Generic medicines group Mylan beat analysts' estimates for quarterly profit as it benefited from customers stocking up on its cold and asthma medicines ahead of lockdowns imposed to curb the spread of coronavirus and maintained its 2020 revenue forecast.
Shares of the drugmaker were down 1 per cent in early trading on Monday, tracking broader markets that opened lower.
The company also said it was on track to close its merger with Pfizer’s off-patent branded drugs unit, Upjohn, in the second half of the year after the pandemic delayed it due to restrictions on gatherings.
The deal comes as Mylan’s new products, such as asthma drug Wixela and infection fighting drug Fulphila, struggle to gain traction while sales of its EpiPen emergency allergy treatment face pressure.
Mylan is ramping up production of an old malaria drug, hydroxychloroquine, touted by US president Donald Trump as a "game changer" in the fight against Covid-19, the respiratory illness caused by the virus.
The company said it was currently not facing any significant disruptions to its supply chain, including the availability of active drug ingredients, due to the outbreak, even as it delayed implementation of a 2020 restructuring programme announced in February.
The drugmaker posted net earnings of $20.8 million (€19.2 million), or four US cents per share, in the three months to March 31st, compared with a net loss of $25 million (€23.1 million), or five cents per share, a year earlier.
According to IBES data from Refinitiv, Mylan’s adjusted earnings came in at 90 cents per share, slightly ahead of the 86 cents estimated by analysts on average.
Total revenue rose 5 per cent to $2.62 billion (€2.42 billion), falling short of estimates of $2.64 billion (€2.44 billion). – Reuters