Generic drug maker Mylan Inc. (MYL), Thursday reported a decline in profit for the first quarter, hurt mainly by acquisition related costs and licensing payments. Adjusted earnings for the quarter, however, were in line with Wall Street expectations, while revenues fell short of estimates.
Pittsburgh, Pennsylvania-based Mylan reported a first-quarter profit that dropped to $106.9 million or $0.27 per share from $129.1 million or $0.30 per share last year.
Results for the quarter included pre-tax expenses related to research and development licensing payments of $23 million and acquisition related costs of $19 million.
Adjusted earnings for the first quarter rose to $0.62 per share from $0.52 per share last year. On average, 18 analysts polled by Thomson Reuters expected earnings of $0.62 per share for the quarter. Analysts' estimates typically exclude special items.
Mylan's revenues for the quarter grew 3 percent to $1.63 billion from $1.58 billion last year. Analysts expected revenues of $1.69 billion for the quarter. Revenue growth was mainly driven strong performance at specialty segment and higher demand for generic drugs in EMEA and Asia.
Mylan's specialty segment sales increased 23.7 percent to $218.7 million, driven mainly by Epipen auto-injector. Sales of Epipen increased as a result of favorable pricing.
Third party revenues from EMEA grew 10.2 percent to $369.9 million, while Asia revenues grew 2.2 percent to $305.1 million.
Third-party North America revenues dropped 4.5 percent to $732.8 million. The company said the decline was due to higher revenue from new product launches last year, when it launched Escitalopram.
Gross margins for the quarter advanced to 42.5 percent from 42.3 percent last year.
Looking forward to the full year 2013, Mylan maintained its fiscal year 2013 earnings outlook in the range of $2.75 to $2.95 per share. Analysts currently expect full-year earnings of $2.87 per share.
MYL closed Thursday's trading at $28.83, up $0.13 or 0.45%, on the Nasdaq. The stock, however, fell $1.00 or 3.47%, in after hours.
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