Back to top

Analyst Blog

Mylan Inc. (MYL - Analyst Report), which operates in multiple countries across the globe, is one of the leading players in the generic space. Generics represent a lucrative opportunity for companies in the pharma/biotech space with a large number of high-value branded pharmaceuticals having lost market exclusivity and many more slated to do the same in the next few years.

Apart from the focus on generics, the spotlight on emerging markets is also highly prevalent in the above-mentioned space. Many large companies including Mylan are looking to expand their presence in lucrative emerging markets like India and Brazil.

In a move commensurate with the company’s objective to focus on such lucrative markets, Mylan announced the appointment of Rakesh Bamzai from the India-based Biocon Ltd. Bamzai will be responsible for Mylan’s commercial activities in India and other emerging markets. The recruitment of Bamzai as president India commercial and emerging markets is expected to create significant value addition to Mylan given his vast experience as president of Biocon’s marketing wing. Furthermore, Bamzai’s vast knowledge about the Indian and global biopharmaceutical market should stand Mylan in good stead.

We note that Mylan is no stranger to Bamzai and Biocon. In 2009, Mylan inked a deal with Biocon to develop a biogenerics portfolio with five products. The agreement was extended in 2013. Mylan’s familiarity with Bamzai’s style of operation is expected to be mutually beneficial.

The first approval for a biosimilar emanating from the Mylan-Biocon deal was gained late last year when the Drug Controller General of India cleared the companies’ biosimilar version of Roche's (RHHBY - Analyst Report) breast cancer drug Herceptin (trastuzumab). Mylan intends to sell the drug under the trade name Hertraz following its Indian launch. Biosimilars are generic versions of biologics.

Mylan’s acquisition of Agila Specialties private limited – the injectable drugs division of India’s Strides Arcolab limited – in Dec 2013 also highlights Mylan’s focus on India. The acquisition has strengthened Mylan’s presence in the high potential generic injectables market.   

Mylan carries a Zacks Rank #3 (Hold). Better ranked stocks in the generic space include Akorn, Inc. (AKRX - Snapshot Report) and Impax Laboratories, Inc. (IPXL - Snapshot Report). Both these stocks carry a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
QIHOO 360 T… QIHU 95.04 +4.95%
PILGRIM'S P… PPC 31.52 +3.72%
CLAYTON WIL… CWEI 138.97 +3.55%
CALLON PETE… CPE 11.50 +3.14%
ACTELION LT… ALIOF 124.80 +2.97%