Shire Limited's (SHPGY) attention deficit hyperactivity disorder (ADHD) franchise continues to perform very well, increasing market share to over 31 percent. Strong top-line growth should continue in 2008 as a number of new drugs ramp. Beyond 2008, we expect revenue growth to significantly slow due to the presence of generic Adderall XR.

We believe that Shire will focus its efforts on the successful commercialization of Vyvanse, which we expect to ramp very rapidly and to quickly become the company's flagship ADHD product. We believe the drug is much more than just an Adderall XR substitute and are encouraged to hear that a significant number of scripts are coming from patients switching from a competitor's ADHD drug.

Shire remains committed to keeping costs in check which we believe should boost its operating margin in 2008. The combination of share issuances throughout 2008, a higher tax rate as a result of a higher percentage of sales coming from the U.S. as well as an unfavorable interest rate environment will likely offset operating costs containment. We expect the net result to be earnings-per-share (EPS) growth of about 15 percent.

We look for Shire to watch research and development spending after Adderall loses exclusivity, which should also translate into incremental EPS contribution. We expect EPS to average a Compound Annual Growth Rate of almost 9 percent over the next 5 years. We maintain our Hold rating with a price target of $55 per American Depositary Receipt (ADR).