Generic Segment
We are recognized as a leader in the generic pharmaceutical industry. The Generic
Segment consists of two principal business units, Mylan Pharmaceuticals Inc.
(“MPI”) and UDL Laboratories, Inc. (“UDL”), both of which are wholly owned subsidiaries
of Mylan. MPI is our primary generic pharmaceutical research, development, manufacturing,
marketing and distribution subsidiary. MPI’s net revenues are derived primarily
from the sale of solid oral dosage products. UDL packages and markets generic
products, either obtained from MPI or purchased from third parties, in unit
dose formats, for use primarily in hospitals and other institutions. The Generic
Segment is augmented by transdermal patch products which are developed and manufactured
by Mylan Technologies Inc. (“Mylan Tech”), a wholly owned subsidiary of Mylan.
We obtain new products primarily through internal product development. Additionally,
we license or co-develop products through arrangements with other companies.
New generic product approvals are obtained from the FDA through the ANDA process,
which requires us to demonstrate bioequivalence to a reference brand product.
Generic products are generally introduced to the marketplace at the expiration
of patent protection for the brand product or at the end of a period of non-patent
market exclusivity. However, if an ANDA applicant is first to file an ANDA containing
a certification of invalidity, non-infringement or unenforceability related
to a patent listed in the “Orange Book” with respect to a reference drug product,
that generic equivalent may be able to be marketed prior to the expiration of
patent protection for the brand product. Such certification, commonly referred
to as a Paragraph IV certification, results in a period of generic marketing
exclusivity. This exclusivity lasts for 180 days during which the FDA cannot
grant final approval to any other generic equivalent.
We have attained a position of leadership in the generic industry through our
ability to obtain ANDA approvals, our uncompromising quality control and our
devotion to customer service. We have bolstered our traditional solid oral dose
products with unit dose, transdermal and extended release products. We have
entered into strategic alliances with several pharmaceutical companies through
product development, distribution and licensing agreements that provide us with
additional opportunities to broaden our product line.
Mylan manufactures approximately 95% of all doses sold by our Generic Segment.
Our product portfolio consists of over 140 generic pharmaceutical products,
including approximately 130 in capsule or tablet form in an aggregate of approximately
315 dosage strengths, with 13 extended release products in 27 dosage strengths
of which 2 are transdermal patches in 6 dosage strengths. In addition to those
products manufactured by Mylan, we are marketing 57 generic products in 102
dosage strengths under supply and distribution agreements with other pharmaceutical
companies.
The future success of our Generic Segment is dependent upon continued increasing
market acceptance of generic products as substitutes for existing products.
Additionally, we expect that future growth of our Generic Segment will result
from an emphasis on the development or acquisition of new products that may
attain FDA first to file status, as well as the pursuit of products that are
difficult to formulate or for which the active pharmaceutical ingredient is
difficult to obtain. In addition, we intend to continue to seek complementary
strategic acquisitions of both companies and products.
Specialty Segment
Our specialty pharmaceutical business is conducted through Dey, which competes
primarily in the respiratory and severe allergy markets. Dey’s products are
primarily branded specialty nebulized and injectable products for life-threatening
conditions. Dey’s revenues since our acquisition have been derived primarily
through the sale of EpiPen®.
EpiPen, which is used in the treatment of severe allergies, is an epinephrine
auto-injector which has been sold in the United States since 1980 and internationally
since the mid-1980’s. EpiPen is the number one prescribed treatment for severe
allergic reactions with a U.S. market share of more than 95%. The strength of
the EpiPen brand name and the promotional strength of the Dey sales force have
enabled us to maintain our market share.
Perforomist® Inhalation Solution, Dey’s formoterol fumarate inhalation solution,
was launched on October 2, 2007. Perforomist is a long-acting beta2-adrenergic
agonist (“LABA”) indicated for long-term, twice-daily administration in the
maintenance treatment of bronchoconstriction in chronic obstructive pulmonary
disease (“COPD”) patients, including those with chronic bronchitis and emphysema.
Dey has been issued several U.S. and international patents protecting Perforomist.
Matrix Segment
We conduct our API business through Matrix, in which we own a 71.5% interest.
Matrix is the world’s third largest API manufacturer with respect to the number
of DMFs filed with regulatory agencies. Matrix currently has more than 200 APIs
in the market or under development, and focuses its marketing efforts on regulated
markets such as the U.S. and the European Union (“EU”).
Matrix produces API for use in the manufacture of our pharmaceutical products,
as well as for use by third-parties, in a wide range of categories, including
anti-bacterials, central nervous system agents, anti-histamine/anti-asthmatics,
cardiovasculars, anti-virals, anti-diabetics, anti-fungals, proton pump inhibitors
and pain management drugs. Also included in Matrix’s product portfolio are anti-retroviral
(“ARV”) APIs, used in the treatment of HIV. Matrix is a leading supplier of
generic ARV APIs.
Matrix has 10 API and intermediate manufacturing facilities and one FDF facility.
Of these, eight, including the FDF facility, are FDA approved, making Matrix
one of the largest companies in India in terms of FDA-approved API manufacturing
capacity. Matrix has manufacturing facilities in China and a distribution facility
in Europe.
Our future success in API is dependent upon continuing to leverage our research
and development capabilities to produce high-quality, low-cost API, while capitalizing
on the greater API volumes afforded through our horizontally and vertically
integrated platform.