Mylan Inc.'s (MYL) first-quarter earnings rose 24% as the
company's sales improved amid product launches in North America and
sharply higher sales in its specialty business.
Mylan and Pfizer Inc. (PFE) also announced that Pfizer unit
Meridian Medical Technologies reached a settlement in a patent
dispute with Teva Pharmaceuticals Industries Ltd. (TEVA, TEVA.TV)
related to its abbreviated new drug application for a generic
epinephrine auto-injector.
Pfizer's Meridian unit manufactures the rival Epi-Pen
auto-injector and Mylan Inc.'s (MYL) specialty unit markets and
distributes it in the U.S. EpiPen is used to treat potentially
fatal allergic reactions known as anaphylaxis.
Under the settlement, Teva may launch a generic epinephrine
auto-injector June 22, 2015, or earlier under certain circumstances
if the company receives U.S. Food and Drug Administration for the
product. Further terms weren't disclosed.
Mylan--a major generic-drug maker has seen its revenue jump in
recent quarters as a shaky economy spurred interest in lower-cost
health options. However, expenses for items such as litigation and
restructuring have weighed on the bottom line in recent
quarters.
Chief Financial Officer John Sheehan Mylan expects
second-quarter earnings will be in line with the latest quarter,
"before accelerating into the third quarter, which will be by far
our strongest of the year."
Mylan reported a profit of $129.1 million, or 30 cents a share,
up from $104.2 million, or 23 cents a share, a year earlier.
Excluding litigation settlements, restructuring costs and other
items, earnings were up at 52 cents from 44 cents.
Revenue increased 9.9% to $1.59 billion. Analysts polled by
Thomson Reuters most recently projected earnings of 50 cents on
revenue of 1.58 billion.
Gross margin rose to 41.8% from 40.8%.
At its generics business, its biggest by revenue, reported that
sales grew 5.2%. At its specialty segment, sales soared 54%.
Shares of Mylan, which affirmed its 2012 guidance, were up 1.4%
at $22.50 in premarket trading. Through the close, stock is down
12% in the past year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com