Viatris
VTRS
, a global healthcare company, is scheduled to report fourth-quarter 2021 results on Feb 28.
The company was formed in 2020 through the combination of Mylan and Upjohn. It beat earnings estimates in each of the trailing four quarters, the average surprise being 14.3%. In the last reported quarter, the company exceeded expectations by 15.12%.
Viatris Inc. Price, Consensus and EPS Surprise
Viatris Inc. price-consensus-eps-surprise-chart
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Viatris Inc. Quote
Factors to Consider
Viatris reports segment information based on markets and geography — Developed Markets, Emerging Markets, JANZ (Japan, Australia, and New Zealand) and Greater China.
Net sales from Developed markets were up 23% in the previous quarter, driven by the addition of the Upjohn business. This trend is likely to have continued in the to-be-reported quarter.
Sales from Emerging Markets were up 68% in the previous quarter and are likely to have increased in the to-be-reported quarter, driven by net sales from the Upjohn business and new product sales.
Sales from JANZ grew 79% in the previous quarter. The fourth quarter is likely to have seen a sequential increase.
Sales from Greater China markets have also likely witnessed growth owing to the Upjohn business. Sales in the previous quarter came in at $566.8 million. The fourth quarter is likely to have seen sequential growth.
Brands performed better than management expectations in the previous quarter, driven by products such as Lipitor, Influvac, Viagra, and EpiPen. A similar or better performance might have been witnessed by the company in the to-be-reported quarter. Generics, which includes diversified product forms such as extended-release oral solids, injectables, transdermals and topicals, performed better than expectations in the previous quarter, driven primarily by COVID-19 related products. This trend is likely to have continued in the fourth quarter too.
In November, Viatris and Biocon Biologics Ltd. announced that Semglee (insulin glargine-yfgn) injection, the first interchangeable biosimilar product, was launched in the United States.
In the complex generics and biosimilars franchise, growth in biosimilars was offset by anticipated competition in select complex generics products. A similar trend is likely to have prevailed in the quarter.
In 2020, Viatris announced a widespread global restructuring program to achieve synergies. Last quarter, management stated that it is on track to realize approximately $500 million of cost synergies in 2021 and achieve at least $1 billion of cost synergies by 2023. Further updates on the same are expected on the call.
Other Updates
Earlier in the month, Viatris announced that its subsidiary, Mylan Pharmaceuticals Inc., has received approval from the FDA for its abbreviated new drug application (ANDA) for cyclosporine ophthalmic emulsion 0.05%, the first generic version of Restasis, developed by Allergan, an
AbbVie
ABBV
company. Viatris indicated that Mylan Pharmaceuticals plans to launch the drug immediately.
AbbVie recorded $1.2 billion as revenues from Restasis sales for 2021.
Share Price Performance
Viatris’ stock has lost 3.3% in the year so far compared with the
industry
’s decline of 58.9%.
Image Source: Zacks Investment Research
Earnings Whispers
Our proven model predicts an earnings beat for Viatris this time around. The combination of a positive
Earnings ESP
and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our
Earnings ESP Filter
.
Earnings ESP: Earnings ESP for Viatris is +2.19%.
Zacks Rank: The company currently carries a Zacks Rank #3.
Other Stocks to Consider
Here are a few other stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.
Vir Biotechnology
VIR
has an Earnings ESP of +32.05% and a Zacks Rank #1. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
Earnings per share estimates of Vir Biotechnology for 2022 have increased $6.52. VIR topped earnings estimates in two of the last four quarters and missed the mark on the other two occasions, delivering a surprise of 13%, on average.
Emergent Biosolutions
EBS
has an Earnings ESP of +18.40% and a Zacks Rank #3.
Earnings per share estimates of EBS for 2022 have increased to $3.12 from $3.09 in the past seven days.
Stay on top of upcoming earnings announcements with the
Zacks Earnings Calendar
.
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