This week’s Stock of the Week is a solid biotech company that treats common and uncommon diseases.
Shire Plc (SHPG) is a Dublin-based biotechnology company with a focus on drugs for people who have rare diseases.
Its drugs are used in hematology, treatment of genetic diseases, neuroscience, immunology, ophthalmology and oncology—and include medicines for conditions ranging from hemophilia to leukemia to binge-eating disorder. One of its best-known products is Adderall for attention deficit/hyperactivity disorder (ADHD).
Shire has collaboration and other agreements with Pfizer and other major pharmaceutical firms. It has a history of innovation, a solid pipeline of new drugs and substantial cash flow. Shire is also still digesting its 2016 acquisition of drugmaker Baxalta, which provided additional important hemophilia treatments. Nevertheless, Shire’s revenue is growing steadily. It was $15.16 billion last year and will likely be $15.51 billion this year and $15.99 billion next year. And the dividend of $1.05/ADR/yr. recently yielded 0.7% and appears secure.
Fiscal year: December. Earnings per ADR: 2019 est./$16.51…2018 est./$15.33…2017/$15.05.
John Buckingham is chief investment officer, Al Frank Asset Management, Inc., Aliso Viejo, California, which manages $710 million, including the $87 million Al Frank Fund (VALUX). AlFrankFunds.com