Viatris (NASDAQ:VTRS) shares are in focus today after the global healthcare major announced its results for the fourth quarter and increased its share repurchase program by $1 billion to $2 billion. In Q4, Viatris’ revenue declined by 1% year-over-year to $3.83 billion. The figure fell short of expectations by $80 million. Adjusted EBITDA for the quarter declined by 8% to $1.12 billion.
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However, after adjusting for divestitures, the company’s Q4 revenue ticked up by 1%. Similarly, its net sales in the Emerging Markets and Greater China segments increased by 14% and 2%, respectively. However, the company saw a decline of 1% in net sales from Developed Markets. For Fiscal Year 2024, Viatris expects total revenue in the range of $15.25 billion to $15.75 billion. Adjusted EPS for the year is anticipated in the range of $2.70 to $2.85.
Further, Viatris pared down its debt by $1.25 billion in 2023. With an eye on maximizing shareholder value, the company is increasing its share repurchase program by $1 billion to $2 billion. Additionally, Viatris declared a quarterly dividend of $0.12 per share. The VTRS dividend is payable on March 18 to investors of record on March 11.
Separately, Viatris has entered into a global research and development collaboration with Switzerland-based healthcare company Idorsia (GB:0RQE). This move adds two Phase Three assets, Selatogrel and Cenerimod, to VTRS’ product pipeline.
Is VTRS a Good Stock to Buy?
Viatris’ share price has rallied by nearly 22% over the past six months. Bank of America’s Jason Gerberry, the sole analyst tracking Viatris, has reiterated a Sell rating on the stock alongside a $10 price target. However, the Street’s views on the stock could see a revision following today’s earnings report.
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