UBS Downgraded Shire Due to Risk from Clinical Trials

UBS analyst Guillaume van Renterghem downgraded Shire plc SHPG from Buy to Neutral due to downside risk from upcoming clinical trials. Renterghem commented that the Lifitegrast Phase III trial for dry eye and Vyvanse in Major Depression Disorder could have "disappointing results" due to poor selection of patients. The analyst noted that 14 projects for dry eye have been unsuccessful over the past 10 years and believes the failure is due to identifying appropriate patients. UBS wrote that it is difficult to identify "patients with pure dry eye and excluding patients with dry eye like symptoms." Further, the analyst noted the questionable validity of the Vyvanse patent. Shire had numerous patent challenges over the past five years and Vyvanse makes up approximately 35% of revenues. UBS analysis indicates strong historical trends of the depression drug. Shares of Shire are currently trading down approximately 2%.