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Mylan (MYL) to Report Q4 Earnings: What's in the Offing?

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Mylan N.V. MYL is expected to beat on earnings in fourth-quarter 2019.

The company’s performance has been pretty good so far, with an earnings beat in three of the trailing four quarters and a miss in the remaining quarter. Mylan reported a four-quarter beat of 3.15%, on average, over the said timeframe. In the last reported quarter, the company’s earnings beat estimates by 2.63%.

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

Why a Likely Earnings Beat

Our proven model predicts an earnings beat for Mylan this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Mylan has an Earnings ESP of +0.11%.

Zacks Rank: The company has a Zacks Rank #3.

Factors to Consider

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

North America reported 8% year-over-year growth in the third quarter owing to solid new product sales, a trend that most likely continued in the fourth quarter. New product sales are being primarily driven by the robust performance of Yupleri and Wixela Inhub, the generic of Advair Diskus. Yupleri gained momentum in the third quarter and the same is expected to continue in the fourth quarter. The growth in demand for Fulphila (biosimilar to Neulasta) should boost sales too.

In December, Mylan launched Ogivri, a biosimilar to Roche’s Herceptin (trastuzumab), in the United States. Ogivri is approved for all indications of Herceptin, including the treatment of HER2-overexpressing breast cancer and metastatic stomach cancer (gastric or gastroesophageal junction adenocarcinoma).

Net sales in Europe might have benefited from new products, including Hulio, and higher volumes of existing products in the fourth quarter.

The Rest of the World segment’s fourth-quarter net sales are likely to have benefited from new product sales in Australia and emerging markets, and higher volumes of existing products primarily driven by products sold in emerging markets.

Key Anticipated Updates

Investors will be keen on pipeline updates as well. The phase III study on bevacizumab, a biosimilar to Avastin in collaboration with Biocon, met the necessary endpoint criteria for the treatment of non-small cell lung cancer. Regulatory submissions were planned shortly and we expect management to throw light on the same.

Concurrent with the second-quarter results, Mylan announced a merger agreement with Upjohn, Pfizer's PFE off-patent branded and generic established medicines business (includes Lipitor, Celebrex and Viagra), to create a new global pharmaceutical company. 

In November 2019, Mylan and Pfizer announced the name of the new company to be Viatris. Subsequently, the companies announced two future Viatris board members. The merger will be completed by mid-2020.  We expect management to throw more light on the progress made so far in this deal.

Share Price Performance

Mylan’s stock has lost 31.8% in the past year against the industry’s growth of 1.5%.


Other Stocks to Consider

Here are a few other companies worth considering, as per our model these have the right mix of elements to beat on earnings this reporting cycle.

Clovis Oncology, Inc. CLVS has an Earnings ESP of +0.81% and a Zacks Rank #2. It is scheduled to release earnings on Feb 24. You can see the complete list of today’s Zacks #1 Rank stocks here.

Immunomedics, Inc. has an Earnings ESP of +3.37% and a Zacks Rank #2.

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