Mylan, Inc. (MYL): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report


Shutterstock photo

Mylan's third-quarter 2014 earnings of $1.16 per share increased 41.5% year over year and beat the Zacks Consensus Estimate by 2 cents. Revenues climbed 17.9% to $2.08 billion. Mylan's third-quarter results were better than expected with the company beating on both earnings and revenues, driven by strong sales in North America and the Specialty segment. We are looking forward to the potential launch of generic versions of Copaxone and Lidoderm, which should boost revenues further. We remain positive on Mylan's deal with Abbott Labs, which is expected to close in the first quarter of 2015. The deal is expected to be immediately and significantly accretive. Based on these factors we upgrade our recommendation on Mylan to Outperform.


Canonsburg, PA-based Mylan Inc. specializes in the development, manufacture, marketing, and distribution of generic, branded, and branded generic pharmaceutical products, as well as active pharmaceutical ingredients (APIs). The company, which operates in about 140 countries and territories, is one of the leading generic and specialty pharmaceutical companies in the world. Mylan's product portfolio encompasses various therapeutic areas including cardiovascular, central nervous system, anti-infective, gastrointestinal, endocrine and metabolic, and respiratory agents.

Mylan also has a Specialty business, which focuses on medicines for respiratory, allergy and psychiatric conditions. Through its controlling interest in its Indian subsidiary, Mylan Laboratories Limited (formerly known as Matrix Laboratories Limited), Mylan has direct access to one of the largest active pharmaceutical ingredients (API) manufacturers in the world. Mylan Laboratories also engages in the supply of APIs for the manufacture of antiretroviral (ARV) drugs used in the treatment of HIV. Meanwhile, the acquisition of Merck KGaA's generic business, Merck Generics (MG), in Oct 2007 has allowed Mylan to expand its global footprint.

Mylan has been constantly making acquisitions to drive growth. In Sep 2010, Mylan acquired privately held Bioniche Pharma Holdings Ltd, which provided it with access to the North American injectable drugs market. Mylan has combined Bioniche Pharma with its own unit dose business, UDL Laboratories, to form a new unit called Mylan Institutional, which is a part of the company's North American generics segment. Mylan has also entered the biologics space by striking a partnership with India-based Biocon Ltd. In Feb 2013, Mylan extended its partnership with Biocon. The companies signed a definitive agreement to develop and commercialize the generic versions of three insulin analog products. In Jan 2014, Mylan launched its biosimilar version of Roche's breast cancer drug Herceptin (trastuzumab) in India. Mylan has co-exclusive rights with Biocon to market the drug in India.

In Nov 2011, Mylan entered into an agreement with Pfizer whereby the latter granted Mylan exclusive global rights to develop, manufacture and commercialize Pfizer's generic version of GlaxoSmithKline's respiratory drugs, Advair and Seretide, utilizing Pfizer's respiratory delivery platform.

In Aug 2012, Mylan joined forces with Pfizer to develop, manufacture, distribute and commercialize generic drugs in Japan. The companies entered into an agreement to form an exclusive long-term strategic collaboration.

In Sep 2012, Mylan entered into a settlement agreement with Pfizer, Pharmacia & Upjohn Company LLC and Pfizer Health AB. The patent litigation was related to Mylan's generic version of Pfizer's Detrol LA (tolterodine tartrate ER, 2 mg and 4 mg) for overactive bladder with symptoms of urge urinary incontinence, urgency and frequency. In 2013, Mylan acquired the rights to a novel LAMA respiratory compound from Pfizer for multiple indications.

Mylan has entered into an agreement with Abbott Laboratories to buy the latter's branded specialty and generics business in the developed ex-U.S. markets, which is expected to close in the first quarter of 2015. On Oct 21, 2014, Mylan amended the agreement, which is expected to result in additional accretion. The deal is expected to be immediately and significantly accretive to the company.

Mylan reported $6.91 billion in total revenues in 2013, up 2% year over year.

Currently, Mylan reports revenues from two segments:

Generics (including the Indian subsidiary Mylan Laboratories) This segment primarily develops, manufactures, sells and distributes generic or branded generic pharmaceutical products in tablet, capsule injectable or transdermal patch forms. In addition, the segment is engaged in the manufacture and sale of APIs. Generics revenues are derived from sales in North America, Europe, the Middle East and Africa (collectively, EMEA), and Asia Pacific. The company derives the majority of its revenues from this segment. In 2013, third party net revenues from the Generics unit were $5.87 billion, down 1% due to an unfavorable foreign exchange impact.

Specialty Under this segment, Mylan markets branded specialty nebulized and injectable products for life-threatening conditions. In 2013, the Specialty segment recorded revenues of $981.7 million, up 17.6% from the prior year. The most significant product in this segment is EpiPen Auto-Injector, used to treat severe allergic reactions like anaphylaxis. Mylan and Pfizer have an agreement for EpiPen under which Pfizer manufactures and Mylan markets the product.

Mylan, Inc. (MYL): Read the Full Research Report
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

MYLAN INC (MYL): Free Stock Analysis Report

To read this article on click here.

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 , Stocks
More Headlines for: API , MG , MYL

More from


Equity Research
Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by