Mylan Inc (NASDAQ: MYL)
Mylan Inc reported its earnings yesterday as expected. However, the earnings weren’t the only big topic of the call. During the earnings call, the company made it clear that they’re still pushing for the acquisition of Perrigo Co. plc (PRGO). So today, we’ll talk about the earnings, the acquisition, and more!
As mentioned above, Mylan released their first quarter results yesterday. Here are the details…
- Top Line Revenue – In the quarter, Mylan generated $1.87 billion in revenue; up year over year from $1.71 billion.
- Earnings Per Share – Earnings per share for the quarter came in at $0.13.
- Net Income – Net income came in at $56.6 million for the quarter, less than half of what we saw the same time last year.
MYL Still Wants To Acquire PRGO
On the earnings call, Mylan CEO, Heather Bresch made it clear that the company still has its eyes on the acquisition of PRGO. Here’s what Heather Bresch had to say about the acquistion…
“The combination with Perrigo is simply the next important strategic step in our evolution and builds on our strong platform, consistent with our long-standing and clearly articulated vision and strategy. We have long believed the combination of Perrigo and Mylan represents an extraordinary opportunity. As you have seen through our actions over the past few weeks, we are committed to making this combination a reality. The combination of Mylan and Perrigo demonstrates clear and compelling industrial logic. The potential here is truly transformative and the transaction would redefine the delivery of global health care.
A combined Mylan and Perrigo would be ideally positioned at the forefront of the megatrends driving change throughout the health care industry, including the growing number of Rx-to-OTC switches underway. Together, we could beter serve our customers and patients, create more opportunities for our employees and communities and generate additional value for our shareholders and stakeholders.
Mylan and Perrigo are highly complementary businesses, and together, we would have unmatched reach and impact. Each company augments the other’s platform to create something that is better, not just bigger, in terms of portfolio and pipeline, commercial footprint, operational leverage across customer channels and manufacturing and supply chain capabilities.”
All in all, it could be no more clear that MYL will continue to work in an effort to acquire PRGO.
How The Market Reacted
Unfortunately, the market has reacted to the news with downtrends. Although the entire market was a sea of red yesterday, that’s not the case today and Mylan continues to decline. Currently (), the stock is trading at $70.47 per share after a loss of 3.31% so far today.
What We Can Expect To See Moving Forward
At this point, I think we’re reaching the floor on this downtrend. The reality is that MYL is a great company with a great vision and a clear path. All in all, I like their plans to acquire Perrigo and think that in the long run, it will lead to very healthy growth in the stock’s value.
What Do You Think?
Where do you think MYL is headed and why? Let us know in the comments below!