Viatris' (VTRS) Generic Declines in Q4, Yupleri Sales Rise

Shares of Viatris, Inc. VTRS lost 4.8% in the last three trading sessions after the company reported lower-than-expected fourth-quarter results on Feb 28, before market open.

Fourth-quarter 2023 adjusted earnings of 61 cents per share missed the Zacks Consensus Estimate of 67 cents.

Total revenues came in at $3.8 billion, up 1% year over year on a divestiture-adjusted operational basis. However, the top line missed the Zacks Consensus Estimate of $3.9 million.

Branded business grew 3%, driven by brands like Yupelri, Lipitor and Dona.

Yupelri sales amounted to $60.5 million, up 8% year over year. Yupelri is expected to continue its growth trajectory and improve by double digits in 2024.

However, generics business was down 9% in the quarter. This business was flat in 2023 and is expected to show a slight improvement in 2024.

In the Developed Markets segment, the European business posted growth, led by Italy and Spain, as well as contributions from new product launches. However, business in North America was impacted by competition for certain complex products, including Wixela and Xulane, in the first half of the year.

Viatris expects this segment to grow in 2024, with both Europe and North America anticipated to post an improvement during the year. Europe's growth is projected on the back of the company’s strong brand portfolio, including Brufen, EpiPen and products from the Thrombosis portfolio. In addition, VTRS foresees further growth in key markets, including Italy and France, and strong performance in generics, aided by new product launches.
Emerging Markets’ results benefited from strength across its broader generics portfolio and stronger-than-expected performance from brands like Dymista and Viagra, led by markets such as Turkey, South Korea and Southeast Asia.

Gross margin came in at 57.5%, up from 56.9% due to the timing of segment and product mix.

VTRS shares have gained 16% in the past year compared with the industry’s 3.7% growth.

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In 2024, revenues are projected to be between $15.25 billion and $15.75 billion while adjusted EPS is anticipated in the $2.70-$2.85 range. New product revenues are anticipated in the band of $450-$550 million.

VTRS is expected to focus on three core therapeutic areas — ophthalmology, dermatology and gastrointestinal.  Total revenues are expected to be higher in the second half of 2024 due to the launch of new products and normal product seasonality.

Viatris also announced a collaboration with Idorsia Ltd, whereby it will add two phase III assets — selatogrel and cenerimod — to its portfolio.

Selatogrel, a potential life-saving self-administered medicine for patients with a history of acute myocardial infarction (AMI), or heart attack, and builds on Viatris' existing global cardiovascular franchise and specialty infrastructure.

The collaboration also includes cenerimod, a novel immunology asset that has the potential to be a first-in-class oral therapy for the treatment of systemic lupus erythematosus.

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, ADMA Biologics ADMA and Adicet Bio, Inc. ACET. While ADMA sports a Zacks Rank #1 (Strong Buy), PBYI and 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 ADMA Biologics’ 2024 earnings per share (EPS) has remained constant at 2 cents. The consensus estimate for 2025 EPS is pegged at 42 cents. Over the past year, shares of ADMA have jumped 64.8%.

ADMA beat on earnings in three of the trailing four quarters and met the same in one, delivering an average surprise of 63.57%.

In the past 30 days, the Zacks Consensus Estimate for Puma Biotech’s 2024 EPS has increased by 2 cents to 71 cents. During the same time frame, the consensus estimate for Puma Biotech’s 2025 EPS has increased from 80 cents to 81 cents. Over the past year, shares of the company have surged 95.7%.

PBYI beat on earnings in three of the trailing four quarters and missed the same in one, delivering an average surprise of 147.49%.

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 time frame, the consensus estimate for Adicet’s 2024 loss per share has narrowed from $2.29 to $1.81.

ACET’s earnings beat estimates in two of the trailing four quarters and missed the mark in the other two, delivering an average negative surprise of 8.36%.


 

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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