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Publication of Shire plc's Annual Report 2008
Date:3/25/2009

roducts with strategically aligned and relatively small-scale sales forces will deliver strong results.

Substantially all of the Group's revenues, expenditures and net assets are attributable to the R&D, manufacture, sale and distribution of pharmaceutical products within two operating segments: Specialty Pharmaceuticals and HGT. The Group also earns royalties (where Shire has out-licensed products to third parties) which are recorded as revenues within "All Other" in the segmental analysis.

Revenues are derived primarily from two sources - sales of the Group's own products and royalties:

    - 91% (2007: 89%) of total revenues are derived from product sales, of
      which 75% (2007: 76%) are within the Specialty Pharmaceuticals
      operating segment and 16% (2007: 13%) are within the HGT operating
      segment;

    - 8% of total revenues are derived from royalties (2007: 10%).

Shire's strategic objectives are set using a balanced scorecard approach. Objectives are also set at the business, functional and therapeutic area levels and are aligned with the Group-wide strategic and operational objectives. The Group therefore takes a fully integrated approach to strategic management. Key performance indicators ('KPIs') are used to measure achievement of the objectives. Strategic objectives are categorized into fields - 'financial', 'customers', 'people & capabilities' and 'operational excellence'. For 2008, Shire's corporate objectives included: target net revenue and defined levels of revenue growth; target sales and contributions for core products; development of a strategy to improve customer care and customer service levels; drug application filing and launch targets for new products; development of a strategy to achieve the optimum Shire product portfolio; development of optimal manufacturing and supply chain strategy; development and communication of career developme
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SOURCE Shire Plc
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