Viatris(US:VTRS)2025-11-06 12:53Financial Performance - Total revenues for Q3 2025 were $3.76 billion, flat on a reported basis and down 1% on a divestiture-adjusted operational basis compared to Q3 2024[10]. - Adjusted EBITDA for Q3 2025 was $1.15 billion, down 10% on a reported basis compared to Q3 2024[13]. - U.S. GAAP net loss for Q3 2025 was $(128.2) million, compared to net earnings of $94.8 million in Q3 2024[13]. - Total revenues for 2025 are estimated to be between $13.9 billion and $14.3 billion, with a midpoint of $14.1 billion[20]. - Adjusted EBITDA for 2025 is projected to be between $4 billion and $4.2 billion, with a midpoint of $4.1 billion[20]. - Adjusted EPS is expected to range from $2.25 to $2.35, with a midpoint of $2.30[20]. - The nine months ended September 30, 2025, included a goodwill impairment charge of $2.9 billion, significantly impacting net earnings[49]. - The company reported a total net sales decrease of 6% for the nine months ended September 30, 2025, compared to the same period in 2024[54]. Shareholder Returns - The company returned over $920 million of capital to shareholders year-to-date, including $500 million in share repurchases[4]. - The company plans to return over $1 billion to shareholders through dividends and share repurchases in 2025[34]. Strategic Initiatives - The company is conducting an enterprise-wide strategic review to identify areas for potential operating efficiencies and cost savings[16]. - The company identified potential operating efficiencies in its commercial sales and marketing model, R&D, and supply chain[35]. - The company plans to hold an Investor Event in Q1 2026 to provide a strategic and financial outlook[35]. Product Development - The acquisition of Aculys Pharma included rights to pitolisant in Japan and Spydia® in certain Asia-Pacific markets[10]. - The New Drug Application for the low-dose estrogen weekly patch was submitted to the FDA, with anticipated approval by mid-2026[13]. - The company anticipates filing two Japanese New Drug Applications (JNDAs) for pitolisant in Q4 2025 for two indications[34]. - The company expects approval of its low-dose estrogen weekly patch by mid-2026[34]. Cash Flow and Operating Activities - U.S. GAAP net cash provided by operating activities for Q3 2025 was $744.9 million[13]. - Viatris updated its 2025 financial guidance, estimating U.S. GAAP net cash provided by operating activities to be between $2.2 billion and $2.45 billion, with a midpoint of approximately $2.325 billion[19]. - Free cash flow for 2025 is estimated to be between $1.85 billion and $2.15 billion, with a midpoint of $2 billion[20]. - Estimated U.S. GAAP Net Cash provided by Operating Activities for 2025 is projected to be between $2,200 million and $2,450 million[57]. - Free Cash Flow for 2025 is estimated to be between $1,850 million and $2,150 million after accounting for capital expenditures of $300 million to $350 million[57]. Sales Performance - The company generated approximately $100 million in new product revenues in Q3 2025[13]. - For the three months ended September 30, 2025, Lipitor® generated sales of $396.1 million, an increase of 5.3% compared to $375.6 million in the same period of 2024[44]. - EpiPen® Auto-Injectors sales rose to $157.2 million, up 27.6% from $123.2 million year-over-year[44]. - Greater China net sales increased by 10% to $615.2 million in Q3 2025, compared to $561.8 million in Q3 2024[52]. - Developed Markets net sales decreased by 2% to $2,255.6 million in Q3 2025, down from $2,298.7 million in Q3 2024[52]. Expenses - Research and development expenses increased to $250.4 million in Q3 2025 from $198.4 million in Q3 2024, reflecting a rise of approximately 26.2%[39]. - Selling, General and Administrative (SG&A) expenses for Q3 2025 were $886.6 million, down from $1,003.4 million in Q3 2024[54]. - U.S. GAAP total operating expenses for Q3 2025 were $1,192.7 million, a decrease of 3.3% from $1,233.3 million in Q3 2024[56]. - Adjusted total operating expenses for Q3 2025 were $1,058.2 million, slightly up from $1,052.8 million in Q3 2024[56]. - U.S. GAAP interest expense for Q3 2025 decreased to $119.6 million from $145.6 million in Q3 2024, representing a reduction of 17.8%[56]. Financial Guidance and Outlook - The company raised and narrowed its 2025 financial guidance ranges for total revenues, adjusted EBITDA, and adjusted EPS[4]. - Viatris did not provide forward-looking guidance for U.S. GAAP net (loss) earnings or diluted EPS due to uncertainties related to significant items[19]. - The company anticipates changes in product disclosures in future periods due to seasonality, competition, or new product launches[45].