'One Shire' aimed at prioritising future investments, maximising efficiencies and keeping Shire on a path of sustainable growth
Shire Pharmaceuticals today provides an update on its "One Shire" programme which is being implemented to ensure that the Company is simplified and optimally positioned to deliver its strategy and sustain its track record of high growth. As a part of this, Shire announces that it has initiated an employee consultation process at its site in Basingstoke.
Shire is a global specialty pharmaceutical company. It is focused on bringing innovative treatments to patients with unmet medical needs around the world.
Since May, Shire has been concentrating on its strategic priorities of growing sales of the existing portfolio, bringing new innovative treatments to market through both Research & Development ("R&D") and business development, while driving greater efficiency within the business.
As detailed previously, Shire has been implementing the "One Shire" reorganisation aimed at simplifying the business. Prior to this, Shire had three autonomous divisions, each with their own R&D, supply chain, technical operations and commercial infrastructures. These three divisions are being reorganised so they are one business, with much reduced overlap.
The Company also announced recently that its product pipeline has been prioritised to focus on programmes that have the best chance of clinical and commercial success, to enable Shire to fulfil its strategy. This has resulted in a decision to focus the current early stage clinical investment primarily on rare diseases. To this end, the Company is proposing to discontinue a number of programmes outside of rare diseases. The cessation of these programmes, which have been carried out in Basingstoke, will result in a significant decrease in the amount of R&D conducted in Basingstoke. A small number of functional roles will also potentially be impacted.
Phil Vickers, Head of Research & Development for Shire, said; "Our 'One Shire' reorganisation is simplifying our business, reducing duplication and prioritising investments in future growth. We understand this is a very difficult situation for those employees potentially affected by the proposed changes we have announced today in Basingstoke, and we are fully committed to supporting them during this consultation process. We firmly believe, however, that these steps are vital to Shire remaining a high growth business that continues to develop products that serve unmet patient need."
Basingstoke will continue to be an important location for Shire, particularly for the UK business. Shire has close ties with many UK-based patient groups and key opinion leaders, and a large proportion of the Company's shareholders are UK-based. Basingstoke will continue to be the base for the employees that support the Shire business in the UK and globally.
Separately, today Shire is proposing to re-locate its Swiss operations from Eysins to Zug, and is starting a consultation process with its employees in Eysins.
For further information please contact:
Ben Atwell, FTI Consulting +44 (0)20 7831 3113
Jessica Mann +44 (0)1256 894 280
NOTES TO EDITORS
Shire enables people with life-altering conditions to lead better lives.
Our strategy is to focus on developing and marketing innovative specialty medicines to meet significant unmet patient needs.
We provide treatments in Neuroscience, Rare Diseases, Gastrointestinal, Internal Medicine and Regenerative Medicine and we are developing treatments for symptomatic conditions treated by specialist physicians in other targeted therapeutic areas.
FORWARD - LOOKING STATEMENTS - "SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
Statements included in this announcement that are not historical facts are forward-looking statements. Forward-looking statements involve a number of risks and uncertainties and are subject to change at any time. In the event such risks or uncertainties materialize, Shire's results could be materially adversely affected. The risks and uncertainties include, but are not limited to, that:
• Shire's products may not be a commercial success;
• revenues from ADDERALL XR are subject to generic erosion;
• the failure to obtain and maintain reimbursement, or an adequate level of reimbursement, by third-party payors in a timely manner for Shire's products may impact future revenues and earnings;
• Shire relies on a single source for manufacture of certain of its products and a disruption to the supply chain for those products may result in Shire being unable to continue marketing or developing a product or may result in Shire being unable to do so on a commercially viable basis;
• Shire uses third party manufacturers to manufacture many of its products and is reliant upon third party contractors for certain goods and services, and any inability of these third party manufacturers to manufacture products, or any failure of these third party contractors to provide these goods and services, in each case in accordance with its respective contractual obligations, could adversely affect Shire's ability to manage its manufacturing processes or to operate its business;
• the development, approval and manufacturing of Shire's products is subject to extensive oversight by various regulatory agencies and regulatory approvals or interventions associated with changes to manufacturing sites, ingredients or manufacturing processes could lead to significant delays, increase in operating costs, lost product sales, an interruption of research activities or the delay of new product launches;
• the actions of certain customers could affect Shire 's ability to sell or market products profitably and fluctuations in buying or distribution patterns by such customers could adversely impact Shire's revenues, financial conditions or results of operations;
• investigations or enforcement action by regulatory authorities or law enforcement agencies relating to Shire's activities in the highly regulated markets in which it operates may result in the distraction of senior management, significant legal costs and the payment of substantial compensation or fines;
• adverse outcomes in legal matters and other disputes, including Shire's ability to obtain, maintain, enforce and defend patents and other intellectual property rights required for its business, could have a material adverse effect on Shire's revenues, financial condition or results of operations;
and other risks and uncertainties detailed from time to time in Shire's filings with the U.S. Securities and Exchange Commission, including its most recent Annual Report on Form 10-K.