Mylan Plans Strategic Review While Quarterly Results Miss Expectations and 2018 Outlook Cut

12:48 PM, Aug 8, 2018 — Mylan (MYL) reported a wide miss in quarterly earnings and revenue as the maker of the EpiPen auto injector started a strategic review to evaluate a “wide range of alternatives” and unlock value in the company.

Second quarter revenue fell 5% to $2.81 billion, missing the consensus on Capital IQ for $2.95 billion. North American segment sales dragged on the outcome, falling 22% year on year while Europe and the rest of the world rose. Adjusted diluted earnings fell to $1.07 a share from $1.10, and that was also beneath Wall Street estimates, for $1.22.

“Our efforts to serve patients in the US have been shaped by the industry’s transformation there, and our results and guidance for 2018 are directly correlated with the ongoing rebasing of the US healthcare environment,” Heather Bresch, Mylan’s chief executive, said in a statement Wednesday.

The pharmaceutical firm cut its outlook for full-year revenue to $11.25 billion to $12.25 billion from a previous projection of $11.75 billion to $13.25 billion. Mylan is now pegging EPS at $4.55 to $4.90, while earlier the target range was $5.20 to $5.60.

In a separate statement, Mylan’s board said its international business represents more than 60% of global sales and expectations for further growth “are in contrast to the negative trends and dynamics playing out in the US market place — which we believe are unsustainable for the healthcare system over the long-term.”

“While we will continue to execute on our best-in-class, long-term focused sustainable strategy, the board has formed a strategic review committee and is actively evaluating a wide range of alternatives to unlock the true value of our one-of-a-kind platform,” the board said.

It didn’t give any more details on the review, and said there’s no timeline for evaluating any alternatives or even whether anything will be implemented.

Companies: Mylan N.V.
Price: 37.43 Price Change: -1.11 Percent Change: -2.88

Get Live Briefs Pro