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Investing.com -- Shares in Viatris Inc (NASDAQ:VTRS) plummeted more than 17% following the market open on Thursday, after the company’s Q4 results and guidance disappointed investors.
The drug maker reported fourth-quarter earnings per share (EPS) of $0.54, falling short of analysts’ expectations of $0.58. Revenue for the period was $3.52 billion, also missing the consensus estimate of $3.62 billion.
In December, the company disclosed that the U.S. Food and Drug Administration (FDA) had restricted imports of 11 products from its Indore, India facility due to regulatory violations. Viatris estimated on Thursday that the FDA’s action will lower its 2025 revenue by approximately $500 million and reduce adjusted core earnings by about $385 million.
"2024 was a good year for Viatris with full year operational revenue growth of 2%, excluding divestitures, in line with our guidance," said Scott A. Smith, CEO of Viatris.
"As we head into 2025, we are focused on driving strong commercial execution, advancing our pipeline—including several important late-stage development milestones for selatogrel, cenerimod and sotagliflozin and six Phase 3 readouts—prioritizing capital return with a focus on share repurchases, executing our remediation plan for Indore and beginning an enterprise-wide initiative to review our global infrastructure and identify additional cost savings."
For 2025, the company projects EPS in the range of $2.12 to $2.26, below the consensus estimate of $2.59. Full-year revenue is expected to be between $13.5 billion and $14 billion, also missing Wall Street’s forecast of $14.22 billion.
Moreover, the company’s adjusted EBITDA outlook for 2025 came in weaker than expected.