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How Mylan’s North America Segment Performed

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The North America segment

As discussed earlier, Mylan (MYL) has changed its reporting segments and classified the reporting segments on a regional basis. The North America segment includes the revenues from third party net sales of the generics products as well as specialty segment products in the United States and Canada.

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Revenues

The North America segment reported a growth of 22% to $1.6 billion during 4Q16 from $1.3 billion during 4Q15. Revenue growth in 4Q16 was driven by the inclusion of Meda AB products and the topicals business of Renaissance Acquisition Holdings, as well as the increased sales of new products launched in the last 12 months. This growth was partially offset by lower prices and volumes of established products.

North America sales posted an 11% CAGR (compound annual growth rate) over the last three years. In 2016, the North America sales segment rose to $5.6 billion as compared to $5.1 billion for 2015 and $4.6 billion in 2014. The continued growth was driven by increased volumes and new products, partially offset by lower prices of established products. The segment’s profit has seen an 11% CAGR over the last three years. Profits rose from $2.7 billion in 2015 to $2.9 billion in 2016.

To divest company-specific risk, investors can consider ETFs like the First Trust Health Care AlphaDEX ETF (FXH), which holds 1.3% of its total assets in Mylan. FXH also holds 2.4% of its total assets in Baxter International (BAX), 2% of its total assets in Humana (HUM), and 2.1% of its total assets in Mallinckrodt (MNK).

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