UPDATE 1-Shire may spin off Neuroscience franchise, upgrades guidance

(Adds Neuroscience details)

LONDON, Aug 3 (Reuters) - Shire said it was exploring strategic options for its hyperactive drugs business, including a possible independent public listing, as the London-listed pharmaceutical maker upgraded its full-year earnings forecast on Thursday.

Shire, which reported 7 percent growth in second-quarter product sales, said it expected to complete a strategic review of its Neuroscience franchise by the end of the year.

"As part of the board's ongoing commitment to optimise Shire's portfolio and strategic focus, Shire is assessing strategic options for our Neuroscience franchise to derive even greater value from this franchise," it said.

The company upgraded the midpoint of its full-year forecast by 10 cents to $15 after stronger-than-expected costs savings from its acquisition of haemophilia specialist Baxalta last year.

It reported second-quarter revenue of $3.75 billion and non GAAP earnings per ADS of $3.73, up 11 percent and beating a market forecast of $3.60.

Shire shares were trading up 3.4 percent at 4,341 pence at 1126 GMT.

(Reporting by Paul Sandle; editing by Jason Neely)