Mylan rebounds after big earnings miss drives intraday drop
- Mylan reported second-quarter earnings of $1.07 per share, down 3 percent from the prior year period.
- Total revenue for the quarter was $2.81 billion, down from $2.96 billion in the same quarter last year.
- The company said lower sales in North America led to a decline in revenue.
Shares of Mylan, the maker of the EpiPen, dropped on Wednesday morning after the company reported second-quarter earnings that missed Wall Street estimates on both profit and revenue as sales in North America fell 22 percent from the previous year.
The pharmaceutical company also warned investors that it will generate less revenue for the year than previously expected.
The stock fell as much as 9 percent in early morning trading before rebounding in the afternoon. Shares ended up closing up 1.8 percent to $39.23 per share.
The company said it earned $1.07 a share during the three months ended June 30, below the average estimate of $1.22 a share, according to analysts polled by Thomson Reuters. It generated $2.81 billion in revenue while the market expected $2.96 billion, according to Thomson Reuters.
Mylan said decreased net sales in North America took a bite out of its revenue. Sales on the continent fell 22 percent to $1 billion during the quarter from $1.29 billion during the same time frame last year. CEO Heather Bresch blamed changes in the U.S. health care industry for the drop.
"Our Europe and 'rest of world' segments continue to deliver growth in line with our expectations," Bresch said. "However, our efforts to serve patients in the U.S. have been shaped by the industry's transformation there and our results and guidance for 2018 are directly correlated with the ongoing rebasing of the U.S. healthcare environment."
Mylan expects full-year revenue of between $11.25 billion and $12.25 billion, cutting its previous expectations of $11.75 billion to $13.25 billion. The company expects 2018 earnings-per-share of $4.55 to $4.90, slashing prior estimates of $5.20 to $5.60 per share.
The company said its board of directors plans to evaluate a wide range of alternatives to deal with decreased sales.
The drugmaker faced criticism after raising the price of its EpiPen, a lifesaving injection device, nearly 400 percent between 2010 and 2016. The Food and Drug Administration said last week that there's a shortage of the devices that started in May of this year.