Exploring Mylan’s Diversified Portfolio of Brands

Product portfolio

Mylan’s (MYL) portfolio of branded products includes Creon, Influvac, Dymista, Dona, Betadine, Saugella, and EpiPen. Mylan has a favorable product mix of generic, brand name, and over-the-counter products catering to different therapeutic areas and sold in multiple geographies.

Exploring Mylan’s Diversified Portfolio of Brands

Mylan launched Imatinib tablets in the United States in 2017, strengthening its US oncology portfolio, which contains more than 40 products. In 3Q17, Mylan’s North American sales fell 22%, and the region contributed ~$1.2 billion of its total revenue. This fall was due to Mylan’s first-to-market products losing exclusivity in fiscal 2016 and growing competition.

Meanwhile, in Europe, Mylan’s sales rose 24% YoY (year-over-year) to ~$1 billion. This strong performance was due to its Meda acquisition and pricing and product volume trends. Its rest-of-world sales rose 9% YoY to $740 million, driven by an uptick in emerging markets. In Japan, Amitiza sales grew 20% YoY.

Multiple sclerosis advocate program

Mylan’s multiple sclerosis advocate program is designed to help patients getting started with generic copaxone treatment and continuing with it. According to the company, at the end of October 2017, Copaxone’s share as a generic new prescription in the US multiple sclerosis drug market was 16%, and its share of total US prescriptions was 8%. Mylan has transformed from a high-risk company focused on a single US market into a company with a global outlook and strong cash flow generation.

Mylan generates 75% of its operating cash flow from recurring revenue streams around the world, and 25% from smaller products, chiefly in the US generics market. Whereas Mylan has a cash-per-share ratio of 1.4, peers Pfizer (PFE), Bristol-Myers Squibb (BMY), and Merck (MRK) have ratios of 2.8, 4.3, and 4.1, respectively.

Mylan makes up ~3.1% of the iShares NASDAQ Biotechnology ETF (IBB). In the next part of this series, we’ll take a look at Mylan’s guidance for fiscal 2017.