Mylan 3Q profit up 15 percent on generic sales

Oct 30 - Mylan Inc. said Thursday its third-quarter profit grew 15 percent due to sales from the Merck KGaA generic business, which it bought last year, and deferred revenue from the sale of a blood pressure drug.

Net income rose to $172 million, or 45 cents a share, from $149.8 million, or 60 cents a share, a year earlier. Excluding one-time gains, Mylan said its profit was $105.4 million, or 23 cents per share still much larger than analysts expected. Revenue more than tripled to $1.66 billion from $477.1 million a year ago. Most of that gain came from the Merck KGaA generic business, which Mylan bought in October 2007. Mylan gained $687.2 million in revenue from the Merck KGaA generic unit, which gave the company entry into the markets of Europe, the Middle East, Africa, and the Asia-Pacific region. It recognized $455 million in deferred revenue from the Bystolic sale.

Analysts Expectation:
Analysts expected a profit of 11 cents per share on $1.15 billion in revenue, according to Thomson Reuters. Those estimates typically exclude one-time items.

Full Year Outlook: Raised
The generic drug maker boosted its outlook for 2008, in part based on strong sales of its fentanyl pain product. It affirmed its outlook for the next two years. Mylan increased its full-year earnings-per-share forecast, excluding items, to a range of 64 cents to 67 cents, from a prior outlook of 47 cents to 53 cents.

Reaction of the Earnings:
Mylan shares were up $1.52, or 21.8 percent, at $8.50 in early New York Stock Exchange trading.