By Denise Roland 

Shire PLC said profit and revenue climbed in the first quarter, thanks to strong sales of several rare disease medicines and its blockbuster pill for attention-deficit hyperactivity disorder, or ADHD.

The Dublin-based drugmaker said net income rose 2% to $419 million in the three months to March 31, from $410 million a year earlier. Revenue climbed 15% to $1.71 billion from $1.49 billion last year. Analysts expected net income of $487 million and revenue of $1.7 billion.

Non-GAAP operating income, a measure which strips out one-time gains or impairments, increased 17% to $797 million. But the strong dollar cut into Shire's results. Stripping out the effect of currency movements, revenue increased 17% and non-GAAP operating income rose 16%.

Revenue growth was driven by a number of Shire's drugs. Sales of its best-selling ADHD drug Vyvanse increased 22% to $509 million, in part due to the drug's expansion into newly-recognized binge-eating disorder. Price increases also contributed to Vyvanse's higher sales.

Many of Shire's rare disease drugs also notched higher sales. Although such drugs treat small numbers of patients, they can command high prices as they often bring about a significant benefit and have few, if any, competitors.

Firazyr and Cinryze, two drugs that treat a potentially fatal swelling disease known as hereditary angioedema, grew strongly in the quarter, with sales up 39% and 11% to $128 million and $164 million respectively. Sales of Gattex, for short bowel syndrome, a rare disease where the gut's ability to absorb nutrients is impaired, also grew sharply.

The attractiveness of the rare disease market spurred Shire's $32 billion acquisition of Baxalta Inc., which specializes in treatments for hemophilia, a rare condition which impairs the body's ability to stem bleeding by forming blood clots. Chief executive Flemming Ornskov said the combined companies could generate $20 billion in revenue by 2020. He added that Shire had made "strong progress" in planning for the integration of Baxalta after the deal closes in early June.

Despite Shire's pivot toward rare diseases, it is showing no sign of exiting ADHD. Dr. Ornskov said the franchise was a "key part" of Shire's growth, adding that he had increased investment into ADHD medicines research since taking charge of the company three years ago.

Shire confirmed earlier guidance for the year but said it would update expectations after it completes the Baxalta acquisition.

Shire shares were up 4.4% to GBP43.69 early Friday afternoon.

Write to Denise Roland at Denise.Roland@wsj.com

 

(END) Dow Jones Newswires

April 29, 2016 08:52 ET (12:52 GMT)

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