Mylan cuts forecasts on delays in new drugs
Mylan cuts forecasts on delays in new drugs, weak prices
(Reuters) – Mylan NV said on Wednesday that delays in launching key new drugs and eroding prices for generics in the United States will hurt its profitability this year and in 2018, sending its shares down more than 6 percent.
Mylan said that it was no longer including any major U.S. product launches in its forecast for the year, pushing them back to 2018 due to the uncertain U.S. regulatory environment. The launches include those of its generic version of GlaxoSmithKline’s blockbuster, Advair and Teva’s multiple sclerosis drug, Copaxone.
Generic drugmakers such as Teva and Endo International Plc have been hit hard by a weakening prices in the United States in the second quarter as customers have been consolidating to negotiate lower prices and regulators have been approving more versions of drugs to increase competition.
Mylan said it expects mid-single digit generic drug price erosion worldwide and high-single digit price drops in North America.
Mylan lowered its forecast for 2017 adjusted earnings to $4.30 to $4.70 per share, from $5.15 to $5.55 per share. It also cut a long-standing 2018 earnings per share target of $6 to at least $5.40.
“Mylan had refused to capitulate for over a year as headwinds were building, holding itself out as differentiated and able to weather challenges that its peers were facing,” RBC Capital Markets analyst Randall Stanicky said in a research note. “This is clear evidence that generic challenges are being faced by all.”
Mylan, the maker of the EpiPen allergy treatment, also reported lower-than-expected earnings and revenue for the second quarter ended June 30.
Mylan’s quarterly net earnings rose 76.4 percent to $297 million, or 55 cents per share, helped by demand for products it gained through the acquisition of Swedish drugmaker Meda last year.
Excluding one-time items, the company earned $1.10 per share, missing analysts’ average estimate by 6 cents, according to Thomson Reuters I/B/E/S.
Total revenue rose to $2.96 billion from $2.56 billion. Analysts had expected $3.03 billion.
Reporting by Michael Erman in New York and Natalie Grover and Manas Mishra in Bengaluru; Editing by Sai Sachin Ravikumar and Nick Zieminski