Viatris ( NASDAQ: VTRS ) posted $1.0B GAAP net income for Q4 2022 on Monday compared to a $263.8M net loss in the prior year, thanks to a one-off gain of ~$1.8B related to its biosimilar divestiture.
In November 2022, India's Biocon Biologics acquired the company's biosimilar assets for up to ~$3.3B.
"We believe we will continue to effectively manage our established brand business to drive stability of our base business in 2023 and position the company for growth," Viatris ( VTRS ) President Rajiv Malik said ahead of the earnings call at 8:30 a.m. ET.
However, the company's net sales for the quarter dropped ~11% YoY to $3.9B as net sales from generics and branded mediations fell ~5% YoY and ~11% YoY to $1.3B and $2.3B, respectively.
Developed markets added $2.4B in net revenue with a ~7% YoY decline, while new product revenue reached $133M, primarily driven by lenalidomide sales in the U.S.
Leading revenue generators, cholesterol drug Lipitor and calcium channel blocker Norvasc added $369.1M and ~$175.0M to the topline with ~5% YoY and ~7% YoY decline, respectively.
The company's adjusted gross margin stood at ~57%, unchanged from a year ago, and net earnings adjusted for items including gain from Biocon Biologics divestiture fell ~10% YoY to $823M.
Full-year revenue contracted ~9% YoY to $16.2B while adjusted EBITDA and free cash flow fell ~9% YoY and 1% YoY to $5.8B and $2.5B, respectively.
For 2023, Viatris ( VTRS ) projects $15.5B - $16.0B in revenue, $5.0B - $5.4B in adj. EBITDA and $2.3B – $2.7B in free cashflow compared to ~$15.6B, $5.3B, and $2.8B in the consensus, respectively.
Seeking Alpha contributor, The Value Investor issued a Hold rating on Viatris ( VTRS ) in January, citing its dividend yield as a positive sign.
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Viatris swings to $1B net earnings in Q4 thanks to biosimilar sale