UPDATE 1-AbbVie raises 2014 forecast as it pursues Shire

Mon Jun 23, 2014 8:59am EDT

(Adds details from release, background)

June 23 (Reuters) - U.S. drugmaker AbbVie Inc, which is trying to buy London-listed peer Shire, on Monday raised its 2014 adjusted earnings forecast, citing strong "business performance" that it expects to continue for the rest of the year.

The company now expects 2014 adjusted earnings of $3.06 to $3.16 per share, up from its prior view of $3.00 to $3.10. That excludes any revenue from its expected launch of a new hepatitis C treatment later this year.

Abbvie's raised outlook came on the same day that Shire issued its own stand-alone growth plan after having rejected Abbvie's $46 billion takeover.

Abbvie also said on Monday it was seeing strong results from its pipeline which it said includes promising cancer drugs, positive late-stage clinical data for a multiple sclerosis treatment, promised quick reviews of its new hepatitis C treatments by regulators in the United States and Europe and other positive clinical data.

The company said the new 2014 guidance excludes 37 cents per share in items for amortization of expenses and costs related to its separation from Abbott Laboratories and other ongoing restructuring activities.

The company said it was making the announcement under UK takeover rules. Shire on Monday set out its own detailed plan for continuing to stand alone, saying it planned to continue using mergers to grow the company's revenues beyond the $10 billion it has planned by 2020.

Under UK takeover rules, Abbvie has a July 18 deadline to either submit a firm intention to make a new offer or walk away. (Reporting by Caroline Humer in New York and Esha Dey in Bangalore; Editing by Sriraj Kalluvila and Sofina Mirza-Reid)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.