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Viatris Stock Rises as Q2 Earnings & Revenues Beat Estimates
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Key Takeaways
Viatris posted Q2 EPS of $0.62 and revenues of $3.58B, both ahead of consensus estimate.
Branded drug sales rose 3%, driven by strong demand in Greater China and Emerging Markets.
VTRS reaffirmed 2025 revenue guidance and hiked EPS forecast to $2.16-$2.30 for the year.
Viatris Inc. ((VTRS - Free Report) ) delivered second-quarter 2025 adjusted earnings of 62 cents per share, which beat the Zacks Consensus Estimate of 56 cents. The company recorded adjusted earnings of 69 cents per share in the year-ago quarter.
Total revenues were $3.58 billion, down 6% year over year. The top line included product sales and other revenues. Nonetheless, revenues beat the Zacks Consensus Estimate of $3.5 billion.
Shares are trading up in response to better-than-expected results. However, VTRS’ share price has dropped 29.7% year to date compared with the industry’s 8.6% decline.
All growth rates mentioned below are on a year-over-year basis.
Image Source: Zacks Investment Research
VTRS’ Q2 Sales in Detail
Sales totaled $3.57 billion, down 6% and down 2% 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 $2.11 billion, down 4% on a divestiture-adjusted operational basis. The reported figure beat the Zacks Consensus Estimate of $2.01 billion.
Sales from Emerging Markets totaled $555.1 million, up 1% on a divestiture-adjusted operational basis. The figure beat the Zacks Consensus Estimate of $542 million.
JANZ generated sales of $305.7 million, down 11% on a divestiture-adjusted operational basis. Sales missed the Zacks Consensus Estimate of $310 million.
Sales from Greater China totaled $588.9 million, up 9% on a divestiture-adjusted operational basis. The figure beat the Zacks Consensus Estimate of $546 million.
Based on product category, revenues from Brands decreased 3% to $2.3 billion. On a divestiture-adjusted operational basis, sales increased 3%, reflecting strong performance in Greater China and Emerging Markets, in addition to growth in certain key brands in Developed Markets.
Among Brands, Lipitor sales totaled $388 million, up $348.4 million from the year-ago quarter’s level. Norvasc sales increased to $182.7 million from $161.9 million a year ago. Lyrica sales increased to $128.1 million from $124.3 million.
Generics, which includes diversified product forms such as extended-release oral solids, injectables, transdermals, topicals and complex generics, posted revenues of $1.28 billion, down 10%. On an operational change basis, sales were down 9%.
The decline in generics’ sales reflects the expected negative impact from the Indore facility, partially offset by continued growth in Yupelri and Breyna in North America, strong performance across key European markets and slight volume growth in JANZ.
Yupelri sales totaled $66.6 million, up from $54.5 million in the year-ago quarter.
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 $79 million in new generic product revenues.
Adjusted gross margin was 56.3%, down from 58.4% reported in the year-ago quarter.
In the year so far, VTRS has returned more than $630 million of capital to its shareholders, including over $350 million in share repurchases.
VTRS expects $500 million to $650 million in total share repurchases in 2025.
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.
Other Updates
Viatris announced positive top-line results from LYNX-2, a phase III study evaluating MR-142 (phentolamine ophthalmic solution 0.75%) in treating significant, chronic night driving impairment in keratorefractive patients with reduced mesopic vision.
VTRS also announced positive top-line results from VEGA-3, the second phase III study evaluating MR-141 (phentolamine ophthalmic solution 0.75%) in treating presbyopia, the gradual loss of the eyes' ability to focus on nearby objects.
However, a randomized, double-masked, vehicle-controlled, phase III study to evaluate the efficacy and safety of pimecrolimus 0.3% (MR-139) ophthalmic ointment in subjects with blepharitis did not meet its primary endpoint of complete resolution of debris after six weeks of twice daily dosing.
Our Take on VTRS’ Q2 Performance
VTRS’ performance in the second quarter was encouraging, with both the top and 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.
In the past 60 days, estimates for Immunocore’s 2025 loss per share have narrowed from 86 cents to 68 cents. Loss per share estimates for 2026 have narrowed from $1.34 to $1.10 during the same period. IMCR stock has risen 8.9% year to date.
Immunocore’s earnings beat estimates in three of the trailing four quarters and missed the same in one, the average surprise being 76.18%.
In the past 60 days, estimates for CorMedix’s earnings per share (EPS) have increased from 93 cents to 97 cents for 2025. During the same time, EPS estimate for 2026 has increased from $1.64 to $1.65. Year to date, shares of CRMD have rallied 47.5%.
CorMedix’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 25.82%.
BAYRY’s 2025 EPS estimate has increased from $1.25 to $1.30 for 2025 over the past 90 days and the same for 2026 has risen from $1.31 to $1.35 over the same timeframe. Year to date, shares of Bayer have surged 48.6%.
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Viatris Stock Rises as Q2 Earnings & Revenues Beat Estimates
Key Takeaways
Viatris Inc. ((VTRS - Free Report) ) delivered second-quarter 2025 adjusted earnings of 62 cents per share, which beat the Zacks Consensus Estimate of 56 cents. The company recorded adjusted earnings of 69 cents per share in the year-ago quarter.
Total revenues were $3.58 billion, down 6% year over year. The top line included product sales and other revenues. Nonetheless, revenues beat the Zacks Consensus Estimate of $3.5 billion.
Shares are trading up in response to better-than-expected results. However, VTRS’ share price has dropped 29.7% year to date compared with the industry’s 8.6% decline.
All growth rates mentioned below are on a year-over-year basis.
Image Source: Zacks Investment Research
VTRS’ Q2 Sales in Detail
Sales totaled $3.57 billion, down 6% and down 2% 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 $2.11 billion, down 4% on a divestiture-adjusted operational basis. The reported figure beat the Zacks Consensus Estimate of $2.01 billion.
Sales from Emerging Markets totaled $555.1 million, up 1% on a divestiture-adjusted operational basis. The figure beat the Zacks Consensus Estimate of $542 million.
JANZ generated sales of $305.7 million, down 11% on a divestiture-adjusted operational basis. Sales missed the Zacks Consensus Estimate of $310 million.
Sales from Greater China totaled $588.9 million, up 9% on a divestiture-adjusted operational basis. The figure beat the Zacks Consensus Estimate of $546 million.
Based on product category, revenues from Brands decreased 3% to $2.3 billion. On a divestiture-adjusted operational basis, sales increased 3%, reflecting strong performance in Greater China and Emerging Markets, in addition to growth in certain key brands in Developed Markets.
Among Brands, Lipitor sales totaled $388 million, up $348.4 million from the year-ago quarter’s level. Norvasc sales increased to $182.7 million from $161.9 million a year ago. Lyrica sales increased to $128.1 million from $124.3 million.
Generics, which includes diversified product forms such as extended-release oral solids, injectables, transdermals, topicals and complex generics, posted revenues of $1.28 billion, down 10%. On an operational change basis, sales were down 9%.
The decline in generics’ sales reflects the expected negative impact from the Indore facility, partially offset by continued growth in Yupelri and Breyna in North America, strong performance across key European markets and slight volume growth in JANZ.
Yupelri sales totaled $66.6 million, up from $54.5 million in the year-ago quarter.
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 $79 million in new generic product revenues.
Adjusted gross margin was 56.3%, down from 58.4% reported in the year-ago quarter.
In the year so far, VTRS has returned more than $630 million of capital to its shareholders, including over $350 million in share repurchases.
VTRS expects $500 million to $650 million in total share repurchases in 2025.
Viatris Inc. Price, Consensus and EPS Surprise
Viatris Inc. price-consensus-eps-surprise-chart | Viatris Inc. Quote
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.
Other Updates
Viatris announced positive top-line results from LYNX-2, a phase III study evaluating MR-142 (phentolamine ophthalmic solution 0.75%) in treating significant, chronic night driving impairment in keratorefractive patients with reduced mesopic vision.
VTRS also announced positive top-line results from VEGA-3, the second phase III study evaluating MR-141 (phentolamine ophthalmic solution 0.75%) in treating presbyopia, the gradual loss of the eyes' ability to focus on nearby objects.
However, a randomized, double-masked, vehicle-controlled, phase III study to evaluate the efficacy and safety of pimecrolimus 0.3% (MR-139) ophthalmic ointment in subjects with blepharitis did not meet its primary endpoint of complete resolution of debris after six weeks of twice daily dosing.
Our Take on VTRS’ Q2 Performance
VTRS’ performance in the second quarter was encouraging, with both the top and 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.
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 Immunocore ((IMCR - Free Report) ), CorMedix ((CRMD - Free Report) ) and Bayer ((BAYRY - Free Report) ). While IMCR and CRMD sport a Zacks Rank #1 (Strong Buy) each, BAYRY carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Immunocore’s 2025 loss per share have narrowed from 86 cents to 68 cents. Loss per share estimates for 2026 have narrowed from $1.34 to $1.10 during the same period. IMCR stock has risen 8.9% year to date.
Immunocore’s earnings beat estimates in three of the trailing four quarters and missed the same in one, the average surprise being 76.18%.
In the past 60 days, estimates for CorMedix’s earnings per share (EPS) have increased from 93 cents to 97 cents for 2025. During the same time, EPS estimate for 2026 has increased from $1.64 to $1.65. Year to date, shares of CRMD have rallied 47.5%.
CorMedix’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 25.82%.
BAYRY’s 2025 EPS estimate has increased from $1.25 to $1.30 for 2025 over the past 90 days and the same for 2026 has risen from $1.31 to $1.35 over the same timeframe. Year to date, shares of Bayer have surged 48.6%.