Shire PLC: Vyvanse programme cancelled in NSS and delayed in MDD
BUY, Fair Value 2160p vs. 2250p (+7%)
Yesterday, Shire presented its Q1 earnings driven by sales significantly lower than the expected (mainly due to an orphan disease franchise suffering from competition by Sanofi and Dermagraft sales still under pressure) and SG&A costs very well contained. Thus even if Shire decreases its top line guidance, the company can maintain its full year bottom line guidance, i.e. an EPS at around USD6.72. However according to us the main disappointment concerns the prioritisation on R&D projects leading to the cancellation of the Vyvanse programme in Schizophrenia. Also the two main catalysts for the stock expected for the second half of this year are delayed to the first part of 2014. All in all, we adjust our FV to 2,160p.
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