Shire could spin off ADHD division in US

SHIRE has kick-started a strategic review of its ADHD drugs business which could lead to the FTSE 100 giant being broken up into two stock exchangelisted parts, after posting consensusbeating half-year sales and profit growth.

Flemming Ornskov, the chief executive of Shire, said the group’s US focused neurosciences division – set to make up around a fifth of its projected $14.3bn-$14.6bn (£10.9bn-£11.1bn) sales this year – was an “incredibly strong business that could stand alone”. The review will complete this year, with the firm saying it could result in neurosciences getting an independent public listing. Mr Ornskov declined to say whether London or New York was the more likely candidate.

Given the US’S large demand for ADHD drugs, New York could hold appeal. Any separation would allow Shire to focus on its rare diseases business, which accounts for the bulk of revenues and a wide gamut of treatments across immunology, haematology, internal medicine, eye ailments, oncology and anti-virals. Mr Ornskov said: “We are at an exciting inflection point. These are two very strong, very high growth businesses with excellent pipelines. Since [ joining in] 2013, I’ve had a clear strategy of focusing overall on rare diseases. We’re the undisputed leader in the rare diseases space. This is absolutely a natural evolution.”

Shire’s interim numbers to June were boosted by last year’s $32bn takeover of US rare diseases firm Baxalta. Sales for the period were up 77pc to just over $7bn, while operating profits jumped 40pc to $896.3m. Shire shares fell 2.0pc to £41.18 yesterday.