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4 August 2017Big Pharma

Shire ponders spinning off neuroscience franchise

UK-based biopharmaceutical company Shire is assessing the potential to spin off its neuroscience franchise.

In its financial results, released yesterday, Shire said it would complete its review by the end of 2017 and that it was possible there may be an independent public listing of the neuroscience franchise.

“We are at an exciting inflection point, with both our rare disease and neuroscience businesses performing strongly and each having significant growth potential over the coming years,” said Flemming Ornskov, CEO of Shire.

Neuroscience product sales decreased 3% in the second quarter of 2016 to $635 million, primarily driven by Adderall XR, a treatment for attention deficit hyperactivity disorder.

The sales of Adderall fell 30%, primarily due to additional generic competition since August 2016, according to Shire.

Research and development increased by $248 million in the second quarter, or 84%, compared with the second quarter of 2015.

This was primarily due to milestone and upfront payments associated with licence arrangements, and the inclusion of a full quarter of Baxalta-related costs. In January last year, Shire completed the $32 billion takeover of US-based Baxalta and its “well-established hematology portfolio”.

“As we enter the second half of 2017, we are focused on generating strong organic growth while continuing to deliver on our key priorities—launching more than 80 products globally by leveraging our expanded commercial platform, progressing our late-stage pipeline, integrating Baxalta, and paying down debt,” said Shire.

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