The U.S. generics giant Mylan Inc. (NASDAQ:MYL) reported positive financial performance for the fourth quarter with total revenues amounting to $1.72 billion, up 12.5 percent from the same period in 2011.

Mylan’s top line growth is impressive but it could have been better as nearly 2 percent was shaved by the strengthening U.S. dollar that affected foreign currency translation in markets outside the U.S. Cost of sales increased in line with sales growth, up 10.59 percent for the quarter while selling, general, and administrative costs as well as research and development expenses grew quite significantly during the latest three months.

Increased marketing costs and higher employee benefits were the factors behind the increase in selling costs while development of the respiratory and biologics programs as well as other development initiatives led to the increase in research expenditure.

As a result, Mylan’s operating income dropped by 2 percent, reflecting lower operating margins. However, Mylan’s net profit for the quarter amounted to $161.96 million, with a growth of 20 percent from the corresponding period last year. More than anything, the surge in profitability was caused by a large decline in litigation expenses.

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On a geographic basis, revenues from North America jumped 14.2 percent to a total of $3.26 billion. The 7 percent growth in Asia Pacific region was offset by a similar decline in revenues in Europe. While North America is currently the largest and fastest growth market for Mylan Inc. (NASDAQ:MYL), the company has set its eyes on acquisitions and mergers as the way to grow, at least in 2013. The results were largely greeted with positivity in the market with the stock jumping 5 percent after the results.

Mylan is now looking to acquire Indian-based Agila Specialties for $1.6 billion in the fourth quarter of 2013. The acquisition would add injectable generics to Mylan’s portfolio, an important generics segment that has seen considerable quality discrepancies and shortages recently, as well as provide access to emerging markets such as Brazil.

This would be Mylan’s second acquisition in India in recent times as the company announced acquisition of Unichem India’s formulations business earlier this month.

In sharp contrast to Mylan Inc. (NASDAQ:MYL)’s upbeat results is Massachusetts-based Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA), which reported a net loss of $1.3 million for the fourth quarter.

Revenue plummeted by 56.8 percent to $12.7 million. The reason behind the drop is Momenta’s over-reliance on Enoxaparin sodium which contributed $10.8 million to the quarterly top line. While the numbers present a grim picture, progress with drug-development work is a more efficient metric given the long development time of bio-similar products the company is engaged into. Momenta presents a long opportunity for investors as it has three bio-similars in development in collaboration with U.S. firm Baxter. This is not reflected in Momenta’s stock price.

Somewhat similar is the case with California based Avanir Pharmaceuticals, Inc. (NASDAQ:AVNR) which develops therapeutic products for the treatment of central nervous system disorders. The stock currently trades at $2.78, very near to the lower side of its 52 week trading range of $2.07 – $4.05.

This loss making company has seen its losses reduce in the latest quarter while revenues more than doubled to $16.5 billion. However, given the way the company’s financial performance has been volatile in the past, investors are still not convinced about the longevity of the current uptrend. In any case, the stock would be a speculative buy as lower price levels can potentially attract buyers.