Mylan Inc. (MYL), which operates in multiple countries across the globe, is one of the leading players in the generic space. Generics represent a lucrative opportunity for companies in the pharma/biotech space with a large number of high-value branded pharmaceuticals having lost market exclusivity and many more slated to do the same in the next few years.
Apart from the focus on generics, the spotlight on emerging markets is also highly prevalent in the above-mentioned space. Many large companies including Mylan are looking to expand their presence in lucrative emerging markets like India and Brazil.
In a move commensurate with the company’s objective to focus on such lucrative markets, Mylan announced the appointment of Rakesh Bamzai from the India-based Biocon Ltd. Bamzai will be responsible for Mylan’s commercial activities in India and other emerging markets. The recruitment of Bamzai as president India commercial and emerging markets is expected to create significant value addition to Mylan given his vast experience as president of Biocon’s marketing wing. Furthermore, Bamzai’s vast knowledge about the Indian and global biopharmaceutical market should stand Mylan in good stead.
We note that Mylan is no stranger to Bamzai and Biocon. In 2009, Mylan inked a deal with Biocon to develop a biogenerics portfolio with five products. The agreement was extended in 2013. Mylan’s familiarity with Bamzai’s style of operation is expected to be mutually beneficial.
The first approval for a biosimilar emanating from the Mylan-Biocon deal was gained late last year when the Drug Controller General of India cleared the companies’ biosimilar version of Roche's (RHHBY) breast cancer drug Herceptin (trastuzumab). Mylan intends to sell the drug under the trade name Hertraz following its Indian launch. Biosimilars are generic versions of biologics.
Mylan’s acquisition of Agila Specialties private limited – the injectable drugs division of India’s Strides Arcolab limited – in Dec 2013 also highlights Mylan’s focus on India. The acquisition has strengthened Mylan’s presence in the high potential generic injectables market.
Mylan carries a Zacks Rank #3 (Hold). Better ranked stocks in the generic space include Akorn, Inc. (AKRX) and Impax Laboratories, Inc. (IPXL). Both these stocks carry a Zacks Rank #2 (Buy).
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