You might say that Mylan (MYL) is a company in waiting. At some point over the next few months, its merger with Pfizer's Upjohn will close. Mylan will be no more; a new company named Viatris will be created from the merger.
In the meantime, investors no longer have to wait to know how Mylan performed in the first quarter. The drugmaker announced its first-quarter results before the market opened on Monday. Here are the highlights from Mylan's Q1 update.
By the numbers
Mylan announced Q1 revenue of $2.62 billion, a 5% increase from the $2.5 billion reported in the same quarter of the previous year. This result was lower than the average analysts' revenue estimate of $2.65 billion.
The company generated net income in the first quarter of $20.8 million, or $0.04 per share based on generally accepted accounting principles (GAAP). In the prior-year period, Mylan posted a net loss of $25 million, or $0.05 per share.
Mylan reported Q1 adjusted net income of $467.2 million, or $0.90 per share. This beat the average analysts' estimated adjusted earnings of $0.86 per share and was also an improvement from the adjusted earnings of $421.9 million, or $0.82 per share, recorded in the same period in 2019.
Behind the numbers
Mylan stated that it hadn't experienced any significant negative impact from the COVID-19 pandemic in the first quarter. Although some products were affected by the outbreak, the drugmaker said that overall volume growth in Q1 was boosted by the pandemic.
Europe segment Q1 sales jumped 14% year over year to $1.02 billion. The COVID-19 pandemic was a key driver for this growth. Mylan also benefited from a year-over-year volume increase of around $40 million after resolving some issues causing supply disruptions that had hurt European sales in the prior-year period.
North America segment net sales rose 4% year over year in Q1 to $955.5 million. This increase stemmed largely from higher volumes for respiratory drugs Yupelri and Wixela.
However, Mylan's "rest of world" segment didn't fare as well in the first quarter. Net sales for the segment fell 5% year over year to $610.8 million. The two main culprits were unfavorable foreign currency fluctuations and the impact of the COVID-19 outbreak in China and Japan.
Mylan reaffirmed its full-year 2020 guidance. The company still anticipates that revenue will be in the range of $11.5 billion to $12.5 billion. It expects adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) will be between $3.2 billion and $3.9 billion. To come up with both of these ranges, the company has accounted for possible impacts from the COVID-19 outbreak through the second quarter but assumes business will largely return to normal in the second half of the year.
The biggest development for the pharma stock that's on the way, though, is its upcoming merger with Upjohn. Mylan CEO Heather Bresch said that the combination of the two businesses remains on track to wrap up in the second half of 2020.