Viatris Inc. VTRS delivered third-quarter 2024 adjusted earnings of 75 cents per share, which beat the Zacks Consensus Estimate of 68 cents. The company recorded adjusted earnings of 79 cents per share in the year-ago quarter.
Total revenues came in at $3.75 billion, down 4.8% year over year. Revenues included product sales and other revenues. The top line beat the Zacks Consensus Estimate of $3.68 billion.
VTRS’ shares have risen 7.2% year to date against the industry’s 5.1% decline.
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All growth rates mentioned below are on a year-over-year basis and adjusted for the impact of proportionate results from the divestitures that closed in 2023 and 2024.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
VTRS’ Q3 Sales in Detail
Sales totaled $3.74 billion, down 5%. The company reports results under four segments — Developed Markets, Emerging Markets, Japan, Australia and New Zealand (JANZ) and Greater China.
Sales from Developed Markets amounted to $2.3 billion, down 5%. The reported number beat the Zacks Consensus Estimate of $2.2 billion.
Sales from Emerging Markets came in at $533.2 million, down 14%. The figure missed the Zacks Consensus Estimate of $567 million.
JANZ generated sales of $344.3 million, up 6%. Sales missed the Zacks Consensus Estimate of $396 million.
Sales from Greater China totaled $561.8 million, up 3%. The figure beat the Zacks Consensus Estimate by 0.02%.
Based on product category, revenues from Brands decreased 6% to $2.4 billion. Sales from this category were impacted by unfavorable channel dynamics in North America and the impact of government price regulations in Japan and Australia, which offset strong growth in Greater China and the expansion of the company’s portfolio in Emerging Markets and JANZ.
Among Brands, Lipitor sales totaled $375.6 million, down from $381.6 million in the year-ago quarter. Norvasc sales decreased to $168.9 million from $175.5 million a year ago. Lyrica sales were down to $129.9 million from $141.7 million.
Yupelri sales came in at $62.2 million, up from $58.3 million in the year-ago quarter.
Generics, which includes diversified product forms such as extended-release oral solids, injectables, transdermals, and topicals and complex generics, posted revenues of $1.4 billion, down 2%.
Viatris generated $133 million in new generic product revenues, primarily driven by Breyna (generic for Symbicort), lisdexamfetamine and other new products globally.
VTRS expects to generate $500-$600 million in new product revenues in 2024.
Adjusted gross margin came in at 58.5%, down from 59.2% reported in the year-ago quarter.
VTRS 2024 Guidance
Total revenues are projected to be in the band of $14.6-$15.1 billion (unchanged).
Adjusted earnings per share are now expected to be in the range of $2.56-$2.71 (earlier estimate: $2.58-$2.73).
Viatris Inc. Price, Consensus and EPS Surprise
Viatris Inc. price-consensus-eps-surprise-chart | Viatris Inc. Quote
Other Updates From VTRS
VTRS retired all of its 2025 and more than a quarter of its 2026 debt maturities, totaling approximately $1.9 billion in debt.
Last month, VTRS entered into an exclusive licensing agreement with Lexicon Pharmaceuticals LXRX for cardiovascular drug sotagliflozin in all markets outside the United States and Europe.
Per the terms, Viatris acquired rights to sotagliflozin in all global markets outside the United States and Europe in exchange for an upfront payment of $25 million to Lexicon. The agreement includes additional potential contingent payments, including regulatory milestones, sales milestones and tiered royalties ranging from low-double-digit to upper-teens on annual net sales. Viatris will be responsible for all regulatory and commercialization activities for sotagliflozin in the licensed territories.
Our Take on VTRS’ Q3 Performance
The company reported better-than-expected third-quarter results, wherein the top and bottom lines beat their respective estimates. New products performed well. However, the decrease in annual EPS guidance was disappointing.
With the substantial completion of its divestitures, VTRS has increased its financial strength and is looking to accelerate growth and shareholder return.
Zacks Rank and Stocks to Consider
Viatris currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the generic drugs sector are Bausch Health BHC and Teva TEVA, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 30 days, the Zacks Consensus Estimate for BHC’s 2024 earnings per share (EPS) has moved north 12 cents to $3.73. During the same period, EPS estimate for 2025 has increased to $4.29 from $4.17.
BHC’s earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 0.32%.
In the past 30 days, estimates for TEVA’s EPS have moved up a cent to $2.44. TEVA’s earnings beat estimates in three of the trailing four quarters and missed the mark once, delivering an average surprise of 10.16%.
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