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Mylan has come out with a strategic road map for the next five years when
it expects to maintain 17% earnings CAGR post the patent cliff. Among
various growth drivers identified, top priorities include ‐ a) portfolio
expansion into bio‐generics (via Biocon partnership), b) generic launch of
dry powder inhalers (Pfizer technology) and c) potential launch of generic
Copaxone (NATCO partnership). Mylan has also identified India as a
strategic market going forward and aims to be among top ten players here.
Strong results for CY11, robust outlook for CY12
Mylan reported a strong set of numbers, ahead of the Street and at the higher end of its
guidance for CY11. Revenue grew by 13% to USD6.1bn while growth in earnings was a
whopping 27%, led by higher gross margins due to scale and financial prudence. Mylan
had guided for a revenue growth of 14% and earnings growth of 18%‐22% for CY12, led by
USD800mn sales from new launches in various markets. The volume growth in existing
business is expected to offset pricing pressures (in low single digit in the US).
Incremental growth from new launches to decline from 2013
Mylan projects 2012 as the single largest year in terms of date certain launches in the US,
targeting ~USD33bn branded value opportunities. However, CY13 revenue guidance of
USD7.5bn or a 7% growth (lower from USD8.5bn earlier) signifies a slowdown in the
growth momentum. We highlight that CY12 launches in the US are expected to contribute
USD800mn to sales though this is likely to shrink to USD300mn in CY13.
Biogenerics, Respiratory and Neurology ‐ New target therapies
The management has detailed a comprehensive plan to address opportunities beyond
2013, identifying three key strategic growth drivers over 2016. These include: a) biogenerics
pipeline of five molecules (targeting USD33bn market) developed in
collaboration with Biocon, b) DPI with an expected first generic launch of Advair by 2015
in EU and 2016 in the US and c) generic Copaxone launch with NATCO by mid‐2013.
Read across for Indian companies: New revenue stream for Biocon
Biosimilar launch will have a significant positive impact on Biocon as it opens up a revenue
stream for Biocon (BIOS). Similarly, Mylan sees the Copaxone launch by mid‐2013 even as
Teva expects the generic launch beyond 2015. Generic Copaxone launch by Mylan will add
USD20mn‐25mn profit for Natco (NTCPH). Generic Advair launch in EU and US will throw
up a large opportunity for players like Cipla (CIPLA) as it is also in‐line to monetize
combination inhalers opportunity in regulated markets.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Mylan has come out with a strategic road map for the next five years when
it expects to maintain 17% earnings CAGR post the patent cliff. Among
various growth drivers identified, top priorities include ‐ a) portfolio
expansion into bio‐generics (via Biocon partnership), b) generic launch of
dry powder inhalers (Pfizer technology) and c) potential launch of generic
Copaxone (NATCO partnership). Mylan has also identified India as a
strategic market going forward and aims to be among top ten players here.
Strong results for CY11, robust outlook for CY12
Mylan reported a strong set of numbers, ahead of the Street and at the higher end of its
guidance for CY11. Revenue grew by 13% to USD6.1bn while growth in earnings was a
whopping 27%, led by higher gross margins due to scale and financial prudence. Mylan
had guided for a revenue growth of 14% and earnings growth of 18%‐22% for CY12, led by
USD800mn sales from new launches in various markets. The volume growth in existing
business is expected to offset pricing pressures (in low single digit in the US).
Incremental growth from new launches to decline from 2013
Mylan projects 2012 as the single largest year in terms of date certain launches in the US,
targeting ~USD33bn branded value opportunities. However, CY13 revenue guidance of
USD7.5bn or a 7% growth (lower from USD8.5bn earlier) signifies a slowdown in the
growth momentum. We highlight that CY12 launches in the US are expected to contribute
USD800mn to sales though this is likely to shrink to USD300mn in CY13.
Biogenerics, Respiratory and Neurology ‐ New target therapies
The management has detailed a comprehensive plan to address opportunities beyond
2013, identifying three key strategic growth drivers over 2016. These include: a) biogenerics
pipeline of five molecules (targeting USD33bn market) developed in
collaboration with Biocon, b) DPI with an expected first generic launch of Advair by 2015
in EU and 2016 in the US and c) generic Copaxone launch with NATCO by mid‐2013.
Read across for Indian companies: New revenue stream for Biocon
Biosimilar launch will have a significant positive impact on Biocon as it opens up a revenue
stream for Biocon (BIOS). Similarly, Mylan sees the Copaxone launch by mid‐2013 even as
Teva expects the generic launch beyond 2015. Generic Copaxone launch by Mylan will add
USD20mn‐25mn profit for Natco (NTCPH). Generic Advair launch in EU and US will throw
up a large opportunity for players like Cipla (CIPLA) as it is also in‐line to monetize
combination inhalers opportunity in regulated markets.
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