SHPG

Shire Shs Sponsored American Deposit Receipt Repr 3 Shs

Healthcare


Presented:03/01/2017
Price:$183.21
Cap:$55.64B
Current Price:$160.79
Cap:$49.20B

Presented

Date03/01/2017
Price$183.21
Market Cap$55.64B
Ent Value$74.39B
P/E Ratio120.64x
Book Value$97.17
Div Yield0%
Shares O/S303.70M
Ave Daily Vol1,070,593
Short IntN/A

Current

Price$160.79
Market Cap$49.20B
Shire Plc is a biopharmaceutical company, which focuses on developing and marketing innovative medicines for patients with rare diseases and other conditions. It engaged in the research, development, licensing, manufacturing, marketing, distribution and sale of innovative specialist medicines to meet significant unmet patient needs. The company was founded in 1986 and is headquartered in Dublin, Ireland.

Publicly traded companies mentioned herein: Alexion Pharmaceuticals Inc (ALXN), Allergan PLC (AGN), Bioverativ Inc (BIVV), Bristol-Myers Squibb Co (BMY), Celgene Corp (CELG), Gilead Sciences Inc (GILD), Pfizer Inc (PFE), Merck & Co Inc (MRK), Novartis AG (NVS), Shire PLC (SHPG / SHP LN), Valeant Pharmaceuticals International (VRX)

Highlights

The presenter is long shares of Shire (SHP LN / SHPG) and said he views it as the “best in class” among all of the large-cap pharma companies, including Allergan. Shire’s focus on rare diseases makes it a unique asset trading at an attractive valuation relative to the peer group (13x 2017 EPS and 10x 2018, based on consensus estimates). Given the lack of pricing power in the industry more broadly (outside of rare disease therapies), the presenter believes there will a substantial amount of M&A to fuel growth following what was a lackluster 2016 for pharma, and a disastrous year for spec pharma (as an aside, he mentioned that he remains short Valeant). Thus, the presenter believes Shire could either be bought, or be an acquirer. And, if Shire’s multiple expands, or if it is acquired, patient shareholders are likely to see 50% upside to ~£100 within the next 12-18 months.

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