Shire Appoints Jeff Poulton as CFO; Posts Rise in Net Income--Update

By Denise Roland

LONDON--Shire PLC Thursday said it has appointed investor relations head Jeff Poulton as chief financial officer, bringing to an end a search that has lasted more than a year.

The company's previous finance boss, Graham Hetherington, stepped down in March last year. Mr Poulton, a 12-year Shire veteran, had been acting CFO since December, following the departure of previous interim finance boss, James Bowling, for water company Severn Trent.

Susan Kilsby, company chairman, said Mr Poulton's "expertise and extensive knowledge of Shire's business and markets set him apart as CFO" during an "extensive search of both internal and external candidates."

The announcement came as the company reported an increase in revenue and profits for the first quarter of the year thanks to the expansion of its hyperactivity pill into binge-eating disorder and strong sales of its treatments for hereditary angioedema, a rare and potentially life-threatening condition.

Net income increased 21% to $561 million as revenue climbed 11% to $1.488 billion. Analysts surveyed by FactSet had expected net profit of $509 million and revenue of $1.467 billion.

Non-GAAP diluted earnings per ADS, Shire's preferred measure of profit, increased 20% to $2.84. Stripping out the effect of the strong U.S. dollar, revenue increased 15% while non-GAAP diluted earnings per ADS grew 24%.

Flemming Ornskov, chief executive, said he was "very encouraged" by sales of Vyvanse, an ADHD drug which was launched in binge-eating disorder earlier this year.

Available data don't distinguish between prescriptions for hyperactivity and binge-eating. But Vyvanse sales beat the broader market by around 3%, suggesting that doctors have started prescribing it for binge-eating. The drug made $417 million in the quarter to March 31, a 19% increase on the corresponding period a year earlier.

Shire's treatments for hereditary angioedema, a disease which causes sudden and dangerous swelling, also made a strong contribution to sales growth. Revenue from Cinryze, a preventative treatment, increased 73% to $148 million. Firazyr, which is used to reduce swelling following an attack, made $93 million in the quarter, 23% higher than a year earlier.

Shire maintained full-year guidance of delivering non-GAAP diluted earnings per ADS growth in the mid-single digits.

Write to Denise Roland at [e-mail]