Shire PLC (SHP.LN) said Monday that it plans to operate as two separate division going forward and estimates that the group's total revenue will reach $17 billion to $18 billion by 2020.
The U.K. pharmaceutical company said the decision to split the company into a rare-diseases business and a neuroscience business was the result of a strategic review initiated in August. The reorganization will allow Shire to increase its focus on its neuroscience business, which it said needs additional investment.
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"Each division will benefit from sharper management focus, greater strategic clarity, and an increased ability to deploy resources to key growth priorities," Shire said.
The company said that revenue in its immunology franchise--part of its rare-disease division--grew 21% in the first three quarters of 2017 on a pro-forma basis, adding that it has a pipeline of 15 programs in phase 3 trials.
Shire said that it is targeting a Non-GAAP net-debt-to-EBITDA ratio of below 2.5x by the end of 2018.
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(END) Dow Jones Newswires
January 08, 2018 10:14 ET (15:14 GMT)