Mylan posts increase in third-quarter results boosted by new drug launches

Headline results for the third quarter:

Revenue

$2.96 billion (forecasts of $3 billion)

+3%

Profit

$189.8 million

+7%

Note: All changes are versus the prior-year period unless otherwise stated

What the company said:

"Mylan achieved healthy revenue growth across all segments of our business during the third quarter," remarked CEO Heather Bresch. The executive added "we continue to make progress toward a successful deal close with Pfizer's Upjohn business, which we continue to expect will occur in mid-2020."

Company president Rajiv Malik indicated that key products such as Yupelri, Copaxone, Fulphila and Wixela Inhub provided momentum in the third quarter, while a drop in US gross margins was in part attributed to rising company sales of the authorised generic version of EpiPen. "We were also pleased with the overall performance of our global key brands and anticipate continued growth across these areas of our portfolio as we head into the fourth quarter," Malik remarked, adding that Ogivri, a biosimilar version to Roche's Herceptin that was approved by the FDA in 2017, is expected to launch in the US "in the coming weeks."

Other results:

  • North America segment: $1.1 billion, up 8%, with new product sales primarily driven by Wixela Inhub and Yupelri, while lower sales of existing products were due to "changes in the competitive environment," including the loss of exclusivity on tadalafil
  • Europe segment: $1 billion, unchanged from the year-ago period, with sales negatively affected by foreign currency translation of approximately 5% and lower prices on existing products, offset by new product sales, including Hulio
  • Rest of World segment: $793.7 million, up 3%, boosted by new product sales in Australia and emerging markets, and higher volumes of existing products, primarily driven by products sold in emerging markets

Looking ahead:

For 2019, Mylan now expects earnings per share in the range of $4.20 to $4.40, narrowed from a prior estimate of between $3.80 per share and $4.80 per share. The company added that annual sales are now forecast to be in the range of $11.5 billion to $12 billion, with the top of the guidance cut by $500 million. Analysts predict that sales will be $11.6 billion in 2019, on earnings of $4.29 per share.

What analysts said:

Raymond James analyst Elliot Wilbur noted that growth in Mylan's North America segment signals stabilisation in the company's US generics portfolio. Meanwhile, Randall Stanicky of RBC Capital Markets called the quarter "largely uneventful," suggesting that the focus is likely to remain on the Upjohn merger.

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