Mylan grows fourth quarter 2009 earnings and predicts strong profit growth ahead

US generic drugmaker Mylan has exceeded quarterly profit expectations thanks to a strong performance by its European and Asian divisions, and has forecast rapid earnings growth for the next few years. Mylan's fourth-quarter 2009 net profit reached $4.1 million, up from a loss of $54 million last year (a figure depressed by acquisition-related charges).

Revenue for the quarter overshot expectations, rising 12% year-on-year to $1.35 billion. Asia-Pacific sales jumped by a third to $309 million and the Europe, Middle East and Africa business grew sales by 29% to $481 million. These areas offset a 3% decline in North American sales caused by intensifying competition for its epilepsy drug levetiracetam.

'We are particularly encouraged by the performance of Mylan's international business in the quarter, which we view as a key driver of longer-term growth for the company', said JP Morgan analyst Chris Scott. For the full year, Mylan posted net profits of $93 million, up from a loss of $335 million in 2008, while revenue fell slightly to $5.1 billion. Revenue from generics rose to $4.7 billion from $4.3 billion.