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Mylan: Why North America Is a Major Market

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Aug. 18 2019, Updated 2:50 p.m. ET

North America revenue trends

In the third quarter, Mylan (MYL) reported net sales of $1.01 billion from the North American market, which is a 14% decline on a YoY (year-over-year) basis. According to Mylan’s third-quarter earnings conference call, the revenue drop was due to reduced sales volumes of existing products, including Epipen.

According to Mylan’s third-quarter earnings conference call, the lower sales volumes in the third quarter were due to the timing of customers’ purchases and the restructuring and remediation program that was started at the Morgantown manufacturing facility in the second quarter.

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Mylan manufactures one of its leading ten products and eight of its leading 50 high gross margin products at the Morgantown facility. As a result, discontinuing certain products and transferring other products to different manufacturing sites resulted in temporary supply issues for certain products, especially in the North American generic market.

In the first nine months of 2018, Mylan reported net sales of $3.0 billion from the North American market—an 18% decline on a YoY basis.

The above diagram highlights the key growth opportunities for Mylan in the North American market in the prescription drug, generic and branded generic, and over-the-counter drug areas.

North American business trends

According to Mylan’s investor presentation, the company has a broad portfolio offering more than 650 products in the US market. Almost half of the company’s prescription products are dominant players in the US market by volume and value. Mylan is the second-largest prescription medicine company in the US market.

Mylan has launched 40 new products in the North America market YTD in 2018. The company is also waiting for FDA approval for the generic version of GlaxoSmithKline’s (GSK) Advair called “Wixela” and YUPELRI (revefenacin), which is partnered with Theravance Biopharma (TBPH) in moderate-to-severe COPD indication.

Next, we’ll discuss Mylan’s growth prospects in the European market in 2018.

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