More Generic Launches for Mylan - Analyst Blog

By Zacks Equity Research,

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Generic maker, Mylan Inc. ( MYL ) received final approval from the US Food & Drug Administration (FDA) to launch its generic versions of Abbott Laboratories ' ( ABT ) hypertension tablets Teveten and UCB Pharma 's ( UCBJF ) partial onset seizures medicine Keppra. Mylan was the first company to have filed abbreviated new drug applications (ANDAs) to market generic versions of these drugs. The early bird will thus enjoy a 180-day period of exclusivity. Mylan has begun shipments of both the drugs.

As of December 27, 2011, the company had 170 ANDAs pending clearance by the FDA, targeting $98.4 billion in branded sales. Mylan believes that about 42 of these ANDAs are first-to-file opportunities, representing more than $26.8 billion in branded sales. Mylan expects 2012 to be a year of significant growth driven by a slew of product launches in the US. In 2012, Mylan anticipates the launch of more than 500 new products which are expected to generate $800 million in revenue.

Our Recommendation

We currently have a Neutral long-term recommendation on Mylan. The shares carry a Zacks #2 Rank (short-term Buy rating). Mylan is one of the leading players in the US generics market. We are encouraged by the company's geographic reach and product depth along with its robust generic product pipeline. Nevertheless, we are concerned about lackluster growth in the European generics business. We intend to remain watchful until better visibility is obtained on top-line growth prospects in Europe.

Moreover, competition in the generic segment is strong with players like Teva Pharmaceuticals ( TEVA ), Watson Pharma ( WPI ) and Sandoz, the generics arm of Novartis ( NVS ), in the field.

ABBOTT LABS ( ABT ): Free Stock Analysis Report
MYLAN INC ( MYL ): Free Stock Analysis Report
NOVARTIS AG-ADR ( NVS ): Free Stock Analysis Report
TEVA PHARM ADR ( TEVA ): Free Stock Analysis Report
WATSON PHARMA ( WPI ): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: ABT , MYL , NVS , TEVA , WPI

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