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Mylan N.V. Message Board

  • someonefromcambridge someonefromcambridge Nov 10, 2006 6:31 PM Flag

    Takeover Target

    As more main stream drugs are coming off patents in the next 2 years, I would think one of these generic companies would get bought out. Especially with COngress looking into the practice of pharma companies paying off generics to delay launch. Mylan, Teva, Barr?? One of these companies will get bought out. Which one??

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    • With the Dems. coming into power there will be increasing pressure on the primary drug companies to cut prices... Pfizer, Merk, Astra, SGP, Roche, BMY, etc... will all be on the lookout for a company that can sell at lower costs. Mylan's generic lines and its pipeline will certainly garner interest.

      • 1 Reply to markitcorrect
      • Mylan is not and will never be a take over target. Big Time Poison Pill!

        Remember, how Carl Icahn tried and failed to control this company? I wouldn't buy this stock and look at as a take over possibility. So, don't get your hopes up. This Management Team doesn't care about quick buck artists or Wall Street analysts. If you should wish for anything. Wish that Coury gets the boot. Any bad news is brutal. Good news is a reason to sell.

        However, $1.38/share will be recognized and rewarded. That's why I'm in.

    • Although big pharma is in trouble accross the board with patients expireing, the chance is slim they'ed shell out the loot required for MYL. But I don't have any idea why investors aren't giving MYL the respect/value it's worth. Was there a huge cash dividend earlier in the year, or late last year? Shortly after BIIB got slammed, I think...
      Also, this drug that got recently got approved; from what I understand it takes nearly a billion bucks to get a drug approved. Was that spending included in previous earnings? And isn't now the time of reapping the reward of all that was spent? I'm not pumping, just saying why I bought in. I have a feeling were going to be in limbo for a while though...bouncing between high 19 to low 21. Actually, I already did great this year and see MYL as somewhat a safe hidding place.

      • 1 Reply to dft39
      • Please do everyone a favor and do some basic research on an industry before you start posting stuff. Mylan is a GENERIC drug company, they did NOT spend "...nearly a billion bucks..." to get oxybutynin approved. They probably spent in the neighborhood of $15 million, yes million with an "M", for the bio-equivalence clinical studies and lawyers to fight the patent infringement suit. That's how GENERIC drugs work, they are allowed to use the Phase I-II-III clinical studies performed by the original developer of the drug - the big boys, i.e. Pfizer, Ortho-McNeil, Novartis, and so on. All of Mylan's costs for bringing Oxybutynin to market have been contained in the R&D and G&A line items of their financial reports for the last 4 years or so, along with a load of other drugs as well.

        All that aside, yes they will make a lot of money from oxybutynin. Most people dont' realize that most drugs actually cost very little to manufacture, on the order of pennies per dose. Most of the expense is in discovering them and getting them initially approved. But that expense is borne by the big brand name companies, and they recover that expense by charging $2-3 dollars a dose for drugs that may only cost them $0.05-0.10/dose to manufacture. Federal law and regulation gives them a period of market exclusivity to allow them to recover the cost of the up-from R&D and clinical studies. Generic companies make their money by challenging the drug patents or waiting for them to expire and then selling the same drug at greatly reduced price.

        Go to the FDA's website, click on the link for "Drugs" on the left-hand side, and then click on the link for "Consumer Education/Information" in the middle of the page. They have a primer there on the generic drug industry and how approvals (called ANDA's) are obtained.

        Also, there wasn't a huge cash dividend, Mylan has paid a regular quarterly dividend for decades. They recently increased it to $0.06/share per quarter, and there have been a number of stock splits, but no special dividends.


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