MORGANTOWN – Viatris saw its third quarter total net sales down by 10% – 1% when adjusted for currency exchange rate fluctuations – and called the results strong, in a press release and reports issued Monday.
Viatris announced a 12-cent per share dividend for stockholders. It also announced its plans to create an ophthalmology franchise through the acquisition of two companies doing business in opthalmology disease therapies.
On the Q3 earnings, Viatris CEO Michael Goettler said, “We are very pleased with our seven quarters of strong financial performance, which allow us to continue to deliver on our Phase 1 financial commitments and lay a solid foundation for our return to growth in Phase 2.”
Quarterly net sales were $4.067 billion, down from $4.521 billion during the same period in 2021 – a 10% drop, but only a 1% drop viewed as operational change based on currency exchange rates.
Developed Market sales were $2.432 billion, down 8% (no net change operationally) from 2021’s $2.656 billion. Emerging Markets were $678.9 million, down 14% (4% operationally) from $792.5 million in 2021. JANZ – Japan, Australia, New Zealand – was $383 million, down 24% (12% operationally) from $505.3 million in 2021. And Greater China was $574 million, up 1% (6% operationally) from 2021.
The nine-month sales for 2022 were $12.351 billion, down 8% (2% operationally) from 2021. Developed Markets was $7.387 billion down 6% (no net change) from 2021. Emerging Markets was $2.035 billion, down 16% (8%). JANZ was $1.234 billion, down 17% (6%). Greater China was $1.695 billion, down 1% (up 1% operationally).
Viatris kept its 2022 financial guidance the same as Q2, estimating $16.2 billion to $16.7 billion total revenues for the full year.
Opthalmology plans
Viatris announced plans to acquire Oyster Point Pharma and Famy Life Sciences.
Oyster Point is a commercial-stage biopharmaceutical company focused on the discovery, development and commercialization of pharmaceutical therapies to treat ophthalmic diseases, including Tyrvaya for dry eye disease. Famy Life Sciences has a complementary portfolio of ophthalmology therapies under development.
Under the terms of a definitive agreement, Viatris has agreed to acquire Oyster Point for $11 per share in cash upfront through a tender offer. In addition, each Oyster Point stockholder will receive one non-tradeable contingent value right, representing up to an additional $2 per share contingent upon Oyster Point’s achieving certain metrics based on full year 2022 performance.
Viatris is targeting to close the acquisition of Oyster Point in Q1 2023, subject to customary closing conditions.
Viatris did not describe the terms of the Famy acquisition but said that together, the two acquisitions have an aggregate purchase price of $700 million-$750 million, which it expects to fund with cash on hand.
Viatris said it anticipates these acquisitions to have the potential to add at least $1 billion in sales by 2028.
Viatris Executive Chairman Robert Coury said, “We are pleased to announce this morning our agreements to acquire two high quality businesses to form a new ophthalmology franchise within Viatris. Oyster Point, under the leadership of Dr. Jeff Nau, has a well-respected reputation within the ophthalmology space, and we look forward to having Jeff join the Viatris management team as leader of our ophthalmology franchise following the closing of the transactions.”
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