Shire falls after press attention
Shire, the second best performer on the FTSE 100 this year, was among the worst performing stocks today, not helped by the Financial Times (FT) which pointed out some risks for the stock.
Shire, the second best performer on the FTSE 100 this year, was among the worst performing stocks today, not helped by the Financial Times (FT) which pointed out some risks for the stock.
Shire, a drugs manufacturer, has gained 41% this year on a tide of rising earnings and a strong patent position.
The FT, however, points out what several analysts have been arguing, that there are risks: firstly, its attention deficit hyperactivity treatment could become a target for the anti-medication lobby in the US; there's also a chance of a price war over its drug for Gaucher's disease.
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The FT says despite these risks Shire's "sky-high valuation" - the paper says the stock is trading at around 20 times prospective earnings - is fair.
Nevertheless, shares were trading 0.71% at 2,111p by 12:40 on Friday.
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