Mylan Swings To Q3 Loss

(RTTNews) - Generic drug maker Mylan N.V. (MYL), on Wednesday posted a loss for the third quarter, reflecting the hefty settlement agreement with Justice Department over EpiPen. Adjusted earnings and revenues for the quarter fell short of Wall Street estimates.

The company posted third-quarter loss of $119.8 million or $0.23 per share, compared with last year's profit of $428.6 million or $0.83 per share.

Loss for the quarter reflects Mylan's $465 million settlement with the U.S. Department of Justice and other government agencies over the classification of the EpiPen for the Medicaid Drug Rebate Program.

Mylan faced a widespread outrage from lawmakers and the public after the company implemented sharp price increases for EpiPen. Mylan had acquired the product in 2007. It raised the price for a pair of EpiPen auto-injectors to $600, up from about $100 in 2008.

Excluding items, adjusted earnings for the quarter were $1.38 per share, down from $1.43 per share a year ago. On average, 18 analysts polled by Thomson Reuters expected earnings of $1.46 per share for the quarter. Analysts' estimates typically exclude special items.

Mylan's revenues for the third quarter rose 13 percent to $3.06 billion from $2.70 billion a year ago. Analysts had a consensus revenue estimate of $3.12 billion for the quarter. Revenue growth reflects sales from acquisitions and new product launches.

The company's generics segment third-party sales grew 17 percent from a year ago, as all regions saw growth, especially Europe were revenues jumped 38 percent. Sales at its specialty segment dropped 4 percent, hurt largely by lower volumes due to the timing of wholesaler purchases of the EpiPen Auto-Injector in anticipation of the authorized generic launch.

Last month, pharmaceutical company Kaleo announced that it will relaunch Auvi-Q, the rival for EpiPen, in 2017. Auvi-Q was removed from the market last year because of manufacturing problems.

Auvi-Q, like EpiPen, is a epinephrine injection used to treat life-threatening allergic reactions, including anaphylaxis, in people who are at risk for or have a history of serious allergic reactions.

Mylan continues expect full year 2016 adjusted earnings of $4.70 to $4.90 per share and $6.00 per share in 2018.

MYL closed Wednesday's trading at $38.92, up $1.81 or 4.88%, on the NYSE. The stock further gained $0.58 or 1.49% in the after-hours trade.