Viatris Reports Mixed Q2 Earnings Amid Pipeline Progress and Operational Challenges

Viatris reported strong pipeline progress with five out of six Phase III readouts showing positive results, but faced operational challenges from the Indore facility and declines in the North American and Japanese markets. Despite these hurdles, the company showcased growth in Europe and Greater China, demonstrated commitment to shareholder returns, and anticipates multiple product launches in 2026.

Viatris Inc. (Nasdaq: VTRS) reported its second-quarter 2025 financial results, highlighting strong pipeline progress while facing operational challenges from the Indore facility and declines in the North American and Japanese markets. Despite these hurdles, the company showcased growth in Europe and Greater China and demonstrated a commitment to shareholder returns.

Financial Highlights

Second-quarter 2025 total revenues were $3.6 billion, down 6% on a reported basis and down 2% on a divestiture-adjusted operational basis compared to second quarter 2024. Brands net sales demonstrated strong performance in Greater China and Emerging Markets, in addition to growth in certain key brands in Developed Markets. Generics net sales reflect the expected negative Indore Impact and competition on Wixela®, partially offset by continued growth in Yupelri® and Breyna® in North America, strong performance across key European markets, and slight volume growth in JANZ.

The Company generated approximately $79 million in new product revenues in the quarter. Second-quarter 2025 U.S. GAAP net loss was $(5) million compared to U.S. GAAP net loss of $(326) million in the second quarter of 2024, and U.S. GAAP diluted EPS was $0.00 per share in Q2 2025 compared to a loss of $(0.27) per share in Q2 2024, which was primarily driven by a goodwill impairment charge and losses recorded for disposed businesses.

Pipeline Progress

Viatris reported positive top-line results from five out of six Phase III readouts, showcasing significant progress in its late-stage pipeline. The Company announced positive results from LYNX-2 and VEGA-3 trials, evaluating MR-142 and MR-141, respectively. Additionally, the Company received approval for INPEFA® 200mg and 400mg film-coated tablets in the United Arab Emirates and announced abstracts from its Phase 3 program evaluating MR-107A-02 in moderate-to-severe acute surgical pain models.

Commitment to Shareholder Returns

Viatris continues to prioritize returning capital to shareholders. Year-to-date, the Company returned more than $630 million of capital to shareholders, including $350 million in share repurchases. The Company expects to continue this trend, with total share repurchases of $500 million to $650 million in 2025.

Looking Ahead

Despite operational challenges, Viatris remains focused on driving commercial execution, investing in strategic accretive in-market business development opportunities, and positioning itself for sustainable growth in 2026 and beyond. The Company anticipates multiple product launches in 2026, further bolstering its pipeline and revenue streams.

References

[1] https://investor.viatris.com/news-releases/news-release-details/viatris-reports-second-quarter-2025-results-and-reiterates-2025