Biotech Values

[DewDiligence]

Authorized generics, redux:

[MYL can be expected to sound off on authorized generics loudly and often. Yesterday’s Icahn-induced trading created a convenient opportunity.]

http://biz.yahoo.com/prnews/040820/nyf018_1.html

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Mylan Comments on Yesterday's Trading Activity

PITTSBURGH, Aug. 20 /PRNewswire-FirstCall/ -- Mylan Laboratories Inc.'s (NYSE: MYL - News) Vice Chairman and CEO Robert J. Coury stated, "We believe yesterday's trading activity was largely driven by the announcement of Carl Icahn's clearance from the Federal Trade Commission to purchase between $100 million and $500 million worth of Mylan stock."

Mylan cautions investors who may be relying on sell-side analysts' estimates that do not appear to have been fully adjusted for negative changes in the generic pharmaceutical industry. Mylan suspended its fiscal 2005 annual earnings guidance due to these changes and has yet to provide fiscal 2006 earnings guidance.

The Food and Drug Administration's recent authorized generics decision and other FDA rulings are changing the rules of engagement for the generic pharmaceutical industry. Based on the uncertainties for the industry caused by these rulings, Mylan does not believe that investors can reasonably rely on current Street estimates at this time. Mylan intends to provide its earnings guidance as soon as practically possible.

Mr. Coury further stated, "Mylan's Board of Directors continues to be unanimous and in support of this transaction and believes that the pending merger with King Pharmaceuticals will optimize value for all shareholders by the creation of a leading specialty pharmaceutical company."
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