Morgan Stanley: As Generic Competitors Falter, Mylan Is Worth A Shot

After two years on the sidelines, Morgan Stanley is taking a more bullish bet on Mylan NV MYL. A Tuesday upgrade boosted Mylan's ratings ratio to 13 Buys and seven Holds.

The Rating

Analyst David Risinger raised Mylan from Equal-weight to Overweight and increased the price target from $39 to $50.

The Thesis

Notably, Mylan is now Morgan Stanley’s only Overweight generic drugs stock.

The company recently received regulatory approval for the first of 18 biosimilar candidates, and Risinger said he anticipates increasing market enthusiasm for the pipeline.

“We view Mylan as the best-positioned U.S. generics company to capitalize on biosimilars via its industry-leading partnerships with Biocon and Momenta Pharmaceuticals, Inc. MNTA,” Risinger said in a Tuesday note “Biosimilars are often high value, limited competition opportunities.”

The rest of the firm’s portfolio compares favorably with those of peers, and Risinger said he sees opportunity to gain U.S. generics market share as competitors endure instability.

Teva Pharmaceutical Industries Ltd (ADR) TEVA is restructuring and reducing its workforce; Sandoz Inc is selling its oral generics unit; and Apotex Inc is suffering leadership challenges, according to Morgan Stanley. 

Amid these circumstances, Risinger said he Mylan’s stock growth to accelerate from 12 percent to 24 percent in the second half of 2018, driven in part by the potential approval of generic Advair and biosimilar Neulasta.

Price Action

Mylan shares were up more than 5 percent at $43.64 in Tuesday morning trading. 

Related Links:

Teva Vs Mylan: Wells Fargo Weighs In

Mylan Sharply Lower Amid Drug Price Fixing Concerns

Posted In: David RisingerMorgan StanleyAnalyst ColorUpgradesHealth CarePrice TargetTop StoriesAnalyst RatingsGeneral

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.