
(a)
|
Amortization and asset impairments: Impairment of IPR&D intangible assets for RESOLOR ($27.0 million), amortization of intangible assets relating to intellectual property rights acquired ($146.6 million), and tax effect of adjustments;
|
|
(b)
|
Acquisitions and integration activities: Up-front payments made to Sangamo Biosciences Inc. and for the acquisition of the US rights to prucalopride (marketed in certain countries in Europe as RESOLOR) ($23.0 million), costs associated with acquisition of FerroKin and the integration of ABH ($11.8 million), charges related to the change in fair value of contingent consideration ($3.3 million), and tax effect of adjustments;
|
|
(c)
|
Divestments, reorganizations and discontinued operations: Re-measurement of DAYTRANA contingent consideration to fair value ($16.5 million);
|
|
(d)
|
Legal and litigation costs: Costs related to the litigation, government investigations, other disputes and external legal costs ($40.4 million), and tax effect of adjustments; and
|
|
(e)
|
Depreciation reclassification: Depreciation of $84.2 million included in Cost of product sales, R&D costs and SG&A costs for US GAAP separately disclosed for the presentation of Non GAAP earnings.
|
|
3 months to September 30,
|
|
9 months to September 30,
|
|
||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
$M
|
|
$M
|
|
$M
|
|
$M
|
|
Net cash provided by operating activities
|
433.7
|
|
288.4
|
|
852.7
|
|
1,011.2
|
|
Tax and interest payments, net
|
48.1
|
|
66.8
|
|
260.6
|
|
150.9
|
|
Up-front payments in respect of in-licensed and acquired products
|
-
|
|
-
|
|
-
|
|
23.0
|
|
Non GAAP cash generation
|
481.8
|
|
355.2
|
|
1,113.3
|
|
1,185.1
|
|
|
3 months to September 30,
|
|
9 months to September 30,
|
|
||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
$M
|
|
$M
|
|
$M
|
|
$M
|
|
Net cash provided by operating activities
|
433.7
|
|
288.4
|
|
852.7
|
|
1,011.2
|
|
Up-front payments in respect of in-licensed and acquired products
|
-
|
|
-
|
|
-
|
|
23.0
|
|
Capital expenditure
|
(45.3)
|
|
(27.2)
|
|
(110.3)
|
|
(91.6)
|
|
Non GAAP free cash flow
|
388.4
|
|
261.2
|
|
742.4
|
|
942.6
|
|
|
September 30,
|
|
December 31,
|
|
2013
|
|
2012
|
|
$M
|
|
$M
|
Cash and cash equivalents
|
1,686.1
|
|
1,482.2
|
|
|
|
|
Convertible bonds
|
(1,100.0)
|
|
(1,100.0)
|
Other debt
|
(8.9)
|
|
(9.3)
|
Non GAAP net cash
|
577.2
|
|
372.9
|
|
·
|
Shire’s products may not be a commercial success;
|
|
·
|
revenues from ADDERALL XR are subject to generic erosion;
|
|
·
|
the failure to obtain and maintain reimbursement, or an adequate level of reimbursement, by third-party payors in a timely manner for Shire's products may impact future revenues and earnings;
|
|
·
|
Shire relies on a single source for manufacture of certain of its products and a disruption to the supply chain for those products may result in Shire being unable to continue marketing or developing a product or may result in Shire being unable to do so on a commercially viable basis;
|
|
·
|
Shire uses third party manufacturers to manufacture many of its products and is reliant upon third party contractors for certain goods and services, and any inability of these third party manufacturers to manufacture products, or any failure of these third party contractors to provide these goods and services, in each case in accordance with its respective contractual obligations, could adversely affect Shire’s ability to manage its manufacturing processes or to operate its business;
|
|
·
|
the development, approval and manufacturing of Shire’s products is subject to extensive oversight by various regulatory agencies and regulatory approvals or interventions associated with changes to manufacturing sites, ingredients or manufacturing processes could lead to significant delays, increase in operating costs, lost product sales, an interruption of research activities or the delay of new product launches;
|
|
·
|
the actions of certain customers could affect Shire's ability to sell or market products profitably and fluctuations in buying or distribution patterns by such customers could adversely impact Shire’s revenues, financial conditions or results of operations;
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investigations or enforcement action by regulatory authorities or law enforcement agencies relating to Shire’s activities in the highly regulated markets in which it operates may result in the distraction of senior management, significant legal costs and the payment of substantial compensation or fines;
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adverse outcomes in legal matters and other disputes, including Shire’s ability to obtain, maintain, enforce and defend patents and other intellectual property rights required for its business, could have a material adverse effect on Shire’s revenues, financial condition or results of operations;
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Intangible asset amortization and impairment charges; and
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Other than temporary impairment of investments.
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Up-front payments and milestones in respect of in-licensed and acquired products;
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Costs associated with acquisitions, including transaction costs, fair value adjustments on contingent consideration and acquired inventory;
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Costs associated with the integration of companies; and
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Noncontrolling interests in consolidated variable interest entities.
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Gains and losses on the sale of non-core assets;
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Costs associated with restructuring and reorganization activities;
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Termination costs; and
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Income/(losses) from discontinued operations.
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Net legal costs related to the settlement of litigation, government investigations and other disputes (excluding internal legal team costs).
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