Not a dry eye in the house. This should be the advertising strap (and possibly already is) for Xiidra, Shire Plc’s (LON:SHP) new wonder drug.
It treats a condition called dry eye disease and its entry to the market will be closely monitored by analysts developing their models for 2017 sales and profitability.
Shire’s results Thursday will update on how 2016 ended as it provides commentary and numbers on the fourth quarter, which will be consolidated to provide full-year numbers too.
They follow on from updates from AstraZeneca PLC (LON:AZN) and GlaxoSmithKline plc (LON:GSK) over the previous fortnight.
Analysts expect to see a big boost to sales this year for Shire due to currency movements but also as a result of the integration of recent acquisitions, which will have a short term impact on earnings due to costs.
Deutsche Bank’s analysts expect Shire to deliver pro forma revenue growth of 7% for the fourth-quarter, allowing it to meet the upper end of its full year earnings per share guidance range of 11%.
Comments surrounding possible drug price controls by the new US administration will also be sought along with the integration progress on Shire's Baxalta and NPS acquisitions on Thursday.
Among the mid caps, power station operator Drax Group PLC (LON:DRAX) should be a focus as well on Thursday after last month’s news that the European Commission finally approved a key subsidy contract from the UK government.
In a preview, Deutsche Bank’s analysts said: “We see scope for the company to report results better than its guidance, benefiting from spiking power prices in Q4 2016.
“With Drax having secured its fixed price biomass contract, there may also be scope for it to update its production and cost guidance for its biomass units.”
Thursday February 16
Full-year results: Shire, Drax, Coca-Cola Hellenic Bottling
Macro: US housing starts and building permits data, US Philadelphia Fed industrial confidence survey