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Viatris Inc (VTRS - Free Report) reported adjusted earnings of 80 cents per share in the fourth quarter of 2021, missing the Zacks Consensus Estimate of 82 cents. In the year-ago quarter, the company reported earnings of 94 cents.
The company was formed in November 2020 through the combination of Mylan and Upjohn. Total revenues came in at $4.34 billion, up 19.8% year over year. The top line beat the Zacks Consensus Estimate by 0.71%.
Image Source: Zacks Investment Research
Viatris’ stock has lost 1.2% in the year compared with the industry’s decline of 55.7%.
Quarter in Detail
Revenues include sales and other revenues. Sales of $4.33 billion jumped 21% from the year-ago quarter. Sales were down 2% compared with combined adjusted results in the year-ago quarter.
The company reports results in four segments — Developed Markets, Emerging Markets, JANZ (Japan, Australia and New Zealand) and Greater China.
Developed market sales came in at $2.6 billion, up 8% from the year-ago quarter.
Sales from Emerging Markets came in at $727.5 million, up 16% year over year.
JANZ generated sales of $539.2 million, surging 38%.
Sales from Greater China came in at $503.8 million compared with $190.6 million a year ago.
On the basis of product category, Brands performed better than expectations, driven by products such as Lipitor, Lyrica and the Thrombosis portfolio and generated revenues of $2.6 billion. Complex generics and biosimilars were impacted by competition for Wixela Inhub and Xulane and raked in sales of $348.4 million. Generics, which include diversified product forms such as extended-release oral solids, injectables, transdermals and topicals, performed better than expected, driven primarily by strength in the JANZ and Emerging Markets segments.
Viatris generated $117 million in new product revenues (revenues from products launched in 2021).
Adjusted gross margin increased to 56.6% from 52.5% in the year-ago quarter.
2021 Results
Total revenues came in at $17.9 billion, up from $11.9 billion in 2020. The company generated approximately $700 million in new product revenues and achieved about $500 million in synergies in 2021.
Other Updates
Viatris also announced a definitive agreement with Biocon Biologics Limited whereby it will contribute its biosimilars portfolio to the latter.
Under the terms of the agreement, Viatris will combine its biosimilars portfolio with Biocon Biologics Ltd in exchange for pre-tax consideration of up to $3.335 billion.
Viatris will receive $3 billion in consideration in the form of a $2 billion cash payment and $1 billion of convertible preferred equity at the time of close, which is currently expected to occur in the second half of 2022, subject to the satisfaction of closing conditions, including certain regulatory approvals. Viatris will own a stake of at least 12.9% of Biocon Biologics, on a fully diluted basis.
Viatris has agreed to pay $264 million to resolve the EpiPen Auto-Injector indirect purchaser class action cases pending in the U.S. District Court for the District of Kansas.
Guidance Update
Revenues are projected between $17 billion and $17.5 billion. The Zacks Consensus Estimate is pegged at $17.48 billion.
Our Take
Viatris reported mixed results in the fourth quarter. New products are likely to boost sales in the quarters ahead.
Image: Bigstock
Viatris' (VTRS) Q4 Earnings Miss, Biocon Biologics Deal Inked
Viatris Inc (VTRS - Free Report) reported adjusted earnings of 80 cents per share in the fourth quarter of 2021, missing the Zacks Consensus Estimate of 82 cents. In the year-ago quarter, the company reported earnings of 94 cents.
The company was formed in November 2020 through the combination of Mylan and Upjohn. Total revenues came in at $4.34 billion, up 19.8% year over year. The top line beat the Zacks Consensus Estimate by 0.71%.
Image Source: Zacks Investment Research
Viatris’ stock has lost 1.2% in the year compared with the industry’s decline of 55.7%.
Quarter in Detail
Revenues include sales and other revenues. Sales of $4.33 billion jumped 21% from the year-ago quarter. Sales were down 2% compared with combined adjusted results in the year-ago quarter.
The company reports results in four segments — Developed Markets, Emerging Markets, JANZ (Japan, Australia and New Zealand) and Greater China.
Developed market sales came in at $2.6 billion, up 8% from the year-ago quarter.
Sales from Emerging Markets came in at $727.5 million, up 16% year over year.
JANZ generated sales of $539.2 million, surging 38%.
Sales from Greater China came in at $503.8 million compared with $190.6 million a year ago.
On the basis of product category, Brands performed better than expectations, driven by products such as Lipitor, Lyrica and the Thrombosis portfolio and generated revenues of $2.6 billion. Complex generics and biosimilars were impacted by competition for Wixela Inhub and Xulane and raked in sales of $348.4 million. Generics, which include diversified product forms such as extended-release oral solids, injectables, transdermals and topicals, performed better than expected, driven primarily by strength in the JANZ and Emerging Markets segments.
Viatris generated $117 million in new product revenues (revenues from products launched in 2021).
Adjusted gross margin increased to 56.6% from 52.5% in the year-ago quarter.
2021 Results
Total revenues came in at $17.9 billion, up from $11.9 billion in 2020. The company generated approximately $700 million in new product revenues and achieved about $500 million in synergies in 2021.
Other Updates
Viatris also announced a definitive agreement with Biocon Biologics Limited whereby it will contribute its biosimilars portfolio to the latter.
Under the terms of the agreement, Viatris will combine its biosimilars portfolio with Biocon Biologics Ltd in exchange for pre-tax consideration of up to $3.335 billion.
Viatris will receive $3 billion in consideration in the form of a $2 billion cash payment and $1 billion of convertible preferred equity at the time of close, which is currently expected to occur in the second half of 2022, subject to the satisfaction of closing conditions, including certain regulatory approvals. Viatris will own a stake of at least 12.9% of Biocon Biologics, on a fully diluted basis.
Viatris has agreed to pay $264 million to resolve the EpiPen Auto-Injector indirect purchaser class action cases pending in the U.S. District Court for the District of Kansas.
Guidance Update
Revenues are projected between $17 billion and $17.5 billion. The Zacks Consensus Estimate is pegged at $17.48 billion.
Our Take
Viatris reported mixed results in the fourth quarter. New products are likely to boost sales in the quarters ahead.
Viatris Inc. Price, Consensus and EPS Surprise
Viatris Inc. price-consensus-eps-surprise-chart | Viatris Inc. Quote
The company is now looking to reshape its business and has entered into a merger agreement with Biocon Biologics.
Zacks Rank & Stocks to Consider
Viatris currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the healthcare space are Axsome Therapeutics, Inc. (AXSM - Free Report) , Dynavax Technologies Corporation (DVAX - Free Report) and Vertex Pharmaceuticals (VRTX - Free Report) , all carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Axsome Therapeutics’ loss per share estimates has narrowed to $3.64 from $3.66 for 2022 over the past 60 days.
Earnings of Axsome Therapeutics have surpassed estimates in three of the trailing four quarters and missed the same on the other occasion.
Dynavax’s earnings estimates have increased to $1.18 from $1.07 for 2022 over the past 60 days. The stock has rallied 40.3% in the past year.
Earnings of Dynavax have surpassed estimates in each of the trailing four quarters.
Vertex’ Pharmaceuticals earnings per share estimates have increased to $15.31 from $13.85 for 2022 over the past 60 days.
The consensus estimate for 2022 earnings for Vertex has increased $1.01 over the past 30 days to $14.33. Shares of VRTX gained 9.5% in the past year.