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Viatris reports strong sales for first quarter of 2022, topping $4 billion

MORGANTOWN — Viatris reported “strong results” for the first three months of 2022 in a press release and reports filed with the SEC on Monday.

Total revenues were $4.192 billion, down 5% from Q1 2021, when the total was $4.43 billion. Gross profit was $1.771 billion, compared to $1.127 billion the same quarter in 2021.

Viatris made no direct mention of the sale of the Morgantown Mylan plant to WVU for $1, which was announced March 31, referring only broadly to its overall restructuring following the Mylan-Upjohn merger into Viatris.

CEO Michael Goettler said, “We are off to a good start for 2022 with strong first quarter results in line with our expectations across all key financial metrics. We are making good progress on our reshaping initiatives to unlock value, free up capital and generate substantial cash flows to position the company as a high-value global business for the long term.”

Total net sales for the quarter were $4.178 billion, down from $4.4 billion in 2021. Other revenues were $14 million.

Brand-name drug sales were $2.554 billion; complex generics and biosimilars were $391 million; generics were $1.233 billion.

Viatris also detailed results by global market segments.

Developed Market sales (North America and Europe) were $2.476 billion, down 4% from 2021’s $2.572 billion. Viatris said brand-name sales and complex generics and biosimilars sales were better than expected. Its top brands include EpiPen, Lyrica, Lipitor and Viagra.

Emerging Markets (Central and South America, Eastern Europe, Africa and most of Asia) sales were $705 million, down 7% from $755 million in Q1 2021. Brand-name and generic sales both topped expectations. Top products in this market included Norvasc, Celebrex and Zoloft.

JANZ (Japan, Australia, New Zealand) sales were $424 million, down 12% from 2021’s $482 million. Generics topped expectations but the other two segments fell short.

Greater China sales were $573 million, down 3% form 2021’s $592 million. Sales were almost entirely in brand-name products, at $570 million. Generics were $3 million with complex generics and biosimilars at zero. Results met expectations.

Stockholders will see a 12 cents per share dividend, payable on June 16. Viatris projects total 2022 revenue of $17 billion to $17.5 billion, with $600 million in new product launches.

Viatris is keeping its eye on the war in Ukraine.

“The ongoing conflict between Russia and Ukraine did not have a material impact on our business during the first quarter of 2022 and combined total revenues for both countries were less than 1% of consolidated total revenues during the three months ended March 31, 2022,” it said.

“However, trade controls, sanctions, supply chain and staffing challenges and other economic considerations related to the conflict have impacted our operations in these markets and may negatively impact our financial results in future periods. In addition, a significant escalation or expansion of the conflict’s current scope may have a negative impact on our operations and financial results in future periods.”

TWEET David Beard @dbeardtdp