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| Shire Pharmaceuticals Group plc |
ANDOVER, England, Feb. 17 /PRNewswire/ -- Shire Pharmaceuticals Group plc
("Shire") (Nasdaq: SHPGY; London: SHP.L) today releases historic proforma
data, in US GAAP format, to assist the market with the interpretation of the
Group's key financial statements following the recent merger with Roberts
Pharmaceuticals Corporation. Shire previously reported according to UK GAAP
but following this merger will be reporting in US GAAP.
This information is provided in advance of Shire's results for the
following periods which will be announced on Tuesday, 29 February 2000 at 12pm
UK (7am US ET):
1. Preliminary results for the year ended 31 December 1999 and fourth
quarter results for the three months ended 31 December 1999.
2. Income statement (unaudited) for January 2000 (these results are
being published early to comply with certain SEC regulations
following the recent merger with Roberts Pharmaceutical
Corporation).
Shire Pharmaceuticals Group plc
Shire is an international specialty pharmaceutical company with a
strategic focus on four therapeutic areas; central nervous system disorders,
metabolic diseases, oncology and gastroenterology. Shire has a sales and
marketing infrastructure with a broad portfolio of products targeting the US,
Canada, UK, Republic of Ireland, France, Germany and Italy, with plans to add
other key markets in due course. Shire's global search and development
expertise has already provided three marketed products, whilst the current
pipeline of 15 projects includes one project in registration and five at Phase
III. Shire is actively searching to acquire further marketed products and
development projects to enhance the potential for future growth, both
organically and by acquisition.
THE "SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM
ACT OF 1995. The statements in this press release that are not historical
facts are forward-looking statements that involve risks and uncertainties,
including but not limited to, risks associated with the inherent uncertainty
of pharmaceutical research, product development and commercialization, the
impact of competitive products, patents, and other risks and uncertainties,
including those detailed from time to time in periodic reports, including the
F-4 Prospectus and the Annual Report filed on Form 20-F with the Securities
and Exchange Commission.
BASIS OF PREPARATION:
(1) The unaudited pro forma combined income statements give effect to
the merger of Shire and Roberts Pharmaceutical Corporation as a
pooling of interests under U.S. GAAP. They are presented in both US
dollars and pounds sterling. The results for all periods presented
are prepared under U.S. GAAP. A reconciliation of the U.S. GAAP
pound sterling denominated income statement to UK GAAP is included
within the pound sterling financial information.
(2) The results for the years ended December 31, 1995 and 1996 are
prepared from the results on Form10K for Roberts and the unaudited
results of Shire. The results of Shire for the years ended December
31, 1995 and 1996 have not been audited as these were not statutory
periods. During 1997 Shire's year end was changed from 30 June to
31 December.
(3) The results for the years ended December 31, 1997 and 1998 are
prepared from the results on Form 10K for Roberts and the Audited
Consolidated Financial Statements of Shire, as restated in U.S.
GAAP.
(4) The results for the nine months ended September 30, 1999 are
prepared from the results of Roberts on Form 10Q and from Shire's
unaudited quarterly report.
(5) Pro forma weighted average ordinary shares have been calculated
using the exchange ratio of 3.1280, representing the number of
ordinary shares issued for each Roberts share under the terms of the
merger agreement.
(6) Exchange rates used in the preparation of this financial information
are detailed within these schedules.
Pro Forma Combined Income Statements
Year ended Year ended Year ended Year ended 9 months to
31 Dec 31 Dec 31 Dec 31 Dec 30 Sept
1995 1996 1997 1998 1999
$'000 $'000 $'000 $'000 $'000
Revenues:
Product
sales 124,352 115,524 168,916 291,785 283,346
Licensing and
development 12,895 11,406 20,130 11,821 9,771
Royalties 330 806 1,612 3,697 2,318
Other revenue 47 36 896 1,681 1,708
Total sales
and revenue 137,624 127,772 191,554 308,984 297,143
Costs and expenses:
Cost of
sales 56,849 57,552 67,090 95,013 69,143
Research and
development 15,533 22,979 40,663 59,253 51,516
Selling, general
and
administr-
ative 49,577 60,843 74,246 106,453 105,377
Other charges:
Intangible write-offs
and loss/(gain)
on dispositions -- 33,906 -- (220) --
In process research and
Development 23,275 -- 83,087 -- --
Total operating costs
and
expenses 145,234 175,280 265,086 260,499 226,036
EBITDA (7,610) (47,508) (73,532) (48,485) 71,107
Depreciation &
amortization (7,441) (7,806) (12,309) (25,249) (19,519)
Operating
income (15,051) (55,314) (85,841) 23,236 51,588
Other income/(expense)
Interest
income 2,202 4,811 6,547 6,398 5,375
Interest
expense (5,688) (1,763) (964) (6,511) (7,290)
Other, net 49 188 (2,474) 440 (96)
Total other income/
(expense) (3,437) 3,236 3,109 327 (2,011)
Income from continuing
operations
before
taxes (18,488) (52,078) (82,732) 23,563 49,577
Income taxes (2,518) 15,815 (1,420) (2,991) (20,609)
Income/(loss)
from continuing
operations (21,006) (36,263) (84,152) 20,572 28,968
Income from
discontinued
operations,
net of tax (27,045) 556 -- -- --
Net income (48,051) (35,707) (84,152) 20,572 28,968
Net income per share:
Basic (0.58) (0.30) (0.45) 0.09 0.12
Diluted (0.58) (0.30) (0.45) 0.08 0.12
Weighted average
number of common
shares
outstanding:
Basic 83,082,819 118,766,218 185,153,065 234,044,732 241,977,657
Diluted 83,082,819 118,766,218 185,153,065 242,806,410 249,505,550
Pro Forma Combined Income Statement
Quarterly data 1999 Quarter Quarter Quarter 9 months
31 March 30 June 30 September 30 September
$'000 $'000 $'000 $'000
Revenues:
Product sales 87,756 93,099 102,491 283,346
Licensing and
development 6,411 1,336 2,024 9,771
Royalties 629 1,141 548 2,318
Other revenue 456 531 721 1,708
Total sales
and revenue 95,252 96,107 105,784 297,143
Costs and expenses:
Cost of sales 23,511 19,229 26,403 69,143
Research and
development 16,279 15,369 19,868 51,516
Selling, general and
administrative 34,660 35,840 34,877 105,377
Other charges:
Intangible write-offs and
loss/(gain)
on dispositions -- -- -- --
In process research
and development -- -- -- --
Total operating costs
and expenses 74,450 70,438 81,148 226,036
EBITDA 20,802 25,669 24,636 71,107
Depreciation &
amortization (6,275) (6,274) (6,970) (19,519)
Operating income 14,527 19,395 17,666 51,588
Other income/(expense)
Interest income 1,613 2,001 1,761 5,375
Interest expense (2,558) (2,335) (2,397) (7,290)
Other, net 650 (522) (224) (96)
Total other income/
(expense) (295) (856) (860) (2,011)
Income before taxes 14,232 18,539 16,806 49,577
Income taxes (3,966) (9,130) (7,513) (20,609)
Net income 10,266 9,409 9,293 28,968
Net income per share:
Basic 0.04 0.04 0.04 0.12
Diluted 0.04 0.04 0.04 0.12
Weighted average number of
common shares outstanding:
Basic 240,438,985 242,149,929 243,312,483 241,977,657
Diluted 247,390,800 248,264,519 251,446,294 249,505,550
Pro Forma Combined Income Statement
Quarterly data 1998
Quarter Quarter Quarter Quarter 12 months
31 March 30 June 30 September 31 December 31 December
$'000 $'000 $'000 $'000 $'000
Revenues:
Product sales 60,681 73,821 68,073 89,210 291,785
Licensing and
development 2,315 3,920 757 4,829 11,821
Royalties 724 1,424 578 971 3,697
Other revenue 259 568 378 476 1,681
Total sales
and revenue 63,979 79,733 69,786 95,486 308,984
Costs and expenses:
Cost of
sales 18,670 21,942 22,743 31,658 95,013
Research and
development 14,676 16,143 11,380 17,054 59,253
Selling, general and
administr-
ative 27,085 29,320 24,156 25,892 106,453
Other charges:
Intangible write-offs and
loss/(gain) on
dispositions -- -- -- (220) (220)
In process research and
development -- -- -- -- --
Total operating costs
and expenses 60,431 67,405 58,279 74,384 260,499
EBITDA 3,548 12,328 11,507 21,102 48,485
Depreciation &
amortization (5,250) (6,695) (6,546) (6,758) (25,249)
Operating
income (1,702) 5,633 4,961 14,344 23,236
Other income/(expense)
Interest
income 1,434 1,748 1,375 1,841 6,398
Interest
expense (476) (239) (3,056) (2,740) (6,511)
Other, net 435 410 686 (1,091) 440
Total other
income/
(expense) 1,393 1,919 (995) (1,990) 327
Income before
taxes (309) 7,552 3,966 12,354 23,563
Income taxes (4,919) 502 939 487 (2,991)
Net income (5,228) 8,054 4,905 12,841 20,572
Net income per share:
Basic (0.02) 0.03 0.02 0.05 0.09
Diluted (0.02) 0.03 0.02 0.05 0.08
Weighted average
number of common
shares outstanding:
Basic 221,453,169 236,799,603 238,478,589 239,259,296 234,044,732
Diluted 221,453,169 245,869,067 246,095,575 248,223,566 242,806,410
PRO FORMA COMBINED BALANCE SHEET
31 Dec 30 Sept
1998 1999
$'000 $'000
ASSETS
Current assets
Cash and cash equivalents 52,973 36,603
Marketable securities 36,062 31,897
Current asset investments 35,664 81,141
Inventories 34,639 41,699
Accounts receivable, net 74,253 72,266
Notes receivable 2,369 6,259
Other current assets 39,578 28,735
Total current assets 275,538 298,600
Property & equipment, net 42,682 42,676
Intangible assets 537,159 569,730
Other assets 18,226 32,314
Total assets 873,605 943,320
LIABILITIES AND SHAREHOLDERS EQUITY
Current liabilities
Current installments of
long term debt 12,351 16,699
Account payable 54,896 49,944
Other current liabilities 14,041 37,418
Total current liabilities 81,288 104,061
Long term debt, excluding
current installments 126,774 125,188
Other long term liabilities 2,229 2,282
Total liabilities 210,291 231,531
Shareholders' equity 663,314 711,789
Total liabilities and
shareholders' equity 873,605 943,320
Pro Forma Combined Statements of Cash flows
Year ended Year ended 9 months to
31 Dec 31 Dec 30 Sept
1997 1998 1999
$'000 $'000 $'000
Cash flows from
operating activities:
Net income/(loss) (84,152) 20,573 28,968
Adjustments to reconcile net
income/(loss) to net cash
flows from operating activities
Depreciation and
amortization 12,309 25,249 19,519
Non qualifying stock option
compensation cost 2,567 8,505 13,581
Non cash exchange
gains and losses (1,289) (1,817) 332
(Profit)/loss on sale of
fixed assets (13) 16 (828)
(Increase)/decrease
in inventory (4,657) (5,170) (7,060)
(Increase)/decrease in
accounts receivable (5,751) (24,988) (10,247)
Increase/(decrease)
in accounts payable 511 12,186 18,388
Carbatrol milestone payment 8,000 -- --
Impact of discontinued
operations (629) -- --
Acquisition of in-process
research and development 83,087 -- --
Net cash provided by/(used in)
operating activities 9,983 34,554 62,653
Cash flows from
investing activities:
Redemption of/(investment in)
marketable securities (32,094) 3,825 4,165
Purchase of long
term investment -- (10,000) --
Deferred consideration (10,000) -- --
Purchase of subsidiary
undertakings (41,053) -- --
Expenses of acquisition (3,118) (551) --
Net cash acquired with
subsidiary undertakings 6,759 -- --
Purchase of intangible
assets (10,066) (142,258) (40,299)
Purchase of fixed assets (13,936) (13,871) (4,311)
Sale of intangible
fixed assets -- 1,033 --
Sale of fixed assets 20 60 1,407
Collection on
notes receivable 6,738 1,751 5,536
Net cash provided by/
(used in) investing
activities (96,750) (160,011) (33,502)
Cash flows from
financing activities:
(Increase)/decrease in cash
placed on short-term deposit 33,949 (35,664) (45,477)
Long term debt issued -- 125,000 --
Payments on long term debt,
capital leases and notes
payable (7,410) (11,708) (8,241)
Payment on debt issuance costs -- (2,528) --
Proceeds from issue
of common stock, net 19,054 35,027 4,834
Proceeds from exercise
of stock options 1,016 4,082 3,295
Proceeds from issue
of preferred stock 6,000 4,494 --
Cash dividends paid (1,629) (150) --
Net cash provided by/(used in)
financing activities 50,980 118,553 (45,589)
Effect of exchange rate changes
on cash and cash equivalents (401) 9 68
Net increase/(decrease) in cash
and cash equivalents (36,188) (6,895) (16,370)
Cash and cash equivalents at
beginning of year 96,057 59,868 52,973
Cash and cash equivalents
at end of year 59,869 52,973 36,603
NET PRODUCT SALES DATA
Q1 Q2 Q3 Q4 YTD
1999 1999 1999 1999 1999 % of
$'000 $'000 $'000 $'000 $'000 Total
ADDERALL 31,547 29,159 36,046 96,752 34%
PENTASA 15,002 8,555 20,194 43,751 15%
AGRYLIN 5,169 19,194 4,015 28,378 10%
PROAMATINE 5,858 1,801 8,382 16,041 6%
CALCIUMS 4,027 4,219 4,211 12,457 4%
DEXTROSTAT 1,944 2,550 2,153 6,647 2%
CARBATROL 2,601 3,812 4,250 10,663 4%
OTC 6,164 4,823 8,005 18,992 7%
OTHERS 15,444 18,986 15,235 49,665 18%
87,756 93,099 102,491 0 283,346 100%
NET PRODUCT SALES DATA
Q1 Q2 Q3 Q4 Total
1998 1998 1998 1998 1998 % of
$'000 $'000 $'000 $'000 $'000 Total
ADDERALL 16,320 19,365 15,298 22,997 73,980 25%
PENTASA -- 13,441 7,480 12,403 33,324 11%
AGRYLIN 3,567 5,071 10,977 4,114 23,729 8%
PROAMATINE 3,002 2,506 4,871 5,034 15,413 5%
CALCIUMS 3,141 3,551 3,696 4,220 14,608 5%
DEXTROSTAT 1,471 1,541 1,359 1,629 6,000 2%
CARBATROL 2,677 1,032 495 1,131 5,335 2%
OTC 6,273 7,666 4,843 7,178 25,960 9%
OTHERS 24,230 19,648 19,054 30,504 93,436 32%
60,681 73,821 68,073 89,210 291,785 100%
Pro Forma Combined Income Statement
Year ended Year ended Year ended Year ended 9 months to
31 Dec 31 Dec 31 Dec 31 Dec 30 Sept.
1995 1996 1997 1998 1999
'000 pounds '000 pounds '000 pounds '000 pounds '000 pounds
Revenues:
Product
sales 78,689 73,428 102,870 175,543 175,216
Licensing and
development 8,160 7,250 12,064 7,083 6,034
Royalties 209 512 1,031 2,223 1,442
Other revenue 30 23 546 1,011 1,057
Total sales
and revenue 87,088 81,213 116,511 185,860 183,749
Costs and expenses:
Cost of
sales 35,974 36,580 40,900 57,131 42,729
Research and
development 9,829 14,606 24,736 35,650 31,913
Selling, general and
administ
-rative 31,372 38,439 45,889 63,905 65,159
Other charges:
Intangible
write-offs -- 21,551 -- -- --
In process
research and
development 14,728 -- 50,626 -- --
Total operating
costs and
expenses 91,903 111,176 162,151 156,686 139,801
EBITDA (4,815) (29,963) (45,640) 29,174 43,948
Depreciation
and amorti
-zation (4,709) (4,962) (7,485) (15,281) (12,068)
Operating
income (9,524) (34,925) (53,125) 13,893 31,880
Other income/(expense)
Interest
income 1,393 3,058 3,994 3,850 3,326
Interest
expense (3,599) (1,120) (586) (3,909) (4,506)
Foreign
currency -- -- (66) 278 (323)
Other, net 31 120 (1,439) (40) 253
Total other income/
(expense) (2,175) 2,058 1,903 180 (1,250)
Income from
continuing operations
before
taxes (11,699) (32,867) (51,222) 14,073 30,630
Income taxes (1,593) 9,097 (849) (1,848) (12,767)
Income/(loss)
from continuing
operations (13,292) (23,770) (52,071) 12,225 17,863
Income from discontinued
operations,
net of tax (17,114) 353 -- -- --
Net income (30,405) (23,417) (52,071) 12,225 17,863
Net income per share:
Basic (0.31) (0.16) (0.28) 0.05 0.07
Diluted (0.31) (0.28) (0.28) 0.05 0.07
Weighted average number
of common shares
outstanding:
Basic 83,082,819 118,766,218 185,153,065 234,044,732 241,977,657
Diluted 83,082,819 118,766,218 185,153,065 242,806,065 249,505,550
Pro Forma Combined Income Statement
Quarterly data 1999 3 months 3 months 3 months 9 months
ending ending ending to
31 March 30 June 30 September 30 September
'000 pounds '000 pounds '000 pounds '000 pounds
Revenues:
Product sales 53,733 57,960 63,523 175,216
Licensing and
development 3,949 832 1,253 6,034
Royalties 387 716 339 1,442
Other revenue 279 331 447 1,057
Total sales and
revenue 58,348 59,839 65,562 183,749
Operating costs and expenses:
Cost of sales 14,394 11,969 16,366 42,729
Research and
development 10,026 9,568 12,319 31,913
Selling, general and
administrative 21,201 22,334 21,624 65,159
Total operating costs
and expenses 45,621 43,871 50,309 139,801
EBITDA 12,727 15,968 15,253 43,948
Depreciation and
amortization (3,841) (3,906) (4,321) (12,068)
Operating income 8,886 12,062 10,932 31,880
Other income/(expense)
Interest income 989 1,247 1,090 3,326
Interest expense (1,566) (1,454) (1,486) (4,506)
Foreign currency (163) (183) 23 (323)
Other, net 556 (143) (160) 253
Total other income/
(expense) (184) (533) (533) (1,250)
Income before taxes 8,702 11,529 10,399 30,630
Income taxes (2,428) (5,682) (4,657) (12,767)
Net income 6,274 5,847 5,742 17,863
Net income per share:
Basic 0.03 0.02 0.02 0.07
Diluted 0.03 0.02 0.02 0.07
Weighted average number of common shares outstanding:
Basic 240,438,985 242,149,929 243,312,483 241,977,657
Diluted 247,390,800 248,264,519 251,446,294 249,505,550
Pro Forma Combined Income Statement
Quarterly data 1998
3 months 3 months 3 months 3 months Year
ending ending ending ending Ended 31
31 March 30 June 30 September 31 December December
'000 pounds '000 pounds '000 pounds '000 pounds '000 pounds
Revenues:
Product
sales 36,830 44,414 40,893 53,406 175,543
Licensing and
development 1,401 2,351 453 2,878 7,083
Royalties 438 859 343 583 2,223
Other revenue 157 342 227 285 1,011
Total sales and
revenue 38,826 47,966 41,916 57,152 185,860
Operating costs and expenses:
Cost of
sales 11,335 13,176 13,668 18,952 57,131
Research and
development 8,909 9,715 6,826 10,200 35,650
Selling, general
and adminis
-trative 16,407 17,617 14,480 15,401 63,905
Total operating
costs and
expenses 36,651 40,508 34,794 44,553 156,686
EBITDA 2,175 7,458 6,942 12,599 29,174
Depreciation and
amorti
-zation (3,187) (4,030) (3,932) (4,132) (15,281)
Operating
income (1012) 3,428 3,010 8,467 13,893
Other income/(expense)
Interest
income 870 1,050 827 1,104 3,851
Interest
expense (288) (145) (1,836) (1,640) (3,909)
Foreign
currency 115 267 (18) (86) 278
Other, net 30 65 435 (570) (40)
Total other income/
(expense) 727 1,237 (592) (1,192) 180
Income before
taxes (285) 4,665 2,418 7,275 14,073
Income taxes (2,990) 308 534 300 (1,848)
Net income (3,275) 4,973 2,952 7,575 12,225
Net income per share:
Basic (0.01) 0.02 0.01 0.03 0.05
Diluted (0.01) 0.02 0.01 0.03 0.05
Weighted average number of common shares outstanding:
Basic 221,453,169 236,799,603 238,478,589 239,259,296 234,044,732
Diluted 230,612,442 245,869,067 246,095,575 248,223,566 242,806,410
Reconciliation of Net Income under US GAAP
(Merger Accounting) with UK GAAP (Purchase Accounting)
9 months to Year to Year to
30 September 31 December 31 December
1999 1998 1997
'000 pounds '000 pounds '000 pounds
Net income in accordance
with US GAAP 17,863 12,225 (52,071)
Adjustments to conform to UK GAAP
Purchase accounting adjustments:
-Elimination of Roberts net
income (12,228) (10,026) (1,535)
In process Research and
Development -- -- 50,626
Amortization of goodwill 5,103 6,709 2,459
Recognition of deferred
tax asset (1,771) (7,765) (1,312)
Share option compensation
costs 6,380 3,313 1,412
Tax benefit of share option
deductions 2,017 1,811 --
Net income in accordance with
UK GAAP 17,364 6,267 (421)
NET PRODUCT SALES DATA
Q1 Q2 Q3 Q4 Total
1999 1999 1999 1999 1999 % of
'000 '000 '000 '000 '000 Total
pounds pounds pounds pounds pounds
ADDERALL 18,962 18,159 22,348 59,469 34%
PENTASA 9,017 5,328 12,520 26,865 15%
AGRYLIN 3,107 11,953 2,489 17,549 10%
PROAMATINE 3,521 1,122 5,197 9,834 6%
CALCIUMS 2,421 2,627 2,611 7,659 4%
CARBATROL 1,563 2,374 2,635 6,572 4%
DEXTROSTAT 1,168 1,588 1,335 4,091 2%
OTC 3,705 3,003 4,963 11,671 7%
OTHERS 10,269 11,809 9,422 31,500 18%
53,733 57,963 63,520 0 175,216 100%
NET PRODUCT SALES DATA
Q1 Q2 Q3 Q4 Total
1998 1998 1998 1998 1998 % of
'000 '000 '000 '000 '000 Total
pounds pounds pounds pounds pounds
ADDERALL 9,908 11,656 9,190 13,815 44,569 25%
PENTASA 0 8,090 4,493 7,451 20,034 11%
AGRYLIN 2,166 3,052 6,594 2,471 14,283 8%
PROAMATINE 1,823 1,508 2,926 3,024 9,281 5%
CALCIUMS 1,907 2,137 2,220 2,535 8,799 5%
DEXTROSTAT 893 928 816 979 3,616 2%
CARBATROL 1,625 621 297 679 3,222 2%
OTC 3,809 4,614 2,909 4,296 15,628 9%
OTHERS 14,699 11,808 11,448 18,156 56,111 32%
36,830 44,414 40,893 53,405 175,543 100%
Currencies and exchange rates
The following table details the exchange rates for one pound sterling
expressed in US dollars use translation of the financial statements
Quarter Quarter Quarter Quarter Year
31 March 30 June 30 Sept 31 Dec 31 Dec
1999
Average 1,6337 1,6058 1,6129 -- --
Closing 1,6438
1998
Average 1,6472 1,6614 1,6647 1,6709 1,6610
Closing 1,6638
1997
1,6397
Average
1996
Average 1,5733
1995
Average 1,5803
SOURCE Shire Pharmaceuticals Group plc
back to topCONTACT:
Angus Russell, +44-1264-348545, Paul
McBarron, +44-1264-348527, both of Shire Pharmaceuticals Group
plc; David Yates, or Sophie Pender-Cudlip, both of Financial
Dynamics, +44-171-831-3113; or Julie Huang of Edelman Financial
Worldwide, 212-704-8114, for Shire Pharmaceuticals Group plc
