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By Saumya Joseph and Aakash B
(Reuters) – Drug maker Mylan NV on Tuesday announced a quarterly sales figure lower than expected and did not provide further information on a possible overhaul of the company's strategy, pushing its numbers up. shares down 17%, more than six and a half years low.
In August, the company announced that its board of directors had launched a strategic review, citing a challenging pricing environment for generics. She had said last quarter that the exam was almost done.
But in a conference call with analysts on Tuesday, Executive Director Heather Bresch declined to say when Mylan would announce the results of her review, saying it would be "short-term".
Friend Fadia, an analyst at SVB Leerink, said the delay raised questions about what the board might consider in the course of the review. "The visibility of any strategic change could be decisive for how investors view the stock."
Mylan is struggling with lower drug prices and problems at its Morgantown site in West Virginia after the US health agency sent out a warning letter last year.
Mylan, who also reiterated his forecast for 2019, said his quarterly turnover was affected by lower volumes and a strong dollar.
"We believe investors have prepared for a loss in financial results, but not for low earnings," said Irina Koffler, an analyst at Mizuho Securities, in a note titled "Bottom beat not relevant".
Manufacturers of medicines such as Mylan and Teva Pharmaceutical Industries Ltd have suffered in recent years due to the sharp drop in generic prices, but they have recently found that prices are stabilizing.
Mylan said he does not expect that price erosion in the US generic market will accelerate in 2019.
Revenue from its largest business in North America fell 6% to $ 922.9 million and was not estimated at $ 952.43 million, while sales of its Europe fell 14% to 895.3 million dollars, under $ 1.06 billion expected by analysts.
The total business figure has dropped 7 percent to $ 2.50 billion and is missing an estimate estimated at $ 2.69 billion, according to Refinitiv's IBES data.
The Company recorded a net loss of $ 25 million, or 5 cents per share, in the first quarter ended March 31, compared to earnings of $ 87.1 million, or 17 cents per share, a year earlier. .
Excluding items, the company posted earnings of 82 cents per share and exceeded expectations by 79 cents per share.
Shares of the company fell to $ 23.84 on Tuesday afternoon. Since Bresch took the helm in 2012, Mylan shares have increased by almost 8%.
(Report of Saumya Sibi Joseph, Aakash Jagadeesh Babu in Bengaluru and Michael Erman in New York, edited by Arun Koyyur)
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