Shire Restructures Business Divisions
Shire plans to create two distinct business divisions within the company: a Rare Disease Division and a Neuroscience Division. This follows an August 2017 announcement by Shire that the company was conducting a strategic review of its neuroscience business.
Following the first stage of the review, the comany’s board concluded that the neuroscience business warrants additional focus and investment and that there is a strong business rationale for creating the two divisions within Shire. The board says it believes this will be an important first step in enabling both divisions to maximize mid- to long-term product sales, cash generation, and innovation.
Shire plans to report the operational performance metrics of each division separately beginning in the first quarter of 2018. The second stage of the review will include continuing to evaluate all strategic alternatives, including the merits of an independent listing for each of the two divisions. The company says it will give an update on the second stage of the review in the second half of 2018.
Shire says it will use 2018 to optimize the portfolio for each of these two divisions, which may include business-development activities such as partnerships, licensing agreements, and bolt-on acquisitions.