Viatris Reports Third Quarter 2025 Results and Updates 2025 Financial Guidance
Rhea-AI Summary
Viatris (Nasdaq: VTRS) reported third-quarter 2025 results and updated full-year guidance on Nov 6, 2025.
Key Q3 metrics: Total revenues $3.76B (flat YoY), Adjusted EBITDA $1.155B (down 10% YoY), Adjusted EPS $0.67 (down 11% YoY), U.S. GAAP net loss $(128)M. The company generated $744.9M operating cash and $658.1M free cash flow in Q3.
Business updates include the acquisition of Aculys Pharma (pitolisant and Spydia rights in Japan/APAC), FDA approval of Iron Sucrose Injection, NDA submission for a low-dose estrogen weekly patch (expect mid-2026 approval), and >$920M returned to shareholders YTD including $500M in buybacks. Guidance ranges for 2025 revenues, adjusted EBITDA and adjusted EPS were raised and narrowed.
Positive
- Acquired Aculys Pharma with pitolisant and Spydia Japan/APAC rights
- Submitted NDA for low-dose estrogen weekly patch; approval anticipated mid-2026
- Returned $920M+ capital to shareholders YTD, including $500M in repurchases
- FDA approved Iron Sucrose Injection; product now available in multiple vial strengths
Negative
- Adjusted EBITDA down 10% in Q3 2025 vs Q3 2024
- Adjusted EPS down 11% in Q3 2025 vs Q3 2024
- U.S. GAAP net loss of $(128.2)M in Q3 2025 vs $94.8M prior year
- Nine-months includes $2.9B goodwill impairment recorded as of March 31, 2025
News Market Reaction
On the day this news was published, VTRS declined 5.95%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
- Delivers Total Revenues in Line With Expectations, Reflecting Strong Execution of its Global Business
- Makes Late-Stage Pipeline Progress Including NDA Submission for Low-Dose Estrogen Weekly Patch
-
Acquires Aculys Pharma Including Rights to Pitolisant in
Japan and Spydia® inJapan and Certain Other Markets in theAsia-Pacific Region -
Returns More Than
$920 Million $500 Million - Raises and Narrows 2025 Financial Guidance Ranges for Total Revenues, Adjusted EBITDA and Adjusted EPS[1]
Executive Commentary
"We delivered another strong quarter by staying focused on our 2025 strategic priorities," said Scott A. Smith, Chief Executive Officer, Viatris. "Our performance this quarter reflects the continued strength of our execution across markets. We are advancing our pipeline with key regulatory submissions and preparing for multiple potential launches, while preparing to take meaningful actions through our enterprise-wide strategic review to position Viatris for sustainable growth in 2026 and beyond. We remain confident in our strategy, our people, and our ability to deliver significant impact for patients and long-term value for shareholders."
"Our third-quarter results again demonstrate strong operational execution and disciplined and balanced capital allocation," said Doretta Mistras, Chief Financial Officer, Viatris. "We have returned more than
[1] Viatris is not providing forward-looking guidance for
Third Quarter Results
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Three Months Ended |
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September 30, |
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(Unaudited; in millions, except %s and per share amounts) |
2025 |
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2024 |
|
Reported |
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Operational |
|
Divestiture Operational Change(1)(2) |
|
Total Revenues |
|
|
|
|
— % |
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(2) % |
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(1) % |
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Total Net Sales |
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|
|
|
— % |
|
(2) % |
|
(1) % |
|
Developed Markets |
2,255.6 |
|
2,298.7 |
|
(2) % |
|
(5) % |
|
(5) % |
|
Emerging Markets |
570.4 |
|
533.2 |
|
7 % |
|
7 % |
|
7 % |
|
JANZ |
306.3 |
|
344.3 |
|
(11) % |
|
(10) % |
|
(9) % |
|
|
615.2 |
|
561.8 |
|
10 % |
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9 % |
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9 % |
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|
|
|
|
|
|
|
|
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Net Sales by Product Category |
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Brands |
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3 % |
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1 % |
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1 % |
|
Generics |
1,310.7 |
|
1,375.8 |
|
(5) % |
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(6) % |
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(6) % |
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|
|
|
|
|
|
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(6) % |
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36.5 % |
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38.9 % |
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Adjusted Gross Profit (2) |
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(4) % |
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|
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|
Adjusted Gross Margin (2) |
56.0 % |
|
58.5 % |
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|
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|
|
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$ (128.2) |
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$ 94.8 |
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NM |
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$ (0.11) |
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$ 0.08 |
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NM |
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Adjusted Net Earnings (2) |
$ 784.3 |
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$ 897.6 |
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(13) % |
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Adjusted EPS (2) |
$ 0.67 |
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$ 0.75 |
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(11) % |
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(10) % |
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(9) % |
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EBITDA (2) |
$ 800.2 |
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$ 905.8 |
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(12) % |
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Adjusted EBITDA (2) |
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(10) % |
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(10) % |
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(8) % |
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|
|
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$ 744.9 |
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$ 826.5 |
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(10) % |
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Capital Expenditures |
86.8 |
|
77.0 |
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13 % |
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|
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Free Cash Flow (2)(3) |
$ 658.1 |
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$ 749.5 |
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(12) % |
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___________ |
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(1) |
See "Certain Key Terms and Presentation Matters" in this release for more information. |
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(2) |
Non-GAAP financial measures. See "Non-GAAP Financial Measures" for additional information. |
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(3) |
Excluding the impact of transaction-related costs of |
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Nine Months Ended |
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September 30, |
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(Unaudited; in millions, except %s and per share amounts) |
2025 |
|
2024 |
|
Reported |
|
Operational |
|
Divestiture |
|
Total Revenues |
|
|
$ 11,211.2 |
|
(5) % |
|
(6) % |
|
(2) % |
|
Total Net Sales |
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|
$ 11,177.4 |
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(6) % |
|
(6) % |
|
(2) % |
|
Developed Markets |
6,266.6 |
|
6,783.3 |
|
(8) % |
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(9) % |
|
(4) % |
|
Emerging Markets |
1,645.4 |
|
1,737.7 |
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(5) % |
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(4) % |
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1 % |
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JANZ |
888.1 |
|
1,011.7 |
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(12) % |
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(11) % |
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(9) % |
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|
1,759.6 |
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1,644.7 |
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7 % |
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8 % |
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8 % |
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Net Sales by Product Category |
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Brands |
$ 6,838.2 |
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(3) % |
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(3) % |
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2 % |
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Generics |
3,721.5 |
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4,143.0 |
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(10) % |
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(11) % |
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(8) % |
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|
|
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$ 3,865.6 |
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(12) % |
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36.5 % |
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39.3 % |
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Adjusted Gross Profit (2) |
$ 5,952.4 |
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(9) % |
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Adjusted Gross Margin (2) |
56.2 % |
|
58.4 % |
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|
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|
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|
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$ (117.7) |
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NM |
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|
$ (2.70) |
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$ (0.10) |
|
NM |
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Adjusted Net Earnings (2) |
$ 2,110.6 |
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(17) % |
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Adjusted EPS (2) |
$ 1.78 |
|
$ 2.11 |
|
(16) % |
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(15) % |
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(9) % |
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|
|
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EBITDA (2) |
$ (938.8) |
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|
NM |
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|
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Adjusted EBITDA (2) |
$ 3,156.9 |
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|
|
(14) % |
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(14) % |
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(8) % |
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$ 1,500.1 |
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(18) % |
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Capital Expenditures |
182.3 |
|
185.6 |
|
(2) % |
|
|
|
|
|
Free Cash Flow (2)(4) |
$ 1,317.8 |
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|
|
(19) % |
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___________ |
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(1) |
See "Certain Key Terms and Presentation Matters" in this release for more information. |
|
(2) |
Non-GAAP financial measures. See "Non-GAAP Financial Measures" for additional information. |
|
(3) |
For the nine months ended September 30, 2025, includes the previously disclosed goodwill impairment charge of |
|
(4) |
Excluding the impact of transaction-related costs of |
Quarterly Financial Highlights
- Third quarter 2025 total revenues were
$3.8 billion 1% on a divestiture-adjusted operational basis compared to third quarter 2024, primarily driven by the negative Indore Impact. Excluding the Indore Impact, divestiture-adjusted operational total revenues increased1% compared to third quarter 2024. - Brands net sales demonstrated continued strength in
Greater China and Emerging Markets, in addition to growth in certain key brands in Developed Markets. - Generics net sales reflect the expected negative Indore Impact, partially offset by growth in certain complex products in
North America , strong performance across key European markets, and solid growth in Emerging Markets. - The Company generated approximately
$100 million - Third quarter 2025 U.S. GAAP net loss was
$(128) million U.S. GAAP net earnings of$95 million U.S. GAAP diluted EPS was$(0.11) $0.08 - Third quarter 2025 adjusted EBITDA was
$1.2 billion 10% on a reported basis and down8% on a divestiture-adjusted operational basis compared to the third quarter of 2024, and adjusted EPS was$0.67 11% on a reported basis and down9% on a divestiture-adjusted operational basis compared to Q3 2024, in each case primarily driven by the negative Indore Impact. - In the quarter, the Company generated
U.S. GAAP net cash provided by operating activities of$745 million $658 million $70 million
Additional Highlights
Brands
-
Acquisition of Aculys Pharma, Inc.: The Company announced the completion of its acquisition of Aculys Pharma, Inc., a clinical biopharmaceutical company in
Japan . As part of the transaction, Viatris has acquired exclusive development and commercialization rights inJapan for pitolisant, a selective/inverse agonist of the histamine H3 receptor. Based on the strength of recent Phase 3 clinical trial results in Japanese patients and the positive benefit-risk profile established globally, the Company is on track to file two JNDAs for pitolisant inJapan for two indications in the fourth quarter of 2025. One indication is for the treatment of excessive daytime sleepiness or cataplexy in adult patients with narcolepsy and the second is for the treatment of excessive daytime sleepiness associated with obstructive sleep apnea syndrome. The transaction also includes exclusive rights inJapan and certain other markets in theAsia-Pacific region for Spydia® Nasal Spray, which was approved inJapan in June 2025 for the treatment of status epilepticus. -
Low-Dose Estrogen Weekly Patch: The New Drug Application for the Company's low-dose estrogen weekly patch was submitted to the
U.S. Food and Drug Administration (FDA) in late Q3. The Company anticipates approval by mid-2026.
Generics
- Iron Sucrose Injection: The Company announced that the FDA approved its Iron Sucrose Injection, USP, an intravenous iron replacement product used to treat iron deficiency anemia in adult and pediatric patients (2 years of age and older) with chronic kidney disease. The product was made available in single dose vials in the following strengths: 50 mg/2.5mL, 100mg/5mL and 200mg/10mL.
Capital Allocation
Year-to-date, the Company has returned more than
From a business development perspective, the Company continues to pursue targeted, accretive business development opportunities that leverage its unique commercial and R&D infrastructure and strengthen its business in key markets.
Enterprise-wide Strategic Review
Viatris has made significant progress on its enterprise-wide strategic review since it announced the initiative in February and continues to perform a detailed analysis of the totality of its business. As part of the analysis to date, the Company has identified areas for potential operating efficiencies, including from:
- its commercial sales and marketing model and product mix;
- its R&D, medical and regulatory activities;
- its sourcing, manufacturing and supply chain, including inventory optimization; and
- how its corporate functions provide support.
While the review is still ongoing, the Company anticipates being able to deliver meaningful net cost savings over a multi-year period while also being able to reinvest a portion of the savings back into the business to fund growth opportunities.
Investor Event
Viatris plans to hold an Investor Event in the first quarter of 2026 at which the Company plans to provide a strategic and financial outlook, an update on its pipeline and portfolio and details on its enterprise-wide strategic review.
2025 Financial Guidance
Viatris is updating its 2025 financial guidance ranges, as set forth below. The Company is not providing forward-looking guidance for
|
(In millions, except |
Estimated Ranges (2) August 7, 2025 |
|
Midpoint (2) August 7, 2025 |
|
Acquired IPR&D |
|
Share Repurchases (3) |
|
YTD FX |
|
Estimated Ranges (4) November 6, 2025 |
|
Midpoint (4) November 6, 2025 |
|
Total Revenues |
|
|
|
|
— |
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— |
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Adjusted EBITDA (1) |
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|
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( |
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— |
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|
|
|
|
Adjusted EPS (1) |
|
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( |
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|
|
|
|
|
|
Free Cash Flow (1) |
|
|
|
|
— |
|
— |
|
N/A |
|
|
|
|
|
(1) |
Non-GAAP financial measures. See "Non-GAAP Financial Measures" for additional information. |
|
(2) |
2025 Financial Guidance as provided on August 7, 2025, excluded the impact of transaction-related costs. Also excluded any acquired IPR&D for unsigned deals to be incurred in any future period as it could not be reasonably forecasted. |
|
(3) |
Includes estimated impact of shares repurchased in 2025 through and including November 5, 2025 and does not include the expected impact of additional share repurchases in 2025 after such date. |
|
(4) |
2025 Financial Guidance as provided on November 6, 2025, excludes the impact of transaction-related costs. Also excludes any acquired IPR&D for unsigned deals to be incurred in any future period as it cannot be reasonably forecasted. |
Conference Call and Earnings Materials
Viatris will host a conference call and live webcast today at 8:30 a.m. ET to review the Company's third quarter 2025 financial results.
Investors and the general public are invited to listen to a live webcast of the call at investor.viatris.com or by calling 844.308.3344 or 412.317.1896 for international callers. The "Viatris Q3 2025 Earnings Presentation," which will be referenced during the call, can be found at investor.viatris.com. A replay of the webcast also will be available on the website.
About Viatris
Viatris Inc.
(Nasdaq: VTRS) is a global healthcare company uniquely positioned to bridge the traditional divide between generics and brands, combining the best of both to more holistically address healthcare needs globally. With a mission to empower people worldwide to live healthier at every stage of life, we provide access at scale, currently supplying high-quality medicines to approximately 1 billion patients around the world annually and touching all of life's moments, from birth to the end of life, acute conditions to chronic diseases. With our exceptionally extensive and diverse portfolio of medicines, a one-of-a-kind global supply chain designed to reach more people when and where they need them, and the scientific expertise to address some of the world's most enduring health challenges, access takes on deep meaning at Viatris. We are headquartered in the
Non-GAAP Financial Measures
This press release includes the presentation and discussion of certain financial information that differs from what is reported under accounting principles generally accepted in
With respect to the guidance ranges as provided on August 7, 2025, at that time the Company did not provide forward-looking guidance for
Certain Key Terms and Presentation Matters
New product sales, new product launches or new product revenues: Refers to revenue from new products launched in 2025 and the carryover impact of new products, including business development, launched within the last 12 months.
Operational change: Refers to constant currency percentage changes and is derived by translating amounts for the current period at prior year comparative period exchange rates and in doing so shows the percentage change from 2025 constant currency net sales, total revenues, adjusted EBITDA, and adjusted EPS to the corresponding amount in the prior year.
Divestiture-adjusted operational change: Refers to operational changes, further adjusted for the impact of the proportionate results from the divestitures that closed in 2024, from the 2024 period by excluding such net sales or revenues from those divested businesses from comparable prior periods. Also, for adjusted EBITDA and adjusted EPS, refers to operational changes, adjusted as outlined in the previous sentence and further adjusted for associated net other income.
SG&A and R&D TSA reimbursement and DSA reimbursement: Expenses related to TSA services provided for divested businesses are recorded in their respective functional line item. However, reimbursement of those expenses plus any mark-up is included in other expense (income), net. For comparability purposes, amounts related to the cost reimbursement were reclassified to adjusted SG&A and adjusted R&D during the first quarter of 2024, primarily related to the contribution of the biosimilars business to Biocon Biologics Limited ("Biocon Biologics") in November 2022. This reclassification had no impact on adjusted net earnings, adjusted EBITDA or adjusted EPS. Any TSA reimbursement and DSA reimbursement amounts related to the closed divestitures are not direct offsets to operational expense and have not been reclassified.
Closed divestitures or divestitures closed in 2024: Refers to the divestiture of the Company's rights to two women's healthcare products in the
Indore Impact: Refers to the estimated negative financial impact on 2025 total revenues and earnings (loss) from operations versus the comparable 2024 periods as a result of supply disruptions and the FDA issued warning letter and import alert related to our oral finished dose manufacturing facility in
Transaction-related costs: Refers to the impact of any acquisition and divestiture-related transaction costs, including taxes.
Forward-Looking Statements
This press release contains "forward-looking statements". These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may include, without limitation, statements about our 2025 financial guidance; we delivered another strong quarter by staying focused on our 2025 strategic priorities; our performance this quarter reflects the continued strength of our execution across markets; we are advancing our pipeline with key regulatory submissions and preparing for multiple potential launches, while preparing to take meaningful actions through our enterprise-wide strategic review to position Viatris for sustainable growth in 2026 and beyond; we remain confident in our strategy, our people, and our ability to deliver significant impact for patients and long-term value for shareholders; our third-quarter results again demonstrate strong operational execution and disciplined and balanced capital allocation; we are raising and narrowing our financial guidance ranges across certain metrics primarily driven by foreign exchange and share repurchases, and we remain on track to deliver on all of our 2025 financial commitments; based on the strength of recent Phase 3 clinical trial results in Japanese patients and the positive benefit-risk profile established globally, the Company is on track to file two JNDAs for pitolisant in
|
Viatris Inc. and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited) |
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|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
September 30, |
|
September 30, |
||||
|
(In millions, except per share amounts) |
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Revenues: |
|
|
|
|
|
|
|
|
Net sales |
$ 3,747.5 |
|
$ 3,738.0 |
|
$ 10,559.7 |
|
$ 11,177.4 |
|
Other revenues |
12.4 |
|
13.2 |
|
36.6 |
|
33.8 |
|
Total revenues |
3,759.9 |
|
3,751.2 |
|
10,596.3 |
|
11,211.2 |
|
Cost of sales |
2,388.4 |
|
2,292.0 |
|
6,730.7 |
|
6,802.6 |
|
Gross profit |
1,371.5 |
|
1,459.2 |
|
3,865.6 |
|
4,408.6 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
Research and development |
250.4 |
|
198.4 |
|
691.2 |
|
602.2 |
|
Acquired IPR&D |
— |
|
— |
|
10.0 |
|
(1.7) |
|
Selling, general and administrative (a) |
886.6 |
|
1,003.4 |
|
2,763.4 |
|
3,057.9 |
|
Impairment of goodwill |
— |
|
— |
|
2,936.8 |
|
321.0 |
|
Litigation settlements and other contingencies, net |
55.7 |
|
31.5 |
|
(65.4) |
|
239.3 |
|
Total operating expenses |
1,192.7 |
|
1,233.3 |
|
6,336.0 |
|
4,218.7 |
|
Earnings (loss) from operations |
178.8 |
|
225.9 |
|
(2,470.4) |
|
189.9 |
|
Interest expense |
119.6 |
|
145.6 |
|
351.7 |
|
429.8 |
|
Other expense (income), net |
67.1 |
|
(10.2) |
|
499.9 |
|
(143.2) |
|
(Loss) earnings before income taxes |
(7.9) |
|
90.5 |
|
(3,322.0) |
|
(96.7) |
|
Income tax provision (benefit) |
120.3 |
|
(4.3) |
|
(147.2) |
|
21.0 |
|
Net (loss) earnings |
$ (128.2) |
|
$ 94.8 |
|
$ (3,174.8) |
|
$ (117.7) |
|
(Loss) earnings per share attributable to Viatris Inc. shareholders |
|
|
|
|
|
|
|
|
Basic |
$ (0.11) |
|
$ 0.08 |
|
$ (2.70) |
|
$ (0.10) |
|
Diluted |
$ (0.11) |
|
$ 0.08 |
|
$ (2.70) |
|
$ (0.10) |
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
1,164.6 |
|
1,193.5 |
|
1,176.7 |
|
1,193.3 |
|
Diluted |
1,164.6 |
|
1,200.4 |
|
1,176.7 |
|
1,193.3 |
|
___________ |
|
|
(a) |
Certain reclassifications were made to conform the prior period consolidated financial statements to the current period presentation. Charges related to the impairment of goodwill, which were previously presented in Selling, General and Administrative, are now presented in Impairment of Goodwill in the condensed consolidated statements of operations. |
|
Viatris Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) |
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|
|
|||
|
(In millions) |
September 30,
|
|
December 31,
|
|
ASSETS |
|||
|
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
$ 975.3 |
|
$ 734.8 |
|
Accounts receivable, net |
3,371.6 |
|
3,221.3 |
|
Inventories |
4,111.4 |
|
3,854.1 |
|
Prepaid expenses and other current assets |
1,493.1 |
|
1,710.5 |
|
Total current assets |
9,951.4 |
|
9,520.7 |
|
Intangible assets, net |
15,722.9 |
|
17,070.9 |
|
Goodwill |
6,730.8 |
|
9,133.3 |
|
Other non-current assets |
5,515.3 |
|
5,776.0 |
|
Total assets |
$ 37,920.4 |
|
$ 41,500.9 |
|
LIABILITIES AND EQUITY |
|||
|
Liabilities |
|
|
|
|
Current portion of long-term debt and other long-term obligations |
$ 1,951.9 |
|
$ 8.3 |
|
Other current liabilities |
5,412.2 |
|
5,771.1 |
|
Long-term debt |
12,487.6 |
|
14,038.9 |
|
Other non-current liabilities |
2,851.1 |
|
3,047.1 |
|
Total liabilities |
22,702.8 |
|
22,865.4 |
|
Shareholders' equity |
15,217.6 |
|
18,635.5 |
|
Total liabilities and equity |
$ 37,920.4 |
|
$ 41,500.9 |
|
Viatris Inc. and Subsidiaries |
||||||||
|
Key Product Net Sales, on a Consolidated Basis |
||||||||
|
(Unaudited) |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
||||
|
(In millions) |
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Select Key Global Products |
|
|
|
|
|
|
|
|
|
Lipitor ® |
|
$ 396.1 |
|
$ 375.6 |
|
$ 1,172.0 |
|
$ 1,112.9 |
|
Norvasc ® |
|
179.7 |
|
168.9 |
|
534.7 |
|
507.1 |
|
EpiPen® Auto-Injectors |
|
157.2 |
|
123.2 |
|
390.7 |
|
318.9 |
|
Lyrica ® |
|
126.5 |
|
129.9 |
|
367.2 |
|
368.4 |
|
Viagra ® |
|
105.2 |
|
100.2 |
|
304.0 |
|
307.0 |
|
Creon ® |
|
93.1 |
|
84.6 |
|
266.9 |
|
237.8 |
|
Celebrex ® |
|
73.3 |
|
74.1 |
|
206.7 |
|
218.5 |
|
Effexor ® |
|
67.2 |
|
66.3 |
|
189.6 |
|
188.4 |
|
Zoloft ® |
|
66.8 |
|
60.6 |
|
188.1 |
|
177.5 |
|
Xalabrands |
|
38.6 |
|
41.2 |
|
116.4 |
|
129.3 |
|
|
|
|
|
|
|
|
|
|
|
Select Key Segment Products |
|
|
|
|
|
|
|
|
|
Influvac ® |
|
$ 125.4 |
|
$ 121.3 |
|
$ 130.8 |
|
$ 126.0 |
|
Yupelri ® |
|
71.4 |
|
62.2 |
|
196.3 |
|
171.9 |
|
Amitiza ® |
|
40.8 |
|
38.2 |
|
115.7 |
|
108.1 |
|
Xanax ® |
|
34.2 |
|
38.6 |
|
100.4 |
|
108.5 |
|
Dymista ® |
|
33.8 |
|
43.5 |
|
125.0 |
|
146.7 |
|
____________ |
|
|
(a) |
The Company does not disclose net sales for any products considered competitively sensitive. |
|
(b) |
Products disclosed may change in future periods, including as a result of seasonality, competition or new product launches. |
|
(c) |
Amounts for the three and nine months ended September 30, 2025, include the impact of foreign currency translations compared to the prior year period. |
Viatris Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
Reconciliation of
Below is a reconciliation of
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
(In millions, except per share amounts) |
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
|
|
|
|
|
|
$ 94.8 |
|
$ 0.08 |
|
|
|
$ (2.70) |
|
|
|
$ (0.10) |
|
Purchase accounting amortization |
605.8 |
|
|
|
586.0 |
|
|
|
1,787.1 |
|
|
|
1,907.6 |
|
|
|
Impairment of goodwill (a) |
— |
|
|
|
— |
|
|
|
2,936.8 |
|
|
|
321.0 |
|
|
|
Litigation settlements and other |
55.7 |
|
|
|
31.5 |
|
|
|
(65.4) |
|
|
|
239.3 |
|
|
|
Interest expense (primarily amortization |
(9.9) |
|
|
|
0.4 |
|
|
|
(28.6) |
|
|
|
(14.0) |
|
|
|
(Gain) loss on divestitures of businesses
(included in other expense (income), |
(1.6) |
|
|
|
107.4 |
|
|
|
79.1 |
|
|
|
295.8 |
|
|
|
Acquisition and divestiture-related costs (primarily included in SG&A)(c) |
40.0 |
|
|
|
98.2 |
|
|
|
134.4 |
|
|
|
290.8 |
|
|
|
Restructuring costs (d) |
17.2 |
|
|
|
105.4 |
|
|
|
136.7 |
|
|
|
146.1 |
|
|
|
Share-based compensation expense |
36.0 |
|
|
|
32.4 |
|
|
|
128.3 |
|
|
|
113.8 |
|
|
|
Other special items included in: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales (e) |
89.4 |
|
|
|
45.2 |
|
|
|
190.1 |
|
|
|
92.5 |
|
|
|
Research and development expense |
5.6 |
|
|
|
— |
|
|
|
7.7 |
|
|
|
2.8 |
|
|
|
Selling, general and administrative |
18.0 |
|
|
|
15.5 |
|
|
|
65.7 |
|
|
|
43.1 |
|
|
|
Other expense (income), net (f) |
102.4 |
|
|
|
(43.9) |
|
|
|
508.4 |
|
|
|
(322.1) |
|
|
|
Tax effect of the above items and other income tax related items (g) |
(46.1) |
|
|
|
(175.3) |
|
|
|
(594.9) |
|
|
|
(462.2) |
|
|
|
Adjusted net earnings and adjusted EPS |
$ 784.3 |
|
|
|
$ 897.6 |
|
$ 0.75 |
|
$ 2,110.6 |
|
$ 1.78 |
|
$ 2,536.8 |
|
$ 2.11 |
|
Weighted average diluted shares outstanding |
1,172.2 |
|
|
|
1,200.4 |
|
|
|
1,184.0 |
|
|
|
1,202.5 |
|
|
|
____________ |
|
|
Significant items include the following: |
|
|
(a) |
For the nine months ended September 30, 2025, includes a goodwill impairment charge of |
|
(b) |
For the nine months ended September 30, 2025, consists of pre-tax charges related to the divestitures primarily due to an increase in estimated transaction related costs, including the assumption of additional contractual obligations, as well as the impact of working capital and other transaction-related adjustments. |
|
(c) |
Acquisition and divestiture-related costs consist primarily of transaction costs including legal and consulting fees, and integration activities. |
|
(d) |
For the three and nine months ended September 30, 2025, includes approximately |
|
(e) |
For the three and nine months ended September 30, 2025, includes incremental manufacturing variances at plants slated for sale or closure or undergoing remediation activities of approximately |
|
(f) |
For the three and nine months ended September 30, 2025, includes a loss of approximately |
|
(g) |
Adjusted for changes for uncertain tax positions. |
Reconciliation of
Below is a reconciliation of
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
September 30, |
|
September 30, |
||||
|
(In millions) |
2025 |
|
2024 |
|
2025 |
|
2024 |
|
|
$ (128.2) |
|
$ 94.8 |
|
$ (3,174.8) |
|
$ (117.7) |
|
Add / (deduct) adjustments: |
|
|
|
|
|
|
|
|
Income tax provision (benefit) |
120.3 |
|
(4.3) |
|
(147.2) |
|
21.0 |
|
Interest expense (a) |
119.6 |
|
145.6 |
|
351.7 |
|
429.8 |
|
Depreciation and amortization (b) |
688.5 |
|
669.7 |
|
2,031.5 |
|
2,147.0 |
|
EBITDA |
$ 800.2 |
|
$ 905.8 |
|
$ (938.8) |
|
$ 2,480.1 |
|
Add / (deduct) adjustments: |
|
|
|
|
|
|
|
|
Share-based compensation expense |
36.0 |
|
32.4 |
|
128.3 |
|
113.8 |
|
Litigation settlements and other contingencies, net |
55.7 |
|
31.5 |
|
(65.4) |
|
239.3 |
|
(Gain) loss on divestitures of businesses |
(1.6) |
|
107.4 |
|
79.1 |
|
295.8 |
|
Impairment of goodwill |
— |
|
— |
|
2,936.8 |
|
321.0 |
|
Restructuring, acquisition and divestiture-related and other |
264.3 |
|
207.5 |
|
1,016.9 |
|
235.9 |
|
Adjusted EBITDA |
$ 1,154.6 |
|
$ 1,284.6 |
|
$ 3,156.9 |
|
$ 3,685.9 |
|
____________ |
|
|
(a) |
Includes amortization of premiums and discounts on long-term debt. |
|
(b) |
Includes purchase accounting related amortization. |
|
(c) |
See items detailed in the Reconciliation of |
Summary of Total Revenues by Segment
|
|
Three Months Ended |
||||||||||||||||
|
|
September 30, |
||||||||||||||||
|
(In millions, except %s) |
2025 |
|
2024 |
|
% Change |
|
2025 Impact (1) |
|
2025 |
|
Constant Change (2) |
|
Closed Divestitures (3) |
|
2024 Adjusted |
|
Divestiture- |
|
Net sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Developed Markets |
|
|
|
|
(2) % |
|
$ (76.0) |
|
$ 2,179.6 |
|
(5) % |
|
$ 11.1 |
|
$ 2,287.6 |
|
(5) % |
|
|
615.2 |
|
561.8 |
|
10 % |
|
(2.3) |
|
612.9 |
|
9 % |
|
— |
|
561.8 |
|
9 % |
|
JANZ |
306.3 |
|
344.3 |
|
(11) % |
|
4.3 |
|
310.6 |
|
(10) % |
|
3.2 |
|
341.1 |
|
(9) % |
|
Emerging Markets |
570.4 |
|
533.2 |
|
7 % |
|
(2.4) |
|
568.0 |
|
7 % |
|
4.3 |
|
528.9 |
|
7 % |
|
Total net sales |
3,747.5 |
|
3,738.0 |
|
— % |
|
(76.4) |
|
3,671.1 |
|
(2) % |
|
$ 18.6 |
|
$ 3,719.4 |
|
(1) % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other revenues (6) |
12.4 |
|
13.2 |
|
NM |
|
(0.3) |
|
12.1 |
|
NM |
|
— |
|
13.2 |
|
NM |
|
Consolidated total revenues (7) |
|
|
|
|
— % |
|
$ (76.7) |
|
$ 3,683.2 |
|
(2) % |
|
$ 18.6 |
|
$ 3,732.6 |
|
(1) % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
||||||||||||||||
|
|
September 30, |
||||||||||||||||
|
(In millions, except %s) |
2025 |
|
2024 |
|
% Change |
|
2025
Currency |
|
2025 Constant Currency Revenues |
|
Constant Change (2) |
|
Closed Divestitures (3) |
|
2024 Adjusted |
|
Divestiture- Operational Change (5) |
|
Net sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Developed Markets |
|
|
|
|
(8) % |
|
$ (103.6) |
|
$ 6,163.0 |
|
(9) % |
|
$ 365.6 |
|
$ 6,417.7 |
|
(4) % |
|
|
1,759.6 |
|
1,644.7 |
|
7 % |
|
9.4 |
|
1,769.0 |
|
8 % |
|
0.5 |
|
1,644.2 |
|
8 % |
|
JANZ |
888.1 |
|
1,011.7 |
|
(12) % |
|
11.8 |
|
899.9 |
|
(11) % |
|
24.0 |
|
987.7 |
|
(9) % |
|
Emerging Markets |
1,645.4 |
|
1,737.7 |
|
(5) % |
|
29.6 |
|
1,675.0 |
|
(4) % |
|
78.2 |
|
1,659.5 |
|
1 % |
|
Total net sales |
$ 10,559.7 |
|
$ 11,177.4 |
|
(6) % |
|
$ (52.8) |
|
|
|
(6) % |
|
$ 468.3 |
|
$ 10,709.1 |
|
(2) % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other revenues (6) |
36.6 |
|
33.8 |
|
NM |
|
(0.5) |
|
36.1 |
|
NM |
|
2.4 |
|
31.4 |
|
NM |
|
Consolidated total revenues (7) |
$ 10,596.3 |
|
$ 11,211.2 |
|
(5) % |
|
$ (53.3) |
|
|
|
(6) % |
|
$ 470.7 |
|
$ 10,740.5 |
|
(2) % |
|
____________ |
|
|
(1) |
Currency impact is shown as unfavorable (favorable). |
|
(2) |
The constant currency percentage change is derived by translating net sales or revenues for the current period at prior year comparative period exchange rates, and in doing so shows the percentage change from 2025 constant currency net sales or revenues to the corresponding amount in the prior year. |
|
(3) |
Represents proportionate net sales relating to divestitures that closed during 2024 in the relevant period. |
|
(4) |
Represents |
|
(5) |
See "Certain Key Terms and Presentation Matters" in this release for more information. |
|
(6) |
For the three months ended September 30, 2025, other revenues in Developed Markets, JANZ, and Emerging Markets were approximately |
|
(7) |
Amounts exclude intersegment revenue which eliminates on a consolidated basis. |
|
Reconciliation of Statements of Operations Line Items |
|||||||
|
(Unaudited) |
|||||||
|
|
|||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
September 30, |
|
September 30, |
||||
|
(In millions, except %s) |
2025 |
|
2024 |
|
2025 |
|
2024 |
|
|
$ 2,388.4 |
|
$ 2,292.0 |
|
$ 6,730.7 |
|
$ 6,802.6 |
|
Deduct: |
|
|
|
|
|
|
|
|
Purchase accounting amortization and other related items |
(605.8) |
|
(586.2) |
|
(1,787.1) |
|
(1,907.6) |
|
Acquisition and divestiture-related costs |
(23.6) |
|
(18.8) |
|
(62.2) |
|
(42.1) |
|
Restructuring costs |
(13.4) |
|
(82.7) |
|
(44.5) |
|
(98.3) |
|
Share-based compensation expense |
(0.7) |
|
(0.8) |
|
(2.9) |
|
(2.5) |
|
Other special items, including restructuring related costs |
(89.4) |
|
(45.2) |
|
(190.1) |
|
(92.5) |
|
Adjusted cost of sales |
$ 1,655.5 |
|
$ 1,558.3 |
|
$ 4,643.9 |
|
$ 4,659.6 |
|
|
|
|
|
|
|
|
|
|
Adjusted gross profit (a) |
$ 2,104.4 |
|
$ 2,192.9 |
|
$ 5,952.4 |
|
$ 6,551.6 |
|
|
|
|
|
|
|
|
|
|
Adjusted gross margin (a) |
56 % |
|
58 % |
|
56 % |
|
58 % |
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
September 30, |
|
September 30, |
||||
|
(In millions, except %s) |
2025 |
|
2024 |
|
2025 |
|
2024 |
|
|
$ 250.4 |
|
$ 198.4 |
|
$ 691.2 |
|
$ 602.2 |
|
Deduct: |
|
|
|
|
|
|
|
|
Acquisition and divestiture-related costs |
(5.7) |
|
(1.6) |
|
(9.0) |
|
(9.3) |
|
Restructuring costs |
— |
|
(0.9) |
|
(2.2) |
|
(1.9) |
|
Share-based compensation expense |
(1.4) |
|
(1.7) |
|
(5.9) |
|
(5.4) |
|
SG&A and R&DTSA reimbursement andDSA reimbursement(b) |
— |
|
— |
|
— |
|
(1.7) |
|
Other special items |
(5.6) |
|
— |
|
(7.7) |
|
(2.8) |
|
Adjusted R&D |
$ 237.7 |
|
$ 194.2 |
|
$ 666.4 |
|
$ 581.1 |
|
|
|
|
|
|
|
|
|
|
Adjusted R&D as % of total revenues |
6 % |
|
5 % |
|
6 % |
|
5 % |
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
September 30, |
|
September 30, |
||||
|
(In millions, except %s) |
2025 |
|
2024 |
|
2025 |
|
2024 |
|
|
$ 886.6 |
|
$ 1,003.4 |
|
$ 2,763.4 |
|
$ 3,057.9 |
|
Deduct: |
|
|
|
|
|
|
|
|
Acquisition and divestiture-related costs |
(10.6) |
|
(77.9) |
|
(63.1) |
|
(239.3) |
|
Restructuring costs |
(3.7) |
|
(21.8) |
|
(90.0) |
|
(45.9) |
|
Purchase accounting amortization and other related items |
— |
|
0.2 |
|
— |
|
— |
|
Share-based compensation expense |
(33.8) |
|
(29.8) |
|
(119.4) |
|
(105.9) |
|
SG&A and R&DTSA reimbursement andDSA reimbursement(b) |
— |
|
— |
|
— |
|
(5.7) |
|
Other special items and reclassifications |
(18.0) |
|
(15.5) |
|
(65.7) |
|
(43.1) |
|
Adjusted SG&A |
$ 820.5 |
|
$ 858.6 |
|
$ 2,425.2 |
|
$ 2,618.0 |
|
|
|
|
|
|
|
|
|
|
Adjusted SG&A as % of total revenues |
22 % |
|
23 % |
|
23 % |
|
23 % |
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
September 30, |
|
September 30, |
||||
|
(In millions) |
2025 |
|
2024 |
|
2025 |
|
2024 |
|
|
$ 1,192.7 |
|
$ 1,233.3 |
|
$ 6,336.0 |
|
$ 4,218.7 |
|
Add / (Deduct): |
|
|
|
|
|
|
|
|
Litigation settlements and other contingencies, net |
(55.7) |
|
(31.5) |
|
65.4 |
|
(239.3) |
|
R&D adjustments |
(12.7) |
|
(4.2) |
|
(24.8) |
|
(21.1) |
|
SG&A adjustments(c) |
(66.1) |
|
(144.8) |
|
(338.2) |
|
(439.9) |
|
Impairment of goodwill adjustments |
— |
|
— |
|
(2,936.8) |
|
(321.0) |
|
Adjusted total operating expenses |
$ 1,058.2 |
|
$ 1,052.8 |
|
$ 3,101.6 |
|
$ 3,197.4 |
|
|
|
|
|
|
|
|
|
|
Adjusted earnings from operations (d) |
$ 1,046.2 |
|
$ 1,140.1 |
|
$ 2,850.8 |
|
$ 3,354.2 |
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
September 30, |
|
September 30, |
||||
|
(In millions) |
2025 |
|
2024 |
|
2025 |
|
2024 |
|
|
$ 119.6 |
|
$ 145.6 |
|
$ 351.7 |
|
$ 429.8 |
|
Add / (Deduct): |
|
|
|
|
|
|
|
|
Accretion of contingent consideration liability |
(1.1) |
|
(11.4) |
|
(3.5) |
|
(22.6) |
|
Amortization of premiums and discounts on long-term debt |
11.7 |
|
12.0 |
|
34.1 |
|
39.3 |
|
Other special items |
(0.7) |
|
(0.9) |
|
(2.0) |
|
(2.7) |
|
Adjusted interest expense |
$ 129.5 |
|
$ 145.3 |
|
$ 380.3 |
|
$ 443.8 |
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
September 30, |
|
September 30, |
||||
|
(In millions) |
2025 |
|
2024 |
|
2025 |
|
2024 |
|
|
$ 67.1 |
|
$ (10.2) |
|
$ 499.9 |
|
$ (143.2) |
|
Add / (Deduct): |
|
|
|
|
|
|
|
|
Fair value adjustments on non-marketable equity investments |
(100.0) |
|
39.4 |
|
(499.8) |
|
335.1 |
|
SG&A and R&DTSA reimbursement andDSA reimbursement(b) |
— |
|
— |
|
— |
|
7.4 |
|
Gain (loss) on divestitures of businesses |
1.6 |
|
(107.4) |
|
(79.1) |
|
(295.8) |
|
Other items |
(2.6) |
|
4.5 |
|
(8.7) |
|
(12.9) |
|
Adjusted other income, net |
$ (33.9) |
|
$ (73.7) |
|
$ (87.7) |
|
$ (109.4) |
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
September 30, |
|
September 30, |
||||
|
(In millions, except %s) |
2025 |
|
2024 |
|
2025 |
|
2024 |
|
|
$ (7.9) |
|
$ 90.5 |
|
$ (3,322.0) |
|
$ (96.7) |
|
Total pre-tax non-GAAP adjustments |
958.5 |
|
978.0 |
|
5,880.3 |
|
3,116.7 |
|
Adjusted earnings before income taxes |
$ 950.6 |
|
$ 1,068.5 |
|
$ 2,558.3 |
|
$ 3,020.0 |
|
|
|
|
|
|
|
|
|
|
|
$ 120.3 |
|
$ (4.3) |
|
$ (147.2) |
|
$ 21.0 |
|
Adjusted tax expense |
46.1 |
|
175.3 |
|
594.9 |
|
462.2 |
|
Adjusted income tax provision |
$ 166.4 |
|
$ 171.0 |
|
$ 447.7 |
|
$ 483.2 |
|
|
|
|
|
|
|
|
|
|
Adjusted effective tax rate |
17.5 % |
|
16.0 % |
|
17.5 % |
|
16.0 % |
|
___________ |
|
|
(a) |
|
|
(b) |
Refer to "Certain Key Terms and Presentation Matters" section in this release for more information on reclassifications related to TSA and DSA reimbursements. |
|
(c) |
Certain reclassifications were made to conform the prior period consolidated financial statements to the current period presentation. Charges related to the impairment of goodwill, which were previously presented in Selling, General and Administrative, are now presented in Impairment of Goodwill in the condensed consolidated statements of operations. |
|
(d) |
|
|
Reconciliation of Estimated 2025 U.S. GAAP Net Cash Provided by Operating Activities to Free Cash Flow as of November 6, 2025 |
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
A reconciliation of the estimated 2025 U.S. GAAP Net Cash provided by Operating Activities to Free Cash Flow is presented below: |
|
|
|
|
|
(In millions) |
|
|
Estimated |
|
|
|
|
|
Less: Capital Expenditures |
|
|
|
|
|
Free Cash Flow (a) |
|
|
___________ |
|
|
(a) |
Excludes the impact of any transaction-related costs. |
|
Reconciliation of Estimated 2025 U.S. GAAP Net Cash Provided by Operating Activities to Free Cash Flow as of August 7, 2025 |
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
A reconciliation of the estimated 2025 U.S. GAAP Net Cash provided by Operating Activities to Free Cash Flow is presented below: |
|
|
|
|
|
(In millions) |
|
|
Estimated |
|
|
|
|
|
Less: Capital Expenditures |
|
|
|
|
|
Free Cash Flow (a) |
|
|
___________ |
|
|
(a) |
Excluded the impact of any transaction-related costs. |
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SOURCE Viatris Inc.
FAQ
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