Mylan Announces Profit Losses, Weighed by Lower EpiPen Sales

Shares of Mylan N.V. ( MYL ) fell 2.1% to $38.10 in late trading on Wednesday after the drugmaker announced its third-quarter results with a loss in earnings and a weaker-than-expected revenue.

Mylan posted a net loss of $119.8 million for the third quarter, or 23 cents per share, as the company had to set aside more money for a $465 million settlement with the U.S. Justice Department over Medicaid rebates for EpiPen announced last month. A year ago, Mylan generated a profit of $428.6 million, or 83 cents per share.

Excluding one-time items including the settlement expense, Mylan said it had adjusted earnings of $1.38 per share, which missed forecast calling for $1.45 EPS.

Third-quarter revenue increased to $3.06 billion from $2.70 billion the prior-year period thanks to acquisitions of Renaissance Acquisition Holdings in June and Meda AB two months later. However, Mylan’s revenue failed to reach analysts’ consensus of $3.12 billion.

The drugmaker sold fewer EpiPen emergency allergy shots last quarter amid speculations that a cheaper version of the product could be launched in the first half of December. EpiPen has been a major driver of profit at Mylan but the life-saving hand-held auto-injector has been criticized for a too high price. Under investigation over steep price increases for its EpiPen products, Mylan has offered a half-price, generic version of the medical device.

Due to the lack of wholesaler purchases in the quarter in anticipation of the upcoming generic launch, specialty net product sales declined 4% to $418.7 million from the prior-year period.

Mylan’s revenue was saved by generics segment whose sales increased 17% year over year to $2.61 billion in three months to September.

The company still faces investigations by the West Virginia attorney general and the U.S. Securities and Exchange Commission, not to mention the fact that potential investigation by federal antitrust regulators, which have been urged by the Senate Judiciary Committee.

Mylan lowered its full-year forecast for adjusted earnings of $4.70 to $4.90 per share, and maintained 2018 earnings projection of $6 per share.

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