Mylan (NASDAQ:MYL) took a big gamble in 2007, but it looks like it's paying off. Finally.

The company doubled in size when it bought Merck KGaA's generic drug business. And that was after it had already purchased Indian generic drugmaker Matrix Laboratories. In an instant, it became a global player.

To say 2008 was a rebuilding year would be an understatement. Adjusted EPS came in at $0.80 per share, lower than the $0.92 per share that it managed in a shortened 2007 -- the company changed its fiscal year end from March to December, reporting only nine months for 2007.

The December quarter of last year was the first quarter where year-over-year comparisons were relevant. Revenue was up 4% thanks to launches of generic versions of UCB's Keppra and GlaxoSmithKline's (NYSE:GSK) Paxil CR, as well as recalls of fentanyl patches from competitors Johnson & Johnson (NYSE:JNJ) and Novartis (NYSE:NVS). But adjusted EPS for the quarter more than doubled from $0.11 per share last year to $0.26 per share this year, thanks to cost-cutting measures and lower interest expenses.

Mylan should continue seeing benefits of cost savings from being larger this year. Revenue isn't expected to grow much and could even shrink a little, but adjusted EPS was expected to grow at least 12% to $0.90-$1.10 next year.

Being smaller than Teva Pharmaceuticals (NASDAQ:TEVA) and Novartis' Sandoz division does have some disadvantages in the low-margin generic drug business. But it also gives the company room for expansion. Lowe's (NYSE:LOW) took on Home Depot (NYSE:HD) and benefited shareholders; I don't see why Mylan can't do the same.

Our Foolishness is far from generic:

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Fool contributor Brian Orelli, Ph.D., doesn't own shares of any company mentioned in this article. Johnson & Johnson and GlaxoSmithKline are Income Investor picks. The Fool has a disclosure policy.