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Mylan's profit surges 28 percent on cut in expenses

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Thursday, Aug. 1, 2013, 10:09 a.m.
 

Generic drugmaker Mylan Inc. expects to more than double earnings over the next five years, CEO Heather Bresch told analysts on Thursday.

The Cecil-based company, which held an investor day in New York that was broadcast on its website, is predicting at least $6 profit per share by 2018 as its generics business continues to show strong growth around the world.

Mylan expects earnings per share of between $2.75 and $2.95 this year.

“We're continuing to generate a lot of cash, and at any point in time we're putting that to work in a prudent way for our shareholders,” Bresch said.

“Mylan is best positioned to capitalize on the trends we see,” she said.

Driving Mylan's growth is greater use of generic drugs around the world as governments look to better control the rising cost of health care, Bresch said. In the United States, health care reform under the Affordable Care Act is expected to further encourage the use of lower-cost generic medicines, she said.

The company also is on track to bring about 600 new generic drugs to the market each year through 2018.

And Mylan wants to become more visible to health care consumers, who are increasingly shouldering more of the cost of their health care and are looking to shop for better values. There is a lot of information available to consumers about every product they buy, except health care, Bresch said.

“When it comes to pharmaceuticals, and health care in general, that really isn't the case,” she said. “There's a huge void of information.”

The outlook from the company's executives came as Mylan reported a 28 percent jump in second-quarter earnings on “robust growth” in Europe and the Asia-Pacific region and a reduction in expenses.

The Cecil-based company said net income in the April-June quarter was $177.7 million, or 46 cents a share, compared with $138.6 million, or 33 cents a share, in the second quarter last year.

“We continue to anticipate strong performance across our global platform for the remainder of the year,” Bresch said.

Revenue was $1.7 billion, unchanged from last year. Cost of sales declined 3 percent in the quarter, and operating expenses dropped 2 percent, according to Mylan's financial statements.

Alex Nixon is a staff writer for Trib Total Media. He can be reached at 412-320-7928 or anixon@tribweb.com.

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