Viatris (VTRS) Plunges 6.80% to Record Low on FDA Inspection Failure

Viatris (VTRS) shares plummeted 6.80% today, hitting a record low with an intraday decline of 12.07%.

The primary driver behind the recent volatility in Viatris's stock price is the significant financial impact stemming from a failed FDA inspection at the company's Indore, India, facility. On February 27, 2025, Viatris disclosed in its Q4 2024 results that the failed inspection would negatively affect its 2025 revenue by approximately $500 million and earnings from operations by approximately $385 million. This revelation led to a 15% drop in the stock price, from $11.24 per share on February 26, 2025, to $9.53 per share on February 27, 2025.

In response to the financial setback, a class action lawsuit was filed against Viatris and certain executives for potential violations of federal securities laws. This legal action has further influenced investor sentiment and stock performance, adding to the overall uncertainty surrounding the company's future prospects. The failed inspection and subsequent financial impact have raised concerns about Viatris's operational efficiency and regulatory compliance, which are critical factors for investors to consider when evaluating the company's stock.