Viatris Q4 Earnings and Revenues Miss Estimates, Stock Plunges

Zacks

Biomarin Pharmaceutical

Viatris Inc. VTRS delivered fourth-quarter 2024 adjusted earnings of 54 cents per share, which missed the Zacks Consensus Estimate of 57 cents. The company recorded adjusted earnings of 62 cents per share in the year-ago quarter.

Total revenues were $3.53 billion, down 8.5% year over year. The top line included product sales and other revenues. Revenues missed the Zacks Consensus Estimate of $3.6 billion.

See the Zacks Earnings Calendar to stay ahead of market-making news.

Shares are trading down in response to the disappointing results. VTRS’ share price has dropped 4.8% year to date compared with the industry’s 16.6% decline.

All growth rates mentioned below are on a year-over-year basis.

VTRS’ Q4 Sales in Detail

Sales totaled $3.5 billion, down 8%. Sales were up 1% on a divestiture-adjusted operational basis compared to the prior-year results.

The company reports under four segments — Developed Markets, Emerging Markets, Japan, Australia and New Zealand (JANZ) and Greater China.

Sales from Developed Markets amounted to $2.15 billion, down 7%. The reported figure missed the Zacks Consensus Estimate of $2.17 billion.

Sales from Emerging Markets totaled $513.2 million, down 17%. The figure missed the Zacks Consensus Estimate of $539 million.

JANZ generated sales of $334.5 million, down 10%. Sales missed the Zacks Consensus Estimate of $366 million.

Sales from Greater China totaled $521.8 million, up 1%. The figure missed the Zacks Consensus Estimate of $553 million.

Based on product category, revenues from Brands decreased 10% to $2.1 billion. On a divestiture-adjusted operational basis, sales were flat, reflecting the expansion of the portfolio in Emerging Markets and JANZ, and strong growth in Greater China.

Among Brands, Lipitor sales totaled $355.9 million, down from $379.6 million in the year-ago quarter. Norvasc sales decreased to $166.2 million from $171.8 million a year ago. Lyrica sales declined to $127 million from $133 million.

Yupelri sales totaled $66.6 million, up from $60.5 million in the year-ago quarter.

Generics, which includes diversified product forms such as extended-release oral solids, injectables, transdermals, and topicals and complex generics, posted revenues of $1.3 billion, down 5%. On an operational change basis, sales were up 2%.

Viatris generated $85 million in new generic product revenues. It expects to generate $450-$550 million in new product revenues in 2025.

Adjusted gross margin was 56.3%, down from 57.5% reported in the year-ago quarter.

VTRS 2024 Results

Revenues of $14.7 billion were down 4.4% from 2023 and missed the Zacks Consensus Estimate of $14.8 million. Adjusted EPS of $2.65 was down from $2.93 in 2023 and missed the Zacks Consensus Estimate of $2.68.

Viatris Inc. Price, Consensus and EPS Surprise

Viatris Inc. price-consensus-eps-surprise-chart | Viatris Inc. Quote

VTRS 2025 Guidance

Total revenues are projected to be in the band of $13.5-$14 billion. Adjusted earnings per share are expected to be in the range of $2.12-$2.26.

Other Updates From VTRS

Following an inspection of Viatris' oral finished dose manufacturing facility in Indore, India, in June 2024, VTRS received a warning letter and import alert from the FDA in December 2024.

The import alert affects 11 actively distributed products, including lenalidomide and everolimus. However, the regulatory body made exceptions for four products based on shortage concerns.

While these products continue to be shipped from the Indore facility to markets outside the United States, VTRS currently anticipates some impact in other markets. Due to this, VTRS estimates 2025 revenues to be negatively impacted by approximately $500 million.

Our Take on VTRS’ Q4 Performance

The company reported lower-than-expected fourth-quarter results, wherein the top and bottom lines missed their respective estimates. The guidance for 2025 was disappointing as well.

Zacks Rank and Stocks to Consider

Viatris currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks from the sector are Gilead Sciences GILD, BioMarin Pharmaceutical BMRN and Amicus Therapeutics FOLD, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 30 days, Gilead Sciences’ earnings estimates for 2025 have improved from $7.56 to $7.81 per share. During the same timeframe, EPS for 2026 has improved to $8.17 from $7.82.

GILD’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 19.47%.

In the past 30 days, estimates for BioMarin Pharmaceutical’s 2025 earnings per share have increased from $4.01 to $4.19. Estimates for 2026 earnings per share have decreased from $5.21 to $5.20 during the same timeframe. BMRN’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 32.36%.

In the past 30 days, the estimate for Amicus Therapeutics’ 2025 earnings per share has remained constant at 43 cents. The estimate for 2026 earnings per share has moved down from 72 cents to 71 cents. FOLD’s earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 45.42%.

This article originally published on Zacks Investment Research (zacks.com).

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Sector Update: Health Care Stocks Higher Thursday Afternoon

MT Newswires

Walgreens Boots Alliance

Health care stocks were rising Thursday afternoon, with the NYSE Health Care Index adding 0.3% and the Health Care Select Sector SPDR Fund (XLV) up 0.2%.

The iShares Biotechnology ETF (IBB) rose 0.3%.

In corporate news, a buyout of Walgreens Boots Alliance would set the stage for a three-way split of the company, with Executive Chair Stefano Pessina keeping a notable stake under the agreement, the Financial Times reported. Walgreens shares advanced 5%.

Cassava Sciences shares jumped past 15%. The company said Thursday it has signed a license agreement with Yale University for intellectual property rights, including an exclusive US method of treatment patent covering simufilam as a potential treatment for seizures linked to rare neurodevelopmental disorders such as tuberous sclerosis complex.

Viatris shares dropped past 13% after it reported lower Q4 results, which also fell short of market expectations.

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Viatris Hits Over A Year Low After Weaker-Than-Expected Earnings Forecast

Reuters

Viatris

-15.21%

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Dj Viatris Falls To 52-Week Low, Fda Import Alert For India Facility Weighs On Guidance

Reuters

Viatris

-15.21%

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Viatris Falls to 52-Week Low; FDA Import Alert for India Facility Weighs on Guidance

Dow Jones Newswires

Viatris

-15.21%

By Josh Beckerman

Viatris shares fell to a 52-week low after the drug company said issues related to a India facility are expected to hurt 2025 total revenue by about $500 million.

The stock was recently down 14% to $9.63 and is down about 23% this year.

In December, the company received a warning letter and import alert from the Food and Drug Administration. The import alert affects 11 actively distributed products, including lenalidomide and everolimus, but the FDA made exceptions, subject to certain conditions, for four products based on shortage concerns.

Viatris said fourth-quarter results were strong and that full-year cash flow exceeded guidance. It reported fourth-quarter sales of $3.52 billion, down 8%.

The company plans to prioritize capital return in 2025, including $500 million to $650 million in share repurchases.

Write to Josh Beckerman at josh.beckerman@wsj.com

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Update: Viatris Shares Drop After Q4 Results Miss Consensus

MT Newswires

Viatris

-15.21%

(Updates to add stock move in the headline and the first paragraph.)

Viatris shares retreated more than 14% in recent Thursday trading after the company reported lower Q4 results, which also fell short of market expectations.

The company reported Q4 adjusted earnings Thursday of $0.54 per diluted share, down from $0.62 a year earlier.

Analysts polled by FactSet expected $0.56.

Revenue for the quarter ended Dec. 31 was $3.52 billion, down from $3.83 billion a year earlier.

Four analysts surveyed by FactSet expected $3.59 billion.

The company said it expects 2025 adjusted earnings of $2.12 to $2.26 per diluted share on revenue of $13.50 billion to $14 billion. Analysts surveyed by FactSet expect adjusted earnings of $2.58 per diluted share and revenue of 14.11 billion.

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Acadia's Q4 Earnings Miss, Nuplazid & Daybue Drive Revenue Growth

Zacks

Biomarin Pharmaceutical

ACADIA Pharmaceuticals

+1.79%

Acadia Pharmaceuticals ACAD reported fourth-quarter 2024 earnings of 17 cents per share, missing the Zacks Consensus Estimate of 19 cents. The reported figure has been adjusted for the net proceeds from the one-time sale of its Rare Pediatric Disease Priority Review Voucher. In the year-ago quarter, the company had reported earnings of 28 cents per share.

See the Zacks Earnings Calendar to stay ahead of market-making news.

Acadia recorded total revenues of $259.6 million, which beat the Zacks Consensus Estimate of $255 million. ACAD’s net product revenues comprise revenues generated from the sale of its two marketed products, Nuplazid (pimavanserin) and Daybue (trofinetide).

Acadia’s first drug, Nuplazid, is approved in the United States for the treatment of hallucinations and delusions associated with Parkinson’s disease psychosis. ACAD’s second product, Daybue, received approval in 2023 for treating Rett syndrome in adult and pediatric patients aged two years and older. Daybue is the first and only drug to be approved by the FDA for the given indication. The drug was launched in the United States in April 2023.

Total revenues jumped 12% year over year, driven by the contribution from Daybue and the continued growth in Nuplazid's market share.

ACAD’s Q4 Results in Detail

Revenues from Nuplazid increased 13% year over year to $162.9 million, driven primarily by volume growth. Nuplazid sales beat the Zacks Consensus Estimate of $160.4 million as well as our model estimate of $159.7 million.

Daybue recorded net product sales of $96.7 million in the reported quarter, up 11% year over year and 6% sequentially, driven by the growth in the drug’s unit sales. The reported figure beat the Zacks Consensus Estimate of $94.4 million as well as our model estimate of $94.7 million.

In the past three months, shares of Acadia have gained 16.6% against the industry’s decline of 1.2%.

Research and development (R&D) expenses were $100.7 million, up 51% year over year. The rise in R&D cost was mainly due to increased costs from clinical-stage programs in the reported quarter.

Selling, general and administrative (SG&A) expenses were $130.1 million, up 17% year over year. The increase in such expenses can be primarily attributed to increased marketing costs to support the Nuplazid and Daybue franchises in the United States as well as investments to commercialize Daybue outside the United States.

Acadia had cash, cash equivalents and investments worth $756 million as of Dec. 31, 2024, compared with $565.3 million as of Sept. 30, 2024.

ACAD’s Full-Year Results

In 2024, Acadia recorded total revenues of $957.8 million, up 32% year over year, which surpassed the Zacks Consensus Estimate of $953.2 million.

The company recorded adjusted earnings of 48 cents in 2024, which missed the Zacks Consensus Estimate of 70 cents. In 2023, ACAD recorded a loss per share of 37 cents.

ACAD’s 2025 Financial Outlook

Acadia expects total revenues from the U.S. sales of its products to be in the range of $1.030-$1.095 billion. Nuplazid net product sales are expected to be in the range of $650-$690 million, while U.S. sales of Daybue are expected to be between $380 million and $405 million.

R&D expenses in 2025 are projected to be in the range of $310-$330 million, while SG&A expenses are expected to be between $535 million and $565 million.

ACAD’s Key Updates

A regulatory filing for trofinetide to treat Rett syndrome in adults and pediatric patients aged two years and above is currently under review in the EU. An approval in the EU is expected in the first quarter of 2026.

Last month, the company shared updated timelines for its two most advanced clinical development programs. ACAD expects to enroll the last patient in the phase III COMPASS PWS study of ACP-101 for Prader-Willi Syndrome in the fourth quarter of 2025. Top-line data is expected in the first half of 2026.

Additionally, Acadia anticipates enrolling the last patient in the phase II RADIANT study of ACP-204 for Alzheimer’s disease psychosis in the first quarter of 2026. Top-line data is expected in mid-2026. Furthermore, the company is also gearing up to initiate a separate mid-stage study ACP-204 for a second indication (Lewy Body dementia psychosis) in the third quarter of 2025.

During the reported quarter, Acadia signed an exclusive worldwide license agreement with Saniona, a Denmark-based clinical-stage biopharmaceutical company, to develop and commercialize ACP711, a first-in-class, highly selective GABAA-α3 positive allosteric modulator.

As its first indication, Acadia plans to study ACP711 for essential tremor, a neurological condition that includes shaking or trembling movements in one or more parts of the body. The company is gearing up to initiate a mid-stage study of the candidate for the essential tremor indication in 2026.

ACADIA Pharmaceuticals Inc. Price, Consensus and EPS Surprise

ACADIA Pharmaceuticals Inc. price-consensus-eps-surprise-chart | ACADIA Pharmaceuticals Inc. Quote

ACAD's Zacks Rank & Stocks to Consider

Acadia currently carries a Zacks Rank #5 (Strong Sell).

In the past 30 days, Gilead Sciences’ earnings estimates for 2025 have improved from $7.56 to $7.81 per share. During the same timeframe, the earnings per share for 2026 have improved from $7.82 to $8.14. In the past three months, shares of Gilead Sciences have gained 19.5%.

GILD’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 19.47%.

In the past 30 days, estimates for BioMarin Pharmaceutical’s 2025 earnings per share have increased from $4.01 to $4.19. Estimates for 2026 earnings per share have decreased from $5.21 to $5.20 during the same timeframe. In the past three months, BioMarin Pharmaceutical shares have gained 5.2%.

BMRN’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 32.36%.

In the past 30 days, the estimate for Amicus Therapeutics’ 2025 earnings per share has remained constant at 43 cents. The estimate for 2026 earnings per share has deteriorated from 72 cents to 71 cents. In the past three months, shares of Amicus Therapeutics have lost 9.4%.

FOLD’s earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 45.42%.

This article originally published on Zacks Investment Research (zacks.com).

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Viatris Q4 Earnings and Revenues Miss Estimates, Stock Plunges

Sector Update: Health Care Stocks Higher Thursday Afternoon

Viatris Hits Over A Year Low After Weaker-Than-Expected Earnings Forecast

Dj Viatris Falls To 52-Week Low, Fda Import Alert For India Facility Weighs On Guidance

Viatris Falls to 52-Week Low; FDA Import Alert for India Facility Weighs on Guidance

Update: Viatris Shares Drop After Q4 Results Miss Consensus

Acadia's Q4 Earnings Miss, Nuplazid & Daybue Drive Revenue Growth

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