Mylan NV Q2 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 morning, thanks for taking my questions. I have a quick couple. Would you comment on your alternatives just in case the Perrigo transaction does not go through? And on your lower threshold, would you find an impact on your credit rating there just in case that comes to fruition from a lower threshold point of view? And second on Copaxone, is your pushing out of the product out of 2015 based on a specific target action date receipt? Thanks.

Question: Gregg Gilbert - Deutsche Bank - Analyst : Thanks. Can you hear me okay? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 06, 2015 / 2:00PM, VTRS.OQ - Q2 2015 Mylan NV Earnings Call

Question: Gregg Gilbert - Deutsche Bank - Analyst : A couple for you, John. First, can you discuss those new customer agreements that led to the new payment terms? Is that for all major customers in the US or the big buyer groups? Were there price concessions involved? In exchange, do you get any enhanced visibility or is it the classic case of the big buyers get what they want? Secondly, can you comment on trade inventory levels at the end of the quarter versus the last quarter, end of the year, whatever you can provide. And lastly for Heather, I appreciate your comments about there being other targets out there. I was going to ask if the Perrigo vote fails, or if someone else comes along for Perrigo and pays a bigger price, how quickly can you mobilize your financial resources and move on other transactions? Thanks.

Question: Ronny Gal - Bernstein - Analyst : Good morning. Thank you for taking my question. Can you just give us a feel for how you're modeling Nexium contribution? Is this a month, a three months, or until the end of the year trajectory? When are you assuming additional payers coming just so we can understand the contribution here to the model? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 06, 2015 / 2:00PM, VTRS.OQ - Q2 2015 Mylan NV Earnings Call And second, can you discuss, are there any complexities associated with reducing the share of Perrigo, in case there's some Perrigo shareholders listening. When you reduce their acceptance rate from 80% to 50%, if the result is in that range, 50% to 80%, how does that add complexity, or not, to your ability to close the deal versus a result that will be above 80%?

Question: Elliot Wilbur - Needham & Company - Analyst : Thanks. Good morning. Just a quick question, I guess, relative to sort of external expectations around the Perrigo deal. Obviously, when you first announced it there was a very strong initial brace of the industrial logic that you guys had outlined around the transaction. Obviously, you've been out and about meeting with a lot of investors since that time. And I'm just wondering, it seems like confidence has sort of waned in the transaction just sort of judging by Mylan stock price. I'm wondering sort of based on your read in the investment community, do you think it's a function of the fact that people were overly fixated on the Teva transaction, maybe not paying enough attention to the standalone merits of the Mylan Perrigo combination, or do you think it is a function more of unique considerations around the transaction that have sort of led to now a rather pronounced slippage, I guess, in term of Mylan's equity value versus the time when the transaction was first announced. Thanks.

Question: Umer Raffat - Evercore ISI - Analyst : Hi, guys. Thanks for taking my question. Heather, would you consider buying back stock if it stays at current levels and do you have the flexibility to do that while Perrigo is ongoing? John, what's the year-on-year organic growth rate on revenues adjusted for FX? What drove the $500 million move in accounts receivable? Thank you.

Question: Andrew Finkelstein - Susquehanna Financial Group / SIG - Analyst : Thanks very much. I was hoping you could talk a bit more about the outlook with EpiPen, in particular why you still anticipate the possibility of a generic in 4Q in the guidance. Was that part of the contribution to the increase in the range of guidance for the year? And then if you look in to REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 06, 2015 / 2:00PM, VTRS.OQ - Q2 2015 Mylan NV Earnings Call formulary coverage and pricing for next year, as some of the exclusion lists come out and where your contracting has been, if there is no generic, where would you expect share and net pricing trends to come out for next year?

Question: Jami Rubin - Goldman Sachs - Analyst : Thank you, just a couple questions. Heather, what do you mean in your press release and your prepared remarks by saying that you expect potential opportunities on the horizon? I mean, don't most companies expect potential opportunities on the horizon? Could you just clarify that a bit more? And maybe, Rajiv, if you could talk about the upcoming IPR decision related to Copaxone 40, what we should anticipate, how you expect the legal road map to look like there? Thank you very much.

Question: Jami Rubin - Goldman Sachs - Analyst : So that's not related to a specific M&A opportunity?

Question: Marc Goodman - UBS - Analyst : Good morning. So Rajiv, you have talked about Copaxone. I just want to make sure I understand. You said you got feedback from the FDA and in those comments there were not any concerns around the sameness of your products. So there obviously were some other issues. Can you tell us what they were? Were they just minor procedural things that you quickly gave responses to and you feel really comfortable that the FDA has now gotten everything that they need? Were the things they asked, were they surprising? I'm just trying to understand. I think we can understand why you would take it out of this year's numbers to be conservative, but it doesn't seem to make sense that you would be taking it out completely given the commentary there. And then second, Heather, maybe you can just talk about some of the key markets in Europe and the performance there, France and Italy. You mentioned the volumes and stuff. How is the pricing environment? What's going on with market shares? And mention the UK as well. Thank you.

Question: Douglas Tsao - Barclays Capital - Analyst : Hi, thanks for the question. First Rajiv, maybe if you could provide a little more detail on the status of the Advair program. I think you indicated you'd be able to file the ANDA by the end of the year. Maybe when you would be able to -- showing or plan to, if you plan to show the phase III REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 06, 2015 / 2:00PM, VTRS.OQ - Q2 2015 Mylan NV Earnings Call clinical trial results from that program? And then John, if you could provide an update on the pricing environment in the base generics business right now. Thank you.

Question: Louise Chen - Guggenheim Securities LLC - Analyst : Hi, thanks for taking my question. First question I had was on Mylan as a standalone. Curious what your strategic priorities are for this year and beyond this year. Maybe you could refresh us on that one. Secondly, you had mentioned you don't have to have Perrigo. If it's not Perrigo, what other areas are you interested in? Is it still generics? Is it brand? US OUS? Any color would be greatly appreciated. Thank you.

Question: Jason Gerberry - Leerink Partners - Analyst : Hi, good morning. Thanks for taking my question. First question for Rajiv, on the Advair competitive landscape, any visibility into other companies that were recruiting patients to run these equivalent studies? You guys are the most open and visible about your development updates, so just curious if you have any intelligence in terms of any other companies that might be on a similar timeline with you guys. Second question for Heather. As you think about the evolution of the generics industry with the Teva Allergan combination, just kind of curious how you think that competitively impacts your business, if you think there's any risk to that deal closing. I know you guys raised some anti-trust issues with the Teva Mylan combination and given Allergan's book of business is pretty comparable in size. Just kind of curious how you think about that issue. Thanks.

Question: Emil Chen - Morgan Stanley - Analyst : Hi, this is actually Emil Chen on for Dave Risinger. Thanks for taking our question. John, earlier you mentioned the pricing environment globally is relatively stable, and apologies if I missed it, but could you comment again specifically on the US generics pricing environment. Secondly on EpiPen, what are the prospects for any potential future price increases? Thank you.

Question: Emil Chen - Morgan Stanley - Analyst : Great. Thank you.