Mylan NV MYL, -7.65% shares dropped 5% in Wednesday premarket trade after the company's board of directors said it is evaluating "a wide range of alternatives" because it believes the public markets undervalue the company. The board has no timetable for these plans and "there can be no assurance that any alternative will be implemented," according to the statement. The news came as Mylan reported second-quarter profit and revenue misses, and made cuts to its 2018 profit and revenue guidance. Earnings for the latest quarter declined to $37.5 million, or 7 cents per share, from $297 million, or 55 cents per share in the year-earlier period. Adjusted earnings-per-share were $1.07, below the FactSet consensus of $1.22. Revenue dropped to $2.81 billion from $2.96 billion, below the FactSet consensus of $2.96 billion. Overall revenue dropped largely because of a decrease in net sales of existing products, including lower volumes and pricing, according to the company. Mylan also said that at a Food and Drug Administration inspection at its Morgantown, West Virginia plant, the inspector noted conditions that might violate health standards in what's called a "form 483." The company said it has "submitted a comprehensive response to the FDA and committed to a robust improvement plan." It is also reducing its workforce at the Morgantown plant and discontinuing a number of products, Mylan said, a move "aimed at reducing complexity at the facility" but that has hurt production levels, product supply and operations, including in the latest quarter. Mylan has also had "significant expenses" related to manufacturing variances, site remediation and restructuring charges, it said, and expects various factors -- including lower production levels and other negative effects on operations -- to continue through the end of the year. Mylan now expects 2018 revenue of $11.25 billion to $12.25 billion, representing a decrease from previous guidance of $11.75 billion to $13.25 billion. The company expects 2018 adjusted EPS of $4.55 to $4.90, a decline from prior guidance of $5.20 to $5.60. Mylan shares have risen nearly 9% to $38.54 over the last three months, compared with a nearly 7% rise in the S&P 500 SPX, -0.09% and a 5.2% rise in the Dow Jones Industrial Average.
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