Viatris beats first-quarter estimates on China strength, branded drug sales
Viatris, Inc. VTRS | 0.00 |
May 7 (Reuters) - Viatris VTRS.O topped analysts' estimates for first-quarter revenue and profit on Thursday, buoyed by strength in its China business and strong demand for branded drugs.
The company has been under pressure from manufacturing issues and competition in the generic drugs market, prompting investors to watch more closely whether its base business and new launches can support more stable growth this year.
The drugmaker posted quarterly adjusted profit of 59 cents per share, beating analysts' average estimate of 50 cents, according to data compiled by LSEG.
Viatris' stable base business, the potential launch of its fast-acting pain drug, and closely watched clinical data for its heart and immunology candidates, selatogrel and cenerimod, expected early next year are driving interest in its story, J.P.Morgan analyst Chris Schott said.
Quarterly revenue rose 8% to $3.52 billion, beating analysts' estimate of $3.36 billion.
Viatris reaffirmed its 2026 adjusted profit forecast of $2.33 to $2.47 per share, while analysts expect $2.44.
The company also maintained its 2026 revenue forecast of $14.45 billion to $14.95 billion.
Revenue from its branded medicines, including cholesterol drug Lipitor and blood-pressure treatment Norvasc, rose 10%, beating estimates, helped by strong growth in China and emerging markets such as Eastern Europe and Latin America.
Revenue from its China business rose 22%, also exceeding expectations.
Generic drug sales rose 5% to $1.18 billion during the quarter.
