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Mylan’s Renaissance and Agila Acquisitions

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Renaissance Acquisition Holdings

Mylan (MYL) acquired Renaissance Acquisition Holdings’ topical business in June 2016 for ~$1 billion. This acquisition provided Mylan with a portfolio of ~25 products, a pipeline of ~25 products, and established marketing infrastructure primarily targeting dermatologists.

Mylan recently announced a three-year contract with the UNAIDS (Joint United Nations Programme on HIV/AIDS), CHAI (Clinton Health Access Initiative), Bill & Melinda Gates Foundation, and PEPFAR (President’s Emergency Plan For AIDS Relief), to provide antiretroviral therapy using fixed-dose combinations of dolutegravir, lamivudine, and tenofovir disoproxil fumarate tablets to more than 90 countries. This contract is part of Mylan’s efforts to reach the ~37 million people infected with HIV worldwide.

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Agila Specialties

In fiscal 2017, with its acquisition of Agila, Mylan benefited by receiving more than 20 approvals of injectables in the United States and more than 70 products in the pipeline. Mylan has collaborated with Theravance Biopharma (TBPH) in developing revefenacin for the treatment of COPD (chronic obstructive pulmonary disease). Mylan announced that a three-month Phase 3 study showed positive efficacy results. According to a press release in November 2017, Mylan and Theravance filed a new drug application with the FDA for the use of revefenacin as a novel nebulized long-acting muscarinic antagonist treatment for COPD.

Additionally, Mylan has entered into a partnership with 3M for developing a generic version of Symbicort for US markets. The company expects to file an abbreviated new drug application in 2018.

Cash flow strength

Mylan’s strong cash flow generating capacity is reflected in its current ratio, which now stands at 1.5. Peers Pfizer (PFE), Bristol-Myers Squibb (BMY), and Merck (MRK) have ratios of 1.4, 1.6, and 1.4, respectively. Current ratios measure how effectively a company’s current assets meet its current liabilities.

Mylan makes up ~1.2% of the iShares Morningstar Mid-Cap Value ETF (JKI). In the next part of this series, we’ll look at Mylan’s key risks.

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