Viatris falls 5.6% after study did not meet primary endpoint

Viatris falls 5.6% after study did not meet primary endpoint

Viatris Inc. (NASDAQ:VTRS) experienced a 5.6% drop in its stock price on July 2, 2025, following the announcement that its Phase 2 clinical trial for a new drug did not meet its primary endpoint. The company's stock has been underperforming the broader healthcare sector, which has seen an 11% decline compared to the S&P 500 [1]. Despite this, Viatris has shown resilience, generating $67 million in new product revenues in the first quarter of 2025, with expectations to deliver revenues in the range of $450 million to $550 million for the full year.

Goldman Sachs reiterated a Hold rating on Viatris Inc. with a price target of $10.00, reflecting the market's cautious stance on the company's prospects. However, the analyst noted that certain AI stocks offer greater upside potential and carry less downside risk [1]. This suggests that while Viatris Inc. may not be the most promising investment opportunity, it presents a contrarian bet with virtually no downside risk.

In the broader context, the healthcare sector has faced challenges due to various factors, including Trump's proposed tariffs on pharmaceuticals and the ongoing COVID-19 pandemic. Despite these challenges, the S&P 500 Health Care Index Sector (NYSEARCA:XLV) gained nearly 0.6% last week, indicating a relatively robust performance compared to other sectors [2].

References:
[1] https://www.ainvest.com/news/viatris-contrarian-bet-minimal-downside-risk-2507/
[2] https://seekingalpha.com/news/4466977-notable-healthcare-headlines-for-the-week-trumps-tariff-threat-merck-unitedhealth-and-moderna-in-focus