Mylan NV reported a year-over-year decline in both profit and total revenue for the fourth quarter of 2017 after sales fell 17% in North America.
Adjusted net earnings for the period were $765.3 million, or $1.43 per share, a 9% decline from $842.2 million, or $1.57 per share, in the fourth quarter of 2016.
The S&P Capital IQ consensus normalized EPS estimate for the quarter was $1.41.
On a GAAP basis, net earnings were $244.3 million, or 46 cents per share, down from $417.5 million, or 78 cents per share, for the prior-year period.
Total revenue of $3.24 billion was down 1% from $3.27 billion a year earlier. Third-party net sales for the quarter were $3.19 billion, compared with $3.22 billion for the year-ago quarter, a decrease of $31.8 million.
In the North America segment, third-party net sales were $1.30 billion, down $262.1 million or 17% from the prior-year quarter. Mylan cited a decline in sales of existing products due lower pricing and volume, which was partially offset by new product introductions.
The price erosion in Mylan's generic-drug business in North America was higher than in previous quarters, including the impact of the loss of market exclusivity of blood pressure drugs olmesartan and olmesartan HCTZ, the company said.
The sales of Mylan's EpiPen Auto-Injector for severe allergic reactions dropped by $131.9 million in the fourth quarter due to the launch of an authorized generic, higher rebates to government payers arising from the company's $465 million settlement agreement with the U.S. Department of Justice and other agencies related to the classification of EpiPen for purposes of the Medicaid drug rebate program and increased competition.
According to the company, the decline in third-party net sales for North America was offset by growth of 16% and 12% in Europe and the rest of the world, respectively, primarily driven by the introduction of new products. The rest of the world segment also saw higher net sales from the anti-retroviral or HIV treatment franchise and higher sales in emerging markets.
Third-party net sales in Europe totaled $1.1 billion in the fourth quarter, while net sales in the rest of the world totaled $815.7 million.
Full-year results
Adjusted net earnings for 2017 were $2.44 billion, or $4.56 per share, a 4% decline from $2.55 billion, or $4.89 per share, in 2016. The S&P Capital IQ consensus normalized EPS estimate for 2017 was $4.53.
On a GAAP basis, net earnings were $696.0 million, or $1.30 per share, for the year, up from $480.0 million, or 92 cents per share, a year ago.
Total revenue of $11.91 billion was up 8% from $11.08 billion in 2016.
Outlook
For the full year 2018, the company expects total revenue between $11.75 billion and $13.25 billion, with adjusted net earnings of $2.70 billion to $2.90 billion, or $5.20 per share to $5.60 per share.
The S&P Capital IQ consensus normalized EPS estimate for 2018 is $5.39.
