Shire First-Quarter Profit Drops 11% on Cost of Sales

By Denise Roland Features Dow Jones Newswires

Shire PLC (SHP.LN) said net profit fell in the first quarter even as revenue more than doubled, largely due to higher sales-related costs.

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The Dublin-based biopharmaceuticals company said net profit declined 11% in the three months to March 31 to $375 million from $419 million a year earlier, while revenue rose to $3.57 billion from $1.71 billion. There was a sharp increase in the cost of sales, which ballooned to $1.33 billion in the first quarter, from $248.6 million a year earlier.

Shire's revenue has roughly doubled since it closed its acquisition of Baxalta in June. The hard-won deal, initially opposed by Baxalta management, has added new drugs for hemophilia, cancer and immunodeficiency conditions to Shire's portfolio.

Write to Denise Roland at denise.roland@wsj.com

(END) Dow Jones Newswires

May 02, 2017 07:38 ET (11:38 GMT)