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How Did Mylan’s Revenue Trend in 4Q16?

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Mylan’s revenues

Mylan (MYL) released its 4Q16 and 2016 earnings on March 1, 2017. The company reported revenues of $3.3 billion, a 13% increase as compared to 4Q15 revenues of $2.5 billion.

The above chart shows Mylan’s revenue trend. For 2016, the company reported revenues of $11.1 billion, an 18% growth from 2015 revenues of $9.4 billion.

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Segment-wise performance

Mylan changed its reporting segments from the generic segment and the specialty segment to three segments based on geographical markets:

  • North America segment
  • Europe segment
  • Rest of the World segment

The changes in reporting segments were made to simplify the reporting of generics, prescription, and over-the-counter products on a regional basis, as the Meda acquisition further diversified the company’s product portfolio.

The revenues from the North America region rose 22% to $1.6 billion in 4Q16 as compared to $1.3 billion during 4Q15 due to the inclusion of Meda AB products, the topicals business of Renaissance Acquisition Holdings, and the increased sales of new products. For 2016, the revenues from North America rose 10% to $5.6 billion as compared to $5.1 billion in 2015.

Europen markets reported a growth of 50% in 4Q16 revenues to $927.4 million as compared to $616.4 million in 4Q15, following the increased sales of new products as well as existing products. For 2016, the revenues from European markets rose 34% to $3.0 billion as compared to $2.2 billion in 2015.

The revenues from the rest of the world reported a 28% increase at $729.2 million during 4Q16 as compared to $570.5 million during 4Q15 due to the inclusion of Meda AB products. For 2016, the revenues from Rest of the World segment rose 16% to $2.4 billion as compared to $2.1 billion in 2015.

To divest the company-specific risk, investors can consider ETFs like the iShares NASDAQ Biotech ETF (IBB), which holds ~3.6% of its total assets in Mylan, ~9.0% in Amgen (AMGN), ~7.1% in Biogen (BIIB), and ~6.9% in Gilead Sciences (GILD).

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