By Kunal Das
May 7 (Reuters) – Viatris topped analysts’ estimates for first-quarter revenue and profit on Thursday, buoyed by strength in its China business and strong demand for branded drugs.
Shares of the company were up over 3% in afternoon trading following the results.
The drugmaker has been under pressure from manufacturing issues and generic-drug competition, prompting investors to watch whether its base business and new launches can support steadier growth this year.
Viatris posted quarterly adjusted profit of 59 cents per share, beating analysts’ average estimate of 50 cents, according to LSEG data. Revenue rose 8% to $3.52 billion from a year ago, above estimates of $3.36 billion.
Revenue from its Greater China business rose 22% to $680.1 million, beating expectations of $547.7 million.
The company expects mid- to high-single-digit growth in China this year, up from its earlier forecast of low-single-digit, interim CFO Paul Campbell said on a call with analysts.
First-quarter revenue from its branded medicines, including cholesterol drug Lipitor and blood-pressure treatment Norvasc, rose 10% to $2.33 billion, helped by strong growth in China and emerging markets such as Eastern Europe and Latin America.
Viatris’ stable base business, potential launch of fast-acting pain drug meloxicam and upcoming data for heart and immunology candidates selatogrel and cenerimod are driving investor interest, J.P. Morgan analyst Chris Schott said.
The company reaffirmed its 2026 adjusted profit forecast of $2.33 to $2.47 per share.
Despite the strong quarter, the management said it was too early to raise full-year forecast and that it would reassess trends after the second quarter.
Generic drug sales rose 5% to $1.18 billion during the first quarter.
Viatris expects the entry of generic GLP-1 weight-loss drugs by the end of the decade to be a longer-term growth driver.
“We have developed a significant strategy for GLP-1s and will be supplying a significant part of that market with an hyper focus on the U.S. going forward,” Chief R&D Officer Philippe Martin said.
(Reporting by Kunal Das in Bengaluru; Editing by Shilpi Majumdar and Shreya Biswas)
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