Mylan NV (MYL) is scheduled to report its second quarter 2018 earnings results on August 8. During the first quarter, Mylan’s revenue declined slightly to $2.68 billion while profits increased nicely. GAAP diluted EPS grew 42% to $0.17, while adjusted EPS increased 3% to $0.96. Earnings were boosted by tax benefits during the quarter.
Last quarter, sales in Mylan’s North America segment dropped while the Europe and Rest of World segments saw increases. North American sales were hurt by lower sales of branded products like the EpiPen, and by the loss of exclusivity on the olmesartan products.
The company continues to face issues with its EpiPen over supply and falling revenues. However, Mylan received FDA approvals on a number of new medications recently and these approvals are expected to give the company some strong footing going forward and also help offset the weakness from EpiPen in the US market. Sales outside the US are expected to get a boost from new products.
New drugs are expected to help offset the weakness from the EpiPen in the US market
The pharmaceutical industry is facing some hiccups with price increases, policy changes and tough competition. Mylan is likely to see some effects from these factors too. Investors need to watch out for updates on the EpiPen.
For the full year of 2018, Mylan expects revenues of $11.75 billion to $13.25 billion with adjusted EPS of $5.20 to $5.60. Analysts expect Mylan’s adjusted EPS to grow 11.3% year-over-year to $1.22 for the second quarter of 2018.
The stock has fallen over 9% so far this year.
Last week, Mylan’s peer Teva Pharmaceutical (TEVA) saw its stock plunge 5% after reporting declines in both revenues and adjusted EPS for the second quarter of 2018.