Mylan Stock Plummets 9% After Q2 Profit, Revenue Misses And Cuts To 2017 Guidance

By Emma CourtMarketsMarketWatch Pulse

Mylan NV shares plummeted 9.2% in premarket trade Wednesday after the company reported profit and revenue misses and announced 2017 financial guidance that was below consensus. Earnings for the latest quarter rose to $297 million, or 55 cents per share, from $168.4 million, or 33 cents per share in the year-earlier period. Adjusted earnings-per-share were $1.10, below the FactSet consensus of $1.16. Revenue rose to $2.962 billion from $2.561 billion, below the FactSet consensus of $3.022 billion. The company also changed its 2017 guidance, and now expects total revenues for the year between $11.5 billion and $12.5 billion, compared with the FactSet consensus of $12.4 billion. Mylan also expects 2017 adjusted EPS between $4.30 and $4.70, below the FactSet consensus of $5.13. Mylan said the guidance changes reflect the company's decision to defer all major U.S. launches from 2017 financial guidance to 2018, including generic Advair and generic Copaxone. The change was made "given the region's ongoing challenges and the uncertain U.S. regulatory environment," Mylan Chief Executive Heather Bresch said. The company also said it expects high single-digit price erosion in North America, a problem for generic drugmakers that caused their stocks, including Mylan's, to fall late last week. Mylan shares have dropped 16.4% over the last three months, compared with a 3.3% rise in the S&P 500 .

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