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Viatris Q1 Earnings and Revenues Beat Estimates, Stock Gains
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Viatris Inc. (VTRS - Free Report) delivered first-quarter adjusted earnings of 50 cents per share, which beat the Zacks Consensus Estimate of 49 cents. The company recorded adjusted earnings of 67 cents per share in the year-ago quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Total revenues were $3.25 billion, down 11% year over year. The top line included product sales and other revenues. Nonetheless, revenues beat the Zacks Consensus Estimate of $3.23 billion.
Shares are trading up in response to better-than-expected results. VTRS’ share price has dropped 30.1% year to date compared with the industry’s 0.9% decline.
Image Source: Zacks Investment Research
All growth rates mentioned below are on a year-over-year basis.
VTRS’ Q1 Sales in Detail
Sales totaled $3.2 billion, down 11%. Sales were down 3% on a divestiture-adjusted operational basis compared to the prior-year results.
The company reports under four segments — Developed Markets, Emerging Markets, Japan, Australia and New Zealand (JANZ), and Greater China.
Sales from Developed Markets amounted to $1.9 billion, down 3% on a divestiture-adjusted operational basis. The reported figure missed the Zacks Consensus Estimate of $1.93 billion.
Sales from Emerging Markets totaled $519.9 million, down 5% on a divestiture-adjusted operational basis. The figure beat the Zacks Consensus Estimate of $464 million.
JANZ generated sales of $276.1 million, down 6% on a divestiture-adjusted operational basis. Sales missed the Zacks Consensus Estimate of $309 million.
Sales from Greater China totaled $555.5 million, up 4% on a divestiture-adjusted operational basis. The figure beat the Zacks Consensus Estimate of $553 million.
Based on product category, revenues from Brands decreased 8% to $2.1 billion. On a divestiture-adjusted operational basis, sales increased 3%, reflecting the expansion of the portfolio in Emerging Markets and strong growth in Greater China and Developed Markets.
Among Brands, Lipitor sales totaled $388 million, relatively flat year over year. Norvasc sales decreased to $172.3 million from $176.3 million a year ago. Lyrica sales declined to $112.6 million from $114.2 million.
Yupelri sales totaled $58.3 million, up from $55.2 million in the year-ago quarter.
Generics, which includes diversified product forms such as extended-release oral solids, injectables, transdermals, topicals and complex generics, posted revenues of $1.1 billion, down 16%. On an operational change basis, sales were down 11%.
The decline in generics’ sales reflects the expected negative impact from the Indore facility, partially offset by growth in certain complex products in North America, strong performance across key European markets and volume growth in JANZ.
Following an inspection of Viatris' oral finished dose manufacturing facility in Indore, India, in June 2024, the company received a warning letter and import alert from the FDA in December 2024.
The import alert affects 11 actively distributed products, including lenalidomide and everolimus.
Viatris generated $67 million in new generic product revenues. It expects to generate $450-$550 million in new product revenues in 2025.
Adjusted gross margin was 55.9%, down from 58.8% reported in the year-ago quarter.
So far this year, VTRS has returned more than $450 million of capital to its shareholders, including over $300 million in share repurchases and $143 million in dividends paid.
VTRS expects $500 million to $650 million in total share repurchases in 2025.
VTRS Updates 2025 Guidance
Total revenues are still projected to be in the band of $13.5-$14 billion. Adjusted earnings per share are now expected to be in the range of $2.16-$2.30 (previous guidance: $2.12-$2.26). The guidance for the bottom line was updated to reflect the impact of acquired IPR&D and share repurchases.
Results from the phase III open-label, long-term extension study for Effexor required for approval in Japan were positive. VTRS filed applications to the Ministry of Health, Labor and Welfare for approval of Effexor SR Capsules (venlafaxine hydrochloride), a serotonin-noradrenaline reuptake inhibitor to treat adults with generalized anxiety disorder.
VTRS announced positive top-line results from two pivotal phase III studies of its novel fast-acting formulation of meloxicam (MR-107A-02) for the treatment of moderate-to-severe acute pain. All primary and secondary endpoints were met in both the phase III studies. MR-107A-02 demonstrated statistically significant and clinically meaningful results.
VTRS is targeting to submit a new drug application to the FDA by the end of 2025.
Our Take on VTRS’ Q1 Performance
VTRS’ performance in the first quarter was encouraging, with both the top and the bottom lines comfortably beating their respective estimates. Sales from branded drugs benefit from the company’s portfolio expansion in Emerging Markets, along with robust growth in Greater China and Developed Markets.
In the past 60 days, estimates for Bayer’s earnings per share have increased from $1.17 to $1.23 for 2025. During the same time, earnings per share have increased from $1.27 to $1.31 for 2026. Year to date, shares of BAYRY have rallied 35.1%.
In the past 60 days, estimates for ADMA Biologics’ earnings per share have increased from 70 cents to 71 cents for 2025. During the same time, earnings per share estimates for 2026 are unchanged at 93 cents. Year to date, shares of ADMA have gained 12%.
ADMA’s earnings beat estimates in two of the trailing four quarters while missing the same on the remaining two occasions, the average surprise being 14.68%.
In the past 60 days, estimates for Beam Therapeutics' loss per share have narrowed from $4.45 to $4.30 for 2025. During the same time, loss per share estimates for 2026 have narrowed from $4.94 to $4.65.
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Viatris Q1 Earnings and Revenues Beat Estimates, Stock Gains
Viatris Inc. (VTRS - Free Report) delivered first-quarter adjusted earnings of 50 cents per share, which beat the Zacks Consensus Estimate of 49 cents. The company recorded adjusted earnings of 67 cents per share in the year-ago quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Total revenues were $3.25 billion, down 11% year over year. The top line included product sales and other revenues. Nonetheless, revenues beat the Zacks Consensus Estimate of $3.23 billion.
Shares are trading up in response to better-than-expected results. VTRS’ share price has dropped 30.1% year to date compared with the industry’s 0.9% decline.
Image Source: Zacks Investment Research
All growth rates mentioned below are on a year-over-year basis.
VTRS’ Q1 Sales in Detail
Sales totaled $3.2 billion, down 11%. Sales were down 3% on a divestiture-adjusted operational basis compared to the prior-year results.
The company reports under four segments — Developed Markets, Emerging Markets, Japan, Australia and New Zealand (JANZ), and Greater China.
Sales from Developed Markets amounted to $1.9 billion, down 3% on a divestiture-adjusted operational basis. The reported figure missed the Zacks Consensus Estimate of $1.93 billion.
Sales from Emerging Markets totaled $519.9 million, down 5% on a divestiture-adjusted operational basis. The figure beat the Zacks Consensus Estimate of $464 million.
JANZ generated sales of $276.1 million, down 6% on a divestiture-adjusted operational basis. Sales missed the Zacks Consensus Estimate of $309 million.
Sales from Greater China totaled $555.5 million, up 4% on a divestiture-adjusted operational basis. The figure beat the Zacks Consensus Estimate of $553 million.
Based on product category, revenues from Brands decreased 8% to $2.1 billion. On a divestiture-adjusted operational basis, sales increased 3%, reflecting the expansion of the portfolio in Emerging Markets and strong growth in Greater China and Developed Markets.
Among Brands, Lipitor sales totaled $388 million, relatively flat year over year. Norvasc sales decreased to $172.3 million from $176.3 million a year ago. Lyrica sales declined to $112.6 million from $114.2 million.
Yupelri sales totaled $58.3 million, up from $55.2 million in the year-ago quarter.
Generics, which includes diversified product forms such as extended-release oral solids, injectables, transdermals, topicals and complex generics, posted revenues of $1.1 billion, down 16%. On an operational change basis, sales were down 11%.
The decline in generics’ sales reflects the expected negative impact from the Indore facility, partially offset by growth in certain complex products in North America, strong performance across key European markets and volume growth in JANZ.
Following an inspection of Viatris' oral finished dose manufacturing facility in Indore, India, in June 2024, the company received a warning letter and import alert from the FDA in December 2024.
The import alert affects 11 actively distributed products, including lenalidomide and everolimus.
Viatris generated $67 million in new generic product revenues. It expects to generate $450-$550 million in new product revenues in 2025.
Adjusted gross margin was 55.9%, down from 58.8% reported in the year-ago quarter.
So far this year, VTRS has returned more than $450 million of capital to its shareholders, including over $300 million in share repurchases and $143 million in dividends paid.
VTRS expects $500 million to $650 million in total share repurchases in 2025.
VTRS Updates 2025 Guidance
Total revenues are still projected to be in the band of $13.5-$14 billion. Adjusted earnings per share are now expected to be in the range of $2.16-$2.30 (previous guidance: $2.12-$2.26). The guidance for the bottom line was updated to reflect the impact of acquired IPR&D and share repurchases.
Viatris Inc. Price, Consensus and EPS Surprise
Viatris Inc. price-consensus-eps-surprise-chart | Viatris Inc. Quote
Other Updates
Results from the phase III open-label, long-term extension study for Effexor required for approval in Japan were positive. VTRS filed applications to the Ministry of Health, Labor and Welfare for approval of Effexor SR Capsules (venlafaxine hydrochloride), a serotonin-noradrenaline reuptake inhibitor to treat adults with generalized anxiety disorder.
VTRS announced positive top-line results from two pivotal phase III studies of its novel fast-acting formulation of meloxicam (MR-107A-02) for the treatment of moderate-to-severe acute pain. All primary and secondary endpoints were met in both the phase III studies. MR-107A-02 demonstrated statistically significant and clinically meaningful results.
VTRS is targeting to submit a new drug application to the FDA by the end of 2025.
Our Take on VTRS’ Q1 Performance
VTRS’ performance in the first quarter was encouraging, with both the top and the bottom lines comfortably beating their respective estimates. Sales from branded drugs benefit from the company’s portfolio expansion in Emerging Markets, along with robust growth in Greater China and Developed Markets.
VTRS’ Zacks Rank and Stocks to Consider
Viatris currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the pharma/biotech sector are Bayer (BAYRY - Free Report) , ADMA Biologics Inc. (ADMA - Free Report) and Beam Therapeutics Inc. (BEAM - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 60 days, estimates for Bayer’s earnings per share have increased from $1.17 to $1.23 for 2025. During the same time, earnings per share have increased from $1.27 to $1.31 for 2026. Year to date, shares of BAYRY have rallied 35.1%.
In the past 60 days, estimates for ADMA Biologics’ earnings per share have increased from 70 cents to 71 cents for 2025. During the same time, earnings per share estimates for 2026 are unchanged at 93 cents. Year to date, shares of ADMA have gained 12%.
ADMA’s earnings beat estimates in two of the trailing four quarters while missing the same on the remaining two occasions, the average surprise being 14.68%.
In the past 60 days, estimates for Beam Therapeutics' loss per share have narrowed from $4.45 to $4.30 for 2025. During the same time, loss per share estimates for 2026 have narrowed from $4.94 to $4.65.