Mylan is focused on closing its merger with Pfizer's Upjohn next year. But after that deal closes, the pumped-up company should have the firepower for more M&A to beef up its business further, an exec said.
Asked about a "fragmented" generics market on a Tuesday conference call, Mylan CFO Ken Parks said he sees an opportunity to build on the combined company’s commercial presence and strike more deals after the merger.
Set to debut in 2020, the new company will outline its own strategies, Parks said, but he believes the opportunity for M&A is there.
The statements came as Mylan reported third-quarter revenues of $2.96 billion, a 3% increase versus the same period last year. The company’s adjusted earnings per share for the quarter fell 6% to $1.17. Mylan and Upjohn are set to close their deal in mid-2020.
While Mylan suffered from increased competition and an ongoing Morgantown restructuring that cost $58 million in the third quarter, new launches so far generated $800 million in 2019. Overall for the year, Mylan expects $1 billion in revenues from its newly rolled-out products.
As execs push to close the big merger, Mylan has also been cleaning out its own pantry. The generics maker discontinued 350 products that made no “business rationale” to sell, Mylan President Rajiv Malik said on Tuesday’s call. While the moves will result in lower revenues, the discontinuations won't affect profits, he said.
Going forward, the portfolio review will be an “ongoing” process, Malik said, but Mylan doesn’t expect a “bolus” like the previous batch that it recently discontinued.