Viatris Reports Mixed Financials Amid Ongoing Market Struggles

Viatris Inc. (VTRS), a healthcare company with a market capitalization of $10.2 billion, operates both in North America and internationally. Established in 1961 and based in Canonsburg, Pennsylvania, the company serves four primary segments: Developed Markets, Greater China, JANZ, and Emerging Markets.

Stock Performance Overview

Over the past year, shares of Viatris have significantly lagged the broader market. VTRS stock has declined by 28.3% in the last 52 weeks and is down 31.9% year-to-date (YTD). In contrast, the S&P 500 Index ($SPX) has recorded an 8.2% gain over the same period, despite a drop of 4.7% so far in 2025.

In a more focused comparison, Viatris also underperformed against the iShares U.S. Pharmaceuticals ETF (IHE), which saw a 1.4% decrease over the past year and a 2.4% dip YTD.

Quarterly Financial Results

On February 27, VTRS shares fell by 15.2% following the release of its Q4 2024 earnings report. The company reported total revenue of $3.5 billion, which fell short of analyst expectations. Contributing to this drop was an FDA import alert affecting its Indore facility. This alert is expected to reduce 2025 revenue by $500 million and EBITDA by $385 million. Additionally, the guidance for 2025 projects revenue between $13.5 billion and $14 billion. The company’s earnings per share (EPS) came in at $0.54, missing the consensus estimate by 5.3%.

Future Earnings Projections

Analysts predict that VTRS’s EPS will decrease by 15.5% year-over-year, reaching $2.24 for the fiscal year ending in December 2025. So far, the company has met or exceeded analysts’ consensus estimates in two of the last four quarters while failing to meet expectations on two occasions.

Analyst Insights and Ratings

Among the seven analysts covering Viatris, the consensus rating is “Hold.” This comprises one “Strong Buy,” four “Holds,” one “Moderate Sell,” and one “Strong Sell.” This distribution has remained stable in recent months.

On March 7, Glen Santangelo, an analyst with Jefferies Financial Group Inc. (JEF), revised the price target for Viatris stock down to $13 from $15 while maintaining a “Buy” rating. The mean price target of $11.32 indicates a potential upside of 33.5% from current market levels, while the highest target of $14 suggests a robust upside potential of 65.1%.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

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