Shire (LON:SHP) will inform investors of the savings from the acquisition of Baxalta when it announces its second quarter results early next month, Reuters reported citing the pharmaceutical company’s CEO. The comments have fuelled speculation that more costs than originally forecast will be eliminated as a result of the acquisition.
Shire’s share price soared this morning in London after rising 1.22 percent to 4,914.00p at 09:57 BST, outperforming the FTSE 100 blue-chip index, which is currently unchanged in percentage terms at 6,680.83 points. Group shares have gained 4.6 percent so far this year, while the Footsie has risen by 7.01 percent.
Shire chief Flemming Ornskov told Reuters yesterday that the rare disease specialist will keep investors informed of the savings from the Baxalta alliance when it announces second quarter results on August 2. $32 billion last month, Shire completed the acquisition of the US blood disease specialist, which is expected to generate over $20 billion in annual revenues by the end of the decade.
“All along we have been saying that the $500 million is a risk-adjusted figure, the Dane told the news agency. “At the meeting on the second quarter results, we will provide an updated figure for synergies, and I think we will show that we are focused on delivering appropriate synergies for a business of this size.
Reuters reported that some industry analysts believed Shire had been conservative in its synergy estimates and that the actual figure could exceed $750 million.
The comments came when U.S. regulators recently bought the rights to an experimental gut drug from Pfizer.
At 10:27 BST on Wednesday 13 July, Shire PLC’s share price was 4,910.00p.