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EpiPen maker Mylan’s profit edges past estimates

Posted by: Admin | Posted on: May 10th, 2017 | 0 Comments

Generic drug maker Mylan NV (MYL.O) reported first-quarter profit just above expectations, helped by demand for products it gained through the acquisition of Swedish drugmaker Meda, even as sales of its controversial EpiPen allergy shot declined.

Shares of the company rose 2.6 percent to $39 in trading before the bell on Wednesday.

Meda, which Mylan bought last year, makes branded, over-the-counter and generic drugs, and handles the European sales of EpiPen.

Mylan has come under fire for steep price increases for EpiPen, its life-saving allergy shot, and also for classifying the treatment as a generic rather than a branded product, leading to smaller rebates to state Medicaid programs.

Mylan said first-quarter EpiPen sales in North America declined due to increased competition and the launch of the authorized generic.

The company also backed a prior forecast for a mid-single percentage digit erosion in prices of generic drugs in 2017.

“Our overall expectations for the global pricing environment are unchanged and we are still predicting mid-single digit price erosion globally for the year,” Mylan President Rajiv Malik said.

Mylan said net income surged to $66.4 million, or 12 cents per share in the first quarter ended March 31, from $13.9 million, or 3 cents per share, a year earlier.

Excluding one-time items, Mylan earned 93 cents per share, beating analysts’ average estimate by 1 cent, according to Thomson Reuters I/B/E/S.

Revenue rose 24 percent to $2.72 billion. Analysts on average had expected $2.84 billion.

(Reporting by Natalie Grover in Bengaluru; Editing by Sai Sachin Ravikumar)

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