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Generics or Specialty: Which Mylan Segment Is Growing Fastest?

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Mylan’s revenue trend

Mylan’s (MYL) revenues rose 8% at constant exchange rates in 2Q16, reporting revenues of ~$2.6 billion, as compared to its 2Q15 revenues of ~$2.4 billion.

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Segment-wise performance

Mylan’s business is organized into the following two business segments:

  • Generics
  • Specialty

Its revenues Generics rose 4% to ~$2.1 billion in 2Q16 and reported growth across all regions. Its revenues from North America rose 6% to just over $1 billion in 2Q16, as compared to $948.5 million during 2Q15, following a rise in sales of new products launched in last 12 months.

Europe markets reported a 6% rise in 2Q16 revenues to $604.2 million, as compared to $571 million in 2Q15, following a rise in sales of new and existing products. Revenues from rest of the world reported a 2% fall to $523.2 million during 2Q16 due to lower pricing, which was partially offset by the launch of new products and higher sales in the emerging markets and Japan.

Specialty

Mylan’s Specialty segment reported 2Q16 revenues of $402.5 million, a rise of 33% as compared to $301.9 million in 2Q15. This growth was driven by the increased demand for the EpiPen auto-injector, an emergency treatment for anaphylaxis, a life-threatening allergic reaction. Growth in 2Q16 was also driven by the company’s Perforomist inhalation solution, a long-acting bronchodilator, and Ultiva, a short-acting synthetic opioid analgesic used to relieve pain during surgery.

To gain exposure to Mylan and other pharma giants, investors can consider ETFs like PowerShares Dynamic Pharmaceuticals ETF (PJP), which has 4.1% of its total assets in Mylan. PJP also has 5.0% of its total assets in Pfizer (PFE), 4.9% in Bristol-Myers Squibb (BMY), 5.2% in Johnson & Johnson (JNJ), and 4.7% in Novavax (NVAX).

Continue to the next part for a discussion of growth drivers in Mylan’s Generics segment.

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