Market Overview

Mylan Reports Third Quarter 2019 Results and Updates 2019 Guidance

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HERTFORDSHIRE, England and PITTSBURGH, Nov. 5, 2019 /PRNewswire/ -- Mylan N.V. (NASDAQ:MYL) today announced its financial results for the three and nine months ended September 30, 2019.

Third Quarter 2019 Financial Highlights

  • U.S. GAAP diluted earnings per ordinary share ("U.S. GAAP EPS") of $0.37, up 9% compared to U.S. GAAP EPS of $0.34 in the prior year period and adjusted diluted earnings per ordinary share ("adjusted EPS") of $1.17 compared to $1.25 in the prior year period.
  • Total revenues of $2.96 billion, up 3%, up 6% on a constant currency basis, compared to the prior year period.
  • Revenue Highlights:
    • North America segment net sales of $1.09 billion, up 8% on an actual and constant currency basis.
    • Europe segment net sales of $1.05 billion, up less than 1%, up 6% on a constant currency basis.
    • Rest of World segment net sales of $793.7 million, up 3%, up 4% on a constant currency basis.
  • U.S. GAAP net cash provided by operating activities for the three months ended September 30, 2019 of $487.8 million, compared to $653.6 million in the prior year period, and adjusted free cash flow for the three months ended September 30, 2019 of $542.1 million, compared to $698.4 million in the prior year period.
  • U.S. GAAP net cash provided by operating activities for the nine months ended September 30, 2019 of $1.12 billion, compared to $1.71 billion in the prior year period, and adjusted free cash flow for the nine months ended September 30, 2019 of $1.29 billion, compared to $2.02 billion in the prior year period, both driven primarily by the expected increased investment in working capital to support new product launches.
  • Mylan is not providing forward-looking guidance for U.S. GAAP reported financial measures or a quantitative reconciliation of forward-looking non-GAAP financial measures. Please see "Non-GAAP Financial Measures" for additional information.

Mylan CEO Heather Bresch commented, "Mylan achieved healthy revenue growth across all segments of our business during the third quarter, supporting solid year-to-date revenue growth as compared with last year on a constant currency basis. Also, this quarter, we continued the purposeful work of transforming our business by applying a highly disciplined financial lens to further maximize the value of our asset base. We will continue to execute and remain laser-focused as we now set our sights on year-end commitments, including the upcoming launch of our biosimilar to Herceptin®, Ogivri™, and as we continue to make progress toward a successful deal close with Pfizer's Upjohn business, which we continue to expect will occur in mid-2020."

Mylan President Rajiv Malik continued, "During the third quarter, we benefited from continued momentum on key products, including Yupelri®, Copaxone®, Fulphila® and Wixela Inhub™. We also were pleased with the overall performance of our global key brands and anticipate continued growth across these areas of our portfolio as we head into the fourth quarter. We expect to finish the year from a position of strength as we have reached all of the product milestones necessary to meet our performance commitments, including approval on our Ogivri product, which we expect to launch in the coming weeks."

Mylan CFO Ken Parks added, "During the third quarter, we delivered adjusted free cash flow of $542 million, bringing total year-to-date adjusted free cash flow to approximately $1.3 billion, and are reaffirming our commitment to deliver $1.9 billion to $2.3 billion for the full year 2019. As of the end of the third quarter, we have repaid approximately $650 million of debt and remain committed to repay at least $1.1 billion of debt during 2019.  Our commitment to delever and maintain our investment grade credit rating, while maintaining our financial flexibility to execute on our business strategies, is supported by our stable and durable cash flow profile. For the full year 2019, we also are narrowing certain of our financial guidance range metrics, and now expect total revenues to be in the range of $11.5 billion to $12.0 billion, and adjusted EPS to be in the range of $4.20 to $4.40."

Financial Summary


Three Months Ended


Nine Months Ended


September 30,


September 30,

(Unaudited; in millions, except per share amounts and %s)

2019


2018


Percent
Change


2019


2018


Percent
Change

Total Revenues (1)

$

2,961.7



$

2,862.4



3%


$

8,308.7



$

8,355.2



(1)%

North America Net Sales

1,088.6



1,012.3



8%


3,035.0



2,998.4



1%

Europe Net Sales

1,045.9



1,041.3



—%


2,930.7



3,070.3



(5)%

Rest of World Net Sales

793.7



773.7



3%


2,241.3



2,164.5



4%

Other Revenues

33.5



35.1



(5)%


101.7



122.0



(17)%













U.S. GAAP Gross Profit

$

1,072.4



$

1,039.2



3%


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