Mylan's profit surges 28 percent on cut in expenses
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 firstname.lastname@example.org.
Add Alex Nixon to your Google+ circles.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Pittsburgh area unemployment ticks up
- U.S. Steel job cuts total 2,800, CEO says
- Hog Father’s eatery chain ferries barbecue to workers at gas well pads
- Oil’s rebound pushes up price at gas pumps
- Consol Energy profits dip with low gas prices
- Visa limits vex businesses
- Mylan rejects Teva’s $40 billion takeover bid
- California drought may be felt in Pittsburgh restaurants, groceries
- ESPN sues Verizon over unbundling plan for FiOS
- Retailers vie for workers in tightening labor market
- Pittsburgh area home prices climb in first quarter