Diamonds and Dogs
Mylan (MYL) is whistling by the graveyard. The EpiPen maker, Mylan rose 8% after the company announced last Friday that it had reached a $465 million settlement with the Department of Justice about the classification of EpiPen in the Medicaid Drug Rebate Program. The DOJ settlement removes a significant overhang that had been weighing on the stock, said the analyst at RBC Capital Markets. The settlement removes any lingering concerns of a larger cash call and ongoing negative headlines, however the settlement won't end the heat Mylan continues to face from lawmakers, patients and patients families from the six-fold increase in EpiPen prices since 2007.
Dover (DOV) dove lower. The oil and gas equipment maker, Dover dropped 5% to a four month low after cutting full-year sales and profit forecasts. The company is blaming the weakness on the oil and gas markets, and a global economy that is expected to remain sluggish, adding to similar warnings from industrials like Honeywell (HON) and PPG Industries (PPG). The company slashed full-year earnings per share forecast to $3.00-$3.05 from an earlier outlook for $3.35-$3.45. Dover also now sees full-year revenue down 4% to 5%, compared to earlier guidance for a 3%-5% decline.