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NEW YORK -(Dow Jones)- Shares of Mylan Laboratories Inc. climbed 7%
after an analyst at Furman Selz Inc. reiterated his "strong buy" rating
on the stock and praised the company's recent price increases.
In a research note issued earlier Thursday, analyst James Flynn also
cited the company's product pipeline.
Flynn, who visited the company Wednesday, and a Mylan spokeswoman
both said the reiteration was moving the stock price.
Mylan, which makes generic pharmaceuticals, has raised prices on
seven products in the past five months, Flynn said in the note. He said
the products could contribute close to $100 million in sales in fiscal
1999 ending March 31, compared with $10 million expected for fiscal
1998. He expects the price increase to boost earnings by 25 cents to 30
cents a share.
Additionally, several of Mylan's products are nearing milestones,
Flynn said. He cited Sulphamylon, an antibacterial for burn wounds that
has received a Food and Drug Administration approval letter; Dotarizine,
which is being studied for migraine treatment; and an islet-cell
transplant technology, which is being studied in a small clinical trial.
New York Stock Exchange-listed shares of Mylan (MYL) closed up $1.625
at $24.875 on composite volume of 2.7 million shares, compared with
average daily volume of 851,700. |
