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Mylan narrows full-year revenue estimates on COVID-19 pressure

Published 06/08/2020, 12:16
Updated 06/08/2020, 12:20
© Reuters. Logo of Mylan Laboratories, a company primarily engaged in the commercialization of generic drugs is pictured in Merignac near Bordeaux
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(Reuters) - Mylan NV on Thursday lowered the top-end of its full-year sales estimate as the drugmaker predicted a slower-than-expected recovery from the COVID-19 pandemic.

Generic drugmakers like Mylan benefited in the first quarter from customers stocking up on over-the-counter medicines ahead of lockdowns imposed around the world to curb the spread of the coronavirus.

The short-term pull forward of demand, however, weighed on Mylan's sales in the second quarter.

For the quarter ended June 30, the company posted a profit above estimates, helped mainly by higher sales of its recently launched products like asthma drug Wixela and chronic lung treatment Yupelri.

The generic drugmaker, which sells a cheaper version of Gilead Sciences Inc (NASDAQ:GILD)'s COVID-19 drug remdesivir, took an about 5% hit to the sales of products in Europe and rest of the world due to lower non-COVID-19 related patient hospital visits during the pandemic.

Excluding items, it earned $1.11 per share in the quarter ended June 30, beating analysts' estimates of 98 cents per share, according to IBES data from Refinitiv.

Total revenue of the company, whose merger with Pfizer Inc (NYSE:PFE)'s off-patent branded drugs unit has been delayed by the pandemic, fell 4.2% to $2.73 billion, missing estimates of $2.75 billion.

© Reuters. Logo of Mylan Laboratories, a company primarily engaged in the commercialization of generic drugs is pictured in Merignac near Bordeaux

The company said it expects 2020 revenue of between $11.5 billion and $12.0 billion, compared with its prior range of $11.50 billion to $12.50 billion.

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