Mylan Profit Tops Analyst Estimates as Generics Sales Riseby
Drugmaker says 2015 EPS likely to be at high end of forecast
Revenue rose less than analysts had estimated in the quarter
Mylan NV, the world’s third-biggest maker of generic drugs, reported profit that topped analysts’ estimates as sales of copycat medicines soared.
Third-quarter profit excluding some items rose to $1.43 a share, beating the $1.38 average of analyst estimates compiled by Bloomberg. Revenue rose 29 percent to $2.7 billion, falling short of analysts’ projected $2.8 billion.
EpiPen, an injection used to treat severe allergic reactions, is Mylan’s biggest product. Sanofi recalled EpiPen’s primary branded rival, Auvi-Q, on Wednesday because of concerns about dosing accuracy. Teva Pharmaceutical Industries Ltd., a key Mylan rival, said the FDA may not approve its application for a generic version of EpiPen this year and it expects a delay of at least six months.
The drugmaker, which has its legal domicile in Hertfordshire, England, and its operational center in Canonsburg, Pennsylvania, also said 2015 earnings per share will probably be at the high end of its forecast of $4.15 to $4.35 a share.
Mylan is working to get approval from Perrigo Co.’s shareholders for its hostile takeover of the over-the-counter drugmaker. Meanwhile, Perrigo has said it will fire workers and repurchase stock in an effort to boost shareholder returns and fend off the bid.
Mylan’s specialty revenue, largely made up of EpiPen sales, fell 5 percent from a year earlier to $437.8 million. Andrew Finkelstein, an analyst at Susquehanna International Group LLP, projected $507.6 million on Aug. 11 in a research note. The generics business grew 40 percent to $2.26 billion in sales.
Net income declined 14 percent to $428.6 million, or 83 cents a share, from $499.1 million, or $1.26 a share, a year earlier. The third quarter of 2014 was boosted by a tax benefit following the consolidation of some subsidiaries.