Mylan Inc. Fourth Quarter 2014 Adjusted Diluted EPS Increases 35% To $1.05 And Full Year Adjusted Diluted EPS Up 23% To $3.56

POTTERS BAR, England and PITTSBURGH, March 2, 2015 /PRNewswire/ -- Mylan N.V. (Nasdaq: MYL) and Mylan Inc. today announced Mylan Inc.'s financial results for the quarter and year ended December 31, 2014.

Financial Highlights

• Q4 total revenues of $2.08 billion, up 18% on a constant currency basis versus the prior year period
  • Generics segment third party net sales of $1.82 billion, up 16% on a constant currency basis
  • Specialty segment third party net sales of $242.7 million, up 38%
• Q4 adjusted gross margin of 54%, up 250 basis points; GAAP gross margin of 47%, up 250 basis points
• Q4 adjusted diluted earnings per share ("EPS") of $1.05, up 35%; GAAP diluted EPS of $0.47, up 4%
• Full year total revenues of $7.72 billion, up 13% on a constant currency basis versus the prior year with growth across all regions and segments
  • Generics segment third party net sales of $6.46 billion, up 11% on a constant currency basis
  • Specialty segment third party net sales of $1.19 billion, up 21% as EpiPen® Auto-Injector became Mylan's first $1 billion product
• Full year adjusted gross margin of 52%, up 230 basis points; GAAP gross margin of 46%, up 170 basis points
• Full year adjusted diluted EPS of $3.56, up 23%; GAAP diluted EPS of $2.34, up 48%
• 2015 total revenue guidance of $9.6 billion to $10.1 billion, an increase of 28% versus 2014; FY 2015 adjusted diluted EPS guidance in the range of $4.00 to $4.30, an increase of 17% versus 2014

Mylan CEO Heather Bresch commented, "Our exceptional fourth quarter results, including growth in adjusted diluted EPS of 35%, capped off yet another year of outstanding performance, again demonstrating the continued strength and diversity of our global platform. Once again, we were able to deliver this strong performance despite continued delays in approvals at FDA by remaining focused on execution and by maximizing key opportunities. For the full year 2014, we delivered growth across all of our business segments, with constant currency revenues up 13% and adjusted diluted EPS up 23%, all of this while we continued to make meaningful progress against all of our key growth drivers. Notably, 2014 marked an important milestone for EpiPen® Auto-Injector, as it became Mylan's first $1 billion product.

"We are off to a great start in 2015 with the recent completion of our acquisition of Abbott's non-U.S. developed markets specialty and branded generics business and the announcement of our proposed acquisition of Famy Care's women's health care businesses, and we expect that Mylan will deliver 33% revenue growth and 21% adjusted diluted EPS growth on a constant currency basis in 2015. In addition to these exciting activities, and as we have previously stated, you can continue to expect us to aggressively pursue additional acquisition opportunities that make financial and strategic sense for our company."

Mylan CFO John Sheehan added, "Mylan finished out its strong 2014 with gross debt to EBITDA leverage of 2.8 times. Additionally, following the close of the Abbott transaction, we have even more financial firepower to execute on additional strategic opportunities as they arise, and we fully anticipate putting our enhanced cash flows and this stronger balance sheet capacity to work."

Total Revenue

Fourth Quarter 2014 Financial Results

Generics Segment Revenue

Genericssegment third party net sales were $1.82 billion for the quarter, an increase of 12% when compared to the prior year period. When translating third party net sales for the current quarter at prior year comparative period exchange rates ("constant currency"), third party net sales increased by 16%.

• Third party net sales from North America were $1.00 billion for the quarter, an increase of 17% compared to the prior year period. The increase was primarily driven by net sales from new products, partially offset by lower net sales of existing products as a result of lower volumes. The effect of foreign currency translation on third party net sales was insignificant in North America.
• Third party net sales from Europe were $373.4 million for the quarter, a decrease of 1%, or an increase of 8% on a constant currency basis, compared to the prior year period. During the quarter, we benefited from increased volumes in France, Italy and the United Kingdom as well as net sales from new products. These increases were partially offset by lower pricing throughout Europe.
• Third party net sales from Rest of World were $441.0 million for the quarter, an increase of 13%, or 18% on a constant currency basis, compared to the prior year period. This increase was primarily driven by higher third party net sales volumes from our operations in India, namely from strong growth in the anti-retroviral ("ARV") franchise which manufactures products used in the treatment of HIV/AIDS. Higher sales to emerging markets and sales in Brazil also positively contributed to the quarter.

Specialty Segment Revenue

Specialtysegment reported third party net sales of $242.7 million for the quarter, an increase of 38% when compared to the prior year period. The increase was due to higher net sales of the EpiPen® Auto-Injector driven by increased volume and favorable pricing. The increased quarterly volume resulted from continued growth of the epinephrine auto-injector market. Importantly, the EpiPen® Auto-Injector became Mylan's first product to reach $1 billion in annual net sales in 2014.

Total Gross Profit

Adjusted gross profit was $1.12 billion and adjusted gross margins were 54% for the quarter as compared to adjusted gross profit of $930.2 million and adjusted gross margins of 51% in the comparable prior year period. Strong adjusted gross margins were the result of new products and growth in the EpiPen® Auto-Injector. GAAP gross profit for the quarter was $969.0 million and GAAP gross margins were 47% as compared to GAAP gross profit of $795.9 million and GAAP gross margins of 44% in the comparable prior year period.

Total Profitability

Adjusted earnings from operations for the quarter were $606.0 million, up 34% from the comparable prior year period. SG&A expense increased from the prior year period as a result of increased selling and marketing investments related to the EpiPen® Auto-Injector franchise as well as increased infrastructure costs. R&D expense also increased as we continued to invest in our biologics and respiratory growth platforms. GAAP earnings from operations were $392.5 million for the quarter, an increase of 44% from the comparable prior year period.

EBITDA, which is defined as net earnings (excluding the non-controlling interest and losses from equity method investees) plus income taxes, interest expense, depreciation and amortization, was $548.8 million for the quarter and $436.5 million for the comparable prior year quarter. After adjusting for certain items as further detailed in the reconciliation below, adjusted EBITDA was $682.1 million for the quarter and $516.7 million for the comparable prior year period. Adjusted net earnings attributable to Mylan Inc. increased by $111.7 million to $419.8 million compared to $308.1 million for the prior year comparable period. Adjusted diluted EPS increased 35% to $1.05 compared to $0.78 in the prior year comparable period. GAAP net earningsattributable to Mylan Inc. increased by $9 million to $189.2 million as compared to $180.2 million for the prior year comparable period. GAAP diluted EPS increased 4% to $0.47 compared to $0.45 in the prior year comparable period.

To read full press release, please click here.

Help employers find you! Check out all the jobs and post your resume.