The Canonsburg, Penn.-based company swung to red ink for the three months ended March 31, reporting losses of -$25 million, or -5¢ per share, on a -7.0% sales decline to $2.5 billion, compared with Q1 2018.
Adjusted to exclude one-time items, earnings per share were 82¢, 3¢ ahead of The Street, where analysts were looking for sales of $2.7 billion.
“Mylan’s first quarter represents a solid start to the year and we remain positioned to reaffirm our guidance for 2019. We continue to manage an increasingly diverse portfolio of products across all three segments of our business, and given the evolution of our commercial and geographic mix see opportunities to enhance our investments for certain areas of our portfolio,” CEO Heather Bresch said in prepared remarks. “In the U.S., where the industry continues to experience volatility, we are leveraging past experience and applying key learnings to our largest launches, like Wixela, even as we advocate for policies that seek to put the patient first.
“With that said, our top-line results fell within the range of where we thought they would be at $2.5 billion. On the bottom line, we came in ahead of where we expected at 82¢ of adjusted EPS, mainly due to gross margins coming in at the high end of our guidance range while also having some positive offsets from a timing perspective in G&A against our increased sales and marketing spend,” Bresch added. “We look forward to continuing delivering on our mission of access in the remaining quarters of the year and investing in a Mylan that’s built to last.”
Investors reacted by sending MYL shares down -13.7% to $24.32 apiece in mid-morning trading.