Viatris Shares Plummet on FDA Restrictions Impact

Viatris Inc. experienced a notable decline in its shares after reporting mixed fourth-quarter 2024 results that missed revenue and earnings expectations. The company reported earnings per share (EPS) of $0.54, falling short of the consensus estimate of $0.57, and total revenue of $3.52 billion, which was below the expected $3.6 billion. A significant factor contributing to this downturn was the FDA's import restrictions on 11 products from Viatris' Indore, India facility, which are projected to reduce 2025 revenue by $500 million and core earnings by $385 million. Despite strong cash flow and strategic operational improvements, including debt reduction, the company's projections for 2025 remain below Wall Street's expectations, with forecasted revenue between $13.5 billion and $14 billion, and EPS ranging from $2.12 to $2.26. The FDA has allowed exceptions for four products due to shortage concerns, but the overall impact on Viatris' 2025 guidance is significant. The company plans to focus on capital returns, with share repurchases between $500 million and $650 million in 2025.