Mylan's second-quarter earnings slip on higher costs, narrows full-year guidance

On Thursday, Mylan reported that second-quarter earnings dropped 30 percent from the year-ago period to $125.2 million, as higher costs masked an increase in sales. The company said quarterly revenue was 8 percent higher at $1.8 billion, coming in just under consensus estimates of $1.9 billion.

In the quarter, sales of generic drugs increased 5 percent to $1.5 billion, which included a 3-percent increase in sales in North America to $737 million and a 10-percent uptick in European revenues to $396 million. Sales in the rest of the world climbed 6 percent to $396 million. Mylan also noted that revenues from the company’s specialty segment climbed 22 percent to $288 million due to higher sales of the EpiPen Auto-Injector.

CEO Heather Bresch said the company was able to continue delivering "strong results...which were right in line with our expectations, despite ongoing delays in approvals of key products." Last month, Teva filed a citizen petition regarding the approvability of generic versions of Copaxone. In May, the Israeli drugmaker said that a US district court denied a motion filed by Mylan and affirmed Teva's first-to-file status for certain strengths of generic versions of Celebrex. Despite these hold ups, Mylan noted it planned to launch generic versions of the multiple sclerosis therapy as well as Pfizer’s anti-inflammatory drug Celebrex in the fourth quarter. Given the anticipated launches of key products ... the fourth quarter is expected to be the strongest quarter of the year," Mylan said.

For the year, Mylan narrowed its adjusted per-share earnings of between $3.25 and $3.45 on sales ranging from $7.8 billion to $8 billion, compared with its earlier forecast for earnings per share between $3.25 and $3.60 and revenue from $7.8 billion to $8.2 billion, respectively. Analysts expect earnings of $3.37 per share on revenues of $7.8 billion for the year based on the launch of generic Copaxone and Celebrex in the fourth quarter.

Meanwhile, Mylan said that its $5.3 billion acquisition of Abbott Laboratories' branded specialty and generics business in developed markets outside the United States could help it reach its 2018 earnings target of $6.00 per share ahead of schedule. The acquisition "builds on our strong momentum, expands and further diversifies our business in our largest markets outside of the US, and clearly positions Mylan for the next phase of our growth," Bresch noted.

To read more Top Story articles, click here.