On Thursday, Viatris Inc. (NASDAQ:VTRS) reported fourth-quarter 2024 sales of $3.52 billion, down 8% year over year, missing the consensus of $3.61 billion.

The company reported adjusted EPS of 54 cents, missing the consensus of 57 cents.

Brands’ net sales fell 10% to $2.16 billion, and Generic’s revenues decreased 5% to $1.35 billion.

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The company generated approximately $85 million in new product revenues in the quarter (approximately $582 million for the year).

The most significant near-term challenge is the FDA warning letter received in December 2024 and the import alert affecting Viatris’ Indore facility, which management estimates will reduce 2025 revenues by $500 million and adjusted EBITDA by $385 million.

To preserve the ongoing continuity of the development programs for selatogrel and cenerimod, in February 2025, the company updated certain terms of the original global research and development collaboration agreements with Idorsia announced last year.

Under the updated terms, Viatris will receive additional territory rights in Japan, South Korea, and certain other countries in the Asia-Pacific region for cenerimod, a reduction of certain contingent milestone payments by $250 million, of which $200 million is from future development milestones, and other considerations in exchange for Viatris assuming $100 million of Idorsia’s obligation to contribute to development costs.

The company announced prioritizing $500-650 million in share repurchases for 2025.

Guidance: Viatris expects to deliver $450 million to $550 million in new product revenues in 2025.

Viatris expects 2025 adjusted EPS of $2.12-$2.26, compared to the consensus of $2.60, and sales of $13.5 billion—$14 billion, compared to the consensus of $14.3 billion.

Price Action: VTRS stock is down 13.9% at $9.68 at last check Thursday.

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