Mylan Q3 Profit Edges Down; Revenues Top View

(RTTNews) - Pharmaceutical company Mylan N.V. (MYL), announcing what will be its final earnings update, reported Friday a profit for the third quarter that edged down 2 percent from last year, primarily due to higher income tax provisions. Total revenues for the quarter edged up and topped analysts' expectations.

Mylan is in the process of combining with Pfizer Inc's (PFE) Upjohn business in a Reverse Morris Trust transaction to form a new company called Viatris. The combination is expected to close on November 16, 2020, with the Viatris common stock expected to begin trading on November 17, 2020 on the Nasdaq under the ticker symbol "VTRS."

For the third quarter, the company reported net earnings of $185.7 million or $0.36 per share, edging down from $189.8 million or $0.37 per share in the prior-year quarter.

Excluding items, adjusted net earnings for the quarter were $679.7 million, compared to $604.4 million in the year-ago quarter.

On average, analysts polled by Thomson Reuters expected the company to report earnings of $1.16 per share for the quarter. Analysts' estimates typically exclude special items.

Excluding items, adjusted net earnings for the quarter were $679.7 million, compared to $604.4 million in the year-ago quarter. Total revenues for the quarter edged up to $2.97 billion from $2.96 billion in the same quarter last year. However, it edged down on a constant currency basis. Analysts expected revenue of $3.0 billion for the quarter.

Net sales for the quarter were $2.95 billion, up 1 percent from last year, primarily due to an increase in net sales in the Europe segment of 7 percent and a slight increase in net sales in the Rest of World segment. These were partially offset by a decrease in net sales in the North America segment of 5 percent.

On a constant currency basis, net sales decreased about 1 percent, primarily driven by lower volumes, and to a lesser extent, pricing from net sales of existing products, partially offset by new product sales. The COVID-19 pandemic negatively impacted net sales by approximately 3 percent.

Looking ahead, the company said it intends to provide details on Viatris' strategy, including 2021 guidance, at its upcoming Investor Day, to be held in late February or early March 2021.

At that time, the management team will outline how Viatris can deliver on its stated commitments and roadmap to maximize value creation, including the realization of $1 billion in synergies and the generation of strong and accelerating free cash flows.