Mylan (MYL)

Q3 2011 Earnings Call

October 26, 2011 8:30 am ET


Heather Bresch - President and Director

Robert J. Coury - Chairman, Chief Executive Officer and Chairman of Executive Committee

John Sheehan - Chief Financial Officer and Executive Vice President

Kris King - Executive Director of Investor Relations


Gregory B. Gilbert - BofA Merrill Lynch, Research Division

Jami Rubin - Goldman Sachs Group Inc., Research Division

Aaron Gal - Sanford C. Bernstein & Co., LLC., Research Division

Marc Goodman - UBS Investment Bank, Research Division

Randall Stanicky - Canaccord Genuity, Research Division

Shibani Malhotra - RBC Capital Markets, LLC, Research Division

Elliot Wilbur - Needham & Company, LLC, Research Division

John T. Boris - Citigroup Inc, Research Division

Christopher Schott - JP Morgan Chase & Co, Research Division

Frank H. Pinkerton - SunTrust Robinson Humphrey, Inc., Research Division



Welcome to Mylan's Third Quarter Earnings Conference Call and Webcast. Hosting the call today from Mylan is Ms. Kris King, Vice President, Global Investor Relations. Today's call is being recorded and will be available for replay beginning at 1:30 p.m. Eastern Standard Time. The dial in number is (800) 585-8367 and enter PIN number 12176566. [Operator Instructions] It is now my pleasure to turn the floor over to Kris King. You may begin.

Kris King

Thank you, Jacky. Good morning, everyone. Joining me for today's call are Mylan's Chairman and Chief Executive Officer, Robert J. Coury; President, Heather Bresch; Executive Vice President and Chief Operating Officer, Rajiv Malik, Executive Vice President and Chief Financial Officer, John Sheehan; and President of North America, Harry Korman.

During today's call, including the Q&A, we will be making forward-looking statements including those relating to our anticipated business levels, our future earnings, our planned activities, our anticipated growth and other expectations and targets for future periods. Note that these statements are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Because these statements are forward-looking, they inherently involve risks and uncertainties, and accordingly, our actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the risk factors set forth in our report on Form 10-Q for the period ended June 30, 2011, and in our other SEC filings. You can access our Form 10-Q and other SEC filings through the SEC website at We strongly encourage you to do so.

In addition, during this call, we will be referring to certain actual and projected financial metrics of Mylan on an adjusted basis, which are non-GAAP financial measures. It should be noted that non-GAAP measures such as adjusted revenues, adjusted gross margin and adjusted diluted EPS should be used only as a supplement to, not as a substitute for, or as a superior measure to measures of financial performance prepared in accordance with GAAP. Please refer to today's earnings press release which is available on our website, as it contains detailed GAAP to non-GAAP reconciliations of our actual third quarter results.

Before I turn the call over to Robert, let me also remind you that the material in the call, with the exception of the participant questions, is the property of Mylan and cannot be recorded or be rebroadcast without Mylan's expressed written permission.

With that, I'll now turn the call over to Robert.

Robert J. Coury

Thank you, Kris. Hello, everyone, and thank you, for joining us today. Before we get started, I'd like to welcome and recognize all of our fellow employees around the world. Through their passion for excellence, unwavering dedication to doing things right and tremendous hard work, we have once again delivered very strong results. On behalf of the Board of Directors and our entire management team, I would like to thank each and every one of them.

I would also like to take a moment to acknowledge the passing of Mylan's cofounder, namesake, and former Chairman, and Chief Executive Officer, Mark Pushcart. Mike was truly one of a kind. He had a meaningful impact on each and every one of us here at Mylan. Directly and indirectly, we are deeply saddened by his passing. Mike's philosophy was do it right or don't do it at all. And this powerful but simple idea has been ingrained into the Mylan way of doing business. We are extremely grateful to Mike for his many contributions to Mylan, our community, our industry, and the people around the world who rely in our products. He will be missed by those who had the privilege of knowing him, but his legacy will live on. I also will like to thank all of you who have reached out to express your own condolences. It was appreciated.

With that said, and looking to the future, today's another exciting day in Mylan's history. As you have seen from our press release this morning, we announced a new expanded management structure for Mylan, which will be effective as of January 1, 2012. At that time I will transition to the role of Executive Chairman of the Board. Mylan's President, Heather Bresch, will become Chief Executive Officer, reporting directly to the Board of Directors; and Chief Operating Officer, Rajiv Malik will be promoted to the role of President. Further, Harry Korman, currently President of North America, will be promoted to the Chief Operating Officer; and Tony Mauro, will be promoted to the President of North America, while also retain his current role as President of Mylan pharmaceuticals.

I am truly excited about this enhanced leadership structure. A structure which reflects long-standing commitment to broadening and strengthening our management bench, and to developing our internal talent. Further I believe that this new structure will most effectively serve the needs of both the company we have become and the company we expect to be in the future. It has been my honor and privilege to lead Mylan as Chief Executive Officer for nearly 10 years. Over the course of my tenure, we as a company, have accomplished each of the strategic priorities we set for ourselves, and I have never been more confident in Mylan's position and future growth potential than I am today. In my capacity as Executive Chairman, among other things, I will continue to provide active ongoing strategic leadership to the company. Specifically I will continue to lead the Board of Directors and provide guidance to senior management. I will also continue to lead strategic business development initiatives, and communicate with our shareholders and other key constituents. But most importantly, I will continue to stay close to the people of Mylan and play an active role in talent management around the globe.

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