Mylan's Q3 Report Tries, Fails To Shift Focus Away From EpiPen Controversy

Mylan NV MYL delivered a Q3 miss. Although management reiterated its 2018 earnings target, the company was not able to reverse sentiment “which has become increasingly negative in the wake of the Epipen controversy,” Barclays’ Douglas D. Tsao said in a report. He maintains an Equal-Weight rating on the company, with a price target of $44.

Mylan reported its Q3 adjusted EPS at $1.38, significantly short of the consensus expectation of $1.45 and Barclays’ estimate of $1.44. Revenue came in at $3.057 billion, also missing Street expectations.

Tsao reduced the EPS estimate for 2016 and 2017 from $4.75 to $4.74 and from $5.40 to $5.34, respectively.

Focus On Growth Shortfall

During Mylan’s call, focus remained on the 12 percent growth recorded by the company year-to-date versus its projection of 20 percent. Although Mylan reported 1 percent revenue growth in its core North America generics business, this includes the Renaissance acquisition, which suggests a 5 percent organic decline, Tsao pointed out.

“MYL clearly tried to shift focus to some of its high value generics and biosimilars pipeline opportunities,” the analyst mentioned. He added, however, that the negative sentiment following the EpiPen controversy would likely not reverse soon.

At last check, Mylan was down 0.9 percent at $38.57.