fourth-quarter earnings slid 49% from a year ago, hurt by the cost of a failed acquisition and pricing pressure on drugs, including ulcer treatment omeprazole.
Mylan earned $38.1 million, or 14 cents a share, in the quarter, compared with earnings of $74.9 million, or 27 cents a share, a year ago. The latest quarter included a charge of 5 cents a share related to the terminated acquisition bid for
Adjusted for the charge, Mylan earned 19 cents a share in the latest quarter, beating the Thomson First Call consensus by 2 cents. Gross margin was 47% in the 2005 quarter, down from 53% a year ago.
Net revenue fell 5% from a year ago to $316.4 million, reflecting a 2% decline in generic sales to $258.9 million and a 17% slide in branded sales to $57.5 million. Analysts had been expecting overall net sales of $330.6 million.
In Mylan's generic segment, revenue edged lower because of "overall unfavorable pricing" and price erosion, with omeprazole bearing the brunt of the pain. Higher volume partially offset the pricing issues. In the branded segment, tough pricing for acne treatment Amnesteem accounted for most of the weakness.