EX-12.1 4 y83899exv12w1.htm EX-12.1 exv12w1
Exhibit 12.1
Mylan Inc.
Computation of Ratio of Earnings to Fixed Charges and
Earnings to Fixed Charges and Preferred Stock Dividends
(Amounts in thousands of dollars)
                                                 
    Three Months                     Nine Months        
    Ended     Calendar Year Ended     Ended     Fiscal Years Ended  
    March 31,     December 31,     December 31,     March 31,  
    2010     2009     2008(1)     2007(2)     2007     2006  
 
                                                
Ratio of earnings to fixed charges:
                                                
Fixed charges:
                                                
Interest expensed
   $ 74,047     $ 318,496     $ 380,779     $ 196,335     $ 53,737     $ 31,285  
Interest capitalized
     —       —       —       —       4,562       3,665  
Appropriate portion of rentals
     2,525       11,522       10,989       3,097       1,315       1,222  
 
                                    
Total fixed charges
   $ 76,572     $ 330,018     $ 391,768     $ 199,432     $ 59,614     $ 36,172  
 
                                    
 
                                                
Pre-tax income from continuing operations before adjustment for income or loss from equity investee and non-controlling interest
   $ 125,518     $ 225,779     $ (75,718 )   $ (1,100,562 )   $ 417,022     $ 277,143  
Add: Fixed charges
     76,572       330,018       391,768       199,432       59,614       36,172  
Add: Amortization of capitalized interest
     98       351       351       222       81       —  
Add: Dividends from equity method investees
     —       —       —       —       5,500       —  
Less: Interest capitalized
     —       —       —       —       (4,562 )     (3,665 )
 
                                    
Total earnings
   $ 202,188     $ 556,148     $ 316,401     $ (900,908 )   $ 477,655     $ 309,650  
 
                                    
 
                                                
Ratio of earnings to fixed charges
     2.64       1.69       —       —       8.01       8.56  
 
                                                
 
                                                
Ratio of earnings to fixed charges and preferred stock dividends:
                                                
Fixed charges:
                                                
Interest expensed
   $ 74,047     $ 318,496     $ 380,779     $ 196,335     $ 53,737     $ 31,285  
Interest capitalized
     —       —       —       —       4,562       3,665  
Appropriate portion of rentals
     2,525       11,522       10,989       3,097       1,315       1,222  
Preferred stock dividend requirement
     46,285       139,035       49,718       15,257       —       —  
 
                                    
Total fixed charges and preferred stock dividends
   $ 122,857     $ 469,053     $ 441,486     $ 214,689     $ 59,614     $ 36,172  
 
                                    
 
                                                
Pre-tax income from continuing operations before adjustment for income or loss from equity investee and non-controlling interest
   $ 125,518     $ 225,779     $ (75,718 )   $ (1,100,562 )   $ 417,022     $ 277,143  
Add: Fixed charges
     122,857       469,053       441,486       214,689       59,614       36,172  
Add: Amortization of capitalized interest
     88       351       351       222       81       —  
Add: Dividends from equity method investees
     —       —       —       —       5,500       —  
Less: Interest capitalized
     —       —       —       —       (4,562 )     (3,665 )
 
                                    
Total earnings
   $ 248,463     $ 695,183     $ 366,119     $ (885,651 )   $ 477,655     $ 309,650  
 
                                    
 
                                                
Ratio of earnings to fixed charges and preferred stock dividends
     2.02       1.48       —       —       8.01       8.56  
 
(1)   Due to the Company’s loss for the year ended December 31, 2008, the ratio coverages were less than 1:1. The Company would have needed to generate additional earnings of approximately $75.4 million to achieve a coverage ratio of 1:1. Included in earnings for calendar year ended December 31, 2008 is a charge of $385 million related to an impairment loss on the goodwill of the Dey business and $468 million related to our sale of the product rights to Bystolic™.
 
(2)   Due to the Company’s loss for the nine months ended December 31, 2007, the ratio coverages were less than 1:1. The Company would have needed to generate additional earnings of approximately $1.1 billion to achieve a coverage ratio of 1:1. Included in earnings for the nine months ended December 31, 2007 is $1.27 billion to write off acquired in-process research and development costs associated with the former Merck Generics business acquisition.