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Viatris' (VTRS) Q4 Earnings In-Line, Revenues Miss Estimates
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Viatris Inc. (VTRS - Free Report) reported adjusted earnings of 67 cents per share for the fourth quarter of 2022, down from 75 cents in the year-ago quarter.
Excluding the stock-based compensation expense, adjusted earnings came in at 69 cents per share, which was in line with the Zacks Consensus Estimate.
Total revenues came in at $3.9 billion, down 10.7% year over year. The top line missed the Zacks Consensus Estimate of $3.9 billion.
Viatris’ stock has lost 4.5% in the past year compared with the industry’s decline of 24.2%.
Image Source: Zacks Investment Research
Quarter in Detail
Revenues include sales and other revenues. Sales of $3.8 billion were down 10.7% from the year-ago quarter on an operational basis.
The company reports results in four segments — Developed Markets, Emerging Markets, Japan, Australia and New Zealand (JANZ) and Greater China.
Developed market sales came in at $2.4 billion, down 7% from the year-ago quarter.
Sales from Emerging Markets came in at $580.6 million, down 20% year over year.
JANZ generated sales of $398.5 million, down 26%.
Sales from Greater China came in at $505.8 million, roughly flat with the year-ago quarter.
Revenues from Brands were down 11% year over year. Among these, Lipitor’s sales were $369.1 million, down from $390.4 million in the year-ago quarter. Norvasc sales were $175 million, down from $188.8 million in the year-ago quarter.
Complex generics performed in line with management expectations while, biosimilars were below expectations due to customer buying patterns. Revenues from this business declined 26% year over year.
Generics, which include diversified product forms such as extended-release oral solids, injectables, transdermals and topicals, performed in line with management’s expectations, including solid performance across the broader portfolio in North America. Revenues from this business came in at $1.4 billion, down 5%.
Viatris generated $133 million in new product revenues (revenues from products launched in 2022), primarily driven by the launch of generic lenalidomide in the United States and achieved $483 million in total revenues for the year.
Adjusted gross margin came in at 56.9% compared with 56.6% in the year-ago quarter.
Other Updates
In November 2022, Viatris closed its transaction with Biocon Biologics Limited. Viatris had earlier announced an agreement with Biocon Biologics Limited whereby the former would sell its biosimilars portfolio to the latter. Total revenues relating to the biosimilars portfolio were approximately $611.5 million from Jan 1, 2022, to Nov 29, 2022.
Under the terms of the transaction agreement, Viatris received $3 billion in consideration in the form of a $2 billion cash payment and $1 billion of convertible preferred equity, representing a stake of at least 12.9% (on a fully diluted basis) in Biocon Biologics. Viatris also is entitled to $335 million of additional cash payments in 2024.
Revenues came in at $16.3 billion, down from $17.9 billion in 2021.
2023 Guidance
Revenues are projected between $15.5 billion and $16 billion.
Our Take
Viatris reported disappointing results for the fourth quarter.The company is now looking to reshape its business after selling its biosimilars portfolio.
Over the past 60 days, earnings estimates for Dynavax for 2022 have increased by 11 cents to $1.95. Dynavax surpassed estimates in two of the trailing four quarters and missed in the other two, with the average surprise being 73.15%.
Over the past 90 days, earnings estimates for KALA for 2022 have increased by 26 cents. KALA topped earnings estimates in two of the last four quarters and missed in the other two, with a four-quarter earnings surprise of 2.39% on average.
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Viatris' (VTRS) Q4 Earnings In-Line, Revenues Miss Estimates
Viatris Inc. (VTRS - Free Report) reported adjusted earnings of 67 cents per share for the fourth quarter of 2022, down from 75 cents in the year-ago quarter.
Excluding the stock-based compensation expense, adjusted earnings came in at 69 cents per share, which was in line with the Zacks Consensus Estimate.
Total revenues came in at $3.9 billion, down 10.7% year over year. The top line missed the Zacks Consensus Estimate of $3.9 billion.
Viatris’ stock has lost 4.5% in the past year compared with the industry’s decline of 24.2%.
Image Source: Zacks Investment Research
Quarter in Detail
Revenues include sales and other revenues. Sales of $3.8 billion were down 10.7% from the year-ago quarter on an operational basis.
The company reports results in four segments — Developed Markets, Emerging Markets, Japan, Australia and New Zealand (JANZ) and Greater China.
Developed market sales came in at $2.4 billion, down 7% from the year-ago quarter.
Sales from Emerging Markets came in at $580.6 million, down 20% year over year.
JANZ generated sales of $398.5 million, down 26%.
Sales from Greater China came in at $505.8 million, roughly flat with the year-ago quarter.
Revenues from Brands were down 11% year over year. Among these, Lipitor’s sales were $369.1 million, down from $390.4 million in the year-ago quarter. Norvasc sales were $175 million, down from $188.8 million in the year-ago quarter.
Complex generics performed in line with management expectations while, biosimilars were below expectations due to customer buying patterns. Revenues from this business declined 26% year over year.
Generics, which include diversified product forms such as extended-release oral solids, injectables, transdermals and topicals, performed in line with management’s expectations, including solid performance across the broader portfolio in North America. Revenues from this business came in at $1.4 billion, down 5%.
Viatris generated $133 million in new product revenues (revenues from products launched in 2022), primarily driven by the launch of generic lenalidomide in the United States and achieved $483 million in total revenues for the year.
Adjusted gross margin came in at 56.9% compared with 56.6% in the year-ago quarter.
Other Updates
In November 2022, Viatris closed its transaction with Biocon Biologics Limited. Viatris had earlier announced an agreement with Biocon Biologics Limited whereby the former would sell its biosimilars portfolio to the latter. Total revenues relating to the biosimilars portfolio were approximately $611.5 million from Jan 1, 2022, to Nov 29, 2022.
Under the terms of the transaction agreement, Viatris received $3 billion in consideration in the form of a $2 billion cash payment and $1 billion of convertible preferred equity, representing a stake of at least 12.9% (on a fully diluted basis) in Biocon Biologics. Viatris also is entitled to $335 million of additional cash payments in 2024.
Viatris Inc. Price, Consensus and EPS Surprise
Viatris Inc. price-consensus-eps-surprise-chart | Viatris Inc. Quote
2022 Results
Revenues came in at $16.3 billion, down from $17.9 billion in 2021.
2023 Guidance
Revenues are projected between $15.5 billion and $16 billion.
Our Take
Viatris reported disappointing results for the fourth quarter.The company is now looking to reshape its business after selling its biosimilars portfolio.
Zacks Rank & Stocks to Consider
Viatris currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the biotech sector include Dynavax Technologies (DVAX - Free Report) and Kala Pharmaceuticals (KALA - Free Report) , both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Over the past 60 days, earnings estimates for Dynavax for 2022 have increased by 11 cents to $1.95. Dynavax surpassed estimates in two of the trailing four quarters and missed in the other two, with the average surprise being 73.15%.
Over the past 90 days, earnings estimates for KALA for 2022 have increased by 26 cents. KALA topped earnings estimates in two of the last four quarters and missed in the other two, with a four-quarter earnings surprise of 2.39% on average.