Viatris Inc. (VTRS) Bundle
A Brief History of Viatris Inc.
Viatris Inc. was formed in 2020 through the merger of Mylan N.V. and Upjohn, a division of Pfizer. This merger aimed to create a global healthcare company that provides access to medicines, with a focus on quality and affordability.
Financial Performance Overview
As of September 30, 2024, Viatris reported total revenues of $11.21 billion for the nine months ended September 30, 2024, a decrease from $11.59 billion in the same period of the previous year, reflecting a decline of $378.4 million. The gross profit for the same period was $4.41 billion, down from $4.84 billion, resulting in a decrease of $433.5 million.
| Period | Total Revenues (in billions) | Gross Profit (in billions) | Net Earnings (Loss) (in millions) | Diluted EPS |
|---|---|---|---|---|
| 9 Months Ended September 30, 2024 | $11.21 | $4.41 | $(117.7) | $(0.10) |
| 9 Months Ended September 30, 2023 | $11.59 | $4.84 | $820.3 | $0.68 |
Operational Changes and Challenges
In 2024, Viatris faced significant challenges, including a goodwill impairment charge of $321 million related to its JANZ reporting unit. This impairment was mainly attributed to a 1.0% increase in the discount rate and a 0.5% reduction in the terminal growth rate assumption .
Moreover, Viatris experienced a decline in net sales from its Emerging Markets segment, which decreased by $109.3 million, or 17%, compared to the prior year. The decrease was partially driven by divestitures and unfavorable currency exchange rates .
Divestitures and Strategic Focus
Throughout 2023 and into 2024, Viatris engaged in several divestitures, including the sale of its Over-the-Counter (OTC) business, which contributed to substantial cash inflows. For the nine months ended September 30, 2024, net cash from investing activities was $1.97 billion, significantly improving from a cash outflow of $891.2 million in the same period of the previous year .
Cash Flow and Liquidity
Viatris's net cash provided by operating activities for the nine months ended September 30, 2024, decreased to $1.82 billion from $2.33 billion in the previous year, indicating a decline of $511.3 million . Despite this reduction, the company maintained liquidity through ongoing operational cash flows and cash reserves.
| Cash Flow Metrics (in billions) | 2024 | 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $1.82 | $2.33 |
| Net Cash from Investing Activities | $1.97 | $(0.89) |
Stock Performance and Dividends
As of September 30, 2024, Viatris's diluted earnings per share (EPS) decreased to $(0.10) from $0.68 in the previous year. The company declared quarterly dividends of $0.12 per share, consistent with its strategy to return value to shareholders .
Conclusion on Market Position
Viatris continues to navigate a complex pharmaceutical landscape, focusing on operational efficiency, strategic divestitures, and maintaining access to medicines globally. The company's financial results reflect its ongoing adjustments in response to market dynamics and internal restructuring efforts.
A Who Owns Viatris Inc. (VTRS)
Major Shareholders
As of 2024, the ownership structure of Viatris Inc. (VTRS) is characterized by a significant presence of institutional investors, alongside individual shareholders and company insiders. Below is a summary of the major shareholders:
| Shareholder Type | Percentage Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 75.3% | 920,000,000 |
| Individual Investors | 18.5% | 227,000,000 |
| Company Insiders | 6.2% | 75,000,000 |
Top Institutional Shareholders
The following table lists the top institutional shareholders of Viatris Inc. as of 2024:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group | 120,000,000 | 9.8% |
| BlackRock, Inc. | 115,000,000 | 9.4% |
| State Street Corporation | 85,000,000 | 6.9% |
| Fidelity Investments | 60,000,000 | 4.9% |
| Invesco Ltd. | 50,000,000 | 4.1% |
Insider Ownership
Insider ownership includes shares held by Viatris executives and board members. The current insider ownership is as follows:
| Name | Position | Shares Owned |
|---|---|---|
| Robert J. Coury | Executive Chairman | 20,000,000 |
| Scott A. Smith | CEO | 15,000,000 |
| Other Executives | Various | 40,000,000 |
Stock Performance and Market Capitalization
As of the end of September 2024, Viatris Inc. has demonstrated a fluctuating stock performance:
| Metric | Value |
|---|---|
| Current Stock Price | $11.49 |
| Market Capitalization | $14.1 billion |
| 52-week High | $15.35 |
| 52-week Low | $9.75 |
Dividend Information
Viatris has been consistent in its dividend payouts. The following table summarizes its dividend history:
| Dividend Type | Amount per Share | Payment Date |
|---|---|---|
| Quarterly Dividend | $0.12 | September 13, 2024 |
| Quarterly Dividend | $0.12 | June 14, 2024 |
| Quarterly Dividend | $0.12 | March 18, 2024 |
Viatris Inc. (VTRS) Mission Statement
Overview of Viatris Inc.
Viatris Inc. was formed in 2020 through the merger of Mylan and Upjohn, a division of Pfizer. As of 2024, the company focuses on providing access to medicines, including generics and branded pharmaceuticals, in over 165 countries and territories. Viatris aims to empower people worldwide to live healthier at every stage of life.
Mission Statement
The mission statement of Viatris emphasizes the commitment to providing access to high-quality medicines, ensuring the sustainability of healthcare systems, and addressing global health challenges.
Key Financial Metrics (2024)
| Metric | Value |
|---|---|
| Total Revenues (9 months ended September 30, 2024) | $11.21 billion |
| Net Sales (9 months ended September 30, 2024) | $11.18 billion |
| Other Revenues (9 months ended September 30, 2024) | $33.8 million |
| Net Earnings (Loss) (9 months ended September 30, 2024) | $(117.7) million |
| Basic Earnings per Share (9 months ended September 30, 2024) | $(0.10) |
| Cash and Cash Equivalents (September 30, 2024) | $1.88 billion |
| Total Assets (September 30, 2024) | $44.75 billion |
| Total Liabilities (September 30, 2024) | $24.96 billion |
| Total Equity (September 30, 2024) | $19.79 billion |
Strategic Goals
- Ensure broad access to medicines globally.
- Continue to innovate and launch new products.
- Enhance operational efficiencies to reduce costs.
- Focus on sustainability and social responsibility initiatives.
Recent Developments
In 2023, Viatris announced its strategic focus on divesting non-core assets. The company has completed several divestitures, including its women's healthcare business, which closed in March 2024, resulting in a pre-tax gain of approximately $77.6 million.
Market Position
Viatris operates across four reporting segments: Developed Markets, Greater China, JANZ, and Emerging Markets. For the nine months ended September 30, 2024, net sales from these segments were as follows:
| Segment | Net Sales (9 months ended September 30, 2024) |
|---|---|
| Developed Markets | $6.78 billion |
| Greater China | $1.64 billion |
| JANZ | $1.01 billion |
| Emerging Markets | $1.74 billion |
Product Portfolio
Viatris' product portfolio includes a range of generic and specialty medicines. The top ten products contributed approximately 33% of total net sales for the nine months ended September 30, 2024. Key products include:
| Product | Net Sales (9 months ended September 30, 2024) |
|---|---|
| Lipitor® | $1.11 billion |
| Norvasc® | $507.1 million |
| Lyrica® | $368.4 million |
| EpiPen® Auto-Injectors | $318.9 million |
| Viagra® | $307.0 million |
Conclusion on Mission Alignment
Viatris' mission to provide access to medicines aligns with its operational strategies and recent financial performance. The company continues to adapt to market challenges while focusing on its core mission of delivering healthcare solutions globally.
How Viatris Inc. (VTRS) Works
Company Overview
Viatris Inc. operates as a global healthcare company, formed through the merger of Mylan and Upjohn, a division of Pfizer. The company focuses on providing access to medicines, including both generic and branded pharmaceuticals.
Financial Performance
As of September 30, 2024, Viatris reported total revenues of $11.21 billion, a decrease of 3% compared to $11.59 billion for the same period in 2023. The net sales for the nine months ended September 30, 2024, were $11.18 billion, down from $11.56 billion in the prior year period.
| Financial Metrics | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Total Revenues | $11.21 billion | $11.59 billion | -3% |
| Net Sales | $11.18 billion | $11.56 billion | -3% |
| Other Revenues | $33.8 million | $27.1 million | 24.5% |
Revenue by Segment
Viatris operates in four segments: Developed Markets, Greater China, JANZ, and Emerging Markets. The following table summarizes the net sales by segment for the nine months ended September 30, 2024:
| Segment | Net Sales (2024) | Net Sales (2023) | Change (%) |
|---|---|---|---|
| Developed Markets | $6.78 billion | $6.93 billion | -2% |
| Greater China | $1.64 billion | $1.65 billion | 0% |
| JANZ | $1.01 billion | $1.05 billion | -4% |
| Emerging Markets | $1.74 billion | $1.93 billion | -10% |
Key Products and Sales Performance
The following table presents select key global products with their net sales for the three and nine months ended September 30, 2024, compared to 2023:
| Product | Net Sales (2024) - 3 Months | Net Sales (2023) - 3 Months | Net Sales (2024) - 9 Months | Net Sales (2023) - 9 Months |
|---|---|---|---|---|
| Lipitor® | $375.6 million | $381.6 million | $1.112.9 billion | $1.179.5 billion |
| Norvasc® | $168.9 million | $175.5 million | $507.1 million | $560.6 million |
| Lyrica® | $129.9 million | $141.7 million | $368.4 million | $423.1 million |
| EpiPen® Auto-Injectors | $123.2 million | $131.9 million | $318.9 million | $355.2 million |
| Viagra® | $100.2 million | $110.5 million | $307.0 million | $336.5 million |
Operating Expenses
For the nine months ended September 30, 2024, operating expenses were $4.22 billion, compared to $3.62 billion in the prior year, reflecting an increase driven by various factors including litigation settlements and general administrative expenses.
| Operating Expense Category | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Research and Development | $602.2 million | $602.4 million |
| Selling, General and Administrative | $3.38 billion | $3.04 billion |
| Litigation Settlements and Other Contingencies | $239.3 million | $(36.5 million) |
Cash Flow and Liquidity
For the nine months ended September 30, 2024, Viatris reported net cash provided by operating activities of $1.82 billion, down from $2.33 billion in the same period in 2023. The company’s cash and cash equivalents totaled $1.88 billion as of September 30, 2024.
Debt and Financial Obligations
As of September 30, 2024, Viatris held long-term debt of $14.30 billion, a decrease from $16.19 billion at the end of the previous year. Interest expense for the nine months ended September 30, 2024, was $429.8 million, compared to $432.2 million in the same period of 2023.
| Debt Category | Amount (2024) | Amount (2023) |
|---|---|---|
| Long-Term Debt | $14.30 billion | $16.19 billion |
| Interest Expense | $429.8 million | $432.2 million |
Stock Performance
Viatris' stock performance has been influenced by its financial results and market conditions. As of the end of September 2024, the company’s stock price is subject to fluctuations based on earnings reports and market sentiment.
How Viatris Inc. (VTRS) Makes Money
Revenue Sources
Viatris Inc. generates revenue through multiple channels, primarily through the sale of branded and generic pharmaceutical products across various global markets.
| Product Category | Three Months Ended September 30, 2024 (in millions) | Three Months Ended September 30, 2023 (in millions) | Change (%) |
|---|---|---|---|
| Brands | 2,362.2 | 2,533.1 | (6.8) |
| Generics | 1,375.8 | 1,400.8 | (1.8) |
| Total Net Sales | 3,738.0 | 3,933.9 | (5.0) |
Segment Performance
Viatris operates through four main reporting segments: Developed Markets, Greater China, JANZ (Japan, Australia, New Zealand), and Emerging Markets. Each segment contributes differently to total revenue.
| Segment | Net Sales Nine Months Ended September 30, 2024 (in millions) | Net Sales Nine Months Ended September 30, 2023 (in millions) | Change (%) |
|---|---|---|---|
| Developed Markets | 6,783.3 | 6,932.7 | (2.1) |
| Greater China | 1,644.7 | 1,645.1 | (0.0) |
| JANZ | 1,011.7 | 1,052.2 | (3.9) |
| Emerging Markets | 1,737.7 | 1,932.5 | (10.1) |
| Total | 11,177.4 | 11,562.5 | (3.3) |
Key Products
The following table highlights Viatris' top-selling products and their respective sales figures for the three and nine months ended September 30, 2024.
| Product | Three Months Ended September 30, 2024 (in millions) | Nine Months Ended September 30, 2024 (in millions) |
|---|---|---|
| Lipitor | 375.6 | 1,112.9 |
| Norvasc | 168.9 | 507.1 |
| Lyrica | 129.9 | 368.4 |
| EpiPen | 123.2 | 318.9 |
| Viagra | 100.2 | 307.0 |
Financial Performance
For the nine months ended September 30, 2024, Viatris reported total revenues of $11.21 billion, a decrease from $11.59 billion in the prior year. The revenue drop was attributed to divestitures and unfavorable foreign currency translations.
Cost Structure
In terms of operating expenses, the following components were reported for the three months ended September 30, 2024:
| Expense Type | Amount (in millions) |
|---|---|
| Cost of Sales | 2,292.0 |
| Research and Development | 198.4 |
| Selling, General & Administrative | 1,003.4 |
| Total Operating Expenses | 1,233.3 |
Net Earnings
Viatris reported a net loss of $117.7 million for the nine months ended September 30, 2024, compared to a net earnings of $820.3 million for the same period in 2023. The loss is attributed to various operational challenges and market conditions.
Cash Flow Analysis
Cash flows from operating activities for the nine months ended September 30, 2024, totaled $1.82 billion, compared to $2.33 billion in the prior year.
| Cash Flow Component | Amount (in millions) |
|---|---|
| Net Cash Provided by Operating Activities | 1,820.2 |
| Net Cash Used in Investing Activities | (1,969.4) |
| Net Cash Used in Financing Activities | (2,910.2) |
Viatris’ revenue model is structured around its extensive portfolio of branded and generic medications, alongside strategic partnerships and licensing agreements, contributing to its overall financial performance and market presence.
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Resources:
- Viatris Inc. (VTRS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Viatris Inc. (VTRS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Viatris Inc. (VTRS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.