Mylan (MYL): Cutting Ests On Continued Headline Risk - RBC
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RBC Capital analyst, Randall Stanicky, reiterated his Sector Perform rating on shares of Mylan (NASDAQ: MYL) but cautioned investors that headline risk is likely to remain with the company for some time.
The analyst stated "Epipen headline is not going away with House Oversight and Government Reform Committee investigation underway despite moves by MYL to appease critics. MYL has now announced (i) that "net pricing" for Epipen had been $274 (with channel realizing the remaining $334 of $608 list price) (ii) on 8/25 expansion of its patient access programs via savings cards of up to $300 and doubling of eligibility for the patient assistance program and (iii) on 8/29 that it will be introducing a generic Epipen at a "list price" of $300. While generic share and effective "net" pricing is unclear, we are lowering our gross-to-net assumptions which drives our EPS lower by $0.22 and $0.15 in 2017-18 (-4% and -2%) and we are lowering our price target to $48. Overall, each 10% hit to Epipen revenue impacts EPS by $0.14 or 3%."
The price target is cut to $48 from $52.
Shares of Mylan closed at $39.97 yesterday.
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