Mylan NV, the world’s third-biggest maker of generic drugs, posted second-quarter profit that topped analysts’ estimates as sales climbed for its key product, the EpiPen allergy-reaction injector.
Second-quarter profit excluding one-time items was 91 cents a share, beating the 89-cent average of analysts’ estimates compiled by Bloomberg. Revenue increased 29 percent to $2.37 billion, Mylan said Thursday in a statement. The results included revenue from the generic drug business outside the U.S. that it recently acquired from Abbott Laboratories.
Mylan, with corporate headquarters in Hertfordshire, England, and its operational home office in Canonsburg, Pennsylvania, said it’s still committed to acquiring Perrigo Co. So far, the over-the-counter drugmaker has rejected Mylan’s advances. Mylan set an Aug. 28 vote for its shareholders to weigh in on the transaction. Perrigo’s shareholders will vote if Mylan’s investors approve the deal.
Heather Bresch, Mylan’s chief executive officer, said the company is still looking at targets beyond Perrigo, given that the deal might not work out. As for potentially making an acquisition in the brand-name drug industry, where rivals like Allergan Plc have built bigger businesses, there “absolutely could be assets out there that complement our niche in this respiratory and allergy space” that includes EpiPen, she said in an interview.
Teva’s Takeover Plan
Mylan’s management was fending off a takeover itself over the past few months as Teva Pharmaceutical Industries Ltd. pursued an acrimonious fight to acquire its rival for about $40.1 billion. Last week, Teva dropped its pursuit of Mylan in favor of a $40.5 billion deal to buy Allergan Plc’s generics division.
Bresch said the Allergan-Teva deal “underscores our opportunity to be the leading consolidator in the generics business,” and Mylan will continue to look at assets in that industry to acquire.
Second-quarter sales for Mylan’s specialty division, predominantly made up of EpiPen, rose 5 percent from a year earlier to $301.9 million. Leerink Partners analyst Jason Gerberry had expected sales of $275 million.
The EpiPen is used for emergency treatment of life-threatening allergic reactions and is one of Mylan’s key products. The company reiterated Thursday that it expects generic competition for the epinephrine injector starting in the second half of this year.
Net income rose to $167.8 million, or 32 cents a share, from $125.2 million, or 32 cents, a year earlier.
Generics sales rose 34 percent to $2.06 billion, fueled by higher volume and pricing in North America along with the contribution from Abbott’s business.
The company raised its full-year profit forecast to $4.15 to $4.35 a share, up from $4 to $4.30.
On a day when most health-care stocks declined, Mylan shares rose 1 percent to $55.16 at 3:24 p.m. in New York trading.