Mylan NV (SWX:MYL) gave investors a shot in the arm today, delivering Q1 results just above expectations even as MYL’s EpiPen sales fell.
Mylan said Q1 2017 net income was $66.4 million, or 12 cents per share compared with $13.9 million, or 3 cents a share, a year earlier. Excluding one-time items, the drugmaker earned 93 cents per share, besting analyst estimates by a penny. Sales rose 24% to $2.72 billion. Analysts had forecast $2.84 billion.
Sales of MYL’s EpiPen in North America slipped as competition heated up with the introduction of an authorized generic. The earnings were aided by demand for products added when the company acquired Swedish drugmaker Meda in August.
“Overall expectations for the global pricing environment are unchanged and we are still predicting mid-single digit price erosion globally for the year,” said MYL President Rajiv Malik. “We continued to benefit from the successful execution of the integration of our global platform, with strong double-digit revenue growth in Europe and Rest of World.”
Mylan has been a target of healthcare critics because of the sharp price increases for the EpiPen allergy shot.
As InvestorPlace Writer James Brumley pointed out yesterday, Mylan continues to launch new products. Sales of its flagship EpiPen in particular have been challenged simply because the company has been forced to become more accommodating, price-wise including the introduction of a generic version. The headwind is going to stiffen before it abates though.
MYL stock has been flat so far this year, while rival drugmakers Sanofi SA (ADR)(NYSE:SNY) has added 21% and AstraZeneca plc (ADR) (NYSE:AZN) has gained 13% in the same period.
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