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Mylan net profit declines by 17% to $107 mn in Q1

Our Bureau, MumbaiFriday, May 3, 2013, 14:30 Hrs  [IST]

Mylan has posted lower net profit during the first quarter ended March 2013 and its net profit  decreased by 17.2 per cent, to $107 million from $129 million.  Total revenues improved by 3 per cent to $1,619 million during the first quarter ended March 2013 as compared to $1,573 million. Its R&D expenditure increased to $126 million from $81 million.  With fall in profit its EPS for the quarter declined to $0.27 from $0.30 in the similar period of last year.    

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 $1.41 billion in the quarter ended March 31, 2013, compared to $1.40 billion in the comparable prior year period, representing a slight increase of approximately 2 per cent

For the current quarter, Mylan's specialty segment reported third party net sales of $211.6 million, an increase 23.7 per cent, from the comparable prior year period of $171.1 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. The EpiPen auto-injector is the number one epinephrine auto-injector for the treatment of severe allergic reactions. In addition, Perforomist inhalation solution sales increased  by double digits from the comparable prior year period as a result of favorable pricing and volume.

Third party net revenues from North America were $732.8 million for the current quarter, compared to $767.7 million for the comparable prior year period, representing a decrease of $34.9 million, or 4.5 per cent. Third party net revenues from EMEA were $369.9 million for the current quarter, compared to $335.6 million for the comparable prior year period, representing an increase 10.2 per cent.

Third party net revenues from Asia Pacific were $305.1 million for the current quarter, compared to $298.7 million for the comparable prior year period. This increase is primarily driven by higher revenues by Mylan India, as a result of increased sales of antiretroviral finished dosage form generic products, which are used in the treatment of HIV/AIDS, and an increase in sales of active pharmaceutical ingredients (API).

Mylan chief executive officer, Heather Bresch commented: “Our first quarter results provide a strong start to the year and are fully in line with our expectations. We generated double-digit, constant currency top-line growth in our European and Asia Pacific regions, and saw strong performance in our North American business. I am also very pleased with the performance of our Specialty segment, particularly our EpiPen autoiInjector franchise, which celebrates its 25th anniversary this year and continues to be an exciting growth opportunity. We remain very confident in our outlook for our business in 2013 and are reaffirming our full year guidance, including our adjusted diluted EPS guidance range of $2.75 to $2.95.”

John Sheehan, Mylan's chief financial officer, added: “I am pleased with our first quarter results, which represent a great foundation for 2013. During the first quarter we completed our previously announced share repurchase program, consistent with our objective to return capital to our shareholders. We maintain significant financial flexibility and continue to look to use this flexibility for accretive opportunities that create value for our shareholders, while also maintaining our investment grade credit rating.”

During the three months ended March 31, 2013, the company completed a share repurchase program by purchasing approximately 16.3 million shares of common stock for approximately $500 million.

 
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