Heather Bresch, CEO of pharmaceuticals giant Mylan, has been interviewed on CNBC last friday, two days after the firm’s stock price spiked sharply after the company reported adjusted earnings per share of $1.57, which beat a Thomson Reuters consensus estimate of $1.42.
According to Bresch broad diversification is helping the company “shine” right now — in contrast to some of its competitors, and despite President Trump has complained about high drug prices. Indeed, asked how she squared the fact that Mylan’s stock has risen by more than 20 percent since the election of Donald Trump, who has vowed to drive drug prices lower, Bresch said: “Because we are primarily a generic [drug] company,” and “90 percent of prescriptions [in the U.S.] are generic.”
The CEO has underlined the streght points of Mylan company: “We have over 630 products here in the United States, last year, we sold 22 billion doses. One out of every 13 scripts in the United States is filled with a Mylan medicine, more than the seven [other] largest pharmaceutical companies combined.”
One more important aspect for Mylan CEO is that “inside the United States we are extremely diversified and [have a] differentiated portfolio. We don’t have product that makes up more than 5 percent of our revenue.”
Bresch carries on undelying how much important is not only to devisify the portfolio but also geographically wise: Mylan has fifty percent of its revenues coming from outside the United States. This explains, according to the Bresch, how come Mylan’s stock price was performing much better than other companies that also were heavily focused on generics, such as Perrigo: “just operating in one country, like the United States, your ability to absorb the volatility is much less”.