EXITED MYLAN AT $32.06 (MYL-US)

Mylan N.V. is a global pharmaceutical company that develops, licenses, manufactures, markets and distributes generic and branded generic products for resale by others; specialty pharmaceuticals, and active pharmaceutical ingredients (APIs). It operates through two segments: Generics and Specialty. Its Generics segment primarily develops, manufactures, sells and distributes generic or branded generic pharmaceutical products in tablet, capsule, injectable, transdermal patch, gel, cream or ointment form, as well as API. Its Specialty segment is focused on respiratory and allergy therapies. The EpiPen Auto-Injector, which is used in the treatment of severe allergic reactions, is an epinephrine auto-injector.

JUSTIFICATION We purchased a half position of Mylan in September 2016 at $40.56 Since then, opposition to high drug prices has grown and profits expectations have been revised downwards. When we initiated our buy, we believed that the low PE multiple (8.8X) had priced in a lot of bad news but our plan has not worked so we must take action. The next quarterly earnings release (due November 7) has a high probability of being negative and based on our rule to sell on 2 consecutive declining quarters, we are selling prior to the next earnings release.