Viatris Inc (NASDAQ: VTRS) reported Q1 EPS of ($0.86), $1.66 worse than the analyst estimate of $0.80. Revenue for the quarter came in at $4.4 billion versus the consensus estimate of $4.21 billion.

• Reports First Quarter 2021 Financial Results - Total Revenue of $4.4 billion, U.S. GAAP net loss of $1.0 billion, Adjusted EBITDA of $1.6 billion, U.S. GAAP net cash provided by operating activities of $849 million, Free cash flow of $799 million
• Board of Directors Declares a Quarterly Dividend of Eleven Cents ($0.11) per Share
• Generates $163 Million in New Product Revenue in the First Quarter
• Continues Solid Progress in Advancing Key Pipeline Programs
• Remains on Track to Achieve Approximately $500 Million in Synergies in 2021
• Reaffirms Financial Guidance for 2021

Executive Comments

Michael Goettler, Chief Executive Officer stated: "Our strong first-quarter performance across revenue, adjusted EBITDA and free cash flow highlights the diversified and robust business profile that differentiates Viatris as a company. We see underlying strength in our business and we are reaffirming guidance for 2021, which incorporates known and potential headwinds and tailwinds for the remainder of the year. At the conclusion of the second quarter, we will be reassessing our guidance for the full year."

Rajiv Malik, President, stated: "We are off to a strong start to the year as we successfully execute on our 2021 business plan priorities – manage our base business, deliver on our new launches, integrate and synergize. Our broad-based, diverse global portfolio drove strong quarterly performance across all four segments and all three product categories. We remain confident in our ability to optimize the one-of-a-kind platform we have built. We are encouraged that our new product launches delivered revenue of $163 million for the quarter and remain on track to meet our $690 million target in new product launch revenue for the year. We are also on track to realize approximately $500 million of cost synergies this year."

Sanjeev Narula, Chief Financial Officer, stated: "I am pleased with our strong execution in the quarter and our focused delivery of our financial commitments, including the declaration of our inaugural quarterly dividend and the enhanced disclosures with which we are reporting our results. During the first quarter, we generated $799 million of free cash flow, primarily driven by solid net cash provided by operating activities and the timing of spend. We remain focused on our capital allocation priorities and maintaining our investment grade credit rating."

GUIDANCE:

Viatris Inc sees FY2021 revenue of $17.2-17.8 billion, versus the consensus of $17.5 billion.

Viatris is reaffirming financial guidance for 2021 as set forth below. The Company is not providing forward-looking guidance for U.S. GAAP net loss or a quantitative reconciliation of its 2021 adjusted EBITDA guidance to the most directly comparable U.S. GAAP measure, U.S. GAAP net loss, because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items, including integration and acquisition-related expenses, restructuring expenses, asset impairments, litigation settlements and other contingencies, such as changes to contingent consideration and certain other gains or losses, as well as related income tax accounting, because certain of these items have not occurred, are out of the Company's control and/or cannot be reasonably predicted without unreasonable effort. These items are uncertain, depend on various factors, and could have a material impact on U.S. GAAP reported results for the guidance period. U.S. GAAP net cash provided by operating activities for 2021 is estimated to be between $2.65 billion and $2.8 billion, with a midpoint of $2.73 billion.

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