Viatris Forecast Misses Mark Post-Nashik Blaze

Viatris has projected its 2026 adjusted earnings per share to fall between $2.33 and $2.47, falling short of the $2.49 average estimate by analysts. This outlook is impacted by a fire that occurred earlier this month at its manufacturing facility in Nashik, India, which temporarily halted the production of tablets and capsules. The company anticipates operations to resume in April.

This incident adds to existing pressures on Viatris' Indian manufacturing, following a December 2024 import restriction by the U.S. FDA on certain products from another facility due to compliance violations. To streamline operations and achieve projected savings of $600 million to $700 million, Viatris is initiating a multi-year restructuring plan that includes workforce reductions of up to 10% globally.

Despite these challenges, Viatris expects its 2026 revenue to be between $14.45 billion and $14.95 billion, potentially exceeding the analyst estimate of $14.35 billion. In the fourth quarter ended December 31, the company reported adjusted earnings of 57 cents per share, surpassing the expected 53 cents, with total revenue rising 5% year-over-year to $3.70 billion.