Rare diseases pharmaceutical firm Shire PLC (ADR)(NASDAQ:SHPG) is considering a sale of a manufacturing site located in Milford. This was revealed during the release of the company’s third quarter earnings report as a part of a cost-cutting program which will target the drugmaker’s manufacturing operations. Globally Shire will be divesting five manufacturing sites. Shire’s Milford site measures approximately 99,000 square feet.
The Milford site, which was acquired after a merger with Baxalta, currently employs about 100 people. It is expected that the employees at the manufacturing site will be absorbed by the firm which eventually acquires the plant.
“We feel confident that we’ll be able to divest that site, and that there will continue to be employment for those colleagues,” said Shire’s technical operations head, Matt Walker.
Even as it divests some manufacturing facilities, the rare diseases pharmaceutical firm is consolidating its workforce in the state of Massachusetts at its Cambridge and Lexington campuses. Shire employs over 3,000 people in the state.
In its financial results for the third quarter, Shire recorded a 7% increase in revenues compared to a similar period last year. Sales for internal medicines however fell by 24% after generics for Lialda were launched. Lialda is used a therapy for ulcerative colitis.
Earnings per share
Adjusted EPS increased by 20% to reach a figure of $3.81 beating estimates by analysts who had been expecting a figure of $3.69. While it had slumped to a loss last year during the third quarter due to the costs of its acquisition of Baxalta, Shire bounced back to profit having recorded $551 million in net income. During the release of the quarterly report, Shire indicated that plans to achieve $700 million in cost savings after the acquisition were still on course.
Shire’s growth occurred despite the fact that the pharmaceutical firm encountered production problems with Cinryze, a therapy aimed at preventing swelling as a result of angioedema, a rare hereditary condition. The production problems caused a supply interruption but were resolved earlier this month.
In Monday’s trading session shares of Shire PLC rose by 2.53% to close the day at $145.76.