MORGANTOWN – Viatris tallied a net loss of $279 million for the second quarter of 2021 but saw its overall results – total revenue of $4.58 billion as better than expected.
The company – created by the merger of Mylan sand Upjohn – used the strong performance to upgrade its financial forecast for the year: predicting total 2021 revenue to fall in the $17.5 billion to $17.9 billion range, up from the prior guidance range of $17.2 billion to $17.8 billion.
The second-quarter results were reported to the SEC and announced in a press release.
The report makes no specific mention of the closure of the Morgantown plant or any of the others involved in the global restructuring following the November 2020 merger.
It says, “Workforce actions related to the company’s previously announced global restructuring program are well underway. The company remains on track to realize approximately $500 million of cost synergies this year and to achieve at least $1 billion of cost synergies by 2023.”
Total net sales for the quarter were $4.561 billion: $2.64 billion from developed markets; $870 million from emerging markets; $501 million from Japan, Australia, New Zealand (JANZ); $550.3 million from greater China.
Revenue for the first half of 2021 was $8.962 billion: $5.212 billion from developed markets; $1.625 billion from emerging markets; $982.9 million from JANZ; $1.142 billion from greater China.
Total six months sales by category: $5.426 billion for brand name products; $661.7 million for complex generics and biosimilars; $2.874 billion for generics. For the quarter, Viatris said, brand names performed better than expected; complex generics and biosimilars met expectations; generics also performed better than expected, driven primarily by COVID-19 products.
Viatris CEO Michael Goettler commented, “We delivered another quarter of strong results. We are executing at a high level across the entire business, and we continue to leverage our scientific and R&D capabilities to pave the way for patients’ access to safe, effective, and high-quality medicines.”
Viatris Chief Financial Officer Sanjeev Narula commented, “This quarter continues to highlight our ability to generate substantial cash flow which was above our expectations. Our strong cash flow performance allowed us to repay $1.15 billion of debt in the first half of the year, while also paying our first quarterly dividend. We anticipate significant increases in cash flow generation in the coming years.”
The dividend was 11 cents per share. Viatris also expects to repay about $6.5 billion of debt through 2023.
TWEET David Beard @dbeardtdp EMAIL dbeard@dominionpost.com
