Viatris Reports Decline in Financial Performance for Q3 and Nine Months of 2024

Viatris Inc. reported a decline in financial performance for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, net sales were $3,738.0 million, down from $3,933.9 million in 2023, reflecting a decrease of approximately 5%. Total revenues also fell to $3,751.2 million from $3,941.9 million, a decline of $190.7 million. Gross profit for the quarter decreased to $1,459.2 million, down from $1,691.3 million, resulting in a gross margin of 39%, compared to 43% in the prior year.

Net earnings for the third quarter were $94.8 million, significantly lower than $331.6 million in 2023. This resulted in earnings per share of $0.08, down from $0.28. For the nine months ended September 30, 2024, net sales totaled $11,177.4 million, a decrease from $11,562.5 million, while total revenues fell to $11,211.2 million from $11,589.6 million. The company reported a net loss of $117.7 million for the nine-month period, compared to net earnings of $820.3 million in 2023.

The decline in revenue was attributed to divestitures and unfavorable foreign currency translations, which impacted net sales by approximately $445.4 million and $190.9 million, respectively. However, on a constant currency basis, net sales from the remaining business increased by approximately 2% for both the quarter and the nine-month period, driven by new product sales.

Viatris undertook significant strategic actions, including the acquisition of development programs from Idorsia for $350 million, with potential contingent payments totaling $2.4 billion. The company also divested its OTC business and women's healthcare business, with the latter closing in March 2024. The divestiture of the API business in India and the OTC transaction were completed in mid-2024.

Operating expenses for the nine months increased to $4,218.7 million from $3,621.4 million, primarily due to a goodwill impairment charge of $321.0 million related to the JANZ reporting unit. The company also incurred higher acquisition and divestiture-related costs. Interest expense remained relatively stable, while other income decreased significantly due to losses on divestitures and lower transition service agreement income.

As of September 30, 2024, Viatris reported total current assets of $11,307.7 million, down from $12,976.1 million at the end of 2023, while cash and cash equivalents increased to $1,878.7 million. The company’s total assets decreased to $44,754.1 million from $47,685.5 million, and total equity fell to $19,792.4 million from $20,467.4 million.