What do you get when you add:
- Accusations in a newspaper alleging employee deviation from standard operating procedure at a drug company.
- Claims by the company that the Food and Drug Administration concluded that the "baseless accusations in the article were unfounded."
- A differing statement by the FDA that it had "formed no conclusions."
- And an impressive earnings report?
The answer: One volatile week of trading for Mylan
That sounds about right to me.
On the earnings conference call yesterday, management stuck by its statements for the week, although it left open the possibility that the FDA could still sanction the company. That lingering doubt should increase the risk premium investors require to hold the stock, but not by that much, as it was a pretty good quarter after all.
Revenue was up 5% year over year, thanks to the launch of a generic version of Abbott Labs'
Mylan is smaller than Teva Pharmaceuticals
Holding Mylan is a little risky right now, but the investment could pay off handsomely if the growth continues and the FDA issues turn out to be minor.
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