Investing.com - Mylan slumped Wednesday, sending healthcare stocks into the red after the pharma giant delivered earnings and guidance that fell short of estimates.
Mylan (NASDAQ:MYL) reported fourth-quarter earnings of $1.30 a share, missing estimates from Investing.com for earnings of $1.35 a share. Revenue of $3.08 billion beat estimates of $3.07 billion, but shares fell more than 11%.
The earnings miss was driven by a 16% decline in the drugmaker's North America segment, which accounts for 36% of total sales, on lower volumes and lower prices of biosimilar drugs.
Biosimilar drugs are generic versions of expensive biologic drugs, which treat diseases like cancer, multiple sclerosis and diabetes.
Mylan this month launched its generic version of GlaxoSmithKline's (NYSE:GSK) blockbuster asthma treatment Advair at a price 70% lower than the branded medicine.
Regulators in the U.S. have been calling on drugmakers to speed up the pace of developing biosimilar drugs in hopes that increased competition will lead to lower drug prices.
For 2019, Mylan said it expects revenue in a range of $11.5 billion to $12.5 billion and adjusted earnings of $3.80 to $4.80. Current consensus expectations were for revenue of $11.87 billion and earnings of $5.02 a share.
Mylan's slump sent WellCare Health Plans (NYSE:WCG) and UnitedHealth Group (NYSE:UNH) down more than 4%, keeping the overall healthcare sector below the flatline.