EpiPen maker Mylan reported a first-quarter profit that edged past expectations, helped by demand for products of Meda, a Swedish company it bought earlier. Fred Katayama reports.
Mylan's first-quarter profit shot higher and edged past Wall Street's expectations. The generic drugmaker also backed its 2017 forecast. Adding to Mylan's good numbers - demand for products Mylan acquired when it bought the Swedish pharma company Meda. Mylan stock initially surged on the news, but later got pulled into the red by the broader market. Ross Gerber of Gerber Kawasaki Wealth and Investment Management. (SOUNDBITE) ROSS GERBER, GERBER KAWASAKI WEALTH AND INVESTMENT MANAGEMENT, (ENGLISH) SAYING: "I don't think very highly of Mylan. Unfortunately, this is a company that has had a long history of taking a tremendous amount of executive compensation from shareholders, overcharging for drugs, and in the case of the EpiPen, totally unacceptable business practice. So, although, earnings are good and they are making a lot of money, we expect Mylan to be under a lot of governmental pressure as well as many of the pharmas as we have to rein in healthcare costs." Analysts at Goldman Sachs say Mylan's affirmation of its 2017 forecast is a good sign. Especially considering it comes after the U.S. Food and Drug Administration's rejection of Mylan's generic version of GlaxoSmithKline's blockbuster asthma treatment, Advair. Mylan also said it's losing market share for its allergy drug EpiPen in North America. Last year, the company came under fire for sharply increasing the price of that product.