Mylan in July made a $463 million agreement for the worldwide rights for a commercial product.
- The deal wasn’t formally announced to the public and investors via a news release, and wasn’t discussed as part of the company’s second quarter earnings on August 8. Mylan also didn’t disclose the name of the product in regulatory filings.
- “We believe that investors should know more about the details of this deal, especially given its size and if it is accretive, it may mean that Mylan’s 2018 guidance lowering may be more conservative than anticipated,” Wells Fargo analyst David Maris, who first spotted the deal, said in a note Wednesday.
It’s not every day that a half-a-billion-dollar deal flies under the radar.
EpiPen-maker Mylan on July 30 struck a $463 million deal for the worldwide rights to a commercial product, but didn’t announce the deal to its investors via a press release — as is typically done with sizable transactions.
The deal, expected to close in the second half of 2018, largely escaped notice until Wednesday when Wells Fargo analyst David Maris discovered the mention buried in Mylan’s second quarter earnings quarterly filing from August 8th. Mylan also did not disclose the name of the company or product that it was entering into an agreement with.
“We believe that investors should know more about the details of this deal, especially given its size and if it is accretive, it may mean that Mylan’s 2018 guidance lowering may be more conservative than anticipated,” Maris said in the note.
Mylan, which has a market cap of around $20 billion, frequently acquires the rights to drugs and typically details them to investors.
Mylan missed on its earnings last week, and its stock dropped as much as 7% after markets. Mylan said at the time that the company would undergo a strategic review due to a tough environment for generic drugmakers. The company has been under scrutiny by state attorneys general over generic drug price fixing, and has faced EpiPen shortages in the last year.
Representatives from Mylan did not immediately respond to a request for comment and more details about the deal.