Mylan's Stock Is No Longer A Buy According To Analysts At Argus

Mylan's stock has been under pressure over the past year and this weakness attracted the attention of activist investors who are looking to influence the company and reverse the weakness, Hellweg commented in a research report. While this is typically seen as a positive catalyst for the stock there are bigger issues at play that could limit upside. Related Links: The Prescription For Generic Drugs ETF Mylan Price Target Slashed Even As TLD Drug Receives Tentative Approval ________ Image Credit: By Intropin - Own work, CC BY 3.0, via Wikimedia Commons

On top of Mylan's revised outlook to the downside, the pharmaceutical company also has to contend with unfavorable regulatory developments, pricing pressures, and heightened competition, Hellweg continued. In fact, the core EpiPen product now faces new competition from Adamis Pharmaceuticals Corp ADMP's Symjepi epinephrine syringe, which received FDA approval on June 15 and will be labeled as a low-cost alternative to the Epi-Pen.

Adamis is also developing a "junior version" of Symjepi, which will also compete with Mylan's low-dose EpiPen Jr.

On top of that, Mylan is under investigation by the New York attorney general for selling EpiPens to schools in exchange for exclusive contracts. Also, Sanofi SA (ADR) SNY filed an antitrust lawsuit against Mylan and alleges the company is unfairly offering discounts to insurers and pharmacy benefit managers.