Mylan Inc. reports 8% increase in net income in first quarter

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Generic drug giant Mylan Inc. Thursday reported first-quarter net income rose 8 percent, as CEO Heather Bresch reiterated that the company expects to announce a “substantial transaction” by year-end despite being rebuffed twice last month in its bid to buy Swedish drug company Meda.

In a conference call with analysts, Ms. Bresch would not specifically discuss Meda or say whether Cecil-based Mylan would approach the company for a third time with a higher offer. Mylan’s previous bid, reportedly for $6.7 billion, comes amid a wave of consolidation in the pharmaceutical industry.

Although Mylan has not commented on Meda publicly, the Swedish company’s board released brief statements last month saying it had rejected both an initial and revised offer.

Mylan has been “extremely active” in its hunt for a major acquisition, Ms. Bresch told analysts Thursday.

Meda, a maker of respiratory, allergy and other drugs, was “just one of many that are out there that we believe would be very complementary to our platform, and I will tell you, we are very busy looking at all of them,” she said.

“That’s why we say we will be able to execute on something by the end of the year.”

Although Mylan is looking to be the buyer, some analysts say the company could itself become an acquisition target.

Ms. Bresch said the desire for an acquisition was “certainly not driven on inversion,” referring to an increasingly popular maneuver by U.S. companies to reincorporate overseas when buying a firm abroad to take advantage of lower corporate tax rates. But she said such a move "may be a byproduct” of a deal.

The company also said that regulatory approval of the generic version of Teva Pharmaceuticals’ multiple sclerosis treatment Copaxone could be delayed. Mylan had planned to begin selling the generic version late this month.

As a result, the company said it was expecting adjusted earnings per share of 67 cents to 70 cents for the second quarter, well below analysts’ consensus estimate of 86 cents.

Still, Mylan reaffirmed its forecast for adjusted earnings for the full year of between $3.25 and $3.60 per share.

For the first quarter, Mylan reported net income of $115.9 million, or 29 cents per share, up from $106.9 million, or 27 cents, in the same period last year.

Revenue for the three months ended March 31 was $1.72 billion, up 5 percent from $1.63 billion last year.

Results were released before the market opened Thursday.

Mylan shares lost $1.04 Thursday, or 2.05 percent, to close at $49.74.

Patricia Sabatini: or 412-263-3066. First Published May 1, 2014 8:17 AM

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