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Viatris (VTRS)
NASDAQ:VTRS
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Viatris (VTRS) AI Stock Analysis

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VTRS

Viatris

(NASDAQ:VTRS)

Rating:59Neutral
Price Target:
$11.00
▲(4.76% Upside)
Viatris' overall stock score is primarily influenced by its financial challenges, including declining revenues and high leverage. Despite these issues, the stock's technical indicators show bullish momentum, and the earnings call provides a positive outlook with strategic initiatives and pipeline advancements. However, the negative valuation metrics suggest caution.
Positive Factors
China Segment Growth
The China segment showed unexpected strength, delivering 9% operational growth.
Financial Performance
Despite challenges, Viatris remains confident in achieving full-year guidance and expects results closer to the top end of the range.
Negative Factors
EBITDA Guidance
Viatris’ 4Q update was highlighted by disappointing FY25 EBITDA guidance (-8% below consensus).
Market Competition
JANZ segment underperformed due to competition and government price headwinds.
Revenue Impact
The biggest surprise in the 4Q update was the generic Revlimid impact, which is on the import ban list ($200m lost revenue at an >95% gross margin).

Viatris (VTRS) vs. SPDR S&P 500 ETF (SPY)

Viatris Business Overview & Revenue Model

Company DescriptionViatris Inc. operates as a healthcare company worldwide. The company operates in four segments: Developed Markets, Greater China, JANZ, and Emerging Markets. It offers prescription brand drugs, generic drugs, complex generic drugs, biosimilars, and active pharmaceutical ingredients (APIs). The company offers drugs in various therapeutic areas, including noncommunicable and infectious diseases; biosimilars in the areas of oncology, immunology, endocrinology, ophthalmology, and dermatology; and APIs for antibacterial, central nervous system agents, antihistamines/antiasthmatics, cardiovascular, antivirals, antidiabetics, antifungals, and proton pump inhibitor areas, as well as support services, such as diagnostic clinics, educational seminars, and digital tools to help patients better manage their health. It provides its medicines in the form of oral solid doses, injectables, complex dosage forms, and APIs to retail and pharmacy establishments, wholesalers and distributors, payers, insurers and governments, and institutions. The company distributes its products through pharmaceutical wholesalers/distributors, pharmaceutical retailers, institutional pharmacies, mail-order and e-commerce pharmacies, and specialty pharmacies. It sells its products under the Lyrica, Lipitor, Creon, Influvac, Wixela Inhub, EpiPen auto-injector, Fraxiparine, and Yupelri; Norvasc and Viagra; AMITIZA, Lipacreon, and Effexor; and Celebrex and ARV names, as well as offers biosimilars franchises, including Fulphila, Ogivri, Hulio, and SEMGLEE. The company has collaboration and licensing agreements with Revance Therapeutics, Inc.; Momenta Pharmaceuticals, Inc.; Theravance Biopharma, Inc.; Biocon Ltd.; and Fujifilm Kyowa Kirin Biologics Co. Ltd. Viatris Inc. was founded in 1961 and is headquartered in Canonsburg, Pennsylvania.
How the Company Makes MoneyViatris generates revenue primarily through the sale of prescription medicines, including generics, branded products, and biosimilars. Its revenue model is predominantly based on direct sales to healthcare providers, pharmacies, and hospitals, as well as partnerships with other pharmaceutical companies for co-marketing and distribution agreements. Key revenue streams include the sale of high-demand generic drugs, which are often less expensive alternatives to branded medications, and the ongoing development and commercialization of biosimilars that target biologic therapies. Additionally, Viatris benefits from strategic collaborations and partnerships that enhance its market reach and product offerings, contributing to its earnings and overall financial performance.

Viatris Key Performance Indicators (KPIs)

Any
Any
Revenue by Product
Revenue by Product
Shows revenue generated by individual products, indicating market demand and the company's reliance on specific offerings for financial performance.
Chart InsightsViatris' revenue from Brands and Generics is experiencing a downward trend, with Brands showing a notable decline since 2022. The earnings call highlights challenges like the Indore facility impact and competition in North America, contributing to revenue pressures. However, the company is optimistic about future growth, driven by new product launches and strong performance in Europe and China. Despite these hurdles, Viatris remains committed to returning capital to shareholders and advancing its pipeline, which could offset current declines in the long term.
Data provided by:Main Street Data

Viatris Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 10, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mix of positive developments, such as revenue growth in key regions and pipeline advancements, alongside ongoing challenges, particularly in North America and Japan, and issues with the Indore facility. Despite these challenges, the overall outlook remains optimistic due to the strength of pipeline advancements and strategic initiatives.
Q2-2025 Updates
Positive Updates
Positive Revenue Growth
Viatris achieved 3% divestiture-adjusted operational revenue growth in Q2 2025, excluding the impact from Indore, driven by strength in Europe and Greater China.
Pipeline Advancements
Five of the six anticipated Phase III readouts showed positive results, including two ophthalmology programs targeting dim-like disturbances and presbyopia.
Shareholder Returns
Viatris returned more than $630 million to shareholders, including $350 million in share repurchases.
FDA Approvals and Progress
FDA approval for darunavir tablets manufactured at the Nashik facility was received, indicating progress in operational priorities.
Strong China Market Performance
Net sales in Greater China exceeded expectations and grew by 9%, driven by proactive patient choice and timing of customer purchasing patterns.
Negative Updates
Revenue Decline in North America
North American business decreased by 11% compared to the prior year, mainly due to the Indore Impact and competition.
Challenges in Japan
Net sales in Japan decreased by 11% due to government price regulations and changes in reimbursement policy affecting off-patent brands.
Ongoing Indore Facility Issues
Remediation efforts at the Indore facility are ongoing, with a request for a meeting with the FDA to discuss potential timing for reinspection.
MR-139 Ophthalmology Program Setback
The Phase III study of MR-139 for blepharitis did not meet its primary endpoint, and additional work is ongoing to determine next steps.
Company Guidance
During the Viatris Second Quarter 2025 Earnings Conference Call, the company provided guidance emphasizing their strategic priorities and financial outlook for the year. Viatris achieved a 3% divestiture-adjusted operational revenue growth, excluding the impact from Indore, and highlighted advancements in their late-stage pipeline with positive results from 5 of 6 anticipated Phase III readouts. The Eye Care division is poised to become a significant contributor to the company, with promising data from ophthalmology programs. In terms of capital allocation, Viatris returned over $630 million to shareholders, including $350 million in share repurchases. The company reiterated its 2025 financial guidance, expecting to be in the top half of the range for revenue and adjusted EPS. Viatris is also focused on strategic business development opportunities and operational reviews to ensure sustainable growth beyond 2025.

Viatris Financial Statement Overview

Summary
Viatris faces significant financial challenges, with declining revenues and substantial net losses. High leverage and negative equity returns pose risks, though cash flow generation remains stable. Efforts to improve profitability and reduce leverage could enhance financial health.
Income Statement
45
Neutral
The company's income statement reflects significant challenges, with a declining revenue trend from $17.9 billion in 2021 to $14.3 billion in TTM. Gross profit margin remained stable at around 37%, but the net loss in TTM widened significantly to $3.79 billion. The EBIT and EBITDA margins were negative in the TTM, showing operational difficulties. The revenue growth rate from 2024 to TTM was negative, indicating a downturn in sales performance.
Balance Sheet
55
Neutral
The balance sheet reveals a decrease in total assets from $54.8 billion in 2021 to $38.5 billion in TTM. The debt-to-equity ratio remains high, indicating significant leverage, though it improved slightly in TTM. ROE turned negative in TTM due to substantial net losses. The equity ratio has weakened, reflecting a reduction in shareholders' equity. Despite these challenges, the company has maintained a stable cash position.
Cash Flow
60
Neutral
The cash flow statement indicates resilience, with a positive operating cash flow of $2.22 billion in TTM, though it has decreased from previous years. Free cash flow also remained positive at $1.86 billion, demonstrating effective capital management. However, the operating cash flow to net income ratio highlights the struggle in translating revenue into profit, with a significant net loss in TTM.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue14.33B14.74B15.43B16.26B17.89B11.95B
Gross Profit5.28B5.62B6.44B6.50B5.58B3.80B
EBITDA-530.80M2.82B3.52B6.43B4.48B1.99B
Net Income-3.79B-634.20M54.70M2.08B-1.27B-669.90M
Balance Sheet
Total Assets38.47B41.50B47.69B50.02B54.84B61.55B
Cash, Cash Equivalents and Short-Term Investments1.00B1.09B1.18B1.47B935.00M1.05B
Total Debt14.46B14.31B18.37B19.27B23.07B25.84B
Total Liabilities22.82B22.87B27.22B28.95B34.35B38.60B
Stockholders Equity15.65B18.64B20.47B21.07B20.49B22.95B
Cash Flow
Free Cash Flow1.86B1.98B2.33B2.51B2.51B550.60M
Operating Cash Flow2.22B2.30B2.80B2.95B3.02B1.23B
Investing Cash Flow1.89B1.80B-764.10M1.52B-117.80M-301.10M
Financing Cash Flow-4.37B-4.33B-2.30B-3.88B-3.01B-605.70M

Viatris Technical Analysis

Technical Analysis Sentiment
Positive
Last Price10.50
Price Trends
50DMA
9.57
Positive
100DMA
8.97
Positive
200DMA
9.77
Positive
Market Momentum
MACD
0.29
Positive
RSI
62.67
Neutral
STOCH
45.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VTRS, the sentiment is Positive. The current price of 10.5 is above the 20-day moving average (MA) of 10.39, above the 50-day MA of 9.57, and above the 200-day MA of 9.77, indicating a bullish trend. The MACD of 0.29 indicates Positive momentum. The RSI at 62.67 is Neutral, neither overbought nor oversold. The STOCH value of 45.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VTRS.

Viatris Risk Analysis

Viatris disclosed 51 risk factors in its most recent earnings report. Viatris reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Viatris Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$11.87B17.7417.48%0.64%13.13%-0.47%
66
Neutral
$2.08B-2.82%38.68%-160.14%
66
Neutral
$3.00B1,503.13106.97%9.81%
59
Neutral
$12.04B-19.77%4.57%-7.47%-438.39%
58
Neutral
$21.51B-2.31%2.43%64.37%
51
Neutral
$7.92B-0.43-41.67%2.21%22.29%-1.85%
51
Neutral
$3.20B-1.32%5.06%-2.32%35.46%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VTRS
Viatris
10.50
-0.12
-1.13%
RDY
Dr Reddy's Laboratories
14.34
-1.50
-9.47%
PRGO
Perrigo Company
22.65
-2.85
-11.18%
TEVA
Teva Pharmaceutical
18.95
1.15
6.46%
ANIP
ANI Pharmaceuticals
95.35
36.87
63.05%
AMRX
Amneal Pharmaceuticals
9.62
1.16
13.71%

Viatris Corporate Events

Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Viatris Surpasses Q2 2025 Revenue Expectations
Positive
Aug 7, 2025

On August 7, 2025, Viatris Inc. reported strong financial results for the second quarter of 2025, surpassing revenue expectations and reinforcing its 2025 financial guidance. The company highlighted the resilience of its diversified global business and the momentum of its late-stage pipeline, while also returning over $630 million to shareholders, including $350 million in share buybacks. Viatris aims to maintain its strategic priorities, focusing on commercial execution and sustainable growth beyond 2025.

Executive/Board Changes
Viatris Expands Board with New Appointment
Positive
Aug 5, 2025

On August 4, 2025, Viatris Inc. announced the appointment of David Simmons as an independent member of its Board of Directors, expanding the board from 14 to 15 members. Simmons brings extensive pharmaceutical industry experience, having previously served as CEO of Caliber Holdings Corporation and Chairman and CEO of PPD, Inc. His appointment is expected to enhance the board’s expertise and support Viatris in advancing its strategic goals and increasing shareholder returns.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 20, 2025