Viatris Stock Price: $1.16 Billion Loss and a 12.7% Revenue Decline in Q4 2022

Viatris Stock Price Craters Post Q4 Earnings Report

Viatris stock price plunged by 10% in premarket trading on Thursday after the company reported disappointing fourth-quarter results. The pharmaceutical giant posted a net loss of $1.16 billion, or $1.18 per share, compared to a net income of $200 million, or $0.20 per share, in the same period last year. Revenue also declined by 12.7% to $3.99 billion from $4.56 billion in Q4 2021.

Key Takeaways from Viatris' Q4 Report

• Net loss of $1.16 billion
• Revenue decline of 12.7% to $3.99 billion
• Adjusted EPS of $0.34
• Debt reduction of $1.2 billion
• Share buyback program authorization

Reasons for the Decline

Viatris attributed the decline in revenue primarily to the loss of exclusivity for its generic Copaxone, a multiple sclerosis drug, in the United States. The company also faced headwinds from generic competition, foreign exchange fluctuations, and lower demand for its COVID-19 treatments.

Analyst Reactions

Analysts were largely negative in their assessment of Viatris' Q4 results.

• SVB Leerink: "We are reducing our price target to $16 from $21 and moving to a Market Perform rating."
• Barclays: "We maintain our Underweight rating and $12 price target."
• Credit Suisse: "We reiterate our Neutral rating and $17 price target."

Future Outlook

Despite the weak Q4 results, Viatris maintained its 2023 guidance. The company expects revenue to be in the range of $15.5 billion to $16.5 billion, with adjusted EPS between $4.75 and $5.25.

Viatris Stock Price: Technical Analysis

The daily chart of Viatris stock shows a significant downward trend. The stock has broken below key support levels and is now trading near its 52-week low. The relative strength index (RSI) is also in oversold territory, indicating that the stock may be due for a rebound.

Catalyst for Recovery

The key catalyst for a recovery in Viatris stock price is the potential approval of its biosimilar version of Humira, the world's best-selling drug. If approved, Viatris' biosimilar could generate significant revenue and boost the company's earnings.

Conclusion

Viatris stock price has been under pressure following the release of disappointing Q4 results. The company is facing challenges from generic competition, foreign exchange fluctuations, and lower demand for its COVID-19 treatments. Despite the weak results, Viatris has maintained its 2023 guidance and a potential catalyst for recovery is the approval of its Humira biosimilar.

Tables

Viatris Q4 2022 Financial Results

Viatris Revenue Breakdown

Viatris Analyst Ratings

Viatris Historical Stock Price Performance