Updated from 5:55 p.m. EST
delivered a third-quarter financial report that just beat Wall Street's estimates, and the generic-drug maker issued fiscal-year predictions that were in line with analysts' consensus forecast.
The company said Thursday that it earned 25 cents a share, excluding items, for the three months ended Dec. 31. On average, analysts surveyed by Thomson First Call were looking for earnings of 24 cents a share.
On a GAAP basis, Mylan earned $48.2 million, or 22 cents a share, on revenue of $311.2 million. For the same period in 2004, Mylan earned $34.8 million, or 13 cents a share, with revenue of $291 million.
For the fiscal year ending March 31, Mylan predicted earnings in the range of 94 cents to $1 a share vs. the average analyst target of 97 cents. The company's previous range had been 92 cents to $1.15. Mylan said earnings for fiscal 2007 should rise to $1.20 to $1.40 a share, with revenue of $1.25 billion to $1.36 billion. Analysts expect EPS of $1.23 and revenue of $1.37 billion.
During the third quarter, research and development expenses rose 26% to $29.3 million, primarily because of continuing research on the experimental blood pressure drug nebivolol, whose marketing rights
were licensed in January to
. Mylan will get an upfront payment of $75 million as well as royalties based on sales.
Administrative and marketing expenses dropped by 24% to $48 million as a result of the company closing its brand-name drug unit last year. Although Mylan had hoped to develop a diverse portfolio of brand-name and generic drugs, it decided to focus on its core generics business.
Mylan hasn't given up on higher-margin products. In addition to licensing nebivolol, it also is a joint-venture partner with generic-drug maker
in Somerset Pharmaceuticals, which is working on a skin-patch delivery system for selegiline, a drug now sold in capsules as Eldepryl for Parkinson's Disease.
Somerset is testing the skin-patch version for Parkinson's Disease, depression and Azheimer's Disease. The FDA is expected to decide later this month on Somerset's application for the drug, under the brand name Emsam, as a treatment for major depressive disorder. An FDA advisory committee supported the drug in October.
is the marketing partner for Emsam.
Mylan's results were issued after the markets had closed. In regular trading Thursday, the stock lost 57 cents, or 2.9%, to $19.30. After hours, the stock rose 45 cents.