Mylan CEO Heather Bresch attends a conference at the Cannes Lions International Festival of Creativity, in Cannes, France, June 19, 2018. REUTERS/Eric Gaillard
May 7, 2019
(Reuters) – Mylan NV missed first-quarter revenue estimates on Tuesday, hurt by lower demand for its products and manufacturing problems at its Morgantown plant, sending its shares down nearly 8 percent.
The company has been grappling with problems at its Morgantown facility in West Virginia and had last year announced discontinuation of some products and job cuts at the plant.
The U.S. Food and Drug Administration had issued a warning letter to Mylan, raising concerns such as the failure to follow the procedures for cleaning and maintaining equipment at the plant.
Only five of its top 50 and one of the top 10 gross margin generating products will be manufactured in the facility in 2019, the drugmaker said in February.
Revenue from its North America business, its biggest, fell 6 percent to $922.9 million and missed estimates of $952.43 million.
Total revenue fell 7 percent to $2.50 billion and missed estimates of $2.69 billion, according to IBES data from Refinitiv.
It was also impacted by a 14 percent drop in sales at its Europe business to $895.3 million, partly due to a stronger dollar. Analysts were expecting revenue from Europe to be $1.06 billion.
The company reported a net loss of $25 million, or 5 cents per share, in the first quarter ended March 31, compared with profit of $87.1 million, or 17 cents per share, a year earlier.
Excluding items, the company earned 82 cents per share and beat expectations of 79 cents per share.
Mylan on Tuesday did not provide an update on its decision last year to review possible strategic options.
Shares of the company were trading lower at $26.09 before the bell.
(Reporting by Saumya Sibi Joseph and Aakash Jagadeesh Babu in Bengaluru; Editing by Arun Koyyur)
