After refusing AbbVie's third multibillion dollar acquisition offer last week, Shire's board feels stronger than ever about its goals to more than double its 2013 annual product sales to $10 billion by 2020. To do this, the company stands behind its focused business strategy, high-performance management team, and a lean operating model.
However, AbbVie will not easily be refuted. The Money Observer reports the company “is understood to be prepared to raise its offer.”
Even with another possible proposal on the horizon, Shire gave a presentation on Monday about its continued progress in executing its strategy, which "centers on delivering innovative therapies for significant unmet need in Rare Diseases and other high-value specialty indications."
“We have a long range plan that envisages more than doubling product sales from just under US$5 billion in 2013 to US$10 billion by 2020 from the current portfolio, even without the impact of any additional M&A, licensing, and the pipeline development from certain recent transactions," Flemming Ornskov, Shire CEO, said. "Furthermore, we have stepped up the efficiency of the business, increasing Non GAAP EBITDA margins by eight percentage points year on year from Q1 2013 to Q1 2014."
Monday’s presentation highlighted:
Shire forecasts some of the following sales figures for its pipeline:
In addition, Shire reports that under its new management, the company has "improved the efficiency of the business, increasing group Non GAAP EBITDA margins from 37 percent in Q1 2013 to 45 percent in Q1 2014."