Explosion at Arenol Facility Affects Shire's Active Ingredient Supply

An explosion at Arenol Inc.'s Sommerville, NJ manufacturing facility may have serious consequences for Shire Pharmaceuticals Group plc. Arenol is the sole supplier of the active ingredients used in Adderall and DextroStat, Shire's products for the treatment of attention deficit hyperactivity disorder.

Shire is seeking to restart manufacturing at Arenol or to transfer permits, quotas and agreements for the manufacture of Adderall and DextroStat active ingredients to an alternative facility as swiftly as possible. Shire is also pursuing the matter with both the FDA and DEA.

Shire estimates that there are sufficient supplies to meet the needs of existing patients for the next three to four months. However, it is unlikely that Shire will re-establish a source of active ingredients before the current supply stock is completely exhausted.

Adderall and DextroStat represented 63% of Shire's revenue in the six month period ended June 30, 1998. Rolf Stahel, chief executive of Shire, commented, "We are very concerned about this unfortunate accident."