Viatris' first quarter results for 2025 were met with a positive market response, largely due to strong execution in its global branded portfolio and pipeline advancements, despite revenue coming in below consensus. Management highlighted robust growth in Europe and China, as well as progress in its portfolio of innovative medicines. CEO Scott Smith noted, “We were particularly pleased with our strong execution and growth in Europe and China this quarter,” attributing operational revenue declines mainly to ongoing remediation at the Indore facility and competition in select generic products.
Is now the time to buy VTRS? Find out in our full research report (it’s free).
Viatris (VTRS) Q1 CY2025 Highlights:
- Revenue: $3.25 billion vs analyst estimates of $3.28 billion (11.2% year-on-year decline, 0.7% miss)
- Adjusted EPS: $0.50 vs analyst estimates of $0.49 (2.3% beat)
- Adjusted EBITDA: $923.5 million vs analyst estimates of $903 million (28.4% margin, 2.3% beat)
- The company reconfirmed its revenue guidance for the full year of $13.75 billion at the midpoint
- Management raised its full-year Adjusted EPS guidance to $2.23 at the midpoint, a 1.8% increase
- EBITDA guidance for the full year is $4.04 billion at the midpoint, in line with analyst expectations
- Operating Margin: -88.6%, down from 5.6% in the same quarter last year
- Market Capitalization: $10.7 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Viatris’s Q1 Earnings Call
- Chris Schott (JPMorgan) asked about the sales ramp and infrastructure for fast-acting meloxicam and the company’s ability to mitigate tariff impacts. CEO Scott Smith detailed ongoing U.S. manufacturing expansion and multiple mitigation strategies, while Chief Commercial Officer Corinne Le Goff emphasized the large addressable market for non-opioid pain treatments.
- Ashwani Verma (UBS) questioned whether Viatris could increase share repurchases beyond current guidance. CEO Scott Smith indicated the company intends to maintain flexibility, potentially exceeding $650 million in buybacks, depending on macro volatility and tariff developments.
- David Amsellem (Piper Sandler) probed the timeline for Indore facility remediation and the status of another Indian site. Smith confirmed that re-inspection for Indore is targeted mid-year and that all commitments for the Nashik facility have been met, with ongoing dialogue with the FDA.
- Bhavin Patel (Bank of America) sought clarity on brand versus generic trends and the sustainability of core business growth. CFO Doretta Mistras pointed to brand strength in China and Europe and indicated that generics outside of Indore are performing in line with expectations.
- Umer Raffat (Evercore) asked about the safety and use case for fast-acting meloxicam, specifically bleeding risks and hospital versus outpatient use. Chief R&D Officer Philippe Martin reported no increased bleeding risk in studies and highlighted broad potential for both hospital and outpatient use.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will closely watch (1) regulatory progress and launch timelines for fast-acting meloxicam, XULANE LO, and other key pipeline assets, (2) the resolution of manufacturing challenges at the Indore and Nashik sites, and (3) the company’s ability to offset potential tariff headwinds through supply chain adjustments. Execution on new product launches and cost-saving initiatives will be critical markers of operational success.
Viatris currently trades at $9.12, up from $8.59 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
The Best Stocks for High-Quality Investors
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
