Mylan Inc.'s (MYL) first-quarter earnings rose 24% as the company's sales improved amid product launches in North America and sharply higher sales in its specialty business.
Mylan and Pfizer Inc. (PFE) also announced that Pfizer unit Meridian Medical Technologies reached a settlement in a patent dispute with Teva Pharmaceuticals Industries Ltd. (TEVA, TEVA.TV) related to its abbreviated new drug application for a generic epinephrine auto-injector.
Pfizer's Meridian unit manufactures the rival Epi-Pen auto-injector and Mylan Inc.'s (MYL) specialty unit markets and distributes it in the U.S. EpiPen is used to treat potentially fatal allergic reactions known as anaphylaxis.
Under the settlement, Teva may launch a generic epinephrine auto-injector June 22, 2015, or earlier under certain circumstances if the company receives U.S. Food and Drug Administration for the product. Further terms weren't disclosed.
Mylan--a major generic-drug maker has seen its revenue jump in recent quarters as a shaky economy spurred interest in lower-cost health options. However, expenses for items such as litigation and restructuring have weighed on the bottom line in recent quarters.
Chief Financial Officer John Sheehan Mylan expects second-quarter earnings will be in line with the latest quarter, "before accelerating into the third quarter, which will be by far our strongest of the year."
Mylan reported a profit of $129.1 million, or 30 cents a share, up from $104.2 million, or 23 cents a share, a year earlier. Excluding litigation settlements, restructuring costs and other items, earnings were up at 52 cents from 44 cents.
Revenue increased 9.9% to $1.59 billion. Analysts polled by Thomson Reuters most recently projected earnings of 50 cents on revenue of 1.58 billion.
Gross margin rose to 41.8% from 40.8%.
At its generics business, its biggest by revenue, reported that sales grew 5.2%. At its specialty segment, sales soared 54%.
Shares of Mylan, which affirmed its 2012 guidance, were up 1.4% at $22.50 in premarket trading. Through the close, stock is down 12% in the past year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com