Shire is poised for global leadership in rare diseases.
By Armando Uribe, Analytics Analyst
29 June 2016
Shire is shifting away from a high dependence on its central nervous system (CNS) portfolio to a broader therapeutic focus, especially in the rare diseases space. Shire already has a strong portfolio in rare disease treatments and the latest acquisitions of Dyax and Baxalta show a commitment to become a leader in this market.
Shire has historically relied on strong revenues from its CNS portfolio for growth. In 2015, the CNS portfolio recorded sales of $2.2bn (34.8%) of all of its drug revenues. Increasing sales of current attention deficit hyperactivity disorder blockbuster Vyvanse (lisdexamfetamine dimesylate) will be almost entirely responsible for fueling the expansion in value of the CNS portfolio across the forecast period. Datamonitor Healthcare forecast that the value of the portfolio will increase to just under $4bn in 2022, but will then fall sharply to $1.7bn in 2025 (18% of all drug sales) due to the onset of generic erosion of Vyvanse sales in the US.
Shire’s rare diseases products, which are split between its cardiovascular and endocrine, metabolic, and genetic disorders portfolios, were worth $2.6bn in 2015. Datamonitor Healthcare expects that the combined revenue of these products will increase to over $5.8bn in 2025 (excluding Baxalta). In January 2016, Shire closed its acquisition of Dyax and added two drugs to its cardiovascular portfolio: Kalbitor (ecallantide) and SHP643 that complement the company’s hereditary angioedema (HAE) franchise. Datamonitor Healthcare forecasts that SHP643 will become Shire’s highest revenue generating drug over the forecast period, generating slightly under $2 billion in 2025.
In June 2016, Shire closed the acquisition of Baxalta. Shire’s reiterated goal of double-digit sales growth, with over $20 billion in annual revenues by 2020 is feasible with the addition of Baxalta’s marketed and pipeline portfolio, which generated total sales of $6,148m in 2015.
Datamonitor Healthcare’s company analysis on Shire explores global corporate strategy, marketed portfolio, pipeline potential, and financial performance over 2015–25.
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