Mylan (MYL) reported fourth quarter earnings per share (EPS) of 33 cents, surpassing the Zacks Consensus Estimate of 30 cents and 26 cents in the prior-year period. For the full year 2009, EPS came in at $1.30, up 62.5% from 80 cents in 2008.
Mylan reported revenues of $1.35 billion, a 12% increase compared to $1.20 billion in the year-ago period. Revenues were favorably impacted by the foreign currency translation. For the full year, the company recorded $5.09 billion in sales, marginally lower than $5.14 billion in the previous year, which included $468.1 million of previously deferred revenue related to its sale of Bystolic rights.
From the third quarter of 2009, Mylan has decided to report its results in two segments — Generics and Specialty — following the acquisition of approximately 24% of the remaining interest in Matrix and the related de-listing. The former Matrix segment is included in the Generics segment.
While revenues from the Generics Segment increased 14% year-over-year to $1.29 billion during the quarter, revenues from Specialty have recorded an increase of 8% to $87.5 million.
Sales from the North American market declined 3% year-over-year to $545 million. The primary reason for the decline was additional generic competition on levetiracetam (launched in Nov 2008) since Jan 2009. However, the loss due to increased competition was offset to some extent by additional launches contributing about $81 million.
New launches included lansoprazole delayed-release (DR) capsules, the generic version of Tap Pharmaceuticals proton pump inhibitor Prevacid DR Capsules. Although the North American market did not perform too well, both EMEA and Asia-Pacific recorded growth of 29% and 33%, respectively.
During the reported quarter, Mylan recorded a gross profit of $516.0 million with a 38.2% margin compared to a gross profit of $394.7 million and a margin of 32.8% in the prior-year period. However, after making adjustments for certain purchase accounting related items, gross margins was 43.5% in the fourth quarter of 2009 compared to 44.9% in the corresponding period last year.
Mylan re-affirmed its 2010 EPS guidance of $1.50 to $1.70 and provided a strong outlook for the next few years. The company is expecting to record more than $8.5 billion in revenues in 2013 which represents a top-line CAGR of 15%, from 2010. In addition, EPS is likely to exceed $2.75 in 2013 representing a CAGR of 20%. We are Neutral on the stock.
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