Mylan’s broad product portfolio
Mylan N.V. (MYL) is a leading global pharmaceutical company that develops, licenses, manufactures, markets, and distributes generic, branded generic, and specialty pharmaceuticals. The company has one of the industry’s broadest product portfolios, including approximately 1,400 marketed products to customers in 145 countries and territories. Mylan is currently subject to an unsolicited approach by Teva (TEVA).
Mylan’s business strategy
Mylan’s biggest branded product is the EpiPen, an epinephrine autoinjector. EpiPen contributed $1 billion in revenues in 2014. Mylan is also a leader in the development, manufacture, and sale of antiretrovirals (or ARVs) for the treatment of HIV (human immunodeficiency virus).
Mylan sees its future growth driven by its differentiated, large-scale global operating platform. Its manufacturing network is one of only a few in the industry that’s vertically integrated, which helps greatly in quality control. In addition, Mylan has a powerful research and development (or R&D) engine, with approximately 2,900 scientists and regulatory employees.
Mylan has sought to grow by acquisition. Since 2007, the company has made several large acquisitions, including Matrix Laboratories and Merck KGaA in 2007, Bioniche Pharmaceuticals in 2010, Agila Specialties in 2013, and the generic portfolio of Abbott Laboratories in 2015.
Mylan sees its future growth in injectables, respiratory, biologics, complex products, and antiretrovirals.
The company’s track record has resulted in a share price cumulative average growth rate (or CAGR) of 24% from January 2, 2008, to March 26, 2015, a revenue CAGR of 9%, an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) CAGR of 15%, and an adjusted diluted EPS (earnings per share) CAGR of 28%. Over the same period, Mylan expanded its EBITDA margin from 22% to 31%.
Other merger arbitrage resources
Other important merger spreads include the Hospira-Pfizer deal. The Hospira (HSP) and Pfizer (PFE) merger is also set to close in 2H15. For a primer on risk arbitrage investing, read Merger arbitrage must-knows: A key guide for investors.
Investors who are interested in trading in the healthcare sector should look at the S&P SPDR Healthcare ETF (XLV).