Tag Archives: MYL

First Look: Mylan

Observations

  • Has portfolio of over 1,400 drugs
  • Mylan down 30% YoY
  • Share price declined from ~$70 / sh to ~$40 / sh following rejection of takeover bid by Teva ($82 / sh)
  • Acquired Meda for $7.2bn
  • Multiple compression in late 2015 due to attempts to acquire Perrigo
  • 2018E EPS  of $6.00 / sh, (2016E $5.92 / sh)
  • NTM EPS Average of 12x; Current of 10x; High 18x
  • Ranked #1 for generics sales
  • Mylan is a beneficiary of the patent cliff for branded drug companies
  • 45% of revenue is from international markets

Considerations

  • High revenue and profitability growth – what does terminal state look like?
  • To what degree is management distrust warranted?
  • What is management’s strategy for shareholder payout?

Analyze

  • Return on capital over 8 years
  • CFO / Total assets for 8 years

Reference Material