Luxury goods maker Burberry saw its six-month revenue exceed 1billion pounds ($1.5 billion) for the first time as it reaps the benefits its digital marketing strategy.
The drugmaker Shire PLC plans to strengthen its rare disease treatment portfolio by spending $4.2 billion in cash to buy the biopharmaceutical company ViroPharma Inc.
The Dublin-based drugmaker will pay $50 for each share of ViroPharma, which is based in Exton, Pa. That represents a 27 percent premium on the U.S. company’s closing price Friday, the last trading day before the deal was announced.
ViroPharma focuses on serious diseases with few, if any, available therapies. Its products include Cinryze, which is used to prevent and treat attacks of hereditary angioedema, a rare genetic disorder that can cause dangerous swelling of the throat or larynx.
It also makes the seizure drug Buccolam and antibiotic Vancocin.
The company generated $428 million in worldwide revenue last year.
ViroPharma said last month that U.S. sales of Cinryze, which accounts for most of its revenue, climbed 22 percent in the third quarter to $102.2 million. It expects North American sales for the treatment to total $405 million this year.
Shire said Cinryze will act as a complement to one if its drugs, Firazyr, which treats acute hereditary angioedema attacks.
ViroPharma also is developing maribavir, a potential treatment for a virus that can lead to serious disease or death in people with compromised immune systems. The experimental drug has received an orphan drug designation from both European and U.S. regulators. That could lead to market exclusivity if the drug is approved.
The companies expect the deal to close by the end of this year, next year’s first quarter or soon after that.
Facebook’s latest quarterly results showed continued strength in mobile advertising, which spurred a 60 percent revenue increase in the July-September quarter.
The numbers beat Wall Street’s expectations for the second consecutive quarter, but after an initial after-hours trading spike, Facebook’s stock took a downturn during the company’s conference call with analysts.
Adjusted earnings were $621 million, or 25 cents per share, in the latest quarter. That’s 6 cents better than analysts expected. This figure excludes special items, mainly stock compensation expenses.
Revenue grew 60 percent to $2.02 billion from $1.26 billion, helped by increasing mobile advertising revenue.
Facebook’s advertising revenue was $1.8 billion, up 66 percent from a year ago. Mobile ads accounted for 49 percent of the company’s total ad revenue during the quarter. In the second quarter, mobile ads amounted to 41 percent of the total. The increase shows Facebook’s strategy to become a “mobile-first” company is paying off.
At the same time, Facebook is growing its share of the mobile advertising market. Research firm eMarketer estimates that Facebook will grab 15.8 percent of the world’s mobile ad spending this year, up from 5.4 percent last year. Google Inc., meanwhile, is expected to capture 53.2 percent this year, up slightly from a 52.4 percent share in 2012.
There were 1.19 billion Facebook users as of the end of September, up 18 percent from a year ago. Of these, an average of 728 million users logged in every day during the month of September, up 25 percent from a year ago.
Facebook had 874 million monthly mobile users at the end of the quarter, up 45 percent year-over-year. In a conference call with analysts, though, Ebersman said that the company saw a decrease in daily use among younger teenagers. That’s been a concern for some analysts who fear young people are migrating to newer sites. Luckily for Facebook, this includes the photo-sharing service it owns, Instagram.
Total costs were $1.28 billion in the latest quarter, up 45 percent from $885 million a year ago. The company ended the quarter with nearly 5,800 employees, up 34 percent from a year earlier.
Facebook went public in May 2012 at $38 per share.
Visa Inc.’s fourth-quarter net income fell 28 percent as it set aside money for taxes, and it said it’s making its plans based on a slow recovery of the U.S. economy.
The world’s largest processor of debit and credit card payments said payments on its system rose 13 percent to $1.1 trillion for the quarter. Visa’s results are closely watched because they can be a window into the buying habits and financial health of consumers.
Growth in the number of U.S. transactions slowed from August into September, showing constrained consumer spending, Chief Financial Officer Byron Pollitt said on a conference call. The company is assuming “a tepid recovery in U.S. economic growth,” he said.
Visa’s observations dovetail with economic reports that showed employers adding fewer jobs in September than in August.
Net income fell 28 percent to $1.19 billion, or $1.86 per share, for the three months that ended Sept. 30, from $1.66 billion, or $2.48 per share, last year.
Revenue rose almost 9 percent to $2.97 billion, a little less than the $3.02 billion analysts expected.
The company set aside $574 million for taxes, after benefiting from a $74 million tax gain last year.