01—Abstract
Summary
Summary of the 10-K filed February 27, 2025. Cited figures are marked; the original filing is the authoritative source.
Viatris Inc. reported total revenues of $14.74 billiona for 2024, down $687.6 million, or 4%, from $15.43 billion in 2023, while net sales were $14.69 billion.
The decline reflected divestitures closed in 2023 and 2024, along with unfavorable foreign currency translation of approximately $239.5 millionb. On a constant currency basis, net sales from the remaining business increased by approximately $276.1 million, or 2%, driven by new product sales of approximately $582.4 million, partly offset by base business erosion of approximately $306.3 million. The company swung to a U.S. GAAP net loss of $634.2 million, or $(0.53) per diluted share, compared with net earnings of $54.7 million in 2023.
Results were weighed down by a $321.0 millionc goodwill impairment for the JANZ reporting unit, $177.1 million of IPR&D impairment charges, and $350.9 million of litigation settlements and other contingencies, net. Adjusted EPS was $2.65, versus $2.93 in 2023, and adjusted EBITDA was $4.67 billion, versus $5.12 billion. Cash flow and capital returns remained central to the filing.
Net cash provided by operating activities was $2.30 billiond, down from $2.90 billion, and the company received $2.51 billion in proceeds from asset and business sales, mainly the OTC, India API and women's healthcare divestitures. Viatris repaid approximately $1.86 billion of Senior Notes at maturity, paid $574.8 million in cash dividends, and repurchased $250.0 million of stock. Cash and cash equivalents stood at $734.8 million at year end, and the company had $3.5 billion available under its 2024 Revolving Facility.
Long-term debt fell to $14.04 billion from $16.19 billion. The company also disclosed a warning letter and import alert at its Indore, India facility, which it estimates will reduce 2025 total revenues by approximately $500 million and 2025 earnings from operations by approximately $385 million. Looking forward, management expects R&D expense to rise by more than $100 million in 2025, driven by the selatogrel and cenerimod programs acquired from Idorsia.
On February 25, 2025, Viatris and Idorsia amended those agreements, reducing contingent milestone payments by $250 million in exchange for Viatris assuming $100 million of development costs. The company declared a quarterly dividend of $0.12 per share on February 24, 2025, and $1.5 billion remained available under its $2 billion share repurchase authorization as of February 27, 2025.
02—Key points
Key Highlights
- Total revenues were $14.74 billion, down 4% from $15.43 billion, as divestitures and currency translation offset 2% constant currency growth in net sales from the remaining business.
- Net loss of $634.2 million, or $(0.53) per diluted share, compared with net earnings of $54.7 million in 2023, driven by a $321.0 million JANZ goodwill impairment and $177.1 million of IPR&D impairments.
- Adjusted EPS was $2.65 versus $2.93 in 2023, and adjusted EBITDA was $4.67 billion versus $5.12 billion.
- Operating cash flow fell to $2.30 billion from $2.90 billion, while $2.51 billion of proceeds from asset and business sales funded debt repayment.
- Long-term debt declined to $14.04 billion from $16.19 billion after approximately $1.86 billion of Senior Notes were repaid at maturity and $1.86 billion were retired through tender offers.
- The FDA warning letter and import alert at the Indore, India facility are estimated to reduce 2025 total revenues by about $500 million and 2025 earnings from operations by about $385 million.
- The company paid $574.8 million in dividends and repurchased $250.0 million of stock in 2024, with $1.5 billion remaining under its $2 billion repurchase authorization as of February 27, 2025.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2024, Viatris lost $0.04.
- Revenue$14.69B100.0%
- Cost of revenue−$9.07B61.7%
- Gross profit$5.62B38.3%
- Operating costs−$5.61B38.2%
- Operating income$10.1M0.1%
- Interest, other & tax−$644.3M4.4%
- Net income−$634.2M4.3%
Where FY2024 revenue went
$14.69B- Cost of revenue: $9.12B, 62% of revenue
- SG&A: $4.10B, 28% of revenue
- Operating income: $10.1M, 0.1% of revenue
- Other operating costs: $1.46B, 10.0% of revenue
Kept 0.1% as operating incomeOperating income $10.1M · 0.1%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 27, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $14.69B$15.39B | −4.5% |
| Cost of Revenue | $9.12B$8.99B | +1.4% |
| Gross Profit | $5.62B$6.44B | −12.7% |
| SG&A Expenses | $4.10B$4.07B | +0.9% |
| Operating Expenses | $5.61B$5.67B | −1.0% |
| Operating Income | $10.10M$766.20M | −98.7% |
| Interest Expense | $550.00M$573.10M | −4.0% |
| Net Income | -$634.20M$54.70M | −1259.4% |
| EPS (Basic) | $-0.53$0.05 | −1160.0% |
| EPS (Diluted) | $-0.53$0.05 | −1160.0% |
05—Questions
Frequently Asked Questions
Why did Viatris report a net loss in 2024 after earning a profit in 2023?
The net loss of $634.2 million reflected several large non-cash and special charges, including a $321.0 million goodwill impairment for the JANZ reporting unit, $177.1 million of IPR&D intangible asset impairments, and $350.9 million of litigation settlements and other contingencies, net. Lower earnings from operations of $10.1 million, compared with $766.2 million in 2023, also contributed. The company's adjusted EPS, which excludes these items, was $2.65.
What is the outlook for the Indore facility and its impact on 2025?
The FDA issued a warning letter and an import alert for the Indore, India oral finished dose facility, which affects 11 actively distributed products that can no longer enter the U.S. The company estimates a negative impact of approximately $500 million on 2025 total revenues and approximately $385 million on 2025 earnings from operations. The company does not expect additional product exceptions from the FDA.
How is Viatris funding its debt reduction and shareholder returns?
In 2024, Viatris generated $2.30 billion of operating cash flow and received $2.51 billion from sales of assets and businesses, mainly the OTC, India API and women's healthcare divestitures. It used these funds to repay approximately $3.7 billion of debt, pay $574.8 million in dividends, and repurchase $250.0 million of stock. Cash and cash equivalents were $734.8 million at year end, and $3.5 billion was available under the 2024 Revolving Facility.
What changed in the Idorsia agreements for selatogrel and cenerimod?
On February 25, 2025, Viatris and Idorsia entered into a letter agreement that gives Viatris additional territory rights in Japan, South Korea and certain Asia-Pacific countries for cenerimod. It also reduces contingent milestone payments by $250 million, including $200 million of development milestones, in exchange for Viatris assuming $100 million of Idorsia's development cost obligation. The joint development committee is replaced by a transition committee.
What does the company expect for R&D spending in 2025?
Viatris expects R&D expense to increase by more than $100 million in 2025 compared with 2024. The increase is primarily due to higher spending on the selatogrel and cenerimod development programs. R&D expense was $808.7 million in 2024, essentially flat with $805.2 million in 2023.
06—Continue