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Mylan Laboratories, Incorporated is a U.S. based generic pharmaceutical company located in Canonsburg, Pennsylvania. It produces generic drugs, medical equipment, dispensing equipment, and has production facilities in three states and Puerto Rico. Mylan was founded in 1961 and became a publicly traded company in 1973 under the ticker symbol MYL. It currently employs 3000 employees and has revenue valued at $1.29 billion (“Mylan Inc. 2004, 2005, 2006 Annual Report.”). Mylan’s current financial strengths are evident when examining some of their financial ratios as well and other financial reports. As far as projected financial viability is concerned, it appears that Mylan is headed on a decline in financial performance. It is for this reason that we are not going to recommend the acquisition of the company.
In the report, we will examine Mylan’s current financial strengths and weaknesses, a brief history of their common stock, some future predictions about the company and reasons why they are not financially stable enough for acquisition. We will examine both their financial and stock performance by comparing Mylan to itself over a three year period and to compare Mylan to three other companies within their industry. The three companies that we will closely compare Mylan to are Cephalon Incorporated, Pfizer Incorporated, and King Pharmaceuticals Incorporated. The time periods used for each of the four aforementioned companies are the last three full fiscal years. The exact dates used in this comparison differ slightly due to a difference in fiscal year ends. Mylan has a fiscal year end of March 31 while the other three companies have calendar year ...