U.K. drug maker Shire PLC (SHP.LN) Friday reported a 23% rise in fourth quarter profit, aided by a fillip to earnings from rebates for an older medicine now facing generic competition, and said it intends to market a new drug for a rare genetic disease at a 15% discount to its only approved rival in the U.S.

The company, the U.K.'s third biggest pharmaceutical company by market capitalization, said it expects to grow revenue again in 2010 and is targeting mid-teen percentage revenue growth between 2009 and 2015.

Shire Friday reported a fourth quarter net profit of $174.3 million, compared to a profit of $141.3 million a year earlier. Revenue increased 17% to $893.3 million, driven by rising sales of hyperactivity medicine Vyvanse, Lialda for ulcerative colitis, and two drugs for rare genetic diseases, Elaprase and Replagal.

It also booked an extra $98 million of revenue in the fourth quarter relating to Adderall XR, an older hyperactivity medicine now facing competition from copycat versions from Teva Pharmaceutical Industries Ltd. (TEVA) and Impax Laboratories Inc. (IPXL). Overall, 2009 sales of Adderall XR were down 43% year-on-year, but Shire benefited from fourth quarter rebates on the drug in the U.S.

The company is scheduled to launch six products in various markets in 2010. Among them, Gaucher disease medicine velaglucerase alfa, to be marketed as Vpriv, is due to receive a regulatory decision at the end of February.

Gaucher disease is a rare genetic condition that causes fats to build up in bones and organs, causing liver problems, skeletal disorders and sometimes death.

Shire began shipping Vpriv to the U.S. last year ahead of formal approval by the Food and Drug Administration because of a shortage of the only other approved treatment for Gaucher disease, Genzyme Corp.'s (GENZ) Cerezyme.

Shire said Friday it booked $2.5 million in revenue from Vpriv under this early access program. It has also been supplying patients with a similar condition, Fabry disease, with its Fabry medicine Replagal, also not yet approved in the U.S.

Chief Executive Officer Angus Russell told reporters Shire intends to undercut Genzyme by selling Vpriv at a 15% discount to Cerezyme when it goes on sale properly in an effort to win market share.

Developing medicines for rare diseases--which can command extremely high prices and often enjoy longer patent protection than other drugs--has long been Shire's focus.

But big drugmakers, facing cuts to spending on healthcare across the world and the loss of patent protection for some their biggest sellers, are starting to muscle in. Recently, Shire's U.K. peer GlaxoSmithKline PLC (GSK.LN) announced plans to set up its own rare diseases unit.

Russell said he isn't fazed by the prospect of increased competition for licenses or sales. Shire's technology uses human cells to create complex biologic drugs and that gives it an edge over rivals who use animal or plant cells because there are fewer side effects, he said. He added it takes years to get new drugs for rare diseases to market.

Shire said 2009 earnings per American depositary share, excluding amortization and certain other items, was $3.49, a 10% year-on-year decline but comfortably ahead of analysts' consensus forecasts of $2.97, according to figures provided by the company.

At 1322 GMT, shares in Shire shares were 86 pence, or 6.6%, higher at 1,398 pence, making it the biggest riser in a 0.1% lower FTSE 100 index.

-By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272; jason.douglas@dowjones.com

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