PITTSBURGH, Feb. 21, 2012 /PRNewswire/ -- Mylan Inc. (Nasdaq: MYL) today hosted an investor meeting in New York, during which it provided its strategic vision for 2012 and beyond. As part of this, Mylan presented its financial guidance for 2012, reaffirmed its growth targets for 2013, and outlined the key drivers for the company's continued long-term growth beyond 2013.
Mylan Executive Chairman Robert J. Coury stated: "We expect that 2012 will be yet another year of exciting growth for Mylan, as will 2013, as we remain committed to our adjusted earnings per share target of $2.75. Our confidence comes as a result of the last several years of hard work and execution, while at the same time delivering strong results for the past 16 quarters. Looking beyond 2013, we expect the numerous opportunities that we have already cultivated in-house to drive continued annual double-digit earnings growth, with a current target of adjusted earnings per share of $6.00 by 2018."
Mylan Chief Executive Officer Heather Bresch stated: "We believe that the strategies we've employed in the relentless pursuit of our mission of providing access to high quality medicine to the world's 7 billion people have left us uniquely positioned to deliver robust sustainable growth to our shareholders over the long term."
2012 Financial Guidance
Mylan provided 2012 financial guidance that includes adjusted diluted earnings per share of between $2.30 and $2.50, and which would represent 18% growth over 2011 at the midpoint of the range. The company's guidance range for 2012 revenue is $6.8 billion to $7.2 billion, representing 14% annual growth at the midpoint of the range. Mylan is currently targeting adjusted diluted earnings per share of $6.00 in 2018, with opportunities already in house, including the initiatives described below.
Bresch commented: "Our continued growth in 2012 will be driven by the anticipated launch of approximately 650 global products, including more than 100 in the U.S. with brand sales of more than $40 billion, according to IMS Health. We intend to continue to broaden our geographic footprint and expand our presence in India by launching a commercial business there during the first half of this year, bringing us 1.2 billion people closer to our goal of reaching the world's 7 billion.
"Other anticipated key drivers in 2012 include continued growth of Mylan Specialty, led by our EPIPEN® auto-injector franchise, and the continued strong performance of our core generics business, particularly in the U.S. We also are excited to be rolling out a new corporate branding campaign that we believe answers the question 'Why Mylan?', by showcasing for our customers how we are differentiated in terms of quality and partnership."
Mylan expects adjusted EBITDA to be in the range of $1.75 billion to $1.95 billion. The guidance range with respect to adjusted operating cash flows is $900 million to $1.0 billion, with capital expenditures expected to be between $300 million and $400 million. These expenditures relate primarily to planned expansions including those with respect to recently acquired injectable and respiratory platforms.
A full listing of the company's financial guidance for 2012, on an adjusted basis, along with the significant foreign currency exchange rates used in preparing the guidance, is shown below:
(in millions, except EPS, %s and exchange rates) | |
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Adjusted Metrics |
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Total Revenue | $6,800 - $7,200 |
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Gross Profit Margin | 48% - 50% |
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SG&A as % of Total Revenue | 18% - 20% |
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R&D as % of Total Revenue | 5.5% - 6.5% |
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EBITDA | $1,750 - $1,950 |
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Net Income | $1,000 - $1,100 |
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Diluted EPS | $2.30 - $2.50 |
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Operating Cash Flow | $900 - $1,000 |
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Interest Expense | $245 - $265 |
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Capital Expenditures | $300 - $400 |
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Tax Rate | 26% - 27% |
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Avg Diluted Shares Outstanding | 430 - 440 |
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Key Exchange Rates Used for 2012 Guidance | |
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Australian Dollar ($ / AUD) | 1.02 |
British Pound ($ / GBP) | 1.57 |
Canadian Dollar (CAD / $) | 1.01 |
Euro ($ / EUR) | 1.35 |
Indian Rupee (INR / $) | 48.00 |
Japanese Yen (JPY / $) | 77.69 |
2013 Growth Targets
Mylan reaffirmed its target of $2.75 of adjusted diluted earnings per share in 2013, representing annual growth of 15% (from the midpoint of its 2012 range), and updated its 2013 revenue target to $7.5 billion.
Bresch commented, "We are highly confident in our 2013 growth targets, particularly given the good visibility into our business that we have today. We anticipate more than $1 billion of revenue in 2013 from 2012 and 2013 new product launches. Additionally, we anticipate acceleration of our global Institutional business, continued growth in our Specialty business and further geographic expansion of our antiretroviral business, all of which we expect will help drive our 2013 performance. Importantly, we also see continued opportunities for margin expansion as we continue to reduce our costs and apply operational best practices across our organization."
Long-Term Growth Drivers Beyond 2013
Mylan outlined the following key drivers of its long-term growth in 2013 and beyond and stated its commitment to achieving double-digit earnings growth beyond 2013.
