Mylan gains on solid quarter

Mylan shares were on the rise yesterday after investors welcomed expectation-beating second-quarter results, in particular a 15% hike in earnings.

For the three months ended June 30, 2012, the group booked total revenues of $1.69 billion, compared to $1.57 billion a year ago.  

Boring down further, sales of the company’s generics segment rose 3.3% to $1.49 billion, while total revenues from its specialty segment jumped 39% to $208 million.

Performance of the speciality segment was really helped by strong growth in third-party sales, which leapt 51% to $198.6 million, largely because of a stellar performance by the EPIPEN auto-injector for severe allergic reactions.

Overall, third-party revenues helped buoy results, rising 6.9% to $1.68 billion, which included a currency exchange rate hit of around 5%.

Mylan’s solid performance across its divisions helped secure adjusted diluted EPS of $0.60 for period, marking a jump of 15% from the $0.52 generated for the second quarter of 2011, and coming in above the $0.55 a share Zacks Consensus Estimate, according to media reports.

"Mylan delivered another very strong quarter of top- and bottom-line growth, driven by more than 50% growth in our Specialty business, double-digit growth in North America and strong performance of our antiretroviral business,” said the firm’s chief executive Heather Bresch

“We delivered this growth while continuing to invest in our global platform, through increased spending on research and development and sales and marketing programs, in order to position our business for continued long-term success,” she noted.

“We expect to continue to generate strong cash flows, further enhancing our financial flexibility and capacity to invest in our current business, as well as other opportunities as they arise,” added John Sheehan, Mylan's chief financial officer.

The company reaffirmed its 2012 adjusted earnings guidance of $2.45 to $2.55 per share, as well as its 2013 adjusted earnings goal of $2.75 per share.