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Viatris' (VTRS) Q4 Earnings and Revenues Miss Estimates
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Viatris Inc. (VTRS - Free Report) delivered adjusted earnings of 61 cents per share in the fourth quarter of 2023, missing the Zacks Consensus Estimate of 67 cents. The company recorded adjusted earnings of 67 cents in the year-ago quarter.
Total revenues came in at $3.8 billion, up 1% year over year on a divestiture-adjusted operational basis. Revenues include product sales and other revenues. The top line missed the Zacks Consensus Estimate of $3.9 million.
Viatris’ stock has declined in the premarket due to the disappointing financial results in the fourth quarter of 2023. VTRS shares have gained 17% in the past year compared with the industry’s 0.5% growth.
Image Source: Zacks Investment Research
All growth rates mentioned below are on a year-over-year basis and adjusted for the impact of the biosimilars’ divestiture in November 2022. In November 2022, Viatris sold its biosimilars’ portfolio to Biocon Biologics Limited.
Quarter in Detail
The company reports results in four segments — Developed Markets, Emerging Markets, Japan, Australia and New Zealand (JANZ) and Greater China.
Sales from Developed Markets came in at $2.3 billion, down 1% from the year-ago quarter.
Sales from Emerging Markets came in at $619.1 million, up 14% from the year-ago quarter.
JANZ generated sales of $372.3 million, down 1% year over year.
Sales from Greater China came in at $515.3 million, up 2% year over year.
As regards revenue performance based on product category, revenues from Brands were up 4% year over year to $2.4 billion. Sales came in line with expectations due to a solid year-over-year performance in key brands like Yupelri, Lipitor and Dona.
Among these, Lipitor’s sales were $379.8 million, up 3% from the year-ago quarter. Yupelri sales came in at $60.5 million, up 8% year over year.
Generics, which include diversified product forms such as extended-release oral solids, injectables, transdermals and topicalsand complex generics, performed ahead of management’s expectations. Revenues from this business came in at $1.4 billion, down 3%.
Viatris generated $107 million in new generic product revenues, primarily driven by the launch of generic lenalidomide and Breyna (generic for Symbicort) in the United States.
The company paid down approximately $500 million in debt in the fourth quarter.
Adjusted gross margin came in at 57.5%, up 60 basis points year over year.
2023 Results
Revenues came in at $15.4 billion, down 5% year over year.
2024 Guidance
Total revenues are projected between $15.25 billion and $15.75 billion in 2024.
Adjusted earnings per share is expected in the range of $2.70-$2.85 in 2024.
Other Updates
In a separate press release, Viatris announced that it has entered into a global research and development collaboration with Swiss company Idorsia Ltd. The agreement grants Viatris exclusive global development and commercialization rights to two phase III assets, selatogrel and cenerimod,as well as the potential to add additional innovative assets in the future.
Selatogrel is a potential life-saving self-administered medicine for patients with a history of acute myocardial infarction (heart attack). Management believes that the addition of this investigational candidate complements Viatris' expertise in the cardiovascular field.
Cenerimod, on the other hand, is a novel immunology asset that has the potential to be a first-in-class oral therapy for the treatment of systemic lupus erythematosus, the most common form of lupus. Viatris also plans to study the candidate later for multiple other autoimmune indications.
The transaction is expected to close at the end of March, subject to certain limited closing conditions.
In the past 30 days, the Zacks Consensus Estimate for Puma Biotech’s 2023 earnings per share (EPS) has remained constant at 73 cents. During the same time frame, the consensus estimate for Puma Biotech’s 2024 EPS has increased from 69 cents to 71 cents. Over the past year, shares of PBYI have surged 60.7%.
PBYI beat estimates in three of the last four quarters while missing on one occasion, delivering a four-quarter average earnings surprise of 76.55%.
In the past 30 days, the Zacks Consensus Estimate for ADMA Biologics’ 2023 loss per share has remained constant at 2 cents. The consensus estimate for ADMA Biologics’ 2024 EPS is pegged at 22 cents. Over the past year, shares of ADMA have jumped 55.5%.
ADMA beat estimates in three of the trailing four quarters and matched in one, delivering an average earnings surprise of 63.57%.
In the past 30 days, the Zacks Consensus Estimate for Adicet Bio’s 2023 loss per share has remained constant at $3.39. During the same period, the consensus estimate for Adicet’s 2024 loss per share has narrowed from $2.29 to $1.81. In the past year, shares of ACET have plunged 68.8%.
ACET’s earnings beat estimates in two of the trailing four quarters, missing the mark on the other two occasions, delivering an average negative surprise of 8.36%.
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Viatris' (VTRS) Q4 Earnings and Revenues Miss Estimates
Viatris Inc. (VTRS - Free Report) delivered adjusted earnings of 61 cents per share in the fourth quarter of 2023, missing the Zacks Consensus Estimate of 67 cents. The company recorded adjusted earnings of 67 cents in the year-ago quarter.
Total revenues came in at $3.8 billion, up 1% year over year on a divestiture-adjusted operational basis. Revenues include product sales and other revenues. The top line missed the Zacks Consensus Estimate of $3.9 million.
Viatris’ stock has declined in the premarket due to the disappointing financial results in the fourth quarter of 2023. VTRS shares have gained 17% in the past year compared with the industry’s 0.5% growth.
Image Source: Zacks Investment Research
All growth rates mentioned below are on a year-over-year basis and adjusted for the impact of the biosimilars’ divestiture in November 2022. In November 2022, Viatris sold its biosimilars’ portfolio to Biocon Biologics Limited.
Quarter in Detail
The company reports results in four segments — Developed Markets, Emerging Markets, Japan, Australia and New Zealand (JANZ) and Greater China.
Sales from Developed Markets came in at $2.3 billion, down 1% from the year-ago quarter.
Sales from Emerging Markets came in at $619.1 million, up 14% from the year-ago quarter.
JANZ generated sales of $372.3 million, down 1% year over year.
Sales from Greater China came in at $515.3 million, up 2% year over year.
As regards revenue performance based on product category, revenues from Brands were up 4% year over year to $2.4 billion. Sales came in line with expectations due to a solid year-over-year performance in key brands like Yupelri, Lipitor and Dona.
Among these, Lipitor’s sales were $379.8 million, up 3% from the year-ago quarter. Yupelri sales came in at $60.5 million, up 8% year over year.
Generics, which include diversified product forms such as extended-release oral solids, injectables, transdermals and topicalsand complex generics, performed ahead of management’s expectations. Revenues from this business came in at $1.4 billion, down 3%.
Viatris generated $107 million in new generic product revenues, primarily driven by the launch of generic lenalidomide and Breyna (generic for Symbicort) in the United States.
The company paid down approximately $500 million in debt in the fourth quarter.
Adjusted gross margin came in at 57.5%, up 60 basis points year over year.
2023 Results
Revenues came in at $15.4 billion, down 5% year over year.
2024 Guidance
Total revenues are projected between $15.25 billion and $15.75 billion in 2024.
Adjusted earnings per share is expected in the range of $2.70-$2.85 in 2024.
Other Updates
In a separate press release, Viatris announced that it has entered into a global research and development collaboration with Swiss company Idorsia Ltd. The agreement grants Viatris exclusive global development and commercialization rights to two phase III assets, selatogrel and cenerimod,as well as the potential to add additional innovative assets in the future.
Selatogrel is a potential life-saving self-administered medicine for patients with a history of acute myocardial infarction (heart attack). Management believes that the addition of this investigational candidate complements Viatris' expertise in the cardiovascular field.
Cenerimod, on the other hand, is a novel immunology asset that has the potential to be a first-in-class oral therapy for the treatment of systemic lupus erythematosus, the most common form of lupus. Viatris also plans to study the candidate later for multiple other autoimmune indications.
The transaction is expected to close at the end of March, subject to certain limited closing conditions.
Viatris Inc. Price, Consensus and EPS Surprise
Viatris Inc. price-consensus-eps-surprise-chart | Viatris Inc. Quote
Zacks Rank and Stocks to Consider
Viatris currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the drug/biotech industry are Puma Biotechnology, Inc. (PBYI - Free Report) , ADMA Biologics (ADMA - Free Report) and Adicet Bio, Inc. (ACET - Free Report) . While PBYI sports a Zacks Rank #1 (Strong Buy), ADMA & ACET carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, the Zacks Consensus Estimate for Puma Biotech’s 2023 earnings per share (EPS) has remained constant at 73 cents. During the same time frame, the consensus estimate for Puma Biotech’s 2024 EPS has increased from 69 cents to 71 cents. Over the past year, shares of PBYI have surged 60.7%.
PBYI beat estimates in three of the last four quarters while missing on one occasion, delivering a four-quarter average earnings surprise of 76.55%.
In the past 30 days, the Zacks Consensus Estimate for ADMA Biologics’ 2023 loss per share has remained constant at 2 cents. The consensus estimate for ADMA Biologics’ 2024 EPS is pegged at 22 cents. Over the past year, shares of ADMA have jumped 55.5%.
ADMA beat estimates in three of the trailing four quarters and matched in one, delivering an average earnings surprise of 63.57%.
In the past 30 days, the Zacks Consensus Estimate for Adicet Bio’s 2023 loss per share has remained constant at $3.39. During the same period, the consensus estimate for Adicet’s 2024 loss per share has narrowed from $2.29 to $1.81. In the past year, shares of ACET have plunged 68.8%.
ACET’s earnings beat estimates in two of the trailing four quarters, missing the mark on the other two occasions, delivering an average negative surprise of 8.36%.