Mylan Pharmaceuticals Inc., a subsidiary of
Mylan Inc.
(
MYL
), recently announced that it has launched its generic version of
Pfizer's
(
PFE
) Antivert (meclizine hydrochloride) 12.5 mg, 25 mg and 50 mg
tablets after receiving final approval from the US Food and Drug
Administration (FDA).
Antivert is used for the management of nausea and vomiting, and
dizziness associated with motion sickness. According to IMS Health,
Antivert (12.5 mg, 25 mg and 50 mg tablets), generated US revenues
of approximately $53.5 million for the 12 months ending June 30,
2012.
Meanwhile, Mylan has also launched the first generic version of
Novartis'
(
NVS
) Diovan HCT (valsartan and hydrochlorothiazide) tablets, 80/12.5
mg, 160/12.5 mg, 160/25 mg, 320/12.5 mg and 320/25 mg. According to
IMS Health, Diovan HCT (80/12.5 mg, 160/12.5 mg, 160/25 mg,
320/12.5 mg and 320/25 mg tablets), generated US revenues of
approximately $1.6 billion for the 12 months ending June 30, 2012
As of September 21, 2012, Mylan had 168 ANDAs pending FDA
clearance, targeting $77.8 billion in branded sales annually. Mylan
believes that about 33 of these pending ANDAs are first-to-file
opportunities, representing approximately $20.8 billion in branded
sales. The revenue figures are as per IMS Health for the 12 months
ending June 30, 2012.
Our Recommendation
We are encouraged by Mylan's geographic reach and product depth
along with a robust generic product pipeline. However, we remain
concerned about the company's lackluster performance in the Europe,
Middle East and Africa (EMEA) region.
Additionally, with most large branded drugs due to lose patent
exclusivity within the 2017-2018 period, we have little visibility
on the growth prospects of generic companies like Mylan beyond that
timeframe.
Thus, we prefer to remain on the sidelines and have a Neutral
recommendation on Mylan. The stock carries a Zacks #3 Rank (Hold
rating) in the short run.
MYLAN INC (MYL): Free Stock Analysis Report
NOVARTIS AG-ADR (NVS): Free Stock Analysis
Report
PFIZER INC (PFE): Free Stock Analysis Report
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