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
- Emily Muhleman on Seeking Alpha