Investopedia: With Mylan, Maybe Smaller Is Better

Quite a lot of attention has gone to Teva (Nasdaq:TEVA) recently, as investors have tried to digest the impact of potentially greater competition in multiple sclerosis and the company's acquisition of Cephalon (Nasdaq:CEPH). While Teva has its own merits, investors may want to spend a little time on Mylan (NYSE:MYL), Teva's considerably smaller competitor. Though there is a risk that investors are underrating the patent challenges coming after 2013, growth and valuation may be more interesting here. 


A Solid Start to the Year
Most analysts seemed quite pleased with Mylan's results and that is something of a mixed bag itself - happy analysts are better than angry analysts, but Mylan is already a well-liked and widely-owned stock. Nevertheless, the company did report 12% overall revenue growth, with the company's small specialty pharmaceutical business adding a small above-trend kicker (up 14%). (For related reading, see Teva And Cephalon Solve Each Other's Problems.)

While U.S. revenue was up a very strong 22%, overseas performance was much more mixed. Growth of 10% (constant currency) was alright, but European revenue dropped 4% in constant currency. Mylan is presently suffering through some European government pricing cuts, and they are certainly not alone in this regard, but building overseas growth has often been something of a challenge here. 



Read the full piece at Investopedia:
http://stocks.investopedia.com/stock-analysis/2011/With-Mylan-Maybe-Smaller-Is-Better-MYL-TEVA-NVS-PFE-IPXL-WPI-IPCI0506.aspx