Failed Perrigo suitor Mylan sees revenues rise on generic drugs

Dutch-domiciled US group says it is still fully committed to planned $7.2bn takeover of Sweden’s Meda

 Robert Coury, executive chairman of  Mylan pharmacutical company with Taoiseach Enda Kenny in 2012 announcing more than 500 jobs between plants at Baldoyle in Dublin and Galway.Photograph: Alan Betson / The Irish Times

Robert Coury, executive chairman of Mylan pharmacutical company with Taoiseach Enda Kenny in 2012 announcing more than 500 jobs between plants at Baldoyle in Dublin and Galway.Photograph: Alan Betson / The Irish Times

 

Drugmaker Mylan posted a 17 per cent rise in quarterly revenue, helped by higher generic drug sales, and stood by its full-year revenue and adjusted profit guidance.

Mylan, which employs more than 1,000 people in Ireland, said it expects its full-year total revenue to be $10.5 billion to $11.5 billion and adjusted diluted earnings of $4.85 to $5.15 per share.

Mylan’s generic drugs sales rose 17 per cent to $1.94 billion. Total revenue for the quarter rose to $2.19 billion from $1.87 billion.

US drugmakers have been under increased pressure from the government, insurers and corporations over steep rise in the prices of generic drugs.

“Despite much external focus and discussion of the pricing environment, ... we continue to see nothing out of the ordinary to change our generic pricing assumptions of low- to mid-single digit erosion for the full year,” Mylan chief executive Heather Bresch said in a statement.

The Dutch-domiciled US company has recovered from the buffeting it received in its failed efforts to acquire Irish-domiciled over-the-counter and consumer medications group Perrigo in a $26 billion hostile offer last year.

Mylan went direct to Perrigo shareholders after being rebuffed by management led by Joe Papa, who has since move don to head troubled Valeant.

The Perrigo approach was initially a defensive mover after Mylan was itself lined up for takeover by rival generics giant Teva in April 2015.

Israel-based Teva, for its part, moved on to acquire the generics business of another Irish-domiciled business, Allergan before a move to merge the remaining parts of Allergan with industry heavyweight Pfizer became the most notable casualty of a US government clampdown on corporate inversions.

Net income attributable to Mylan’s shareholders fell to $13.9 million, or three US cents per share in the first quarter ended March 31st, from $56.6 million, or 13 cents per share, a year earlier.

Excluding special items, the company earned $0.76 per share, beating average analyst estimate of $0.74 per share.

Following the bruising Perrigo clash, Mylan said in February it would buy Meda for $7.2 billion in its third attempt to buy the Swedish company. Ms Bresch said the company remains fully committed to close the Meda acquisition.