Shire "add"

07/20/04 - Dresdner Kleinwort Wasser.

LONDON, July 20 (New Ratings) – Analyst Shawn Manning of Dresdner Kleinwort Wasserstein maintains his "add" rating on Shire (SHP). The target price is set to 580p.

Shares of Shire, a global pharmaceuticals company, are currently trading at 435.8p.

According to Dresdner Kleinwort Wasserstein's research note published this morning, Shire anticipates the FDA approval for Fosrenol, for the treatment of end-stage renal disease, in October, followed by the commercial launch in the US markets by December this year. The analyst mentions that the FDA has extended its review period for Fosrenol by three months. However, the FDA's letter to the company does not mention any safety or efficacy concerns regarding Fosrenol, Dresdner Kleinwort Wasserstein says.

The analyst expresses his optimism regarding the eventual FDA approval for Shire's Fosrenol product. The company received its first European approval for Fosrenol in Sweden earlier in March this year, Dresdner Kleinwort Wasserstein adds. According to the analyst, Fosrenol has received a broad labeling approval in Sweden, while Shire anticipates a similar unrestrictive labeling for this drug in the US markets. Dresdner Kleinwort Wasserstein anticipates global sales of $154 million for Fosrenol by 2008.

The EPS estimates for 2004, 2005 and 2006 are 34.9p, 38.9p and 41.1p, respectively. The P/E estimates for 2004, 2005 and 2006 are 12.5x, 11.2x and 10.6x, respectively.

Dresdner Kleinwort Wasserstein maintains its "add" rating on Shire.