Mylan Shares Rise On 4Q Results, Outlook
Mon, 02/23/2009 - 4:08am
NEW YORK (AP) — Shares of drugmaker Mylan Inc. jumped Friday after the company reported fourth-quarter results topping Wall Street forecasts, while reaffirming its 2009 profit outlook. The stock gained $1.04, or 9 percent, to close at $12.61. The stock has traded between $5.75 and $14.45 over the last 52 weeks. Late Thursday, the company reported a fourth-quarter loss on a series of charges, including continuing costs from the buyout of Merck KGaA's generic unit, which closed in 2007. Still, adjusted profit of 26 cents per share topped Wall Street forecasts for 14 cents per share. Meanwhile, revenue rose 4 percent to 1.2 billion from $1.16 billion, also topping forecasts .Looking ahead, the company still expects 2009 profit of 90 cents to $1.10 per share, with 2010 profit between $1.50 and $1.70 per share. "We took strategic risks, and now, as we look ahead we see the reward of significantly enhanced long-term growth prospects for an even brighter future for Mylan and its shareholders," said Chief Executive Robert J. Coury, in a statement. Citi analyst John Boris reaffirmed a "Buy" rating and $16 price target following the results, saying the company has the highest leverage ratio in its peer group. He did express concern about management changes, saying it could add some volatility to the company. Mylan said that Edward J. Borkowski will transition out of his role as chief financial officer over the next several months. He will remain in place until the company finds a successor.