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Mylan rises after Perrigo acquisition fell through

It was announced last week that shareholders of the pharmaceutical company Perrigo (PRGO) rejected an offer of Mylan (MYL) to acquire the company. The market reacted to the news with a 12% growth of Mylan (MYL) shares. Apparently, the market negatively assessed capability of Mylan to acquire such large company as Perrigo. Investors focused on the financial results of Mylan, and they are fairly well. According to recently released financial report for 3Q15 revenue increased by 30% y-o-y to USD 2.7 bn. Taking into account currency fluctuations, revenue jumped 36% y-o-y. Adjusted EPS rose 23% y-o-y to USD 1.43, outpacing the consensus by 3.7%. Division producing generic drugs, bought from Abbott, became a revenue growth driver. In our opinion, the company looks highly undervalued by the market and has a significant upside potential in the mid-term. So, I recommend the name as a Buy in the mid-term.