Morgan Stanley reduced its price target on the shares of Mylan N.V. (NASDAQ: MYL) following downward revision to its estimates due to the IMS trends, generic
price pressure and uncertain new launch timing.
Meanwhile, in a separate note, Mylan announced its NDA for TLD, a
combo of Lamivudhine and Tenofovir Disoproxil Fumarate tablets, has received tentative approval from the FDA under the U.S.
President's Emergency Plan for AIDS Relief, or PEPFAR.
Tentative FDA Approval For HIV Treatment
TLD is an antiretroviral fixed-dose combination, with the drug to be made available in developing countries as a first-line
regimen for people being treated for HIV/AIDS.
Mylan
clarified that TLD combines molecules from three originator medicines, namely ViiV Healthcare's Tivicay, which is licensed through
the Medicines Patent Pool, Eprivir and GLD's Viread.
Pricing Pressure
Meanwhile, analyst David Risinger said the price pressure is
worse than expected, as evidenced by Teva Pharmaceutical Industries Ltd (ADR) (NYSE: TEVA) guidance
reduction on Aug. 3. The analyst indicated that the two key consortiums causing the current pressure were ClarusONE and
WBAD.
Giving details, the firm noted that ClarusOne, the buying consortium of McKesson Corporation (NYSE: MCK) and Wal-Mart Stores Inc (NYSE: WMT), had begun implementing lower priced contracts in the second quarter. With
Express Scripts Holding Company (NASDAQ: ESRX)/Econdisc joining the Walgreens Boots Alliance Inc (NASDAQ:
WBA) Development generic buying consortium on May 18, the
firm believes lower pricing could start to hit Mylan in the second half of 2017.
See also: August
PDUFA Dates: Biotech Investors Stay Tuned To A Month Of Plenty
Reducing Estimates, Price Target
The firm lowered its 2017 earnings per share estimate by 5 percent from $5.17 to $4.93 and its 2018 estimate by 10 percent from
$5.78 to $5.21. The 2017 revenue estimate was lowered by 2 percent from $12.29 billion to $12.06 billion and the 2018 estimate was
slashed by 4 percent from $13 billion to $12.4 billion.
The firm also trimmed its second quarter earnings per share and revenue estimates to $1.15 and $2.92 billion, respectively, both
of which are below the consensus estimates.
Morgan Stanley maintains its Equal-Weight rating on the shares of Mylan, citing the low valuation, but lowered its price target
for the shares from $52 to $36.
At time of writing, Mylan shares were down 2.64 percent at $32.05.
Latest Ratings for MYL
Date |
Firm |
Action |
From |
To |
Jun 2017 |
Cantor Fitzgerald |
Initiates Coverage On |
|
Neutral |
May 2017 |
Barclays |
Upgrades |
Equal-Weight |
Overweight |
Jan 2017 |
Citigroup |
Downgrades |
Buy |
Neutral |
View More Analyst Ratings for
MYL
View the Latest Analyst Ratings
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