Mylan NV Q4 2015 Earnings Call Summary

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

Question: Chris Schott - JPMorgan - Analyst : Great. Thanks very much for the questions. I guess, just two here. First, what type of organic growth should we expect from the Meda assets over the next few years? I think this is a business where first, all of us, just trying to get the hands around. And just how fast do you think you can grow the top line for these acquired assets? And the second one, is just to elaborate on the price paid here? It does seem like a large premium, particularly in this market. I know it's strategic, I know it brings accretion. But just again, can you just -- how did you get comfortable with this type of price, given current market dynamics out there? Thanks very much.

Question: Chris Schott - JPMorgan - Analyst : And I think, Heather, you answered it. But the -- because the question, the other part of the question is not so relevant, (inaudible) standalone. On the top line, it's 3% growth, of projected growth, and 5% growth on the EBITDA. But as Heather mentioned, that's not much relevant, because the pulling effect we see between our RX, GX, OTC channels are leveraging our -- this platform from the geography's point of view, exciting opportunity. It's presence also on the emerging markets. So we see a lot more to this, than just standalone growth of 3%

Question: Jami Rubin - Goldman Sachs - Analyst : Thank you. Just to follow-up on the question concerning price, Heather. It does seem like a lot of money to pay just to accelerate your earnings growth to $6.00 by 2017. Can you now update your 20 -- I think you had said before, you expect to do at least $6.00 by 2018. Now with Meda in hand, can you at least sort of update what you expect the earnings progression to look like with this asset in hand over the next three years, say out to 2020? That would helpful? And also John or Heather, can you just enlighten us on what exactly happened with EpiPen this quarter, in terms of the pricing dynamics? You had mentioned that you expected those dynamics to continue into 2016. What changed? Thanks very much

Question: Ronny Gal - Bernstein - Analyst : Hi, good afternoon, good evening. Thank you for taking my questions. I have two, and just two points that puzzle me. And I'm sorry, I am kind of [treading] it a little bit, on what people have said already. If I -- you are spending about $10 billion on Meda, and your market cap is about $25 billion today. So you're generating about10% accretion level, where if you just had taken a similar amount of money and bought back shares, you would have generated -- you would have bought 40% of your share count. So yes, maybe it's not that efficient. But it looks like there's a huge -- a mis-adjustment here, between what you can do with the shares, buying back shares, rather what you can do with your transaction. So I'm kind of struggling with this. Unless you are seeing some fantastic growth going forward for Meda asset, it is hard for me to see it working. Then if you don't mind two, I'll sneak in two more. On EpiPen, I distinctly remember a conversation with the management team, including Robert, when I was told specifically by you guys that now -- that Auvi-Q is out of the market, you are in a great position to drive a higher net price from EpiPen. So is this -- if you can comment more broadly on what has changed from that perspective? And last, and this more for Rajiv, Rajiv, you guys kind of mentioned -- or Tony -- you guys kind of mentioned a beachhead, an additional market. I kind of took a look through the Meda statements, a presentation for third quarter. I mean, they got $[60] million in (inaudible) Mexico, if we just take the third quarter multiply by 4. They got $30 million in Russia. It sounds like all those businesses are kind of like border-line profitable. Is that enough of a beachhead for you? It doesn't -- it sounds like it will take several years before you guys can really turn those businesses into profitability?

Question: Gregg Gilbert - Deutsche Bank - Analyst : Yes, I've a few. Hopefully quickies, easy ones. First of all, you have mentioned a couple times you submitted (inaudible) Advair. Can you comment on whether it's been accepted or not for filing? And secondly, Heather and Tony, any change in pricing dynamics in the US generics market late last year, early this? I know you are forecasting a similar to how you've done it in the past, but any interesting sort of color you can provide on whether things are changing on the margin or not, or have changed? That would be helpful. And lastly, Heather, what are your M&A priorities? I know we just announced a new deal, but the Company has gone to great lengths to talk about continued flexibility. So are we looking to just shop for a while, but not buy? What are your priorities over the next 6 to 12 months on M&A, beyond convincing folks that Meda is the right deal? Thanks.

Question: David Risinger - Morgan Stanley - Analyst : Yes, thanks very much. So my question is on EpiPen, and then, the guidance, please. With respect to EpiPen, obviously the sales growth was dramatically below the RX growth due to pricing. My question is, with respect to the contracts that you mentioned, Heather, maybe you just could provide a little bit more color on the length of those? I'm assuming that you may have contracted more aggressively, to potentially blunt the risk of a Teva generic EpiPen launch? Just wondering if that is a realistic assumption that I'm making, that you were considering that when you priced more aggressively? And then just a quick tidbit of a question, in terms of your $6.00 number for 2017, does that include an assumed launch of generic Advair? Thank you.

Question: Douglas Tsao - Barclays Capital - Analyst : Hi, good evening. Thanks for taking the questions. Just Heather, you've spoken about wanting to be a consolidator in the industry. And we've seen with first Perrigo, and then obviously with this deal -- the Perrigo offer, and then this deal sort of moving to OTC. Just curious in terms of how you are defining consolidator? I mean, should we be thinking within generics, or more broadly outside of generics? And then, just also a couple -- another follow-up in terms of the thinking behind the partnership with Momenta, and maybe talk a little bit about what they can provide, that you couldn't get from your ongoing partnership with Biocon? And then just one -- maybe John, if you could provide some commentary on the trends in EPD versus the third quarter on a constant currency basis? That would be great. Thank you.

Question: Sumant Kulkarni - BofA Merrill Lynch - Analyst : Good evening. Thanks for taking my questions. First, what are your assumptions on timing of entry of generics in EpiPen? And on the potential re-entry of Sanofi's Auvi-Q? Second, could you breakdown on the components of synergies, and could you confirm if there's any revenue synergies built into $6.00 EPS target? And third, for Rajiv, has your RESTASIS [ANDA] been accepted for filing by the FDA?

Question: Marc Goodman - UBS - Analyst : Sorry, guys. Two questions. First thing is, Europe just seemed a little weak in total. I mean, even if you include FX, I was hoping maybe you just could give us some sense of what happened in some of countries, some of your key countries. And the UK, France, Italy, where were you strong, where were you weak just relatively? And then I just wanted to make sure we're clear on the US pricing. Can you just tell us in 2015 for the whole year, where did the base business US pricing come in? Was it flat for the year? Was it in fact, low to mid single-digit? I think what you were saying is, you started the year with 2015 guidance of low to mid single-digit decline. And that's why you're keeping the same guidance for 2016. But I'm curious, how did they come in 2015? And then just remind us, how did they come into 2014 for the full-year -- US-based business pricing? Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 10, 2016 / 9:30PM, VTRS.OQ - Q4 2015 Mylan NV Earnings Call

Question: Elliot Wilbur - Needham & Company - Analyst : Thanks. Good evening, and congratulations, Heather and team, on the Meda deal. I know that's an asset in your sites for a while. I guess, looking at combination of all of pieces, both geographically, in terms of assets fit, it looks like a very strong transaction for the Company. Obviously, there's concerns about price. But I want to focus on another issue, and just go back to some of Rajiv's commentary -- excuse me -- with respect to growth, and make sure that I understand this correctly. So the business basically currently is doing about $2.3 billion US, and then projected growth is around 3% top line, and 5% adjusted EBITDA? I want to confirm those metrics, see whether that adjusted EBITDA growth, in fact does include -- that's a fully synergized growth target? And then, just thinking about those metrics, while the asset is, or the purchase is accretive to numbers, and again strategically looks very attractive, I mean, it clearly is growth dilutive. So I'm just wondering, how you thought about that concept, relative to the potential impact on the valuation and multiple, versus the potential long-term attractiveness of the platform? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 10, 2016 / 9:30PM, VTRS.OQ - Q4 2015 Mylan NV Earnings Call

Question: Andrew Finkelstein - Susquehanna Financial Group / SIG - Analyst : Hi, thanks very much for taking the question. A couple clarifications on the guidance. When you talk about the ranges being valid with or without Meda, and you gave some quantification of the potential Meda contribution, I mean, is the whole range in consideration without Meda? Or should we think of the top end as being something, that would exclusively be with the deal? And then on the Momenta collaboration, could you clarify if the milestones that are going to be paid -- I think it's about $100 million this year, are those included in your non-GAAP spending or excluded? And then, if we think about the [20] -- excuse me -- if we talk -- back to the synergies, because if you go through how those were determined, and where there maybe opportunities for upside, as you get into the combined platform? Thanks very much. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 10, 2016 / 9:30PM, VTRS.OQ - Q4 2015 Mylan NV Earnings Call

Question: Tim Chiang - BTIG - Analyst : Hi, Heather. Could you talk a little bit about the international opportunity for EpiPen? I mean, I was looking at some of Meda's sales figures, and it looks like EpiPens -- I mean, it's not growing as much as it's -- it doesn't seem like it's actually growing. Could you talk about what you guys plan to do with EpiPen outside the US, to grow that product? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 10, 2016 / 9:30PM, VTRS.OQ - Q4 2015 Mylan NV Earnings Call