Viatris forecasts strong 2024 sales on higher demand for branded drugs

Feb 28 (Reuters) - Drugmaker Viatris forecast annual revenue above Wall Street estimates on Wednesday, banking on strong demand for its branded drugs such as Yupelri for lung disease and Breyna for asthma.

The company said it expects 2024 revenue to be in the range of $15.25 billion to $15.75 billion, the midpoint of which is above analysts' average expectation of $15.30 billion, according to LSEG data.

Viatris was formed with the merger of Mylan and Pfizer's Upjohn business and has generic and key branded drugs in its portfolio, including erectile dysfunction drug Viagra, anti-anxiety medication Xanax, epilepsy treatment Lyrica and arthritis treatment Celebrex.

CEO Scott Smith said Viatris would focus on growing its base business, which consists of its generic and branded drugs portfolio, this year, including through research partnerships such as its deal with Switzerland-based biotech Idorsia that was announced earlier on Wednesday.

Under the deal, Viatris would gain access to Idorsia's experimental treatments for an autoimmune disease and a heart disease, both of which are in late-stage development.

Last year, Viatris had agreed to divest some of its units — over-the-counter (OTC) drugs, active pharmaceutical ingredients and women's health businesses.

The divestitures are expected to be completed in the first half of this year and Viatris would retain the rights to Viagra, nasal spray Dymista and some other OTC products in certain markets under the agreements.

"We await more color as the company deploys capital over the coming quarters," said J.P.Morgan analyst Chris Schott.

Viatris posted a net loss of 64 cents per share for the fourth quarter, compared with a profit of 83 cents a year ago.

The Canonsburg, Pennsylvania-based company reported revenue of $3.83 billion for the quarter, compared with analysts' estimate of $3.87 billion.

(Reporting by Sneha S K; Editing by Shilpi Majumdar)