Mylan's profit drops 25% in third quarter on charges
Generic drugmaker Mylan Inc. reported a 25 percent drop in profit in the third quarter on charges and lower revenue from new products in North America.
The company said its $1.6 billion acquisition of an Indian maker of sterile injectable drugs is on track to close by the end of this year, and it plans a buyback of up to $500 million in stock.
Cecil-based Mylan said net income in the July-September quarter was $158.9 million, or 40 cents a share, compared with $211.3 million, or 51 cents a share, in the same period last year.
Earnings were reduced by charges of $70.6 million, primarily related to the redemption of outstanding debt.
Removing the impact of the charges, adjusted net income was 82 cents a share, down slightly from 83 cents a share last year.
By that measure, Mylan's performance beat Wall Street expectations. Analysts had expected adjusted net income of 79 cents a share, according to Bloomberg.
But revenue of $1.77 billion in the quarter, which was down slightly compared with last year, missed analyst estimates of $1.84 billion.
Standard & Poor's analyst Herman Saftlas called the quarterly results “disappointing.” But he said Mylan appears to be on track to continue its growth and strong earnings in the future.
“The core drivers are on track, and they have consistently delivered on their projections and their guidance,” Saftlas said. “This quarter was a little bit of an anomaly.”
Sales of new generic drugs introduced in the quarter in North America declined compared with a year ago for Mylan. But the decline was offset by higher sales outside the region.
Mylan said generic medications introduced during the quarter brought in $108 million in North America, down substantially from the $299 million that new drugs contributed to revenue last year. But sales of generics in all other parts of the world increased, CEO Heather Bresch said.
“Coming off an exceptional year in 2012 for both Mylan and our industry, we delivered double-digit constant currency growth in our Asia-Pacific and Specialty businesses, and saw continued strength in Europe,” Bresch said.
Mylan expects to close on its purchase of the Agila unit of Strides Arcolab Ltd. by the end of the year, President Rajiv Malik said. Mylan announced the deal in February and in September agreed to a settlement with the Federal Trade Commission to resolve antitrust concerns over the agreement.
Under the pact, Mylan agreed to divest of seven drugs and Agila would sell four.
Mylan shares closed on Thursday at $37.87, down 55 cents.
Alex Nixon is a staff writer for Trib Total Media.
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.
- HP to pay $32.5M to settle Postal Service dispute
- Towing standard finally set
- Harley recalls bikes for ignition switch problem
- Auto sales heat up in July on steep discounts
- Westinghouse wins deal to build nuclear power plant in Bulgaria
- Rise in pickup truck sales a good sign for economy
- Auto review: Grand Cherokee goes the distance
- Unemployment rate ticks up; 209K jobs added but less than expected
- Fix-a-flat a remedy in a pinch
- Auto review: Maserati Ghibli a sedan that awakens the senses
- SEC closes probe of Citi mortgage bonds