May 11, 2020 / 12:50 PM / 16 days ago

Mylan beats profit on COVID-19 stockpiling, maintains forecast

(Reuters) - Mylan NV (MYL.O) beat analysts’ estimates for quarterly profit as it benefited from customers stocking up on its cold and asthma medicines ahead of lockdowns imposed to curb the spread of the coronavirus and maintained its 2020 revenue forecast.

Shares of the generic drugmaker were down 1% in early trading on Monday, tracking broader markets that opened lower.

The company also said it was on track to close its merger with Pfizer Inc’s (PFE.N) off-patent branded drugs unit, Upjohn, in the second half of the year after the pandemic delayed it due to restriction on gatherings.

The deal comes as Mylan’s new products, such as asthma drug Wixela and infection fighting drug Fulphila, struggle to gain traction while sales of its EpiPen emergency allergy treatment face pressure.

Mylan is ramping up production of an old malaria drug hydroxychloroquine, touted by U.S. President Donald Trump as a “game changer” in the fight against COVID-19, the respiratory illness caused by the virus.

The company said it was currently not facing any significant disruptions to its supply chain, including the availability of active drug ingredients, due to the outbreak, even as it delayed implementation of a 2020 restructuring program announced in February.

The drugmaker posted net earnings of $20.8 million, or 4 cents per share, in the three months ended March 31, compared with a net loss of $25 million, or 5 cents per share, a year earlier.

According to IBES data from Refinitiv, Mylan’s adjusted earnings came in at 90 cents per share, slightly ahead of the 86 cents estimated by analysts on average.

Total revenue rose 5% to $2.62 billion, falling short of estimates of $2.64 billion.

The quarter was boosted by higher demand for products such as Cold-EEZE cold lozenges and asthma drug Perforomist as the COVID-19 outbreak worsened in North America.

The company said it expects 2020 revenue in the range of $11.5 billion to $12.5 billion, assuming a resumption in global hospital visits in the second half of the year.

Reporting by Saumya Sibi Joseph and Trisha Roy in Bengaluru; Editing by Sriraj Kalluvila

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