Drug giant Mylan sees adjusted profits fall
Generic drug giant Mylan reported adjusted profits of $1.10 per share for the third quarter, down from $1.38 a year earlier as lower sales in its North America segment dragged down revenue.
Analysts had been expecting adjusted profits of $1.20 per share.
On a non-adjusted basis, Mylan earned $88.3 million, or 16 cents per share, vs. a loss of $119.8 million, or 23 cents, in the same quarter last year when the company took a $465 million charge for a settlement with the U.S. Justice Department over misclassification of the EpiPen emergency allergy shot.
Revenue for the quarter fell 2 percent to $2.99 billion from $3.06 billion. Sales in North America declined 22 percent, reflecting lower pricing and volume and continued sales declines for the EpiPen.
In a conference call with Wall Street analysts Monday, CEO Heather Bresch said the company, which is run from executive offices in Cecil, was launching a publicity campaign “to better tell our story” and bolster Mylan’s stock price.
“I believe our depressed share price is reflective of investor sentiment regarding a U.S.-only marketplace, which, therefore, provides us an opportunity to educate and expand shareholders’ knowledge base and, therefore, our multiple,” she told analysts.
Ms. Bresch was asked by one analyst whether shares were being hurt in part by “investor perception around shareholder friendliness and [concerns about] corporate governance.”
She said she didn’t agree. “I don’t believe that’s rooted or grounded in governance,” she replied.
“We really believe it’s the fundamentals that should drive that valuation, and we believe that the shareholder outreach program is going to go a long way to help rebase” the stock, she said.
Mylan on Monday raised the low end of its adjusted earnings guidance for 2017, primarily because of U.S. Food and Drug Administration approval early last month of the generic version of the topselling multiple sclerosis drug Copaxone.
The range is now $4.45 to $4.70 per share for the full year, up from the previous forecast of $4.30 to $4.70. The guidance had been $5.15 to $5.55 until Mylan lowered it in August.
Shares closed Monday at $37.39, up $1.67, or 4.7 percent.
Shares are down from a peak this year in the mid$40s, and from the low to mid-$70s in 2015.