Mylan Gives No Hint on Overhaul as Drug Sales Continue Slide

(Bloomberg) -- Mylan NV shares dropped Tuesday after the generic-drug manufacturer offered no new updates on a now-10-month strategic review in which it had promised to look at “everything and anything” to turn around operations and declining sales.

• North American revenue, which includes U.S. generic drugs and the allergy shot EpiPen, fell 6 percent to $922.9 million in the first quarter, the company said, citing increasing competition and manufacturing problems at a key plant.

Key Insights

• The strategic review was announced in August, but the company has offered few hints about its plans as the stock has continued to slide. The overhaul effort is likely to be a topic on a call later in the morning between analysts and management.
• Like other drugmakers, Mylan is facing pressure on drug prices. It has also incurred costs from manufacturing problems at a major plant in Morgantown, West Virginia, which has crimped its ability to get products to customers.
• The company is getting little help overseas. Pricing pressures and product shortages led European sales to fall 14 percent to $895.3 million in the first quarter, one of the biggest declines in the region in several quarters.

Market Reaction

Know More

• First-quarter adjusted earnings were 82 cents a share, topping the 79 cents average of analysts’ estimates compiled by Bloomberg. The company reaffirmed its 2019 forecast of adjusted earnings of $3.80 to $4.80 a share.
• To read the company press release, click here.
• To read more details on the results, click here.

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