Photo: Viatris / company media archive (global headquarters, Pennsylvania; cropped)
Viatris raised its full-year financial outlook Thursday even as supply problems and a manufacturing suspension in India continued to weigh on sales.
The drugmaker said supply constraints reduced third-quarter revenue by about $100 million and are expected to have a similar effect in the fourth quarter. It voluntarily suspended manufacturing at its Nashik oral-solid-dose plant in October to focus on fixing problems after the U.S. Food and Drug Administration classified an inspection as Official Action Indicated.
Viatris expects production to resume in the first quarter of 2027. That is the company’s timetable, not a guarantee that the problems will be resolved by then.
For investors, the report shows two different trends: stronger performance in parts of the business is lifting adjusted earnings, while manufacturing problems still limit the sales the company can deliver.
Viatris shares were up 1.4% at $19.48 as of 10:33 a.m. Eastern time Thursday, according to StockAnalysis market data. Market prices change through the trading session.
In its third-quarter results, Viatris reported revenue of $3.75 billion, essentially flat from a year earlier. New products, North American demand and growth in Greater China largely offset supply constraints in Europe and emerging markets and additional competition on some products.
Greater China net sales rose 14% to $702.6 million. Developed-market net sales fell 2%, and generics net sales declined 3%.
The company posted a $325.3 million net loss, or 28 cents a share, compared with a $128.2 million loss a year earlier. Viatris said the larger loss was primarily driven by a higher income-tax provision because it could realize little tax benefit from losses in certain jurisdictions.
Adjusted earnings, which exclude items including acquisition-related amortization and restructuring costs, were 71 cents a share, up from 67 cents. That measure is not the same as the reported loss.
Viatris now expects 2026 adjusted earnings of $2.56-$2.63 a share, compared with $2.45-$2.59 previously. Its revenue forecast narrowed to $14.7 billion-$14.9 billion from $14.55 billion-$14.95 billion, raising the midpoint while trimming the top of the range.
The forecasts exclude any contribution from its planned $1.65 billion acquisition of Pacira BioSciences. That deal was announced in October and is expected to close by the end of November; it is not a completed acquisition.
Viatris also said new products generated about $115 million in quarterly revenue and that it now expects roughly $450 million from new products for the full year.
JBizNews Desk | Pittsburgh
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