Mylan posts a 17 percent drop in quarterly profit
Profit at generic drugmaker Mylan Inc. dropped 17 percent in the first quarter on higher research and development expenses, the company said on Thursday.
Cecil-based Mylan reported net income of $106.9 million, or 27 cents a share, down from $129.1 million, or 30 cents a share, in the same quarter a year ago.
The company spent $126.5 million on research and development, up from $81 million. Mylan Chief Financial Officer John Sheehan said the company is investing more to develop new products that will drive growth, including generic biologic drugs and respiratory products, such as inhalers for asthma and other breathing problems. Biologics are medicines that are derived from human proteins, instead of from chemicals.
Revenue was $1.63 billion, up from $1.58 billion.
CEO Heather Bresch said sales in Mylan's Specialty division rose 24 percent on the strength of its EpiPen product, an injector used in emergencies to treat severe allergic reactions.
On an adjusted basis, the company's earnings per share were 62 cents, up from 52 cents in the same quarter last year. Adjustments were for one-time payments such as litigation settlements, research licensing costs, acquisition-related costs and restructuring, the company said.
“Our first quarter results provide a strong start to the year and are fully in line with our expectations,” Bresch said in a written statement.
The company affirmed its full-year outlook for adjusted earnings per share of $2.75 to $2.95.
“We remain very confident in our outlook for our business in 2013,” Bresch said.
Alex Nixon is a staff writer for Trib Total Media. He can be reached at 412-320-7928 or email@example.com.