Mylan 1Q loss widens on impairment charge, shares fall

PITTSBURGH—Generic drug maker Mylan Inc. Thursday said its first-quarter loss widened due to a $385 million noncash goodwill impairment charge related to its specialty business, though adjusted results beat analyst expectations.

The company lost $409.2 million, or $1.46 per share, compared with a loss of $71.3 million, or 31 cents per share, in the prior-year period.

Revenue, however, soared 120 percent to $1.06 billion from $483.7 million in the first quarter of 2007.

Excluding the impairment charge and other items, adjusted earnings were 28.3 million, or 9 cents per share, compared with $106 million, or 47 cents, in the prior-year period.

Analysts polled by Thomson Financial expected, on average, a profit of 8 cents per share on revenue of $1.13 billion. Analyst estimates typically exclude one-time items.

Mylan's large revenue growth is in larger part due to its acquisition of the generics business of German drug maker Merck KGaA in October.

In February, the company announced that it was looking to divest Dey LP, its specialty business. That announcement led to the goodwill impairment charge.

Shares of Mylan fell 19 cents to $12.27 in after-hours trading. During the regular trading session, shares fell 35 cents, or 2.7 percent, closing at $12.46.