Mylan Spooks Investors With Surprise Plans For Higher 2019 Spending

27 Feb 2019

• By Sten Stovall

Investors sold shares in Mylan after its management unexpectedly announced that it would increase sales and marketing expenses significantly in 2019 to boost growth of complex products that are now a much bigger portion of the generic and specialty drugmaker's revenue.

RedArrow — Mylan Shares Slid When Management Announced Higher Spending Aims • Source: Shutterstock

Investors hate uncertainty, a fact underscored when Mylan NV's management during its fourth-quarter update said 2019 would see a big jump in R&D spending and higher selling, general and Aaministrative (SG&A) expenses, but left key questions unanswered about the drug makers' future portfolio, triggering a sell off in the group's shares.

Mylan's stock price was also weighed down by news the generic and specialty drug maker expected 2019 revenues to range between $11.5-12.5bn, which is essentially flat with 2017, and that 2019 adjusted earnings were expected to be between $3.80 to $4

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