* CEO: Tax-inversion deals do not stop companies paying US
* CEO: Mylan looking at additional "strategic" deals
* Co cuts top end of 2014 profit, sales outlook
* Expects key drug launches in fourth quarter despite FDA
(Adds CEO comment, conference call details; updates shares)
By Natalie Grover
Aug 7 Political opposition to tax-inversion
deals will not stop Mylan Inc's purchase of some
non-U.S. businesses from Abbott Laboratories, Chief
Executive Heather Bresch said, even as some companies have
backed away from such tax arrangements.
Mylan is looking at further "strategic" deals in the near
future, Bresch added on Thursday, as the company trimmed the top
end of its revenue outlook for the year - sending its shares
down as much as 5.3 percent.
Mylan's deal to buy Abbott's specialty and generics business
in developed markets outside the United States will move its tax
address to the Netherlands, cutting costs because of lower
corporate tax rates there.
President Barack Obama and a string of lawmakers have
opposed such tax inversions and pledged action to discourage
them but Bresch played down the risk.
She said it would be challenging to change the U.S. tax code
to stop inversion without punishing other foreign companies,
which would hit the health sector as nearly half of the drugs
and medical devices sold in America come from elsewhere.
"Being punitive and not allowing us to be competitive, I do
not believe, is in our country's best interest, and I hope that
prevails at the end of the day," Bresch told analysts on a
post-earnings conference call.
"We're obviously continuing to pay U.S. taxes, as well as a
lot of these foreign companies are paying U.S. taxes and
creating U.S. jobs."
The Abbott deal, announced in July, gives Mylan access to
Abbott's specialty and generics business as well as moving its
Nine tax-inversion deals have been agreed by U.S. companies
this year although drugs retailer Walgreen Co decided
not to move offshore in its full takeover of Europe's Alliance
Boots, following fierce criticism of the practice.
Meanwhile, Mylan is still out shopping. Bresch raised the
prospect of other deals even before the completion of the Abbott
deal, due early next year.
"There's a lot of opportunities out there, and we are
looking at everything," she told analysts.
Operationally, Mylan was more downbeat as it shaved the top
end of its revenue and earnings forecasts for this year, citing
delays in approval from the U.S. Food and Drug Administration
for key generic drugs that it plans to launch this year.
A generic version of Teva Pharmaceutical Industries Ltd's
multiple sclerosis treatment, Copaxone, and
Pfizer Inc's blockbuster Celebrex, an anti-inflammatory
treatment for arthritis, have both been delayed by the FDA.
Mylan said it still expected to launch them in the fourth
quarter, adding that a delayed launch of Copaxone to next year
would not affect its updated revenue and profit forecast for
The drugmaker forecast full-year 2014 revenue in a range of
$7.8 billion to $8.0 billion and earnings of $3.25-$3.45 per
share, a forecast that includes a fourth-quarter launch of
generic Copaxone and Celebrex.
It had earlier forecast full-year revenue of $7.8 billion to
$8.2 billion and earnings of $3.25-$3.60 per share.
Analysts on average expect full-year 2014 earnings of $3.37
per share on sales of $7.7 billion, according to Thomson Reuters
Mylan posted a second-quarter adjusted net profit
attributable to shareholders of $273.3 million, or 69 cents per
share - a penny shy of the average analyst estimate.
Mylan shares fell as low as $45.36 before recovering much of
their lost ground to trade on the Nasdaq at $47.63 by early
(Editing by Rodney Joyce and Kirti Pandey)