Mylan warns of possible drug shortages, financial hit due to coronavirus

Netherlands: Drugmaker Mylan NV said it expects the coronavirus outbreak to impact its financial results and warned of drug shortages in case of continued spread of the virus, sending shares of the company down 3.6%.

The outbreak has so far mainly battered China, causing nearly 80,000 infections and more than 2,700 deaths, according to World Health Organization figures. It has spread to another 46 countries, where around 3,700 cases and 57 deaths have been reported.

"Our business exposure in China specifically is limited. However, given the global nature of our supply chain, operations and businesses, our results could potentially be impacted," Chief Executive Officer Heather Bresch said on an earnings call.

Mylan said it was facing logistical issues, but had not seen problems with production or experienced price increases in active drug ingredients.

Although heavily reliant on China, the company said it was better positioned against the impact of the outbreak compared to its peers due to its diversified supply chain.

"The whole industry is in one way or other way connected with China, but you would expect us to be much better placed," President Rajiv Malik said.

Read also: USFDA identifies 20 drugs with shortage risks due to coronavirus outbreak

Mylan said it does not see any impact in the near future, but cautioned that continued spread of the coronavirus over the next few months could lead to drug shortages.

The company is set to merge with Pfizer Inc's China-headquartered Upjohn unit that houses off-patent branded drugs such as cholesterol drug Lipitor, allowing Mylan to leverage a strong base in Asia.

Pfizer on Thursday also warned that continued spread of the virus could have an adverse impact on its financial results and operations, including its manufacturing, supply chain and clinical trial operations.

Read also: Mylan, Pfizer say Mylan-Upjohn combined entity to be known as Viatris