Stock Strategist

Rare-Disease Portfolio Digs Shire a Moat

Karen Andersen, CFA

Through several acquisitions,  Shire SHPG/SHP has transformed from a neurology-focused specialty pharma to a more diversified firm with increasing exposure to biologics manufacturing and rare diseases.

Shire relies on acquisitions to supplement its portfolio, and while we remain skeptical of the Baxalta acquisition given serious competitive threats in hemophilia, other recent deals (ViroPharma/Cinryze, SARcode/Xiidra, Dyax/lanadelumab) have been beneficial to the firm’s growth and competitive advantages.

Karen Andersen, CFA does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.