Viatris ( NASDAQ: VTRS ) added ~16% in the morning hours Monday to reach the highest level since June after the generic drugmaker announced its Q3 2022 financial results and Oyster Point Pharma ( OYST ) agreed to a buyout deal with the company.
However, VIatris ( VTRS ) did not meet the Street forecast for its Q3 revenue, which dropped for the third consecutive quarter with a ~10% decline to $4.1B.
Revenue from developed markets fell ~8% YoY to $2.4B, while generics and branded medicines added $1.2B and $2.5B with ~13% YoY and ~9% YoY declines, respectively.
Best-selling cholesterol therapy Lipitor and calcium channel blocker Norvasc brought $420.4M and $189.3M to the topline with ~3% YoY growth and ~5% YoY drop, respectively, while the company’s revenue from new products reached $144M compared to $198.4M in the prior year period.
For the quarter, Viatris ( VTRS ) reported $354.3M in net earnings with ~14% YoY growth as gross margin improved to 42.2% from 34.7% in Q3 2021.
Despite ~$614M of debt repayment, Viatris ( VTRS ) has extended its year-to-date free cash flow generation by $765M in Q3 to ~$2.6B while its cash and cash equivalents dropped ~8% from 2021 year-end to $646.7M.
Chief Financial Officer Sanjeev Narula highlighted the company’s efforts to reduce debt. “We have paid down approximately $2.1 billion of debt year-to-date and have delivered on our 2022 debt paydown target one quarter ahead of schedule,” he said.
Viatris ( VTRS ) reiterates its full-year financial guidance, including a revenue outlook of $16.2B – $16.7B, which is in line with $16.5B in the consensus.
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Viatris nears five-month high after Oyster Point Pharma deal and Q3 earnings