Shire's Net Income Drops Sharply in Fourth Quarter

Shire PLC said fourth-quarter net income dropped sharply against a tough year-earlier comparison, though revenue rose thanks largely to strong sales growth of its attention-deficit-hyperactivity disorder drug Vyvanse.

Dublin-based Shire posted revenue of $1.72 billion in the fourth-quarter of the year, compared with $1.58 billion in the same period of 2014. It said net income fell 87% to $281 million, though the year-earlier figure of $2.2 billion was boosted by a $1.6 billion breakup fee from AbbVie Inc. Analysts had expected revenue of $1.7 billion and net income of $487 million.

Operating income, which strips out certain one-time items, increased 17% to $764 million, as revenue growth eclipsed increases in research and administrative expenses.

The company's best-selling ADHD drug Vyvanse generated $453 million in revenue in the fourth-quarter, up 18% from a year earlier. The drug was primarily approved for treating ADHD but last year was authorized for use in binge-eating disorder, a newly recognized psychiatric condition.

Write to Denise Roland at [e-mail]

(END) Dow Jones Newswires

February 11, 2016 08:15 ET (13:15 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.