Mylan’s NZ unit profit soars as sales growth outpaces costs

One of New Zealand's largest pharmaceutical companies has a specialty in generic lines.

Mylan New Zealand, the local unit of the world's third-largest generic-drug maker, boosted profit by two-thirds last year as sales growth outpaced expenses.

Profit rose 62 percent to $9.4 million in the 12 months ended December 31, the Auckland-based company says in accounts filed with the Companies Office. Revenue jumped 18 percent to $54.7 million, while the cost of sales advanced 10 percent to $35.6 million, according to the company accounts.

Mylan NZ managing director Lloyd Price declined to comment on the accounts. The local unit is one of New Zealand's largest pharmaceutical companies and specialises in generic lines, according to its website.

Canonsburg, Pennsylvania-based Mylan increased total revenue 11 percent to $US6.8 billion in 2012 and says sales may rise by as much as 9 percent this year. Sales have been boosted in recent years as lacklustre economic growth spurred demand for lower-cost health options including generic versions of drugs.

The New Zealand unit benefited from a $147,000 foreign exchange gain last year, compared to a $123,000 loss in 2011, the accounts show. The New Zealand dollar appreciated about 6.3 percent over the year against the US dollar.

Mylan ranks behind Novartis's generic arm Sandoz and Teva Pharmaceuticals Industries in global sales of generic drugs.

The company's Nasdaq-listed shares have gained 15 percent this year, valuing Mylan at $US12.02 billion.

(BusinessDesk)

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