Thursday, Viatris Inc ( VTRS ) reported first-quarter EPS of $0.67, which is in line with the consensus.

The company reported sales of $3.66 billion, missing the consensus of $3.69 billion. Total net sales declined 2% on a reported basis and increased 2% on a divestiture-adjusted operational basis.

Brand sales fell 5% to $2.31 billion. The company says the performance reflects strong growth in Emerging Markets and Europe and expansion of business activities in JANZ, offset by unfavorable channel dynamics in North America and expected base business erosion resulting from government price regulations in Japan and Australia.

Generic sales reached 1.34 billion, up 4%. Viatris ( VTRS ) says growth is driven by strong new product launch performance in Developed Markets, along with the improved performance of Wixela and solid performance across broader portfolios in Developed and Emerging Markets.

“As a result of our underlying fundamentals and the momentum of our business, we believe we are well positioned to meet our 2024 financial guidance, as well as our full-year range of $450 to $550 million of new product launches,” said Viatris CFO Doretta Mistras.

Sales of the cholesterol medication Lipitor declined from $417.9 million to $388.9 million, and sales of Norvasc for high blood pressure reached $176.3 million, down from $202.7 million.

Guidance: Viatris ( VTRS ) expects 2024 adjusted EPS of $2.66-$2.81, compared to prior guidance of $2.70-$2.85 and the consensus of $2.74.

The company forecasts revenues of $14.98 billion—$15.48 billion, versus a consensus of $15.19 billion and prior guidance of $15.25 billion—$15.75 billion.

The company expects total revenues to be slightly higher in the second half vs. the first half of 2024, driven by normal product seasonality.

Adjusted EBITDA is expected to be $4.71 billion-$5.01 billion.

Viatris ( VTRS ) expects adjusted EBITDA and EPS to be slightly higher in the second half vs. the first half 2024.

Adjusted gross margin is expected to moderate in the second half due to segment and product mix.

Price Action: VTRS shares were down 4.61% at $11.27 at last check Thursday.