Mylan Falls Short on Revenues, Hints at Acquisition to Come

Third party net sales from Mylan’s Generics segment increased 7.1% year-on-year to $1.51 billion. In North America they increased 6.9% to $782.2 million, and in Europe by 2.1% to $355.9 million. Third party net sales from the Rest of World grew 12.9% to $370.2 million. But Mylan’s Specialty segment reported third party net sales down 8.0% to $211.6 million.

The company’s CEO said:

Mylan’s performance during the first quarter slightly exceeded our expectations and marked a great start to what we believe will be another good year. Our operations in India drove strong top-line growth as a result of increased sales from our antiretroviral franchise. Additionally, the diversity and strength of our product portfolio in North America demonstrated our ability to continue to leverage our operating platform. We remain confident in our outlook for the rest of 2014, and we are reaffirming our full year guidance, including the adjusted diluted EPS guidance range of $3.25 to $3.60. With respect to mergers and acquisitions, as we have stated in the past, we continue to be very active in exploring a number of potential transactions and we remain confident that we will be in a position to execute on a substantial transaction by year end.

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The consensus analysts’ estimate for the full year so far calls for EPS of $3.44 on revenues of $7.91 billion. For the current quarter, analysts estimate EPS at $0.86 on $1.97 billion in revenue.

Earlier this week, Mylan’s second bid for Swedish drug maker Meda was rejected due to opposition of the latter’s largest shareholder.

Mylan shares were inactive in premarket trading Thursday, having closed Wednesday down fractionally at $50.78, in a 52-week range of $27.77 to $57.52. Thomson Reuters had a consensus analyst price target of around $61.00 before this report.

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