Mylan's fourth-quarter sales climb 31 percent, beating estimates

Mylan announced Wednesday that fourth-quarter sales surged 31 percent year-over-year to $3.3 billion, topping analyst estimates of $3.2 billion. Meanwhile, profit reached $417.5 million, up from $194.6 million in the year-ago period. Shares in the company rose as much as 9 percent on the news. 

CEO Heather Bresch remarked "we saw all of our regions contribute to our results for the year, with double-digit revenue increases in North America, Europe and rest of world." Mylan president Rajiv Malik noted "with regard to the pricing environment, we continued to see erosion both globally and in US generics in the mid-single digits, which was in line with our expectations, and we continue to expect a comparable environment in 2017." 

In the quarter, Mylan generated $1.6 billion in revenue in North America, representing growth of 22 percent versus the year-ago period. The company attributed the increase in sales to revenue generated by products acquired via thes purchase of Meda. Additionally, sales in Europe jumped 50 percent to $927 million, while revenue in the rest of the world rose by 28 percent to more than $729 million. 

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Meanwhile, in the full year, Mylan amassed $11.1 billion in revenue, up from $9.4 billion in 2015. The drugmaker recorded $5.6 billion in sales last year in North America, an increase of 10 percent year-over-year. Revenue in Europe climbed by 34 percent versus the year-ago period to $3 billion, with sales in other regions improving by 16 percent to $2.4 billion. 

In December, Mylan unveiled a restructuring programme that included plans to cut its workforce by less than 10 percent. The news came as Mylan faced scrutiny from US lawmakers over practices involving the allergy drug EpiPen. In January, the US Federal Trade Commission launched a preliminary investigation to determine whether Mylan engaged in antitrust activities to block generic competition for the therapy. 

Lawmakers in the US have additionally questioned price hikes for EpiPen, which, for a pack of two, has risen to more than $600 in 2016 compared to a list price of about $57 when Mylan acquired the drug as part of its purchase of Merck KGaA generic unit in 2007. In response, Mylan launched an authorised generic version of the therapy at a 50-percent discount to its list price, while the drugmaker expanded access to a patient discount programme. 

For the current year, Mylan said it expects sales in the range of $12.25 billion to $13.75 billion, with earnings per share between $5.15 and $5.55. Analysts predict annual earnings of $5.33 per share and sales of about $12.7 billion. 

Commenting on the results, Goldman Sachs analysts remarked "Mylan stands out as the only generic drugmaker with good numbers that continues to execute well amid disappointing forecasts from peers including Teva Pharma and Perrigo."


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