This Irish-based drug maker beat analysts’ estimates by $0.13 in its recent quarter. And the company issued new forward guidance for its full year, with earnings expected to be higher by 10%.
Shire plc (SHPG)
From DRIP Investor
More than 200 foreign stocks allow any U.S. investor to buy their shares directly, the first share and every share, without ever having to call a broker. In these direct-purchase plans, U.S. investors are buying American Depositary Receipts (ADRs).
ADRs represent ownership in shares of foreign companies. Investors buy and sell ADRs just as they buy and sell U.S. stocks. ADRs are quoted in U.S. dollars and pay dividends in U.S. dollars. And those dividends, in many cases, receive the current preferential tax treatment afforded qualified dividends paid by U.S. companies.
ADRs can be purchased via a stock broker. Alternatively, many ADRs allow investors to buy stock directly with their direct-purchase plans.
Ireland-based Shire plc (SHPG) is best known for its products to treat attention deficit hyperactivity disorder (ADHD). The firm expanded its operations with the acquisition of Baxalta, creating a leading biotechnology company focusing on patients with rare diseases and other highly specialized conditions.
The firm expects the combination to deliver over $20 billion in annual revenue by 2020. Shire’s drug pipeline looks promising, with more than 50 programs in clinical development.
While the stock has picked up strength in the last month or so, these shares still trade at a 28% discount to their 52-week high of $270 and offer plenty of upside.
Charles A. Carlson, CFA, DRIP Investor, www.dripinvestor.com, 800-233- 5922, August 2016