- The shares of the generic drugmaker, Viatris ( NASDAQ: VTRS ) traded ~4% higher in the pre-market Monday after its 2Q 2022 financials which failed to meet expectations for revenue as the company lowered the guidance to account for the rising U.S. dollar.
- Revenue for the quarter dropped ~10% YoY on a reported basis to $4.1B and the sales decline stood at only ~3% on an operational basis to exceed forecasts amid outperformance in segments such as Developed Markets, Emerging Markets, and China, the company said.
- Net sales from developed markets and emerging markets slipped ~6% YoY and ~25% YoY to $2.5B and $650.9M, respectively while sales in China remained steady at $548.3M compared to 2Q 2022.
- According to Viatris ( VTRS ), the brands exceeded forecasts generating $2.5B in net sales despite ~8% YoY decline driven by cholesterol drug Lipitor, calcium channel blocker Norvasc and anti-allergic injection EpiPen.
- As GAAP gross margin improved to 41.4% from ~29.0% in 2Q 2021, Viatris ( VTRS ) swung to a profit of $313.3M this quarter compared to $279.2M of net loss in the corresponding period of quarter.
- Citing ~$800M of negative impact of foreign exchange rates, the management has lowered the 2022 revenue guidance to $16.2B-$16.7B from prior outlook of $17B-$17.5B.
- However, expecting to absorb the impact below the topline, the company reaffirms the 2022 guidance ranges for adjusted EBITDA and free cash flow at the previous estimates of $5.8B - $6.2B and $2.5B - $2.9B, respectively.
For further details see:
Viatris lowers 2022 guidance to reflect currency impact