Mylan Profit Drops, Cuts Full Year View On Product Approval Delays

(RTTNews) - Generic drugmaker Mylan, Inc. (MYL) Thursday said profit for the second quarter declined from the prior year, amid higher revenues and increased expenses.

Revenues grew 8 percent with positive growth across all regions and businesses. However, the firm cut the upper end of its forecast for full year earnings and revenues, citing delays in product approvals.

Mylan CEO Heather Bresch said, "We continued to deliver strong results in the second quarter of 2014, driven by double-digit revenue growth in our Specialty business and Rest of World region, and continued solid performance in Europe and North America."

Bresch noted that these results were achieved, despite ongoing delays in approvals of key products by the U.S. Food and Drug Administration.

Net earnings attributable to common shareholders fell to $125.2 million from $177.7 million last year. Earnings per share fell to $0.32 from $0.46.

Adjusted earnings rose to $0.69 from $0.68. On average, 16 analysts polled by Thomson Reuters expected earnings of $0.70 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues improved to $1.837 billion from $1.702 billion in the prior year. Analysts expected revenues of $1.88 billion.

Generics Third Party net sales advanced 5 percent to $1.529 billion. Within the segment, sales grew 3 percent in North America and climbed 10 percent in Europe, while the growth in Rest of World was 6 percent.

Specialty Third Party Net Sales climbed 22 percent to $287.8 million, due to higher sales of the EpiPen Auto-Injector driven by market expansion, as well as price.

Total operating expenses climbed to $582.7 million from $433.7 million, mainly due to increased Selling, general and administrative expenses.

Looking ahead, Mylan expects third-quarter adjusted earnings per share in the range of $0.90 to $0.95. Considering the anticipated launches of key products, the fourth quarter is expected to be the strongest quarter of the year. Wall Street looks for earnings of $1.03 per share for the quarter.

Further, citing delays in approvals of key products by the U.S. Food and Drug Administration, Mylan narrowed its 2014 guidance range for total revenue to $7.8 billion to $8.0 billion from the prior guidance of $7.80 billion to $8.20 billion.

Adjusted earnings per share is now projected in the range of $3.25 to $3.45, compared to the previous forecast of $3.25 - $3.60. The guidance includes the fourth quarter launches of generic Copaxone and generic Celebrex.

Wall Street expects earnings of $3.37 per hare on revenues of $7.77 billion.

MYL closed down 1.1 percent on Wednesday at $47.92.