Mylan (NASDAQ:MYL) shares fell 11.4% last week and is down 26.5% in the last month. Its first-quarter results continue to disappoint shareholders.
Mylan reported Q1 non-GAAP earnings of $0.82 a share and a GAAP loss of $0.05. Revenue fell 6.7% to $2.5 billion. Pricing pressures from generic drugs continue to erode the business. The base business is clearly broken. In the U.S., a shortage of EpiPen clearly indicates Mylan is not meeting the demands of customers and continues to under-perform each quarter.
Ever since Mylan had the chance to sell out to Teva but did not do so, the stock continued its downward plunge. In its first-quarter conference call, Mylan spoke of its strategic review, which it also mentioned the previous quarter. Yet Mylan did not show any achievements from the exercise. Management was happy with the three-month results of Wixela but the overall numbers are weak.
Mylan’s opaque details on the strategic committee’s findings should trouble investors. The company re-affirmed its February cash flow guidance of $1.9 billion - $2.3 billion. And at a P/FCF of 7.4 times, markets have little confidence in expecting business growth. Though new products brought in $250 million in revenue in the quarter, the $1.1 billion in new revenue for 2019 appears elusive.
Your Takeaway
Mylan, like Teva, is still a falling knife for investors.
