By Ben Hirschler
LONDON (Reuters) - Shire's (L:SHP) chief executive said on Tuesday the drugmaker would give an update on savings from the acquisition of Baxalta when it reports second-quarter results on Aug. 2, raising hopes that more costs will be eliminated than initially forecast.
The Dublin-based group, which closed its $32 billion (£24.3 billion) acquisition of U.S. rare diseases specialist Baxalta last month, previously said it expected annual operating cost synergies of more than $500 million.
But some industry analysts believe Shire is being conservative and the actual figure could be more than $750 million.
"All along we've said the $500 million was a risk-adjusted number," CEO Flemming Ornskov told Reuters.
"At the second-quarter results meeting we will give an updated number for synergies and I think we will show we are focused on delivering appropriate synergies for a deal of this size."
Buying Baxalta catapulted Shire to a leading position in treating rare diseases. The acquisition was by far its largest to date.
Ornskov said Shire, a serial acquirer, was not looking for further large buys at present but would continue to scout for smaller opportunities, such as the recent purchase of rights to an experimental bowel drug from Pfizer (N:PFE).
"Right now large-scale M&A is not on the cards for us, with the integration of Baxalta and the focus on delivering on opportunities like the launch of Xiidra," he said.
Late on Monday, Shire won a green light from U.S. regulators to market its new Xiidra medicine for treating signs and symptoms of dry eye disease.
Xiidra is Shire's first approved medicine in ophthalmics and marks an important step in the group's ambition to become a leader in eyecare. Shire also has a drug for infectious conjunctivitis entering final-stage clinical testing and other eye products at earlier stages of development.
Ornskov said Xiidra was a "trailblazer" for Shire, which is building up a significant medical and commercial capability in ophthalmics.