Shares of generic drugmaker Mylan N.V. shot up 14.1% on Tuesday after third-quarter profit topped analysts’ estimates. Adjusted earnings in the quarter were $1.25 a share, beating forecasts by 6 cents.
Revenue in the quarter fell 4% to $2.86 billion from $2.99 billion a year earlier. Leading the decline were North American sales, which fell some 14% to $1.01 billion, but European sales were largely flat at $1.04 billion and the company’s net sales elsewhere in the world ticked up 4% to $773.7 million.
Calling Mylan’s third-quarter health “in line” with expectations, CEO Heather Bresch touted in a statement the company’s 475 new products offered over the year. “As we look ahead, we’re very optimistic about our long-term growth prospects as we have secured almost all regulatory approvals necessary for our key 2019 product drivers around the world.” Mylan also ended the quarter with strong adjusted free cash flow at $2.02 billion for the nine months ended Sept. 30, up from $1.91 billion in 2017.
Mylan Reports – Third Quarter 2018 Financial Highlights
U.S. GAAP diluted earnings per ordinary share (“U.S. GAAP EPS”) of $0.34, up 113% over the prior year period. Total revenues of $2.86 billion, down 4% compared to the prior year period and adjusted diluted earnings per ordinary share (“adjusted EPS”) of $1.25, up 14% over the prior year period.
Revenue Highlights: Rest of World segment net sales of $773.7 million, up 4%, up 11% on a constant currency basis. Europe segment net sales of $1.04 billion, flat, up 2% on a constant currency basis. North America segment net sales of $1.01 billion, down 14%, down 13% on a constant currency basis, primarily due to the combined impact of the implementation of new accounting standards, lower volumes including EpiPen® Auto-Injector sales, the divestiture of certain contract manufacturing assets, the loss of exclusivity of a product and actions associated with the restructuring and remediation program at the Morgantown manufacturing facility.
U.S. GAAP net cash provided by operating activities for the nine months ended September 30, 2018 of $1.71 billion, up 9% compared to $1.57 billion in the prior year period. Adjusted free cash flow for the nine months ended September 30, 2018 of $2.02 billion, up 6% compared to $1.91 billion in the prior year period. Mylan is not providing forward looking guidance for U.S. GAAP reported financial measures or a quantitative reconciliation of forward-looking non-GAAP financial measures. Please see “Non-GAAP Financial Measures” for additional information.
Mylan CEO Heather Bresch said: “Mylan’s third quarter performance was in line with our expectations and we delivered solid year-over-year growth. Our confidence in the company’s bright future extends well beyond any single factor or particular quarter, including the current, short-term macro market turbulence our industry is experiencing. Year-to-date, we have launched nearly 475 new products across our segments, including a record number of complex generics and biosimilars for Mylan. These medicines represent many different therapeutic categories, channels and dosage forms. We remain committed to our full-year 2018 guidance, and this confirmation is not dependent on any single product approval or launch. As we look ahead, we’re very optimistic about our long-term growth prospects as we have secured almost all regulatory approvals necessary for our key 2019 product drivers around the world.”