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Mylan's (MYL) Q3 Earnings Surpass Estimates, Sales Miss

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Mylan, Inc. reported adjusted earnings of $1.32 per share for the third quarter of 2020, beating the Zacks Consensus Estimate of $1.15. Also, the bottom line improved from the year-ago quarter’s $1.17.

Quarterly revenues of $2.97 billion marginally missed the Zacks Consensus Estimate of $2.98 billion. Revenues were relatively flat year over year.

Shares of Mylan have lost 24.7% so far this year compared with the industry’s decline of 7.1%.

Quarter in Detail

The company posts results under three segments on a geographic basis — North America, Europe and the Rest of the World.

The North America segment’s net sales came in at $1.03 billion, down 5% year over year due to lower volumes and pricing from net sales of existing products. The decline was partially offset by new product sales, including sales from the launch of dimethyl fumarate capsules, a substitutable generic of Biogen Inc.'s (BIIB - Free Report) Tecfidera. The decrease in net sales of existing products was primarily driven by lower EpiPen Auto-Injector volumes, partially stemming from the negative impacts of COVID-19, which resulted in reduced back-to-school sales and changes in the competitive environment. These decreases were partially offset by increased volumes on Wixela Inhub, the generic of GlaxoSmithKline’s (GSK - Free Report) Advair Diskus.

Net sales in the Europe segment came in at $1.12 billion, up 7% year on year due to the favorable impact of foreign currency translation and new product sales.

The Rest of the World segment’s net sales of $795.5 million, up from $793.7 million in the year-ago quarter, primarily driven by new product sales, including sales of remdesivir in India.

Adjusted gross margin of 55% grew from 53% in the prior-year period.

Mylan N.V. Price, Consensus and EPS Surprise

 

Mylan N.V. Price, Consensus and EPS Surprise

Mylan N.V. price-consensus-eps-surprise-chart | Mylan N.V. Quote

Upjohn Transaction Update

Mylan and Pfizer Inc. (PFE - Free Report) recently announced that the U.S. Federal Trade Commission (FTC) accepted a proposed consent order, which concludes the FTC’s review of the proposed combination of Mylan and Pfizer’s Upjohn business. The parties have now obtained all required antitrust clearances for the proposed transaction. The combination is expected to close on Nov 16, 2020, when the combined company will be renamed Viatris Inc. Upon completion of the merger, Pfizer’s stockholders, as of the record date, will own 57% of the outstanding shares of Viatris common stock and Mylan’s shareholders will own 43% of the outstanding shares of the same.

Mylan’s shareholders will receive one share of Viatris Inc. common stock for each Mylan ordinary share.

Zacks Rank

Mylan currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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