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Viatris Reports Strong Financial Results for 2024

Viatris Inc. (Nasdaq: VTRS) recently announced its financial outcomes for the fourth quarter and full year of 2024. The company reported total revenues of $14.7 billion, aligning well with its 2024 guidance. Importantly, it also exceeded expectations for free cash flow, which reached $2.0 billion, despite challenges faced during the year.

In 2024, Viatris achieved an adjusted EBITDA of $4.7 billion and provided adjusted earnings per share of $2.65, reflecting a solid operational performance amidst various market conditions. Scott A. Smith, CEO of Viatris, stated, “2024 was a good year for Viatris with full-year operational revenue growth of 2%, excluding divestitures.” The company expressed its commitment to driving robust commercial execution while advancing its pipeline, including late-stage developments for innovative drugs like Selatogrel, Cenerimod, and Sotagliflozin.

Fourth Quarter Highlights

For the fourth quarter ending December 31, total net sales stood at $3.5 billion, indicating a 1% increase on a divestiture-adjusted basis compared to the prior year. Sales from brands reflected strong growth in key markets, particularly in Emerging Markets and Greater China. The company also saw promising results from new product revenues, contributing approximately $582 million throughout the year.

In terms of profitability, adjusted net earnings for the fourth quarter were reported at approximately $656 million, down from $747 million in the same quarter the previous year, while adjusted EPS decreased by 13% to $0.54.

Capital Management

In line with its strategic objectives, Viatris returned $825 million in capital to shareholders in 2024 and successfully repaid $3.7 billion of debt. This proactive financial management has strengthened the company’s balance sheet, with its long-term gross leverage target achieved by the year's end. In 2025, the company plans to prioritize capital returns, focusing on share repurchases ranging from $500 million to $650 million.

Indore Facility Update

The company is currently navigating a significant regulatory challenge involving its Indore manufacturing facility in India, which received a warning letter and an import alert from the FDA following an inspection. This situation is projected to negatively affect approximately $500 million in total revenues and $385 million in adjusted EBITDA in 2025. Viatris has initiated a comprehensive remediation plan, and the completion of these efforts is expected in the coming months. The resolution of this issue is pivotal for maintaining market confidence and operations continuity.

Future Outlook

Looking ahead to 2025, Viatris anticipates a series of Phase 3 data readouts for several products, alongside continued enhancements in its global infrastructure. The company has laid out expected financial guidance, projecting total revenues between $13.5 billion to $14 billion. Additionally, the anticipated impact of the Indore facility is accounted for in this guidance, marking a year of continued improvement and focused growth initiatives.

As Viatris moves forward, it remains committed to addressing healthcare needs globally by providing high-quality medicines and maintaining strong operational performance. With its robust strategies in play, the company aims to foster long-term growth while effectively managing its resources and capital returns to shareholders.

In summary, Viatris's solid performance in 2024 demonstrates its resilience and commitment to improvement amidst challenges, setting a strong foundation for the upcoming year.