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Viatris (VTRS) to Report Q2 Earnings: What's in the Cards?
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Viatris (VTRS - Free Report) , a global healthcare company, is scheduled to report second-quarter 2022 results on Aug 8.
The company was formed in 2020 through the combination of Mylan and Upjohn. It beat earnings estimates in three of the trailing four quarters and missed in one, the average surprise being 9.71%. In the last reported quarter, the company beat expectations by 14.81%.
Viatris reports segment information based on markets and geography — Developed Markets, Emerging Markets, JANZ (Japan, Australia, and New Zealand) and Greater China.
Net sales from Developed markets were down 4% in the previous quarter. This trend is likely to have continued in the to-be-reported quarter.
Sales from Emerging Markets were down 7% in the previous quarter. However, sales are likely to have increased in the to-be-reported quarter, driven by complex generics and biosimilars.
Sales from JANZ were down 12% in the previous quarter due to lower-than-expected performance by brands. The second quarter is likely to have seen a similar trend.
Sales from Greater China markets were down 3%. Sales in the second quarter are likely to have been stable.
On a segment basis, brands performed better than management expectations in the previous quarter, driven by products such as Lipitor, Effexor, and Perforomist. A similar or better performance might have been witnessed by the company in the to-be-reported quarter.
Complex generics and biosimilars grew 21% on an operational basis in the first quarter largely driven by the launch of generic Restasis in February 2022, partially offset by competition in select complex generics products. The trend is likely to have continued in the second quarter.
Generics, which includes diversified product forms such as extended-release oral solids, injectables, transdermals and topicals, performed in line with expectations in the previous quarter. A similar trend is likely to have prevailed in the to-be-reported quarter.
Management stated that Viatris generated approximately $120 million in new product revenues primarily driven by the launch of generic Restasis and interchangeable Semglee in the United States, and is on track to achieve approximately $600 million in new product revenues in 2022.
In November, Viatris and Biocon Biologics Ltd. announced that Semglee injection, the first interchangeable biosimilar product, was launched in the United States.
Hence, an uptake in new product launches might have offset the decline in other product revenues.
Other Updates
Viatris had earlier announced an agreement with Biocon Biologics Limited whereby the former will sell 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 a 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 in the second half of 2022, subject to the satisfaction of closing conditions, including certain regulatory approvals.
VTRS will own a stake of at least 12.9% of Biocon Biologics on a fully diluted basis.
The transaction is expected to close in the second half.
Share Price Performance
Viatris’ stock has lost 28.4% in the year so far compared with the industry’s decline of 25.9%.
Image Source: Zacks Investment Research
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Viatris this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Earnings ESP for Viatris is -1.56%.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
Here are a few stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.
Ionis has a mixed track record, having topped earnings estimates in two of the last four quarters and missing in the remaining two. It pulled off a four-quarter earnings surprise of 24.35%, on average.
Gilead Sciences, Inc. (GILD - Free Report) has an Earnings ESP of +0.17% and a Zacks Rank #3.
Gilead boasts a mixed track record, having topped earnings estimates in three of the last four quarters and missing in one. Gilead pulled off a four-quarter earnings surprise of 6.30% on average.
Zoetis (ZTS - Free Report) has an Earnings ESP of +2.17% and a Zacks Rank #3.
Zoetis topped earnings estimates in all of the last four quarters. Zoetis delivered a four-quarter earnings surprise of 9.05%, on average.
Image: Bigstock
Viatris (VTRS) to Report Q2 Earnings: What's in the Cards?
Viatris (VTRS - Free Report) , a global healthcare company, is scheduled to report second-quarter 2022 results on Aug 8.
The company was formed in 2020 through the combination of Mylan and Upjohn. It beat earnings estimates in three of the trailing four quarters and missed in one, the average surprise being 9.71%. In the last reported quarter, the company beat expectations by 14.81%.
Viatris Inc. Price, Consensus and EPS Surprise
Viatris Inc. price-consensus-eps-surprise-chart | Viatris Inc. Quote
Factors to Consider
Viatris reports segment information based on markets and geography — Developed Markets, Emerging Markets, JANZ (Japan, Australia, and New Zealand) and Greater China.
Net sales from Developed markets were down 4% in the previous quarter. This trend is likely to have continued in the to-be-reported quarter.
Sales from Emerging Markets were down 7% in the previous quarter. However, sales are likely to have increased in the to-be-reported quarter, driven by complex generics and biosimilars.
Sales from JANZ were down 12% in the previous quarter due to lower-than-expected performance by brands. The second quarter is likely to have seen a similar trend.
Sales from Greater China markets were down 3%. Sales in the second quarter are likely to have been stable.
On a segment basis, brands performed better than management expectations in the previous quarter, driven by products such as Lipitor, Effexor, and Perforomist. A similar or better performance might have been witnessed by the company in the to-be-reported quarter.
Complex generics and biosimilars grew 21% on an operational basis in the first quarter largely driven by the launch of generic Restasis in February 2022, partially offset by competition in select complex generics products. The trend is likely to have continued in the second quarter.
Generics, which includes diversified product forms such as extended-release oral solids, injectables, transdermals and topicals, performed in line with expectations in the previous quarter. A similar trend is likely to have prevailed in the to-be-reported quarter.
Management stated that Viatris generated approximately $120 million in new product revenues primarily driven by the launch of generic Restasis and interchangeable Semglee in the United States, and is on track to achieve approximately $600 million in new product revenues in 2022.
In November, Viatris and Biocon Biologics Ltd. announced that Semglee injection, the first interchangeable biosimilar product, was launched in the United States.
Hence, an uptake in new product launches might have offset the decline in other product revenues.
Other Updates
Viatris had earlier announced an agreement with Biocon Biologics Limited whereby the former will sell 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 a 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 in the second half of 2022, subject to the satisfaction of closing conditions, including certain regulatory approvals.
VTRS will own a stake of at least 12.9% of Biocon Biologics on a fully diluted basis.
The transaction is expected to close in the second half.
Share Price Performance
Viatris’ stock has lost 28.4% in the year so far compared with the industry’s decline of 25.9%.
Image Source: Zacks Investment Research
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Viatris this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Earnings ESP for Viatris is -1.56%.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
Here are a few stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.
Ionis Pharmaceuticals (IONS - Free Report) has an Earnings ESP of +27.61% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ionis has a mixed track record, having topped earnings estimates in two of the last four quarters and missing in the remaining two. It pulled off a four-quarter earnings surprise of 24.35%, on average.
Gilead Sciences, Inc. (GILD - Free Report) has an Earnings ESP of +0.17% and a Zacks Rank #3.
Gilead boasts a mixed track record, having topped earnings estimates in three of the last four quarters and missing in one. Gilead pulled off a four-quarter earnings surprise of 6.30% on average.
Zoetis (ZTS - Free Report) has an Earnings ESP of +2.17% and a Zacks Rank #3.
Zoetis topped earnings estimates in all of the last four quarters. Zoetis delivered a four-quarter earnings surprise of 9.05%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar