Summary
- Goodwill and intangibles form $20.48 billion of Mylan’s $30.16 billion balance sheet. The company owes about $12 billion in long-term debt.
- Its market capitalization is a meager $8.6 billion and operates on thin margins.
- Despite these negatives, Mylan has a few solid positives to look forward to in the long term.
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In today's world, it is shortsighted to think that infectious diseases cannot cross borders. By allowing developing countries access to generic drugs, we not only help improve health in those nations, we also help ourselves control these debilitating and often deadly diseases. ? Ron Wyden
Mylan (MYL) is a large generics manufacturer whose balance sheet is bloated by intangible assets and debt. The company is gradually reducing debt and amortizing goodwill, and it could be a turnaround story.
Mylan, one of the largest generics manufacturers in the world, boasts of a humongous portfolio of 7,500 products, with another 2,500 in the pipeline. Its products are sold in more than 165 countries, and more than 50% of the company’s sales are outside the U.S. The stock has been climbing downhill for the last many years, and has disappointed its loyal shareholders.
The stock is down in the dumps, but needs to be tracked because it has been regularly amortizing its intangible assets and paying off its long-term debt. Investors interested in the stock may find the following information interesting.
MYL’s Goodwill and Intangible Assets
Image Source: MYL’s SEC Filings
In a balance sheet of $30.16 billion as on June 30, 2020, MYL’s goodwill and intangibles add up to $20.48 billion – that’s a whopping 68% in invisible assets.
It doesn’t matter why MYL’s intangibles piled up as they did, what matters is that such intangibles must benefit the company in some way – at least, they should reflect in MYL’s market capitalization. As of August 7, 2020, MYL’s market capitalization IS A MERE $8.54 BILLION, a massive 59% discount to its intangible assets.
