Shire dives as copycat is backed by US watchdog
Shares in the British FTSE 100 pharmaceuticals giant Shire yesterday dived 11 per cent after regulators shocked the City by giving their backing to a generic rival of one of its best-selling drugs.
Regulators in the United States, the world's biggest market for drugs, backed a cheaper, copycat version of Shire's hyperactivity medicine, Adderall XR, made by US generics firm Watson Pharmaceuticals.
City analysts were caught out by the move, which came almost two years earlier than they had expected. "We now expect this business to shrink precipitously," said Savvas Neophytou, a pharma analyst at Panmure Gordon.
Although Shire has newer medicines for attention deficit hyperactivity disorder, including Vyvanse and Intuniv which have seen growing sales in the US, Adderall saw soaring sales last year, up 48 per cent at $533m (£342m).
Jeremy Batstone-Carr at Charles Stanley warned investors should expect Shire "to be hit by potentially severe downgrades", but said that would depend on several "important imponderables". These include the timing and pricing of the generic rival's launch by Watson.
Shire said it still expects to "deliver good full-year 2012 earnings growth", and that it would remain a big player in the ADHD market.
The shares fell by 223p to 1,743p.
Charles Stanley still rates the shares a buy, saying: "We continue to expect Shire to deliver compound growth in earnings per share over 2013-16 of around 15 per cent."
South Korea ferry passengers who were told to stay put 'got trapped' aboard sinking ship
Are beards attractive? Ryan Gosling says yes, but science says no. Take the A-list facial hair challenge and find out who's right
Malaysia Airlines MH370 co-pilot's phone 'was on and made contact with network tower' 30 minutes after plane turned around
Andre Johnson: Wu-Tang Clan-discovered rapper severed his penis and jumped from LA building
Oscar Pistorius trial: Defence witness 'unqualified' to testify
The food poverty scandal that shames Britain: Nearly 1m people rely on handouts to eat – and benefit reforms may be to blame
US Navy christens huge $3 billion destroyer ship USS Zumwalt that appears as a fishing boat on enemy radar
Scottish independence: It is the English who should be on their knees, begging the Scots to vote ‘No’
Nigel Farage fatigue? Half of voters ‘immune’ to Ukip’s appeal
Nigel Farage on Have I Got News For You: Ukip leader ridiculed over expenses and party 'fruitcakes'
Nigel Farage: I’m taking on the status quo, and the Establishment’s fighting back
- 1 Poveglia: 'World's most haunted island' up for sale...is anyone brave enough to buy it?
- 2 Babies cry at night to stop mothers procreating, scientists claim
- 3 24 people applied for the 'world's toughest job', here are their interviews
- 4 Andre Johnson: Wu-Tang Clan-discovered rapper severed his penis and jumped from LA building
- 5 Mrs Doubtfire 2: Robin Williams set to star in sequel to 1993 comedy
iJobs Money & Business
£150.00 per week: QA Apprenticeships: This company has been providing on site ...
£221.25 per week: QA Apprenticeships: This company is a well established Inter...
£40000 - £50000 per annum: Harrington Starr: Client Relationship Manager - SQL...
£35000 - £50000 per annum: Pro-Recruitment Group: Take your chance to join the...