Look: Mylan N.V. (MYL) Shares Slip Following Expanded Recall of Auto-Injection

Healthcare giant Mylan N.V. (NASDAQ: MYL) with a market cap of $20.88 billion, ended March with magnified efforts to recall EpiPen Auto-Injectors. The stock closed $38.99 on March 31, or a decrease of 1.52% on above-average trading volume.

What initially began as a voluntary recall for select lots of EpiPen and EpiPen Jr. Auto-Injectors of Mylan N.V. (NASDAQ: MYL), has now expanded to include additional lots distributed in the U.S., and now in other markets including Europe and Asia. According to Mylan’s press release, the company conducted the recall following reports outside the U.S. about failure to activate the device due to a defect in a component. While Mylan stated that events of defect are “extremely rare,” the company recognized that the component failure is critical to patients who may experience life-threatening allergic reactions, which the injection was created for.

The recall is executed by Meridian Medical Technologies, a subsidiary of Pfizer Inc. (NYSE: PFE) and Mylan’s manufacturing partner for the auto-injector. Pfizer also stepped back by 14 cents to $34.21 at the close of market April 1, from its previous close of $34.35 in below-average trading volume.

What Does The Smart Money Sentiment Say?

At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 39.7% gains over the past 12 months and outperformed the 24.1% gain enjoyed by the S&P 500 ETFs. Our enhanced small-cap hedge fund strategy returned more than 45% over the last 12 months and outperformed SPY by more than 30 percentage points over the last 4.5 years. (see details here)

According to historical data at Insider Monkey, hedge funds showed minor changes on Mylan stocks sentiment, from 39 funds in the third quarter of 2016 to 38 in the fourth quarter of the same year.

The Bottom Line

Following the expanded recall efforts, traders got busy with Mylan N.V.(NASDAQ: MYL) as shares of the company traded slightly above its average volume on March 31, ending the day 1.52% lower from the previous close and underperforming versus the Nasdaq which rolled down by 0.04%. Meanwhile, hedge funds also shied away from Pfizer from 83 funds in the third quarter to 82 funds in the fourth quarter of 2016. Here is an interesting read about the 10 best internal medicine residency programs in America.

Disclosure:None