Competition For Mylan's Generic Concerta Is Limited

With Mylan NV MYL announcing the launch of generic Concerta earlier than expected in the United States, BTIG’s Timothy Chiang expressed optimism regarding the stock, stating that the company was likely to benefit from this launch.

Chiang maintained a Buy rating on the company, with a price target of $55.

Significant Opportunity

“With Mylan launching on all four strengths of generic Concerta, we believe this could be a significant product opportunity, given that competition in this market is quite limited,” the analyst mentioned.

Chiang went on to say that the product was AB rated and was likely to contribute $125-$150 million in sales within the first year of being, if Mylan was able to capture 30-35 percent share of the market with the prices discounted by 20-25 percent.

“We believe Mylan receiving an ABrating for its generic comes at an opportune time, as other manufacturers have had their AB-rating pulled. As a result, market shares have surged to the authorized generic version,” the analyst noted.

Chiang believes the launch of Concerta could offer greater visibility into the company’s North American generics segment, which the analyst estimates would grow by 6 percent in CY 2017 and 5 percent in CY 2018.