Mylan NV Q1 2015 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Sumant Kulkarni - BofA Merrill Lynch - Analyst : Good evening. Thanks for taking my question. So in the event that the Perrigo transaction goes through, how do you reconcile short-term shareholder value versus long-term shareholder value given that Perrigo pays a dividend? And then plan B, if Perrigo does not go through what's Mylan's next step?

Question: Gregg Gilbert - Deutsche Bank - Analyst : Thanks. Related to the Perrigo offer, can you talk to the ROIC metrics based on your proposal? And can you also talk about whether you were a bidder on Omega given you said that you've had some interest in OTC for some time? Thanks.

Question: Jason Gerberry - Leerink Partners - Analyst : Hi, good evening. Thanks for taking my question. Just curious if you can talk a little bit about how you went about valuing the Tysabri pipeline indications for Perrigo. Do you view those as upside to the offer that you put forward? Do you think this is something that potentially in future bids you might have to implement a CVR structure? Thanks.

Question: Andrew Finkelstein - Susquehanna - Analyst : Thanks very much for taking the question. Could you elaborate anymore in terms of -- you talked about not standing still. But as you look at the platform that you would have with Perrigo, what horizons might that open up that aren't available today? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 05, 2015 / 8:30PM, VTRS.OQ - Q1 2015 Mylan NV Earnings Call And then just in general as you evaluate deals and given your confidence in a hell or high water condition, how do you think that regulators are looking at reviewing consolidation within the pharmaceutical space, whether it's a product-by-product overlap or a larger analysis of concentration that would be helpful. Thanks.

Question: Jami Rubin - Goldman Sachs - Analyst : Hi, thank you. I just was wondering what happened to the European generic business? If I back out the impact from currency and the contribution from the Abbott business it looks like that business was down 8%. What's going on there? Is that an impact -- sorry, go ahead.

Question: Jami Rubin - Goldman Sachs - Analyst : So not all of the Abbott business was reported in that line? The Abbott business was -- part of that was (multiple speakers)?

Question: Michael Faerm - Wells Fargo - Analyst : Hi, thanks for taking the question. I have a general M&A question. While the Perrigo offer is pending should we expect to see other deal announcements? And if the answer is yes to that, how does the existence of the Perrigo bid impact the strategic and financial characteristics of other deals you might pursue in the meantime? For example, a lower cap on size or different fit considerations or otherwise?

Question: Chris Schott - JPMorgan - Analyst : Great, thanks very much. I guess my question is with regards to Perrigo is a question of why now right after you've completed your own inversion. It sounds like some of the commentary, both from your letter and from Perrigo's call a few weeks ago, it sounds like you guys had conversations about a year ago which officially didn't result in a transaction. [I guess I wonder] why does this deal make more sense today than it did a year ago for both parties?

Question: Umer Raffat - Evercore ISI - Analyst : Thanks for taking my question and thank you for laying out the proposition on the Perrigo deal. So can you quantify for us the accretion -- the peak accretion on the Perrigo deal if synergies vastly outperform the initial numbers you put out there? And then also, what is your confidence in getting a favorable shareholder vote based on your interaction with your shareholders for the Perrigo deal? Thank you.

Question: Ronny Gal - Bernstein - Analyst : Good afternoon and thank you for taking my question. I've got a couple. First, John, if you wouldn't mind breaking out for us the EPD sale by region, just so we can all back out the growth rate for each region. And second, can you detail for us the process that will take you here to a shareholder vote, both yours and Perrigo assuming that you need to go to their shareholders to get a vote? And can you comment a little bit about the issue of how would you argue this deal to your own shareholders? If I run my numbers the ROIC and accretion for the first three or four years is somewhat low. Or if you cannot discuss those numbers or this direction right now at what point would you be in a position to discuss them?

Question: David Risinger - Morgan Stanley - Analyst : Yes, thanks very much. My question is for John. John, you've obviously reported the first quarter and you've given second-quarter EPS guidance.

Question: Louise Chen - Guggenheim Securities - Analyst : Hi, thanks for taking my question. So just curious if you could comment a little bit more, maybe if you can't quantify it, just how to think about sales synergies for Perrigo and Mylan, the order of magnitude of those and then the timing of when you might expect to achieve those. Thanks.

Question: Randall Stanicky - RBC Capital Markets - Analyst : Great, thanks guys. Heather, even though we're talking about year four synergies, I'm assuming that there is a COGS component to that. Can you or did you quantify even directionally how much of a COGS savings opportunity there is? And then can you just help us with the immediately accretive to fully synergized numbers by year four? Should we be thinking that this is accretive in year four and not before or how should we think about that statement? Thanks.

Question: Marc Goodman - UBS - Analyst : Well, I will ask a few questions then. First EpiPen looked a little weak. Maybe you can give us a flavor for if there was anything unusual in the quarter. Are we still thinking $1 billion-ish for the year? Second, there really wasn't a lot of discussion around the O-US business. Maybe you could talk about some of the key countries. How did France do? How did Italy do? How was the India business versus the Australia business? Just give us a sense of going around the world. And then, John, I was a little bit confused by the way you answered one of the previous questions with respect to how much the Abbott business contributed. So like for instance with the rest of the world I thought you said that the base and then the EPD were both equal as far as the growth. So are you saying that the business went from [370] to [392] so $10 million was Abbott or $10 million was base? I'm a little confused. Thanks.