(Bloomberg) -- Mylan NV posted second-quarter profit that beat analysts' estimates as sales surged for its specialty drugs division, which includes the allergy treatment EpiPen.
Earnings excluding some items were $1.16 a share, the company said Tuesday in a statement, topping the $1.14 average of predictions compiled by Bloomberg. Revenue rose 8 percent to $2.56 billion, in line with estimates of $2.57 billion.
The drugmaker kept its 2016 forecast unchanged even after quarterly profit came in higher than expected. The shares fell 1.8 percent to $49 in late trading at 6:04 p.m. New York time.
Mylan, which has a legal address in the Netherlands and is run from Canonsburg, Pennsylvania, has been expanding through acquisitions. Last week it closed on its $7.2 billion purchase of Swedish pharmaceutical company Meda AB, which will give it access to new markets and bring it a portfolio of prescription and over-the-counter drugs.
EpiPen continues to drive the company's specialty sales, which increased 33 percent to $402.5 million. The device is a hand-held auto-injector that contains epinephrine, which is used to treat allergic reactions.
‘Important Product'
Chief Executive Officer Heather Bresch said on a conference call with analysts that EpiPen will remain a “very important product” for a long time and its success is due to the prominence of the brand and increased access. She added that Mylan isn't relying too much on its sales and EpiPen's contribution will shrink as new products, including those acquired in the Meda deal, are integrated into operations.
Competitors' attempts to break into the market continue to fall short. Israeli drugmaker Teva Pharmaceutical Industries Ltd. and Adamis Pharmaceuticals Corp. both recently failed to receive U.S. Food and Drug Administration approval for competing treatments.
Mylan had suspended a $1 billion share buyback -- announced in November 2015 -- after the Meda deal was announced. Bresch said that with the acquisition completed, the buyback is “back on the table as an option that we have.”
Other highlights from second-quarter results:
- Generic drug sales rose 4 percent to $2.14 billion from $2.06 billion.
- Mylan reaffirmed its forecast for 2016 revenue of $10.5 billion to $11.5 billion predicted in May. It also left unchanged its guidance for adjusted profit of $4.85 to $5.15 a share.
- Net income rose 0.4 percent to $168.4 million, or 33 cents a share, from $167.8 million, or 32 cents, a year earlier.
To contact the reporter on this story: Jared S. Hopkins in New York at jhopkins38@bloomberg.net. To contact the editors responsible for this story: Drew Armstrong at darmstrong17@bloomberg.net, Stephen West, Cecile Daurat
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
