Mylan Inc. has reported total revenues of $1.69 billion during the second quarter ended June 2012 compared to $1.57 billion in the comparable prior year period, a growth of 7.4 per cent. Its net earnings decreased by 5.3 per cent to $138.6 million as compared to $146.4 million.
Third party net revenues from Mylan's generics segment, which are derived from sales in North America, Europe, the Middle East and Africa (collectively, EMEA) and Australia, India, Japan and New Zealand (collectively, Asia Pacific) were $1.48 billion in the quarter ended June 30, 2012, compared to $1.44 billion in the comparable prior year period, representing an increase 2.8 per cent.
Third party net revenues from North America were $845.3 million for the current quarter, compared to $749.1 million for the comparable prior year period, representing an increase 12.8 per cent. The increase in third party revenues was principally due to sales of new products which totalled approximately $240 million in the current quarter. The most significant new product launched was doxycycline hyclate delayed-release (DR) tablets USP, 150 mg, the generic version of Mayne Pharma's Doryx 150 mg product which is marketed by Warner Chilcott.
Third party net revenues from EMEA were $326.6 million compared to $378.7 million, representing a decrease 13.7 per cent. This decrease was the result of competitive market conditions which resulted in unfavourable pricing in a number of European markets in which Mylan operates, primarily France and Germany. These decreases were offset by increases in Italy and Spain, where local currency revenues increased approximately 21 per cent and 14 per cent, respectively.
Third party net revenues from Asia Pacific were $307.5 million compared to $310.9 million, a decrease of 1.1 per cent. Significant strengthening of US Dollar against Indian Rupee impacted the net revenue from Asia Pacific. Mylan Laboratories Ltd (formerly Matrix Laboratories Ltd), Mylan's subsidiary in India, improved its sales on account of antiretroviral finished dosage form generic products, which are used in the treatment of HIV/AIDS. In addition, local currency revenues in Japan were favorably impacted by higher volumes. Offsetting these increases was a slight decline in local currency revenues in Australia, as a result of significant government-imposed pricing reform which went into effect in the first quarter of 2012.
For the current quarter, Mylan's Specialty segment reported third party net sales of $198.6 million, an increase of 50.8 per cent, from the comparable prior year period of $131.7 million. The most significant contributor to Specialty segment revenues continues to be the Epipen auto-injector, sales of which increased as a result of favorable pricing and growth in the overall market. The Epipen auto-injector is the number one epinephrine auto-injector for the treatment of severe allergic reactions.
Mylan CEO, Heather Bresch commented, “Mylan delivered another very strong quarter of top- and bottom-line growth, driven by more than 50 per cent growth in our Specialty business, double-digit growth in North America and strong performance of our antiretroviral business. We delivered this growth while continuing to invest in our global platform, through increased spending on research and development and sales and marketing programmes, in order to position our business for continued long-term success. As we look at the rest of the year, we continue to anticipate that the third quarter will be by far our strongest of the year, with a fourth quarter similar to or slightly higher than the second quarter.”
John Sheehan, Mylan's CFO added: “Our second quarter results once again demonstrate the strength and resilience of our diverse, global platform. We expect to continue to generate strong cash flows, further enhancing our financial flexibility and capacity to invest in our current business, as well as other opportunities as they arise. Looking ahead, we are reaffirming our 2012 adjusted earnings guidance of $2.45 to $2.55 per share, as well as our 2013 adjusted earnings target of $2.75 per share.”
For the six months ended June 30, 2012, Mylan reported total revenues of $3.28 billion compared to $3.02 billion in the comparable prior year period. Third party net revenues for the six months ended June 30, 2012 were $3.25 billion compared to $3.01 billion for the comparable prior year period, representing an increase of 8.1 per cent.
Generics third party net revenues were $2.89 billion for the six months ended June 30, 2012, compared to $2.78 billion in the comparable prior year period, representing an increase of 4.0 per cent. Third party net revenues from North America were $1.62 billion for the six months ended June 30, 2012, compared to $1.42 billion for the comparable prior year period, representing an increase of 13.9 per cent. The increase in third party revenues was principally due to sales of new products which totaled approximately $430 million in the current year to date period, partially offset by lower revenues from existing products.
Third party net revenues from EMEA were $662.3 million for the six months ended June 30, 2012, compared to $767.8 million for the comparable prior year period, a decrease of 13.7 per cent. In Asia Pacific, third party net revenues were $606.1 million for the six months ended June 30, 2012, compared to $587.0 million for the comparable prior year period, an increase of 3.3 per cent. This increase is primarily driven by higher third party sales at Mylan Laboratories Limited.
Net earnings attributable to Mylan Inc. increased by 6.8 per cent, to $267.6 million for the six months ended June 30, 2012 as compared to $250.6 million for the prior year comparable period.