Drugmaker Mylan NV (MYL, Financial) reported disheartening first-quarter results before the opening bell on Tuesday, sending shares lower in premarket trading.
The British pharmaceutical company, which also has offices in Pennsylvania, posted a $25 million net loss, or 5 cents per share, for the quarter. Adjusted earnings of 82 cents per share beat Refinitiv’s estimates of 79 cents, but were down 15% from a year ago.
Total revenue declined 7% from the prior-year quarter to $2.5 billion, missing expectations of $2.69 billion. The company attributed the mediocre performance to manufacturing problems and restructuring efforts at its Morgantown plant in West Virginia as well as a stronger dollar.
In North America, Mylan’s largest segment, sales fell 6% to $922.9 million, largely as a result of increased competition. Analysts were projecting sales of $952.43 million.
In a statement, CEO Heather Bresch said that while the industry is experiencing volatility in the U.S., Mylan is “leveraging past experience and applying key learnings to [its] largest launches.”
“We continue to manage an increasingly diverse portfolio of products across all three segments of our business, and given the evolution of our commercial and geographic mix see opportunities to enhance our investments for certain areas of our portfolio,” she added.
Weighed down by unfavorable foreign currency translation, lower volumes of existing products, temporary business disruptions and pricing, revenue for the company’s European division decreased 14% to $895.3 million. Analysts were anticipating sales to be $1.06 billion.
In contrast, revenue for the Rest of World business grew 3% to $642.4 million, driven by new product sales and higher volumes of existing products.
Mylan also reaffirmed its guidance for the full year. It expects revenue between $11.5 billion and $12.5 billion, adjusted earnings to range from $3.80 to $4.80 per share and free cash flow to fall between $1.9 billion and $2.3 billion.
With a $12.28 billion market cap, Mylan saw its stock tumble 17.57% to $23.29 on Tuesday morning. GuruFocus estimates the stock has fallen 13% year to date.
Disclosure: No positions.
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