How to Buy Mylan Stock in 2020

Mylan (NASDAQ:MYL) is a leading American pharmaceutical company specialized in generic drugs. It markets its products in more than 165 countries, employs over 35,000 people worldwide and is listed on the NASDAQ.

Considering buying Mylan stock today? In this guide, we’ll walk you through how to choose the right broker, how to buy stocks and what elements make Mylan an attractive investment opportunity!

3 Simple Steps to Buy Mylan Stock

In a hurry? No problem! Simply follow these 3 easy steps to buy Mylan stock now!

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Where To Buy Mylan Stock

 

How To Buy Mylan Stock Using eToro

Step 1: Search for Mylan (MYL) stock

On the eToro platform, search for Mylan or “MYL” stock. You will see both stocks and other trader names in the search results: the ability to browse other traders is at the core of eToro’s social trading system.

Step 2: Select “Trade” to get started

With your own money or with eToro’s free demo account, click on “Trade” to select trading options including order type, amount and leverage.

Step 3: Choose how much to buy or sell and the options you want

Once you clicked “Trade”, you will then decide to buy or sell the stock, at the market or via a limit order.

You can then specify how much you want to trade (number of shares or total amount) and review the exposure that the trade involves.

Buy orders with no leverage are executed directly (i.e. you will own the stock), while short-selling and other more complex trades are executed via CFDs. You can also add leverage to your trade or choose a special order types (e.g. stop-loss).

Before trading, make sure you have done your own careful research, have reviewed the risks and understand the fees if you trade via CFD! Have a look at the FAQ section below for suggestions on what else to consider before pulling the trigger on a trade.

Once you’ve made up your mind, click “Set Order” to get started!

 

Company Background

Mylan is an American pharmaceutical company best known for its leadership in generic drugs manufacturing. Its portfolio of over 7,500 drugs includes prescription and branded generics as well as over-the-counter remedies.

Originally incorporated in the Netherlands, Mylan is headquartered in Pennsylvania and has been listed on the NASDAQ since 1973. At the end of 2019, its product were marketed in over 165 countries & territories, and Mylan employed more than 35,000 people.

Over the years, Mylan has grown both organically and through major acquisitions including Matrix Laboratories (2007), Merck KGaA’s generics business (2007), Meda AB (2016) and others.

Mylan is currently in the process of merging with Pfizer’s Upjohn generics business division, a mega-merger that will create a ~$20 billion dollar company (in sales). The completion of the transaction is expected by late 2020 and Mylan shareholders will hold ~43% of the new combined entity (with the remainder owned by Pfizer shareholders). The combination will give Mylan access to Upjohn’s portfolio of leading brands, including Xanax, Viagra and Lipitor and help it strengthen its global footprint.

Mylan’s business model emphasizes diversification, be it geographical (>165 countries), in product mix (>7,500 products, none generating more than 5% of sales) or in sales channel (wholesale, retail, hospitals, e-commerce and specialty pharmacy). Its drugs are spread across 10 major therapeutic areas, including cardiovascular health, anesthesia, dermatology, infectious diseases, oncology etc.

In 2019, Mylan generated $11.5 billion in revenues, stable year-on-year. At the time of writing, its market capitalization hovered around $9 billion.

 

Mylan Stock Performance

Mylan is listed on the NASDAQ under the NASDAQ:MYL ticker.

Like many other companies, Mylan has had a difficult start to 2020, with the stock down over 16%. At around $17, it currently trades significantly below its all-time high of $74, hurt by stagnant sales, rising costs and increasing competition in the global generics market. The future is rosier however, with the Upjohn merger expected to give Mylan-Upjohn the scale and firepower needed to better compete in this environment.

At the time of writing, the analyst consensus was split between “Buy” and “Hold”, with next 12 months price targets between $16 and $19 (median of $22.5).

 

Why Invest in Mylan?

Mylan is the world’s largest generic drug manufacturer by sales, expected to double in size after its merger with Upjohn.

Deciding which stocks to buy is a difficult but personal decision that must be supported by personal research. Nevertheless, to assist you in your research, we highlight below 3 aspects that make Mylan an attractive stock to buy:

1. Leadership in the generics business

With $11.5 billion in 2019 revenues (flat year-on-year), Mylan is the largest generics drugs manufacturer in the world.

The global generics business is characterized by intense competition that drives prices down. In this environment, scale allows business to stay profitable and continue to grow while others struggle. As such, Mylan’s size gives it a strong advantage over competitors such as Teva, Sandoz or Sun Pharmaceuticals.

Scale not only allows Mylan to stay profitable but also to continue developing new generic drugs and expanding in new markets.

2. Highly diversified and resilient business

Mylan’s portfolio of over 7,500 products (with none generating over 5% of revenues) insulates it from the product dependencies that plague many pharmaceutical companies. In the generics business where price competition can be intense, not being overly exposed to a few key products is essential.

The company also markets is products in virtually every country in the world, with its revenues split between North America (37%), Europe (35%) and the Rest of the World (28%). This geographic diversification offers it further protection against regional legal action (such as country-wide price controls on specific drugs).

Last, Mylan’s sales are split almost evenly between pure generics and brand-name drugs + branded generics products, offering further diversification to solidify the business

3. A promising combination with Pfizer’s Upjohn divison

The proposed merger between Mylan and Pfizer’s Upjohn generics business would create the uncontested world leader in generic drugs manufacturing, with an expected $20 billion in revenues.

Structured as a Reverse Morris Trust, the combination would see Mylan shareholders retain 43% of the combined entity. The deal would also involve $1 billion in annual cost synergies.

Mylan would access Upjohn’s best-in-class portfolio of generic and branded generic drugs, including Viagra, Xanax and Lipitor. It would also help it increase its diversification and reduce its exposure to the brutally competitive US generic market.

Upjohn is based in China, which would give the combined entity not only a privileged access to one of the world’s largest market but also offer Mylan the opportunity to cut costs by outsourcing.

The merger would also help Mylan de-risk its balance sheet by improving cash flows and significantly lowering its leverage. This is a particularly strong advantage over rivals in a business where debt levels tends to be extremely high.

Last, the new combined entity will pay a dividend, a strong plus for Mylan stockholders who have yet to receive any dividends from their stock.

 

Should I Buy Mylan Stock?

As discussed, Mylan is one of the largest generics manufacturers in the world, set to become the uncontested global leader after merging with Upjohn. Consequently, investors may find it attractive to buy Mylan stock.

However, we cannot offer investment advice and the decision to invest rests solely on your shoulders. Before investing in any security, we highly recomment reading the company’s SEC filings, reviewing its press coverage and understanding the risks to make sure you are making the right call.

Investing can be difficult and time consuming but it can be incredibly rewarding. For more resources, make sure to check out our stock investing and stock trading guides!

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