Mylan’s New Zealand unit boosts profit by two thirds as sales growth outpaces costs

Tuesday 18th June 2013

Mylan New Zealand, the local unit of the world’s third-largest generic-drug maker, boosted profit by two-thirds last year as sales growth outpaced expenses.

Profit rose 62 percent to $9.4 million in the 12 months ended Dec. 31, the Auckland-based company said in accounts filed with the Companies Office. Revenue jumped 18 percent to $54.7 million while the cost of sales advanced 10 percent to $35.6 million, according to the company accounts.

Mylan New Zealand managing director Lloyd Price declined to comment on the accounts. The local unit is one of New Zealand’s largest pharmaceutical companies and specialises in generic lines, according to its website.

Canonsburg, Pennsylvania-based Mylan increased total revenue 11 percent to US$6.8 billion in 2012 and said sales may rise by as much as 9 percent this year. Sales have been boosted in recent years as lacklustre economic growth spurred demand for lower-cost health options including generic versions of drugs.

The New Zealand unit benefited from a $147,000 foreign exchange gain last year, compared with a $123,000 loss in 2011, the accounts show. The New Zealand dollar appreciated about 6.3 percent over the year against the US dollar.

Mylan ranks behind Novartis’s generic arm Sandoz and Teva Pharmaceuticals Industries in global sales of generic drugs. The company’s Nasdaq-listed shares have gained 15 percent this year, valuing Mylan at US$12.02 billion.

BusinessDesk.co.nz

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