Viatris Tops Q3 Earnings & Revenue Estimates, Ups '25 Guidance

Viatris Inc. VTRS delivered third-quarter 2025 adjusted earnings per share (EPS) of 67 cents, which beat the Zacks Consensus Estimate of 63 cents. The company recorded adjusted EPS of 75 cents in the year-ago quarter.

Total revenues were $3.76 billion, down 2% year over year on an operational basis. The top line included product sales and other revenues. Nonetheless, revenues beat the Zacks Consensus Estimate of $3.6 billion.

VTRS’ shares have lost 13.3% year to date against the industry’s 2.8% gain.

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

VTRS’ Q3 Sales in Detail

Sales totaled $3.7 billion, down 2% year over year. Sales were down 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 $2.25 billion, down 5% on a divestiture-adjusted operational basis. The reported figure marginally beat the Zacks Consensus Estimate of $2.20 billion.

Sales from Emerging Markets totaled $570.4 million, up 7% on a divestiture-adjusted operational basis. The figure beat the Zacks Consensus Estimate of $550 million.

JANZ generated sales of $306.3 million, down 9% on a divestiture-adjusted operational basis. Sales beat the Zacks Consensus Estimate of $303 million.

Sales from Greater China totaled $615.2 million, up 9% on a divestiture-adjusted operational basis. The figure beat the Zacks Consensus Estimate of $579 million.

Based on product category, revenues from Brands increased 3% to $2.4 billion. On a divestiture-adjusted operational basis, sales increased 1%, reflecting strong performance in Greater China and Emerging Markets, in addition to growth in certain key brands in Developed Markets.

Among Brands, Lipitor sales totaled $396.1 million, up $375.6 million from the year-ago quarter’s level. Norvasc sales increased to $179.7 million from $168.9 million a year ago. EpiPen recorded sales of $157.2 million, up from $123.2 million. Lyrica sales decreased to $126.5 million from $129.9 million.

Generics, which includes diversified product forms such as extended-release oral solids, injectables, transdermals, topicals and complex generics, posted revenues of $1.31 billion, down 5%. On an operational change basis, sales were down 6%.

The decline in generics’ sales reflects the expected negative impact from the Indore facility, offset by growth in certain complex products in North America, strong performance across key European markets, and solid growth in Emerging Markets.

Following an inspection of Viatris' oral finished dose manufacturing facility in Indore, India, in June 2024, the company 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.

Viatris generated $100 million in new generic product revenues.

Adjusted gross margin decreased to 56% from 58.5% in the year-ago quarter.

Year to date, VTRS has returned more than $920 million of capital to its shareholders, including more than $500 million in share repurchases.

VTRS stated that it is on track to return more than $1 billion of capital to shareholders through dividends and share repurchases in 2025.

VTRS Ups 2025 Guidance

Total revenues are now projected to be in the band of $13.9-$14.3 billion (previous guidance: $13.5-$14 billion). Adjusted earnings per share are now expected to be in the range of $2.25-$2.35 (previous guidance: $2.16-$2.30).

Other Updates From VTRS

VTRS acquired Aculys Pharma, Inc., a clinical biopharmaceutical company in Japan. Per the terms, Viatris acquired exclusive development and commercialization rights in Japan for pitolisant, a selective/inverse agonist of the histamine H3 receptor. Viatris is on track to file two new drug applications (NDAs) in Japan for pitolisant for two indications — excessive daytime sleepiness or cataplexy in adult patients with narcolepsy, and the treatment of excessive daytime sleepiness associated with obstructive sleep apnea syndrome.

The deal also includes exclusive rights in Japan and certain other markets in the Asia-Pacific region for Spydia Nasal Spray, which was approved in Japan in June 2025 for the treatment of status epilepticus.

An NDA was also submitted to the FDA for low-dose estrogen weekly patch and VTRS expects approval by mid-2026.

Our Take on VTRS’ Q3 Performance

VTRS’ performance in the third quarter was better than expected, with both the top and bottom lines comfortably beating their respective estimates. Sales from branded drugs benefit from the company’s portfolio expansion in Emerging Markets, along with robust growth in Greater China.

VTRS’ Zacks Rank and Other Stocks to Consider

Viatris currently carries a Zacks Rank #2 (Buy).

Some other stocks in the pharma/biotech sector which can be considered are Alkermes ALKS, Amicus Therapeutics FOLD, and CorMedix CRMD, each carrying a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Alkermes’ EPS estimates for 2025 have increased to $1.96 from $1.82, while those for 2026 have risen from $1.70 to $1.77 in the past 30 days. The stock has gained nearly 7.9% year to date.

Alkermes’ earnings beat estimates in three of the trailing four quarters and missed the mark in one, delivering an average surprise of 4.58%.

In the past 60 days, estimates for Amicus Therapeutics’ 2025 EPS have remained constant at 31 cents. During the same time, EPS estimates for 2026 have increased from 69 cents to 70 cents. Year to date, shares of FOLD have lost 2.5%.

In the past 60 days, estimates for CorMedix’s EPS have increased from $1.82 to $1.85 for 2025. During the same time, EPS estimate for 2026 has inched up to $2.49 from $2.48. Year to date, shares of CRMD have rallied 37.7%.

CorMedix’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 34.85%.

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

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