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Mylan stock popped today: what's next?

Jessica Alter | 1:11 pm ET, 29 Jul 2019

Mylan N.V. (MYL) stock jumped over 13% today. The gain happened after Mylan and Pfizer (PFE) announced plans to combine Mylan with Pfizer's Upjohn business unit in an all-stock transaction. Pfizer is down almost 2% today.

What is the impact of this merger?

The combined business will now purely focus on off-patent and generic drugs, which have lately been under a lot of regulatory and commercial pressure. This will further help the new entity achieve the economies of scale, which is essential to operating a low-margin, generic medicine business.

How did the Mylan stock do?

Over the last month, Mylan (MYL) returned -1.07%. Since 2015, the stock declined 75%. The trailing 12-month revenue is $11B, but annual year-over-year growth has been negative, which put a lot of pressure on Mylan.

What do analysts say about the stock?

Mylan average analyst price target is 37.16% above its current price ($20.80).

What is the stock outlook now?

The merger is perceived to be already priced into the MYL stock price. Pfizer will own 57% of the new entity, while Mylan will own the remaining 43%. Analysts expect that the new, combined company is likely to better address generics pricing issues Mylan has been facing over EpiPen price increase. The deal is the best case outcome for Mylan, which price declined 75% from its highs in 2015.

Interested in learning more?

For the latest analysis and information on Mylan, please visit AskFinny and ask for "MYL", "MYL analysis" or "MYL news".

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for AskFinny Bites, please send us an email at hi@askfinny.com.


Teva: Is The Stock In Trouble?

Carla Olson | 7:55 pm ET, 07 Feb 2018

Teva Pharmaceutical Industries (NYSE: TEVA) is expected to report its earnings tomorrow before market open.  The earnings release will be for the fourth fiscal quarter 2017.  According to Finstead Research, TEVA price target upside is -25.53% (visit Finstead and type "TEVA upside"). 

The underperformance of Teva shares is visible from its 43% annual price decline. Teva faces stiff competition because of the rise of FDA generic drug approvals, customer consolidation, as well as pricing pressures from US generic drug manufacturers.

Teva is facing patent challenges for the 40mg formulation of Copaxone. It had lost 30% on its fourth-quarter earnings due to Mylan’s launch of the generic Copaxone version. Four out of five orange book patents for Teva’s Copaxone 40mg have been invalidated by the U.S. District Court in January 2017.

Firms such as Mylan, Dr. Reddy’s, and Sandoz have been posting stiff competition to Teva when it comes to launching generic drugs.  The pressure for gaining market share is becoming more pronounced.

Teva has a huge debt burden that has increased its borrowing costs, and hence reduced the profit.

Strict regulations are a major obstacle for Teva to get an approval for its pipeline candidates.  Laquinimod failed to meet the primary endpoint for relapsing or remitting multiple sclerosis (RRMS) in the CONCERTO study.  There will be with no additional attempts to evaluate laquinimod for this indication.  Another setback for Teva was talampanel (in Phase 2), a drug supposed to treat Amyotrophic Lateral Sclerosis (ALS).

Here are some other worrisome developments for Teva: unsuccessful attempts in the expansion of Nuvigil’s label, termination of lutropin development, activities linked to growth hormones, and FDA’s hold on fasinumab’s Phase 2b study (fasinumab is supposed to treat chronic pain in the lower back).

Over the last year, TEVA returned -42.68%. This return is lower than Drug Manufacturers Industry (-12.03%), Healthcare Sector (27.15%), and S&P 500 (15.30%) returns.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for AskFinny Bites, please send us an email at hi@askfinny.com.


Mylan N.V. (MYL) Buy or Sell Stock Guide

Updated at: 10:59 am ET, 12 Sep 2019

Are you looking for the analysis of Mylan N.V. (MYL) stock? Are you wondering what the bulls and the bears say about it?

If so, you came to the right place. In this stock guide, we will share with you 10 reasons to buy and 5 reasons to sell MYL stock. You’ll get a perspective on what the bulls and the bears say about it.

The analysis below may be also helpful to you if you have any of the following questions about MYL stock:

  • Is MYL a buy or a sell?
  • Should I sell or hold MYL stock today?
  • Is MYL a good buy / investment?
  • What are MYL analyst opinions, recommendations and ratings?

Let’s start with the bull case. Here are the reasons to buy MYL stock:

1. As one the world's largest generic industry players, Mylan enjoys economies of scale over its smaller peers.

2. Mylan's acquisitions of Agila and Meda will boost the company's injectable and OTC drug products, which should sustain steadier growth and profitability thanks to limited competition in these market segments.

3. Mylan's development of complex generic drugs, including biosimilars and generic versions of Advair, Copaxone, and insulins, could spur significant earnings growth if successfully approved.

4. MYL profitability is improving. The YoY profit margin change was 5.84 percentage points. See MYL profitability chart.

5. MYL forward P/E ratio is 4.28, and it’s low compared to its industry peers’ P/E ratios. See MYL forward P/E ratio chart.

6. MYL Price/Book ratio is 0.84, and it’s low compared to its industry peers’ P/B ratios. See MYL forward Price/Book ratio chart.

7. MYL Price/Sales ratio is 0.86, and it’s low compared to its industry peers’ P/S ratios. See MYL forward Price/Sales ratio chart.

8. MYL PEG ratio (P/E adjusted for growth) is 0.97, and it’s low compared to its industry peers’ PEG ratios. See MYL PEG chart.

9. MYL average analyst rating is Buy. See MYL analyst rating chart.

10. MYL average analyst price target ($26.67) is above its current price ($22.46). See MYL price target chart.

Now that you understand the bull case, let’s look at the reasons to sell MYL stock (i.e., the bear case):

1. Compared with its peers, Mylan's less diversified operations increase exposure to volatility in generic drug markets.

2. Mylan faces considerable competition from low-cost producers, especially India-based generic drug manufacturers. Aggressive entry pricing could weaken Mylan's dominant market position.

3. Mylan's profitable EpiPen franchise could face a possible generic version from Teva by 2018.

4. MYL quarterly revenue growth was 1.50%, lower than the industry and sector average revenue growth (2.07% and 3.10%, respectively). See MYL revenue growth chart.

5. MYL short share of float is 4.70%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See MYL short share of float chart.

Now let's look at the key statistics for MYL:

Metrics MYL
Price $21.32
Average Price Target / Upside $26.67 / 25.09%
Average Analyst Rating Buy
Industry Drug Manufacturers - Specialty & Generic
Sector Healthcare
Number of Employees 35,000
Market Cap $11.19B
Forward P/E Ratio 4.77
Price/Book Ratio 0.99
PEG 1.13
Revenue (TTM) $11.29B
YoY Quarterly Revenue Growth 1.5%
Profit Margin 0.31%

What are your thoughts on MYL?

If you liked this analysis, check out Buy or Sell Stock Guides for other stocks.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for AskFinny Bites, please send us an email at hi@askfinny.com.


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