October 30, 2009 / 12:22 PM / in 8 years

REFILE-UPDATE 2-Shire beats Q3 forecasts as new drugs outperform

(Corrects to change “Shire‘s” to “Shire” in headline)

* 3Q revenue $667 mln vs $651 mln consensus

* Vyvanse sales up 34 pct, Adderall XR sales fall 74 pct

* Adjusted earnings per ADS fall 58 percent

* Reiterates full-year guidance

* Shares rise 4 percent on new drug performance (Adds comments from company, analyst, share price)

By Ben Deighton

LONDON, Oct 30 (Reuters) - Shire’s (SHP.L) efforts to shift focus to its portfolio of new drugs from its former hyperactivity blockbuster Adderall XR have paid off with third-quarter revenue that beat analysts’ expectations.

Shares in Shire were up 4 percent by 1335 GMT on Friday, driven by the higher-than-expected sales of Vyvanse and its ulcerative colitis treatment Lialda.

Britain’s third-biggest drugmaker said on Friday that sales of its newer hyperactivity drug Vyvanse had started to gather pace, helped by a distribution deal with British peer GlaxoSmithKline (GSK.L).

“In the early months we’ve already had clear signs that there is upside coming from GSK’s work but it’s not going to be a sudden huge tick up ... I believe over time we will see upside benefits from that,” Chief Executive Angus Russell told reporters on a conference call.

The company signed a deal in March with Glaxo, the world’s second-largest drug company, to co-promote Vyvanse in the United States. [ID:nLV184798]

All eyes are on sales of the company’s newer drugs, such as Vyvanse, as it weans itself off its old blockbuster Adderall XR, which has been facing generic competition since the beginning of the second quarter.

Sales of Vyvanse grew 34 percent to $129 million and Lialda sales grew 62 percent to $65 million, while Adderall XR sales dropped 74 percent to $71 million.

“Revenues are 3 percent above our estimates and consensus, mostly driven by strong Vyvanse and Lialda sales,” Jefferies analysts said in a note to clients.

Shire earlier reiterated its full-year guidance for adjusted earnings per American depository share of about $2.80 to $3.40, depending on exchange rates.

Overall, revenue fell to $667 million, from $779 million last time, but beat an average of $651 million expected by 14 analysts polled by Thomson Reuters I/B/E/S.

Adjusted earnings per American depository share fell 58 percent to $0.49. (Editing by Karen Foster)

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