Mylan Reports a 51% Increase in Third Quarter 2012 Adjusted Diluted EPS to $0.83

  Mylan Reports a 51% Increase in Third Quarter 2012 Adjusted Diluted EPS to
                                    $0.83

Raises 2012 adjusted diluted EPS guidance range to $2.50 - $2.60

Expects full year adjusted operating cash flow to hit record of approximately
$1 billion

PR Newswire

PITTSBURGH, Oct. 25, 2012

PITTSBURGH, Oct. 25, 2012 /PRNewswire/ --Mylan Inc. (Nasdaq: MYL) today
announced its financial results for the three and nine months ended
September30, 2012.

Financial Highlights

  oAdjusted diluted EPS of $0.83 for the three months ended September30,
    2012 compared to $0.55 for the same prior year period, an increase of 51%
  oTotal revenues of $1.81 billion for the three months ended September30,
    2012 compared to $1.58 billion for the same prior year period, an increase
    of 15%
  oOn a GAAP basis, diluted EPS of $0.51 for the three months ended
    September30, 2012 compared to $0.36 for the same prior year period, an
    increase of 42%
  oAdjusted diluted EPS of $1.94 for the nine months ended September30, 2012
    compared to $1.51 for the same prior year period, an increase of 28%
  oTotal revenues of $5.09 billion for the nine months ended September30,
    2012 compared to $4.60 billion for the same prior year period, an increase
    of 11%
  oOn a GAAP basis, diluted EPS of $1.13 for the nine months ended
    September30, 2012 compared to $0.92 for the same prior year period, an
    increase of 23%
  oAdjusted operating cash flow of $818 million for the nine months ended
    September30, 2012, an increase of 30%. On a GAAP basis, cash flow from
    operating activities of $652 million for the nine months ended
    September30, 2012

Mylan Chief Executive Officer, Heather Bresch commented: "Mylan delivered
another outstanding quarter of top- and bottom-line growth, with strong
double-digit growth in our Specialty, North America, and Asia Pacific
businesses and a return to growth in EMEA. It is notable that we delivered
adjusted diluted EPS for this one quarter in excess of our earnings for all of
2008—the first full year following our Matrix and Merck KGaA generics
acquisitions—providing further evidence of our ability to generate optimal
organic growth from our global scale and operating leverage.

"As a result of this strong operational performance, we again are raising our
earnings guidance for 2012 and now expect adjusted diluted EPS of $2.50 to
$2.60. Looking to next year, we continue to remain confident in our 2013
adjusted diluted EPS target of $2.75, as well as our longer term target of
$6.00 in adjusted diluted EPS in 2018. We look forward to providing detailed
guidance for 2013 in conjunction with the announcement of our full year 2012
results. Our continued expected growth will come from a combination of
continuing to maximize our existing global platform, executing against our
strategic growth drivers, and leveraging our significant financial flexibility
to enhance shareholder value."

John Sheehan, Mylan's Chief Financial Officer, added: "The third quarter was
the best in Mylan's history in terms of operating cash flow and we continue to
invest this cash in the future growth drivers of our business by fueling R&D
and investing in capital expenditures. As a result of our strong performance
so far this year, we now anticipate 2012 adjusted operating cash flow of
approximately $1 billion, which is at the very upper end of our previous
expectations, and now expect 2012 adjusted free cash flow of approximately
$700 million."

Financial Results Summary

For the three months ended September30, 2012, Mylan reported total revenues
of $1.81 billion compared to $1.58 billion in the comparable prior year
period, an increase of $234.0 million or 14.8%. The effect of foreign currency
translation had an unfavorable impact of approximately 5% on total revenues
primarily reflecting a stronger U.S. Dollar in comparison to the currencies of
the other major markets in which Mylan operates. Translating total revenues
for the current quarter at prior year comparative period exchange rates would
have resulted in year-over-year growth of approximately $308 million, or 20%.

A tabular summary of Mylan's revenues for the three and nine months ended
September30, 2012 and 2011 is included at the end of this release. Also
included at the end of this release are the reconciliations of adjusted
financial results to the most closely applicable GAAP financial result.

Third party net revenues from Mylan's Generics segment, which are derived from
sales in North America, Europe, the Middle East and Africa (collectively,
EMEA) and Australia, India, Japan and New Zealand (collectively, Asia Pacific)
were $1.50 billion in the quarter ended September30, 2012, compared to $1.36
billion in the comparable prior year period, representing an increase of
$137.4 million, or 10.1%, or an increase of approximately 16% when excluding
the unfavorable effect of foreign currency translation.

Third party net revenues from North America were $831.0 million for the
current quarter, compared to $697.0 million for the comparable prior year
period, representing an increase of $134.0 million, or 19.2%. The increase in
third party net revenues was principally due to sales of new products which
totaled approximately $258 million in the current quarter. The most
significant new product launched in the current quarter was Valsartan and
Hydrochlorothiazide Tablets USP. This product is the generic version of
Novartis' Diovan HCT® Tablets, which are indicated for the treatment of
hypertension. The increase in sales from new products was partially offset by
lower sales of existing products, including those launched as "new products"
in the prior year, principally as a result of lower pricing. The effect of
foreign currency translation was insignificant within North America.

Third party net revenues from EMEA were $325.6 million for the current
quarter, compared to $350.9 million for the comparable prior year period,
representing a decrease of $25.3 million, or 7.2%. Foreign currency
translation had a negative impact on sales for the current quarter,
principally reflecting the strengthening of the U.S. Dollar versus the Euro.
Translating current quarter third party net revenues from EMEA at prior year
comparative period exchange rates would have resulted in an increase in third
party net revenues of approximately $12 million, or 3%. This increase was
principally the result of an increase in revenues in France and Italy of
approximately 9% and 17%, respectively. Partially offsetting these increases
was unfavorable pricing in a number of European markets in which Mylan
operates as a result of government imposed pricing reductions and competitive
market conditions.

Third party net revenues from Asia Pacific were $339.2 million for the current
quarter, compared to $310.6 million for the comparable prior year period, an
increase of $28.6 million, or 9.2%. However, foreign currency translation had
a negative impact on sales for the current quarter, principally reflecting the
significant strengthening of the U.S. Dollar versus the Indian Rupee.
Excluding the effect of foreign currency, calculated as described above, third
party net revenues would have increased by approximately $64 million, or 21%.
This increase is primarily driven by higher revenues at Mylan Laboratories
Limited (formerly Matrix Laboratories Limited), Mylan's subsidiary in India,
as a result of increased sales of antiretroviral finished dosage form generic
products, which are used in the treatment of HIV/AIDS, and an increase in
sales of active pharmaceutical ingredients (API). In addition, local currency
revenues in Japan were favorably impacted by higher volumes. Offsetting these
increases was a decline in local currency revenues in Australia, principally
as a result of significant government-imposed price cuts in the current year.

For the current quarter, Mylan's Specialty segment reported third party net
sales of $294.1 million, an increase of $80.1 million, or 37.4%, from the
comparable prior year period of $213.9 million. The most significant
contributor to Specialty segment revenues continues to be the EPIPEN®
auto-injector, sales of which increased as a result of favorable pricing and
volume, including growth in the overall market. The EPIPEN® auto-injector is
the number one epinephrine auto-injector for the treatment of severe allergic
reactions.

Gross profit for the three months ended September30, 2012, was $788.5 million
and gross margins were 43.6%. For the three months ended September30, 2011,
gross profit was $658.4 million, and gross margins were 41.8%. Adjusted gross
profit, as further defined below, for the three months ended September30,
2012 was $940.6 million and adjusted gross margins were 52% as compared to
adjusted gross profit of $763.9 million and adjusted gross margins of 48% in
the comparable prior year period. The increase in adjusted gross margins was
primarily the result of new product introductions in North America and the
increase in sales of the EPIPEN® auto-injector, partially offset by the impact
of unfavorable pricing on existing products in all regions within our Generics
segment.

Earnings from operations were $329.9 million for the three months ended
September30, 2012, compared to $265.9 million for the comparable prior year
period. Adjusted earnings from operations for the three months ended
September30, 2012 was $512.7 million as compared to adjusted earnings from
operations of $387.6 million in the comparable prior year period. This
increase was driven by higher gross profit in the current year, as discussed
above, partially offset by increases in research and development costs ("R&D")
and selling, general and administrative costs ("SG&A"). R&D increased due
primarily to the expenses related to the development of the respiratory and
biologics programs as well as the timing of internal and external product
development projects. SG&A increased as a result of increased marketing costs
in our Specialty segment, and higher employee benefit costs.

Interest expense for the three months ended September30, 2012, totaled $76.1
million, compared to $85.8 million for the comparable prior year period.
Adjusted interest expense for the three months ended September30, 2012 was
$61.2 million as compared to adjusted interest expense of $73.2 million in the
comparable prior year period. The decrease was the result of lower interest
expense on variable rate debt instruments primarily due to the refinancing of
our credit agreement in November 2011.

Other income, net, was $10.9 million in the current quarter compared to $12.1
million in the comparable prior year period. Generally included in other
income, net, are foreign exchange gains and losses and interest and dividend
income.

Net earnings attributable to Mylan Inc. increased $54.6 million, or 34.8%, to
$211.3 million for the three months ended September30, 2012 as compared to
$156.7 million for the prior year comparable period. Adjusted earnings
increased $103.5 million or 43.5% to $341.3 million for the three months ended
September30, 2012 as compared to adjusted earnings of $237.8 million for the
prior year comparable period.

EBITDA, which is defined as net income (excluding the non-controlling interest
and income from equity method investees) plus income taxes, interest expense,
depreciation and amortization, was $514.1 million for the quarter ended
September30, 2012, and $419.6 million for the comparable prior year period.
After adjusting for certain items as further detailed below, adjusted EBITDA
was $567.0 million for the current three-month period and $446.8 million for
the comparable prior year period.

For the nine months ended September30, 2012, Mylan reported total revenues of
$5.09 billion compared to $4.60 billion in the comparable prior year period.
Third party net revenues for the nine months ended September30, 2012 were
$5.04 billion compared to $4.58 billion for the comparable prior year period,
representing an increase of $461.7 million, or 10.1%. Revenues were
unfavorably impacted by the effect of foreign currency translation, generally
reflecting a stronger U.S. dollar as compared to the currencies in other major
markets in which Mylan operates. Translating third party net revenues at prior
year exchange rates would have resulted in year-over-year growth in third
party net revenues, excluding foreign currency, of $633 million, or
approximately 14%.

Generics third party net revenues were $4.39 billion for the nine months ended
September30, 2012, compared to $4.14 billion in the comparable prior year
period, representing an increase of $249.5 million, or 6.0%, or an increase of
approximately 10% when excluding the unfavorable effect of foreign currency
translation.

Third party net revenues from North America were $2.45 billion for the nine
months ended September30, 2012, compared to $2.12 billion for the comparable
prior year period, representing an increase of $332.5 million, or 15.7%. The
increase in third party revenues was principally due to sales of new products
which totaled approximately $685 million in the current year to date period,
partially offset by lower revenues from existing products.

Third party net revenues from EMEA were $987.9 million for the nine months
ended September30, 2012, compared to $1.12 billion for the comparable prior
year period, a decrease of $130.8 million, or 11.7%. Excluding the unfavorable
effect of foreign currency, calculated as described above, the decrease was
approximately $41 million, or 4%. This decrease was the result of unfavorable
pricing, due to government imposed reductions and competitive market
conditions in a number of European markets in which Mylan operates, partially
offset by new product introductions throughout Europe and favorable volume in
France, Italy and Spain.

In Asia Pacific, third party net revenues were $945.4 million for the nine
months ended September30, 2012, compared to $897.6 million for the comparable
prior year period, an increase of $47.8 million, or 5.3%. Excluding the
unfavorable effect of foreign currency, calculated as described above, the
increase was approximately $125 million, or 14%.This increase is primarily
driven by higher third party sales at Mylan Laboratories Limited.

Specialty reported third party net revenues of $654.8 million for the nine
months ended September30, 2012, an increase of $212.2 million, or 47.9% over
the comparable prior year period amount of $442.7 million. This increase was
the result of higher sales of the EPIPEN® auto-injector.

Gross profit for the nine months ended September30, 2012 was $2.15 billion
and gross margins were 42.3%. For the comparable prior year period, gross
profit was $1.92 billion and gross margins were 41.7%. Adjusted gross profit
for the nine months ended September30, 2012 was $2.52 billion and adjusted
gross margins were 50% as compared to adjusted gross profit of $2.20 billion
and adjusted gross margins of 48% in the comparable prior year period.

Earnings from operations were $834.1 million for the nine months ended
September30, 2012, compared to $758.1 million for the comparable prior year
period. Adjusted earnings from operations for the nine months ended
September30, 2012 were $1.28 billion as compared to adjusted earnings from
operations of $1.11 billion in the comparable prior year period. This increase
was driven by higher gross profit in the current year, as discussed above,
partially offset by increases in R&D and SG&A. R&D increased due primarily to
the expenses related to the development of the respiratory and biologics
programs as well as the timing of internal and external product development
projects. SG&A increased as a result of increased marketing and employee
benefit costs, including increased costs for retirement and post-employment
programs.

Interest expense for the nine months ended September30, 2012, totaled $234.1
million, compared to $254.8 million for the comparable prior year period.
Adjusted interest expense for the nine months ended September30, 2012 was
$182.9 million as compared to adjusted interest expense of $218.0 million in
the comparable prior year period.

Other income, net, for the current nine-month period was $13.1 million
compared to $22.5 million in the comparable prior year period.

Net earnings attributable to Mylan Inc. increased $71.6 million, or 17.6%, to
$478.9 million for the nine months ended September30, 2012 as compared to
$407.3 million for the prior year comparable period. Adjusted earnings
increased $153.1 million, or 23.0%, to $819.8 million for the nine months
ended September30, 2012 as compared to adjusted earnings of $666.7 million
for the prior year comparable period.

EBITDA was $1.27 billion for the nine months ended September30, 2012, and
$1.17 billion for the comparable prior year period. After adjusting for
certain items as further discussed below, adjusted EBITDA was $1.43 billion
for the current nine month period and $1.27 billion for the comparable prior
year period.

Cash Flow

Adjusted cash provided by operating activities was $818 million for the nine
months ended September30, 2012, compared to $627 million for the comparable
prior year period. The increase in adjusted cash provided by operating
activities was principally the result of an increase in profitability. On a
GAAP basis, cash provided by operating activities was $652 million for the
nine months ended September30, 2012, compared to $426 million for the
comparable prior year period. Capital expenditures were approximately $160
million in the current year as compared to approximately $168 million in the
same prior year period.

Non-GAAP Financial Measures

Mylan is disclosing non-GAAP financial measures when providing financial
results. Primarily due to acquisitions, Mylan believes that an evaluation of
its ongoing operations (and comparisons of its current operations with
historical and future operations) would be difficult if the disclosure of its
financial results were limited to financial measures prepared only in
accordance with accounting principles generally accepted in the U.S. (GAAP).
In addition to disclosing its financial results determined in accordance with
GAAP, Mylan is disclosing certain non-GAAP results that exclude items such as
amortization expense and other costs directly associated with the acquisitions
as well as certain other expense, revenue and operating cash flow items in
order to supplement investors' and other readers' understanding and assessment
of the company's financial performance, because the company's management uses
these measures internally for forecasting, budgeting and measuring its
operating performance. In addition, the company believes that including EBITDA
and supplemental adjustments applied in presenting adjusted EBITDA pursuant to
our credit agreement is appropriate to provide additional information to
investors to demonstrate the company's ability to comply with financial debt
covenants (which are calculated using a measure similar to adjusted EBITDA)
and assess the company's ability to incur additional indebtedness. Whenever
Mylan uses such a non-GAAP measure, it will provide a reconciliation of
non-GAAP financial measures to the most closely applicable GAAP financial
measure. Investors and other readers are encouraged to review the related GAAP
financial measures and the reconciliation of non-GAAP measures to their most
closely applicable GAAP measure set forth below and should consider non-GAAP
measures only as a supplement to, not as a substitute for or as a superior
measure to, measures of financial performance prepared in accordance with
GAAP.

Below is a reconciliation of GAAP net earnings attributable to Mylan Inc. and
diluted GAAP EPS to adjusted net earnings attributable to Mylan Inc. and
adjusted diluted EPS for the three and nine months ended September30, 2012
and 2011 (in millions, except per share amounts):



                Three Months Ended                Nine Months Ended
                September30,                     September30,
                2012             2011             2012             2011
GAAP net
earnings
attributable to $ 211.3  $ 0.51  $ 156.7  $ 0.36  $ 478.9  $ 1.13  $ 407.3  $ 0.92
Mylan Inc. and
diluted GAAP
EPS
Purchase
accounting
related
amortization    130.6            104.1            308.9            278.1
(included in
cost of sales)
(a)
Litigation
settlements,    8.0              2.2              (2.0)            28.5
net
Interest
expense,
primarily       6.6              12.6             27.2             36.8
amortization of
convertible
debt discount
Non-cash
accretion and
fair value
adjustments of  8.0              —                32.0             —
contingent
consideration
liability
Clean energy
investment      (8.0)            —                (20.4)           —
subsidiary
revenue (b)
Restructuring&
other special
items included
in:
Cost of sales   29.4             1.4              77.3             7.6
Research and
development     4.2              2.2              7.0              3.0
expense
Selling,
general and     18.8             11.8             66.2             36.8
administrative
expense
Other income,   (0.1)            —                1.0              (1.2)
net
Tax effect of
the above items
and other       (67.5)           (53.2)           (156.3)          (130.2)
income tax
related items
Adjusted net
earnings
attributable to $ 341.3  $ 0.83  $ 237.8  $ 0.55  $ 819.8  $ 1.94  $ 666.7  $ 1.51
Mylan Inc. and
adjusted
diluted EPS
Weighted
average diluted 411.6            431.6            422.8            441.8
common shares
outstanding
(a) Purchase accounting related amortization expense for the three and nine months
ended September 30, 2012 and 2011 includes in-process research and development
asset impairment charges of $41.6 million and $16.2 million, respectively.



(b) Adjustment represents exclusion of revenue related to Mylan's ownership of a
clean energy investment subsidiary, the activities of which qualify for tax
credits under section 45 of the Internal Revenue Code. Amount is included in other
revenue.

Below is a reconciliation of GAAP net earnings attributable to Mylan Inc. to
adjusted EBITDA for the three and nine months ended September30, 2012, and
2011 (in millions):



                            Three Months Ended          Nine Months Ended
                            September 30,               September30,
                            2012          2011          2012        2011
GAAP net earnings
attributable to Mylan       $  211.3      $  156.7      $ 478.9     $ 407.3
Inc.
Add adjustments:
Net contribution
attributable to the
noncontrolling interest     0.8           0.7           1.7         1.6
and equity method
investees
Income taxes                52.8          34.8          132.4       116.9
Interest expense            76.1          85.8          234.1       254.8
Depreciation and            173.1         141.6         424.1       386.5
amortization (a)
EBITDA                      $  514.1      $  419.6      $ 1,271.2   $ 1,167.1
Add adjustments:
Stock-based compensation    9.7           11.6          32.1        32.8
expense
Litigation settlements,     8.0           2.2           (2.1)       28.5
net
Restructuring& other       35.2          13.4          124.4       42.1
special items
Adjusted EBITDA             $  567.0      $  446.8      $ 1,425.6   $ 1,270.5
(a) For the three and nine months ended September 30, 2012 and 2011
depreciation and amortization expense includes in-process research and
development asset impairment charges of $41.6 million and $16.2 million,
respectively.

Conference Call

Mylan will host a conference call and live webcast today, Thursday,
October25, 2012, at 10:30 a.m. ET, in conjunction with the release of its
financial results. The dial-in number to access the call is 877.402.3913 or
817.382.5964 for international callers. A replay, available for approximately
seven days, will be available at 800.585.8367 or 404.537.3406 for
international callers with access pass code 36921750. To access a live webcast
of the call, please log on to Mylan's Web site (www.mylan.com) at least 15
minutes before the event is to begin to register and download or install any
necessary software. A replay of the webcast will be available on www.mylan.com
for approximately seven days.

About Mylan

Mylan is a global pharmaceutical company committed to setting new standards in
health care. Working together around the world to provide 7 billion people
access to high quality medicine, we innovate to satisfy unmet needs; make
reliability and service a habit, do what's right, not what's easy and impact
the future through passionate global leadership. We offer a growing portfolio
of more than 1,100 generic pharmaceuticals and several brand medications. In
addition, we offer a wide range of antiretroviral therapies, upon which
approximately one-third of HIV/AIDS patients in developing countries depend.
We also operate one of the largest active pharmaceutical ingredient
manufacturers and currently market products in approximately 150 countries and
territories. Our workforce of more than 18,000 people is dedicated to
improving the customer experience and increasing pharmaceutical access to
consumers around the world. But don't take our word for it. See for yourself.
See inside. mylan.com

Forward Looking Statements

This press release includes statements that constitute "forward-looking
statements", including with regard to the Company's future operations, its
anticipated business levels, future earnings, planned activities, anticipated
growth, and other expectations and targets for future periods. These
statements are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995, and often may be identified by the
use of words such as "may", "believe", "anticipate", "expect", "plan",
"estimate", "target" and variations of these words or comparable words.
Because such statements inherently involve risks and uncertainties, actual
future results may differ materially from those expressed or implied by such
forward-looking statements. Factors that could cause or contribute to such
differences include, but are not limited to: challenges, risks and costs
inherent in business integrations and in achieving anticipated synergies; the
effect of any changes in customer and supplier relationships and customer
purchasing patterns; the ability to attract and retain key personnel; changes
in third-party relationships; the impacts of competition; changes in economic
and financial conditions of the Company's business; uncertainties and matters
beyond the control of management; and inherent uncertainties involved in the
estimates and judgments used in the preparation of financial statements, and
the providing of estimates of financial measures, in accordance with GAAP and
related standards or on an adjusted basis. These cautionary statements should
be considered in connection with any subsequent written or oral
forward-looking statements that may be made by the Company or by persons
acting on its behalf and in conjunction with its periodic SEC filings. In
addition, please refer to the cautionary statements and risk factors set forth
in the Company's Report on Form 10-Q, for the quarter ended June30, 2012,
and in its other filings with the SEC. Further, uncertainties or other
circumstances, or matters outside of the Company's control between the date of
this release and the date that its Form 10-Q for the quarter ended
September30, 2012, is filed with the SEC could potentially result in
adjustments to reported results. The Company undertakes no obligation to
update statements herein for revisions or changes after the date of this
release.



Mylan Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited; in thousands, except per share amounts)


                            Three Months Ended        Nine Months Ended
                            September30,             September 30,
                            2012         2011         2012         2011
Revenues:
Net revenues                $ 1,789,836  $ 1,572,341  $ 5,040,896  $ 4,579,215
Other revenues              19,936       3,415        52,821       19,375
Total revenues              1,809,772    1,575,756    5,093,717    4,598,590
Cost of sales               1,021,247    917,365      2,939,740    2,679,825
Gross profit                788,525      658,391      2,153,977    1,918,765
Operating expenses:
Research and development    108,250      70,847       283,570      218,651
Selling, general and        342,412      319,389      1,038,397    913,604
administrative
Litigation settlements, net 7,950        2,247        (2,083)      28,457
Total operating expenses    458,612      392,483      1,319,884    1,160,712
Earnings from operations    329,913      265,908      834,093      758,053
Interest expense            76,051       85,772       234,126      254,836
Other income, net           10,939       12,073       13,084       22,543
Earnings before income
taxes and noncontrolling    264,801      192,209      613,051      525,760
interest
Income tax provision        52,762       34,831       132,449      116,851
Net earnings                212,039      157,378      480,602      408,909
Net earnings attributable
to the noncontrolling       (782)        (680)        (1,716)      (1,590)
interest
Net earnings attributable
to Mylan Inc. common        $ 211,257    $ 156,698    $ 478,886    $ 407,319
shareholders
Earnings per common share
attributable to Mylan Inc.
common shareholders:
Basic                       $ 0.52       $ 0.37       $ 1.15       $ 0.94
Diluted                     $ 0.51       $ 0.36       $ 1.13       $ 0.92
Weighted average common
shares outstanding:
Basic                       406,469      426,412      418,000      432,265
Diluted                     411,562      431,587      422,775      441,817





Mylan Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited; in thousands)


                                September30,  December31,
                                2012           2011
ASSETS
Assets
Current assets:
Cash and cash equivalents       $ 332,316      $ 375,056
Restricted cash                 1,442          9,274
Marketable securities           33,680         30,686
Accounts receivable, net        1,499,633      1,426,438
Inventories                     1,495,924      1,396,742
Other current assets            387,739        330,648
Total current assets            3,750,734      3,568,844
Intangible assets, net          2,392,092      2,630,747
Goodwill                        3,531,134      3,517,935
Other non-current assets        2,032,458      1,880,617
Total assets                    $ 11,706,418   $ 11,598,143
LIABILITIES AND EQUITY
Liabilities
Current liabilities (a)         $ 2,169,573    $ 2,563,156
Long-term debt                  4,846,595      4,479,080
Other non-current liabilities   1,066,014      1,051,125
Total liabilities               8,082,182      8,093,361
Noncontrolling interest         14,745         13,007
Mylan Inc. shareholders' equity 3,609,491      3,491,775
Total liabilities and equity    $ 11,706,418   $ 11,598,143

    At December 31, 2011, long-term debt of approximately $594.0 million
(a) related to the Senior Convertible Notes was classified within current
    liabilities. During the first quarter, the Senior Convertible Notes
    matured and were repaid.





Mylan Inc. and Subsidiaries

Summary of Revenues by Segment

(Unaudited; in millions)


             Three Months Ended    Nine Months Ended     Three Months     Nine Months
                                                         Ended            Ended
             September30,         September30,         Percent Change   Percent Change
                                                                Constant         Constant
             2012       2011       2012       2011       Total  Currency  Total  Currency
                                                                ^(1)             ^(1)
Generics:
Third party
net sales
North        $ 831.0    $ 697.0    $ 2,452.8  $ 2,120.3  19%    19%       16%    16%
America
EMEA         325.6      350.8      987.9      1,118.6    (7)%   3%        (12)%  (4)%
Asia Pacific 339.2      310.6      945.4      897.6      9%     21%       5%     14%
Total third
party net    1,495.8    1,358.4    4,386.1    4,136.5    10%    16%       6%     10%
sales
Other third
party        7.4        3.1        27.6       16.8
revenues
Total third
party        1,503.2    1,361.5    4,413.7    4,153.3
revenues
Intersegment 0.4        0.4        1.1        1.2
revenues
Generics
total        1,503.6    1,361.9    4,414.8    4,154.5
revenues
Specialty:
Third party  294.1      214.0      654.8      442.7      37%    37%       48%    48%
net sales
Other third
party        4.5        0.3        4.7        2.6
revenues
Total third
party        298.6      214.3      659.5      445.3
revenues
Intersegment 6.4        17.1       30.1       51.4
revenues
Specialty
total        305.0      231.4      689.6      496.7
revenues
Corporate:
Other third
party        8.0        —          20.5       —
revenues
Elimination
of           (6.8)      (17.5)     (31.2)     (52.6)
intersegment
revenues
Consolidated
total        $ 1,809.8  $ 1,575.8  $ 5,093.7  $ 4,598.6  15%    20%       11%    15%
revenues

    The constant currency percent change is derived by translating third party
(1) net sales for the current period at prior year comparative period exchange
    rates.







Mylan Inc. and Subsidiaries

Reconciliation of Non-GAAP Financial Measures

(Unaudited; in millions)


                                   Three Months Ended    Nine Months Ended
                                   September30,         September30,
                                   2012       2011       2012       2011
GAAP other revenues                $ 19.9     $ 3.4      $ 52.8     $ 19.4
Deduct:
Revenues of clean energy           (8.0)      —          (20.4)     —
investment subsidiary (a)
Adjusted other revenues            $ 11.9     $ 3.4      32.4       19.4
                                   Three Months Ended    Nine Months Ended
                                   September30,         September30,
                                   2012       2011       2012       2011
GAAP total revenues                $ 1,809.8  $ 1,575.8  $ 5,093.7  $ 4,598.6
Deduct:
Revenues of clean energy           (8.0)      —          (20.4)     —
investment subsidiary (a)
Adjusted total revenues            $ 1,801.8  $ 1,575.8  $ 5,073.3  $ 4,598.6
                                   Three Months Ended    Nine Months Ended
                                   September30,         September30,
                                   2012       2011       2012       2011
GAAP cost of sales                 $ 1,021.2  $ 917.4    $ 2,939.7  $ 2,679.8
Deduct:
Cost of sales of clean energy      10.7       —          26.5       —
investment subsidiary (a)
Purchase accounting related        130.6      104.1      308.9      278.1
amortization
Restructuring & other special      18.7       1.4        50.8       7.6
items
Adjusted cost of sales             $ 861.2    $ 811.9    $ 2,553.5  $ 2,394.1
Adjusted gross profit (b)          $ 940.6    $ 763.9    $ 2,519.8  $ 2,204.5
Adjusted gross margin (b)          52%        48%        50%        48%
                                   Three Months Ended    Nine Months Ended
                                   September30,         September30,
                                   2012       2011       2012       2011
GAAP total operating expenses      $ 458.6    $ 392.5    $ 1,319.9  $ 1,160.7
Deduct:
Operating expense of clean energy  0.2        —          0.6        —
investment subsidiary (a)
Litigation settlements, net        8.0        2.2        (2.0)      28.5
Restructuring & other special      22.5       14.0       80.6       39.8
items
Adjusted total operating expenses  $ 427.9    $ 376.3    $ 1,240.7  $ 1,092.4
Adjusted earnings from operations  $ 512.7    $ 387.6    $ 1,279.1  $ 1,112.1
(c)
                                   Three Months Ended      Nine Months Ended
                                   September30,           September30,
                                   2012       2011       2012       2011
GAAP interest expense              $   76.1   $   85.8   $ 234.1    $   254.8
Deduct:
Interest expense of clean energy   0.8          —          3.9        —
investment subsidiary (a)
Non-cash accretion of contingent   8.3          —          24.0       —
consideration liability
Non-cash interest, primarily
amortization of convertible debt   5.8          12.6       23.3       36.8
discount
Adjusted interest expense          $   61.2   $   73.2   $ 182.9    $   218.0



Reconciliation of cash provided by operating activities



                             Nine Months Ended
                             September30,
                             2012                         2011
GAAP cash provided by        $      652.3                 $     426.3
operating activities
Add:
Payment of litigation        100.2                        72.1
settlements
Adjustments for timing of
cash receipts deducted in    79.2                         68.2
prior periods
Payment to Merck KGaA
related to income tax        —                            60.4
benefits on indemnified
litigation
Income tax items             (13.9)                       —
Adjusted cash provided by    $      817.8                 $     627.0
operating activities


(a) Adjustment represents exclusion of revenue and expenses related to Mylan's
ownership of a clean energy investment subsidiary, the activities of which
qualify for tax credits under section 45 of the Internal Revenue Code.



(b) Adjusted gross profit is calculated as adjusted total revenues less
adjusted cost of sales. Adjusted gross margin is calculated as adjusted gross
profit divided by adjusted total revenue.



(c) Adjusted earnings from operations is calculated as adjusted gross profit
less adjusted total operating expenses.





SOURCE Mylan Inc.

Website: http://www.mylan.com
Contact: Nina Devlin (Media), +1-724-514-1968; or Kris King (Investors),
+1-724-514-1813
 
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