Viatris Q2 Earnings Beat Estimates, Multiple Sclerosis Therapy Accepted For FDA Review

Viatris Inc VTRS reported Q2 FY23 sales of $3.91 billion, up 2% on a divestiture-adjusted operational basis, marginally higher the consensus of $3.89 billion.

Brands performed in line with expectations, reflecting strong year-over-year performance in key brands, including Yupelri and sales from Tyrvaya.

Complex generics performed in line with expectations.

The company generated approximately $124 million in new product revenues in Q2, primarily driven by lenalidomide in the U.S., and is on track to achieve approximately $500 million in new product revenues in 2023.

Generics, which include diversified product forms such as oral solids, injectables, transdermals, and topicals, performed ahead of expectations due to strong performance across broader Developed and Emerging Markets portfolios.

It reported an adjusted EPS of $0.75, better than the consensus of $0.71. The company reported an adjusted profit of $905.4 million, down from $1.01 billion

Adjusted EBITDA reached $1.31 billion compared to $1.48 billion a year ago.

Guidance: Viatris reaffirms FY23 revenue guidance of $15.5-$16 billion versus the consensus of $15.6 billion.

It expects adjusted EBITDA of $5.0-$5.4 billion and free cash flow of $2.3-$2.7 billion.

Concurrently, the FDA accepted for review Viatris and Mapi Pharma's recently submitted New Drug Application for GA Depot 40 mg. 

The product is a long-acting glatiramer acetate being investigated as a once-monthly injection for relapsing forms of multiple sclerosis, with a PDUFA action date of March 8, 2024.

Price Action: VTRS shares are up 7.32% at $11.37 on the last check Monday.