Generic Drugmaker Viatris Beats Expectations In Q3, CEO Praises $2 Billion Debt Paydown

Viatris Inc. VTRS reported third-quarter 2024 total net sales of $3.74 billion. That’s down 5%, beating the consensus of $3.71 billion, but up about 3% on a divestiture-adjusted operational basis compared to third-quarter 2023 results.

The company reported divestiture-adjusted operational net sales growth across all segments.

Brands net sales reflect the expansion of the company’s portfolio in emerging markets and JANZ, as well as strong growth in Europe and Greater China. This was partially offset by unfavorable channel dynamics in North America and the impact of government price regulations in Japan and Australia. Brand sales fell 7% to $2.36 billion.

Generic net sales reflect strong growth from new product performance in Developed Markets, continued growth from complex products, and solid performance across the broader European portfolio. Generic sales fell 2% to $1.38 billion.

The company generated approximately $133 million in new product revenues, primarily driven by Breyna, lisdexamfetamine, and other new products globally.

The company reported adjusted EPS of 75 cents, down 5% year over year, beating the consensus of 68 cents.

“We continue to make excellent progress executing on our debt paydown commitment and are on pace to achieve our long-term gross leverage target of ~3.0x by year-end,” said Viatris CFO Doretta Mistras.

The company retired all of its 2025 and more than a quarter of its 2026 debt maturities, totaling approximately $1.9 billion in debt. That includes the make-whole call of its 2025 notes that settled in October.

Guidance: Viatris expects to deliver approximately $500 million to $600 million in new product revenues in 2024.

The company reaffirms 2024 sales of $14.6 billion – $15.1 billion versus consensus of $14.80 billion.

The company expects 2024 adjusted EPS of $2.56-$2.71 compared to prior guidance of $2.58–$2.73 and the consensus of $2.67.

Price Action: Viatris stock is up 13.9% at $13.22 at last check Thursday.

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