Mylan Inc. Q2 2009 Earnings Call Transcript

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2009-07-30 10:30:38.0

Tags: France, Call Transcript, Earnings, UBS AG, Mylan Inc., Pricing, Government, Marketing Research, Federal Government, Marketing, Seeking Alpha

Question-and-Answer Session

Operator

Thank you. Today’s question-and-answer session will be conducted electronically. (Operator instructions) And we will move to Marc Goodman with UBS.

Marc Goodman - UBS

Yes, good morning everybody. Can you give us a little more on what’s going on in France? It’s such an important market for you. We’ve heard from other people that there are some issues going on there with respect to growth that the government is still in?

Heather Bresch

Sure. As you say, France is one of our key drivers in Europe and we are actually holding right at 30%, 31% market share in France. And as I mentioned have several very important launches coming in the second half of this year, and then almost 400 launches next year throughout EMEA.

So we have, as there continues to be some pricing pressure, we have continued to have our volumes increased with the utilization slowly increasing. So overall, our business there is very strong. And as I mentioned, a lot of opportunity -- as we continue to accelerate our synergies and strengthen that platform of vertical integration.

Marc Goodman - UBS

Is the pricing pressure that you’re seeing there normal or is this an unusual year?

Robert Coury

I would say it’s more a transition that you would expect as a country in a -- moves more towards increased generic utilization. I would say France is probably one of the more responsible countries, certainly that we have seen, during this transition. I think that they have made a conscientious concerted effort not to flip the switch, but to transform, I think in a more responsible way, between the type of prices they think is appropriate and more importantly increase in their generic utilization.

Marc Goodman - UBS

Yes. Let me just ask one more question which is, you are part of the growth that you’re expecting obviously in the second half of the year and in the next year in the United States. Is new products getting approved and the FDA is obviously guiding their peak relative to, let’s say, a year ago or two years ago with timelines that need approvals. So have you factored in a little bit longer timelines for expected approvals in your guidance?

Heather Bresch

We have and we have factored in longer approval times. And now our total count is slightly under than what we had originally envisioned. The revenue that we’re generating from our current launch has exceeded our expectations. And we have factored in a relevant cushion as far as, not only in time, but probability waiting that product mix in the contribution that the different kind of products depending on the competition that they may or may not face in the market place.

 

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