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NEW YORK (TheStreet) --BTIG managing director Tim Chiang joined CNBC's "Power Lunch" Tuesday afternoon to explain why he is maintaining his 'buy' rating on Mylan (MYL)  shares, despite the recent negative publicity the company has had regarding its EpiPen product.

The price for the EpiPen, a portable allergic reaction inhibitor, has ballooned to $500 from about $100 in 2008, a significant increase. Chiang remains confident in the company's ability to be profitable for investors.

"EpiPen, while it's getting a lot of scrutiny on the pricing, is only about 10% of their total revenue. Mylan is predominantly a generic drug company, about 90% of their revenues come from generic products. They're one of the largest companies in the U.S. and globally in that field," Chiang told CNBC.

Moreover, Chiang feels that Mylan is a heavily discounted stock, and he thinks the underlying problem is that Mylan has fallen victim to its own success.

"They have a 90% share in the EpiPen market, but some of that share was due to Sanofi (SNY) recalls. A lot of the other barriers with EpiPen are largely tied to the fact that this is not just a drug, but also a device," Chiang explained.

Chiang commented on the potential earnings implications the company could face should it have to rollback prices.

"It's hard to pinpoint what the earnings impact would be if you took all of the price increases that Mylan has benefited from and brought that back. But, if you look at EpiPen specifically, EpiPen isn't the highest margin product," Chiang said.

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Chiang noted that EpiPen is not Mylan's highest margin product because it doesn't make the device, Pfizer (PFE) does, and he believes Mylan carries earnings power and potential.

Shares of Mylan were lower during late-afternoon trading on Tuesday. 

Separately, TheStreet Ratings rates Mylan as a "Buy" with a ratings score of "B." This is driven by several positive factors, which TheStreet Ratings believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks TheStreet Ratings covers.

The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. TheStreet Ratings feels its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. 

You can view the full analysis from the report here: MYL

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