In This Article:
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Total Revenue: $3.3 billion, down 2% on a divestiture-adjusted operational basis.
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Revenue Impact from Indore: Approximately $140 million.
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Adjusted Gross Margin: Approximately 56%.
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Free Cash Flow: $493 million, $535 million excluding transaction costs and taxes from divestitures.
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Capital Returned to Shareholders: Approximately $450 million, including $300 million in share repurchases and $143 million in dividends.
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Goodwill Impairment Charge: $2.9 billion non-cash charge.
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New Product Revenue Target: $450 million to $550 million for the year.
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Regional Revenue Growth: Europe up 1%, Greater China up 4%, North America down 8%, Emerging Markets down 5%, JANZ down 6%.
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Viatris Inc (NASDAQ:VTRS) reported Q1 2025 operational performance in line with expectations, with significant pipeline progress including three positive Phase 3 data readouts.
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The company returned approximately $450 million in capital to shareholders, with $300 million through share repurchases.
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Viatris Inc (NASDAQ:VTRS) announced positive data for Phase 3 studies of novel fast-acting meloxicam for moderate to severe acute pain, highlighting its potential as a non-opioid treatment option.
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The company received positive results for XULANE LO, a low-dose estrogen combination birth control patch, with plans to submit an NDA in the second half of the year.
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Viatris Inc (NASDAQ:VTRS) is on track with its enterprise-wide strategic review, aiming to streamline costs and set the organization up for future growth.
Negative Points
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Total revenues for Q1 2025 were $3.3 billion, down 2% on a divestiture-adjusted operational basis, primarily due to the impact of the Indore facility.
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The North American business decreased 8% versus the prior year, impacted by the Indore facility and competition on select generic products.
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The company recorded a non-cash goodwill impairment charge of $2.9 billion due to a decline in share price and increased business risk.
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Viatris Inc (NASDAQ:VTRS) faces potential financial impact from tariffs on pharmaceuticals, which could affect the ability to provide access to medications.
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The company is dealing with ongoing remediation efforts at its Indore facility, which has affected revenue and operational performance.
Q & A Highlights
Q: Can you discuss the peak sales opportunity for meloxicam and how much of your existing infrastructure can be leveraged for its launch? Also, how will tariffs impact your US sales? A: (Scott Smith, CEO) More than 50% of our US revenues come from US-based manufacturing. We are exploring mitigation strategies for tariffs, including increasing US production and adjusting inventory levels. (Corinne Le Goff, Chief Commercial Officer) Meloxicam has a large addressable market with over 70 million acute pain cases annually in the US. We believe it can be a strong alternative to opioids. (Philippe Martin, Chief R&D Officer) The data shows a superior profile versus opioids, with significantly lower opioid usage.