Shire Should Return to Growth in 2010

Shire is emerging beyond generic Adderall XR with a portfolio of high-growth products

Karen Andersen, CFA 7 June, 2010 | 2:40PM
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Morningstar recently initiated Shire with an A+ credit rating, read more here.

Through several acquisitions, Shire has transformed from a neurology-focussed specialty pharma to a more diversified firm with exposure to biologics manufacturing and a global marketing strategy. While its business took a hit from generic competition in 2009, we think recent and upcoming product launches will allow Shire to return to growth in 2010.

Shire's specialty pharma focus has historically been heavily tied to one product. In 2008, $1.1 billion of Shire's $3 billion total revenue stemmed from Adderall XR for attention-deficit hyperactivity disorder (ADHD). The entry of generic competitors in 2009 drastically reduced sales of Adderall XR, and we expect 2010 sales to be only 30% of the drug's 2008 peak.

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About Author

Karen Andersen, CFA  Karen Andersen, CFA, is a senior stock analyst with Morningstar.

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