Friday, 4 December 2020

Mylan NV shares slide after warning of hit to revenue

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MORGANTOWN: Generic drugmaker Mylan NV said reevaluation of its portfolio of medicines will continue next year and cautioned of a hit to revenue, and its shares nearly 6%.

Mylan, which posted higher-than-expected third-quarter profit with the help of cost constraints, said it would reassess products it sells outside United States and had nearly completed its review of US products.

The review process should not affect net profit, President Rajiv Malik said on a conference call with analysts. However, “it does have an impact in our top line results.”

Mylan in July agreed to merge with Pfizer Inc’s Upjohn unit that sells off-patent branded drugs. The company will be able to leverage a strong base in Asia through Upjohn, headquartered in China, a prime market for well-known older brands such as Pfizer’s cholesterol drug Lipitor and erectile dysfunction treatment Viagra.

Mylan provided few new details on the merger plan, but said it still expects the deal to close in the middle of next year.

“This merger will solve nothing,” said Cowen and Co analyst Ken Cacciatore, adding that the Pfizer deal will not halt the problem of “constant downward deterioration in the base businesses.”

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