Company guidance

Mylan’s (MYL) rest-of-world and European segments contributed ~60% of its third-party net sales in 3Q17. In 3Q17, its European revenue posted double-digit growth.

What Mylan Expects for Fiscal 2017

In 3Q17, Mylan raised its revenue and EPS (earnings per share) guidance for 2017. The company expects revenue of $11.5 billion–$12.5 billion in 2017, a midpoint increase of 9% from fiscal 2016, and EPS of $4.45–$4.70, a midpoint decrease of 6% from 3Q16. This drop is expected due to lower EpiPen sales.

Mylan has targeted EPS of $5.40 in fiscal 2018, an 18% midpoint increase from its EPS guidance for fiscal 2017. This increase is attributed to the anticipated launch of generics Copaxone and Advair.

Meda acquisition

Mylan acquired key brands Dymista, Dona, Betadine, and Elavil through the acquisition of Swedish company Meda in August 2016 for ~$6.9 billion. The company expects strong growth for these products in key markets such as Italy, France, Germany, and emerging markets.

The Meda acquisition has helped Mylan become a more diversified company, with an expansive portfolio of brand name, over-the-counter, and generic medicines. This acquisition has also helped Mylan expand its presence in emerging markets, including African countries and the Middle East.

Mylan has recently focused on reducing its debt through acquisitions. While Mylan has a debt-to-equity ratio of 1.1, peers Pfizer (PFE), Bristol-Myers Squibb (BMY), and Merck (MRK) have ratios of 0.72, 0.57, and 0.71, respectively. Mylan makes up ~0.04% of the iShares MSCI ACWI ETF (ACWI). In the next part of this series, we’ll take a look at Mylan’s Renaissance Acquisition Holdings and Agila Specialties acquisitions.

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