VTRS

Recent earnings across the generic drug industry highlighted steady demand alongside pricing and supply challenges, putting fresh attention on how Viatris (VTRS) is using new launches, product mix, and cost discipline to support its business. At a share price of US$16.34, Viatris has seen some short term pressure, with the 1 day share price return declining 3.26% and the 1 month share price return down 8.31%. However, the year to date share price return of 31.14% and 1 year total shareholder return of 60.37% point to momentum that has been building as investors reassess the company in light of recent generic earnings, FDA approvals and its focus on complex generics and cost control. Spot emerging momentum beyond Viatris by scanning a curated group of generic and healthcare companies with resilient balance sheets through the list of solid balance sheet and fundamentals (51 results). Viatris trades below both some analyst targets and certain intrinsic value estimates, even after the recent pullback. Is that a clear discount, or a sign that the market still questions the quality of this rebound? Viatris is trading at $16.34 against a widely followed fair value of $18.50, which frames the current debate around its generic earnings and product approvals. Read the complete narrative. Want to see what underpins that $18.50 figure? The narrative leans heavily on improving margins, modest revenue growth, and a future profit multiple that assumes meaningful earnings progress. Result: Fair Value of $18.50 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Viatris still faces pressure from generic price erosion and regulatory scrutiny, as well as the risk that new product approvals or merger integration progress may disappoint expectations. Find out about the key risks to this Viatris narrative. With mixed signals around Viatris, it helps to look at the underlying data and weigh both the concerns and the potential. To get a balanced picture of where risks and rewards currently sit for this stock, review the 3 key rewards and 1 important warning sign. If you stop at Viatris, you may miss other stocks that fit your risk, income, or value goals. Use the Simply Wall Street Screener to scan wider opportunities. Target resilient companies that aim to protect capital while still offering upside through the 74 resilient stocks with low risk scores. Hunt for potentially mispriced opportunities that combine quality fundamentals with attractive valuations using the 44 high quality undervalued stocks. Build a watchlist of income focused stocks that aim to deliver higher yields without ignoring balance sheet strength via the 12 dividend fortresses. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include VTRS. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Viatris’ second-quarter results were met with a negative market reaction, despite the company surpassing Wall Street’s revenue and non-GAAP profit expectations. Management attributed the quarter’s performance to strong commercial execution in Greater China, where investments in established brands and e-commerce channels drove double-digit growth. CEO Scott Smith emphasized that demand for cardiovascular products and the company’s strategic focus on higher-margin generics in North America contributed meaningfully, while supply chain disruptions and lower-margin product headwinds in emerging markets weighed on results. Is now the time to buy VTRS? Find out in our full research report (it’s free). Revenue: $3.76 billion vs analyst estimates of $3.68 billion (4.9% year-on-year growth, 2.2% beat) Adjusted EPS: $0.69 vs analyst estimates of $0.60 (15% beat) Adjusted EBITDA: $1.19 billion vs analyst estimates of $1.08 billion (31.6% margin, 10.3% beat) The company slightly lifted its revenue guidance for the full year to $14.75 billion at the midpoint from $14.7 billion Management raised its full-year Adjusted EPS guidance to $2.52 at the midpoint, a 5% increase EBITDA guidance for the full year is $4.4 billion at the midpoint, in line with analyst expectations Operating Margin: 0.2%, down from 6.5% in the same quarter last year Market Capitalization: $18.49 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is 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. Ashwani Verma (UBS) asked about the durability of China’s growth and e-commerce contribution. CEO Scott Smith outlined channel diversity and demand resilience, while CFO Paul Campbell detailed e-commerce comprises 10-15% of the China business. Umer Raffat (Evercore) inquired about selatogrel’s clinical trial design and patient management. Chief R&D Officer Philippe Martin explained the enrollment strategy and clinical rationale for trial endpoints and patient transitions. Matthew Dellatorre (Goldman Sachs) queried the commercial potential of fast-acting meloxicam and selatogrel. CEO Scott Smith and Chief Commercial Officer Corinne Le Goff projected strong uptake if approved, with meloxicam potentially reaching $500 million in peak sales. Glen Santangelo (Barclays) asked about the impact and duration of manufacturing disruptions and policy changes in China. Management indicated supply issues are expected to be short term, fully reflected in guidance, and that China’s policy effects will become clearer later in the year. Yuchen Ding (Jefferies) probed cenerimod’s clinical data and the rationale for trial design adjustments. Chief R&D Officer Philippe Martin elaborated on targeting high-interferon patients and endpoint improvements to bolster efficacy signals. In coming quarters, the StockStory team will be closely monitoring (1) the commercial launch and uptake of fast-acting meloxicam and Gwyn Lo, (2) the resolution of manufacturing disruptions at the Nashik facility and associated supply chain impacts, and (3) the evolving policy environment in China and its effect on hospital channel sales. Progress on pipeline milestones and clarity on business development initiatives will also be key signposts for execution. Viatris currently trades at $16.32, down from $17.65 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Thursday, August 6, 2026 at 8:30 a.m. ET CEO - Scott Smith Interim CFO - Paul Campbell Chief R&D Officer - Philippe Martin Chief Commercial Officer - Corinne Le Goff Head of Capital Markets - Bill Szablewski Operator: Good morning, everyone, and welcome to the Viatris Q2 2026 Earnings Call. [Operator Instructions] Please also note today's event is being recorded. At this time, I'd like to turn the floor over to Bill Szablewski, Head of Capital Markets. Sir, please go ahead. William Szablewski: Good morning, everyone. Welcome to our Q2 2026 earnings call. With us today is CEO, Scott Smith; Interim CFO, Paul Campbell; Chief R&D Officer, Philippe Martin; and Chief Commercial Officer, Corinne Le Goff. During today's call, we will be making forward-looking statements on a number of matters, including our financial guidance for 2026 and various strategic initiatives. These statements are subject to risks and uncertainties. We will also be referring to certain actual and projected non-GAAP financial measures. Please refer to today's slide presentation and our SEC filings for more information, including reconciliations of those non-GAAP measures to most directly comparable GAAP measures. When discussing 2026 actual or reported results, we will be making certain comparisons to 2025 actual or reported results on an operational basis, which excludes the impact of foreign currency rates. When comparing our 2026 actual or reported results to our expectations, we are making comparisons to our 2026 financial guidance. With that, I'll hand the call over to our CEO, Scott Smith. Scott Smith: Good morning, everyone. We're off to an exceptional start in 2026. We delivered another strong quarter that reinforces our confidence in the strategy we outlined earlier this year. In the second quarter, we delivered $3.8 billion in total revenues, representing 3.5% operational revenue growth year-over-year, adjusted EBITDA of $1.2 billion and adjusted EPS of $0.69 per share. These results exceeded our expectations and reflect the strong momentum across our businesses and continued improvement in operating leverage. Just as importantly, these results give us confidence to raise our outlook for the remainder of the year. Let me briefly highlight some of the progress we've made across our businesses. Commercial execution was excellent across our global portfolio during the quarter, led once again by Greater China, where the commercial investments in our portfolio of established brands are generating meaningful growth. In North America, execution across our complex generics and transdermal products also drove solid growth. Our pipeline is progressing as expected. As we announced last week, we received U.S. regulatory approval for Gwyn Lo and expect to launch the product later this year. At the same time, launch preparations continue for fast-acting meloxicam as it progresses through FDA review. We're confident in the differentiated clinical profiles of both medicines and also in our commercial readiness. In Japan, we recently reported Phase III results for Nefecon, while pitolisant continues to progress through the final stages of regulatory review, underscoring the momentum we're building across our pipeline in the strategically important market. Beyond these opportunities, our Phase III programs for selatogrel and cenerimod remain on track with important readouts expected in 2027, which, if successful, we believe will represent meaningful long-term blockbuster growth opportunities. Taken together, these milestones provide a robust set of near-term catalysts with the potential to accelerate our long-term growth profile. As we prepare for our next phase of growth, we're prioritizing our capital, talent and resources toward the opportunities we believe offer the greatest long-term growth potential. As part of that effort, we agreed to sell the global rights to Tyrvaya, reflecting a strategic shift away from eye care as a therapeutic area of focus. Turning to our enterprise-wide strategic review. We're delivering the savings we committed to earlier this year while reinvesting a portion of those savings to support future growth. We're beginning to see those actions translate into the real operating leverage we expected. That's creating a stronger Viatris with greater flexibility to invest in growth and create long-term value. Turning to capital allocation. We continue to take a balanced and opportunistic approach, supported by strong cash generation and the additional financial flexibility created through the monetization of our Biocon equity stake. We're executing across all our capital allocation priorities. We continue to return significant capital to shareholders through our dividend and more recently through our continued share repurchases, together totaling approximately $550 million to date. At the same time, we're maintaining flexibility to pursue disciplined business development opportunities that we believe can play a significant role in accelerating our long-term growth. As we think about our performance so far this year and the outlook for the rest of the year, we're raising the midpoint of our 2026 financial guidance ranges across all key financial metrics. Our updated outlook incorporates all the business dynamics we expect in the second half, including certain intermittent manufacturing disruptions at our Nashik facility following the Q1 fire and the FDA's May 2026 inspection. We are communicating with the FDA, working closely with external experts and have initiated a comprehensive remediation plan to address the inspection observations. In summary, I'm very pleased with our execution through the first half of the year and the momentum we're carrying into the second half. We're entering a catalyst-rich period with multiple upcoming launches, important Phase III milestones and the financial flexibility to pursue disciplined, accretive business development. Together, we believe these opportunities position Viatris to accelerate long-term growth and create meaningful value for shareholders. With that, I'll turn it over to Philippe. Philippe Martin: Thank you, Scott. We have delivered a strong first half of the year in R&D as we continue to execute with discipline against our strategy. Starting with our value-added medicines, we were pleased to receive FDA approval for Gwyn Lo last week ahead of its PDUFA date. Gwyn Lo is a new discreet once-weekly transdermal hormonal contraceptive patch that offers women a noninvasive reversible option with a low dose of estrogen. Importantly, the approved label reflects the strength of our clinical program, including demonstrated efficacy in women with a BMI of 25 to less than 30 kilogram per square meter with no BMI-based limitation of use for this population. We are also working on addressing the unmet need for women with a BMI at or above 30 through our next contraceptive transdermal system, a progestin-only patch currently in development. This program has completed Phase III enrollment, and we expect top line results in the first half of 2027. As patients continue to seek convenient and noninvasive treatment options, we believe our deep expertise in developing and manufacturing transdermal drug delivery systems position us well to advance additional opportunities across this platform. Regarding fast-acting meloxicam, we continue to have positive engagement with FDA as the NDA review progresses and as we approach the mid-cycle point of the review. We continue to believe that the investigational profile of fast-acting meloxicam, including its rapid absorption, clinically meaningful pain relief and reductions in opioid use positions the product as a meaningful addition to the evolving acute pain treatment landscape, pending final labeling negotiations ahead of an anticipated FDA approval. Regarding our pipeline in Japan, we recently announced positive top line Phase III results evaluating the efficacy and safety of Nefecon in Japanese adults with primary IgA nephropathy, a designated intractable disease in Japan. If approved, Nefecon has the potential to provide a meaningful disease-modifying treatment option for these patients. We are targeting submission of a new drug application in Japan by the end of 2026. In addition, our applications for pitolisant for the treatment of excessive daytime sleepiness associated with obstructive sleep apnea and narcolepsy remain on track and have reached the final stages of review. We anticipate regulatory decisions for both indications in the second half of this year. Turning to our innovative global Phase III programs. For cenerimod, we continue to expect results from both Phase III SLE studies, OPUS-1 and 2 in the first half of 2027. So far, most patients have elected to continue treatment in the open-label extension study with a study treatment duration extending up to 5 years. Selatogrel, we remain on track to reach full enrollment in our SOS-AMI Phase III study around year-end and are maintaining an enrollment rate of approximately 1,200 patients per month. We continue to expect a data readout in the first half of 2027. And finally, turning to our generic pipeline. We continue to execute well across our pipeline and remain on track to achieve more than 100 new product approvals this year with 70 approvals already secured in the first half. The key area of focus remains our complex generics, including complex injectables, where we have established a meaningful expertise. Over the past 2 years, we have secured approval in the U.S. for 11 complex injectables, including octreotide and recently, we're the first approved for all 3 strengths for both iron sucrose and ferric carboxymaltose injection. Overall, the substantial progress we've made in the first half of the year reflects both the disciplined execution of our teams and the breadth of capabilities we've built. With multiple regulatory, clinical and scientific milestones ahead, we remain confident in our ability to execute our R&D strategy, advance meaningful medicines for patients and continue strengthening our scientific leadership. With that, I'll turn it over to Paul. Paul Campbell: Thank you, Philippe, and good morning, everyone. I'm pleased to report that we delivered another strong quarter, reflecting the durability of our global portfolio and disciplined execution of our strategy. This morning, I'll highlight the drivers of the strong second quarter performance, the progress we've made delivering on our capital allocation priorities and details supporting our financial guidance ranges for the year. Beginning with our second quarter results. Total revenues were $3.8 billion, representing operational growth of approximately 3.5% year-over-year. This performance was driven primarily by continued growth in our cardiovascular portfolio in Greater China and strong performance across our generics product category in developed markets, led primarily by our complex generics and transdermal products in North America. The commercial highlights for the quarter across each of our segments is as follows: in developed markets, net sales increased by 2% versus the prior year, exceeding our expectations. For North America, net sales grew 1%, driven by increased demand across our diverse generics portfolio, including estradiol patches as well as continued strength from Breyna. New product revenues also benefited from continued momentum across our more durable, higher-margin complex injectable portfolio, including octreotide and iron sucrose. Within our branded product category, solid growth from Yupelri was more than offset by anticipated competitive pressure within our established brands portfolio. In Europe, net sales increased 2% versus prior year, primarily driven by strength in the generics portfolio across key countries, including France and Italy as well as contributions from new product revenues. The brands portfolio declined slightly year-over-year as continued solid growth from Creon and Brufen was offset by anticipated competitive pressure on Dymista. Turning to emerging markets. Net sales declined 2% versus the prior year, coming in below our expectations. The decline was primarily driven by continued supply constraints affecting our lower-margin ARV generics portfolio. Net sales in our brand product category increased 6% year-over-year, supported by stable growth across established brands. Within JANZ, net sales were essentially flat versus the prior year, exceeding our expectations. This result reflects uptake from the launch of Effexor for generalized anxiety disorder and broad volume growth in generics, offset by the anticipated impact from government-driven price regulations in Japan and increased competition for certain brands in Australia. Lastly, we delivered another exceptional quarter in Greater China with net sales increasing 16% year-over-year, once again ahead of our expectations. We continue to benefit from favorable market fundamentals in China, including an aging population and demand for our cardiovascular products. In addition, our strategic investments in selling and marketing capabilities, including our e-commerce and retail platforms have positioned us to capitalize on the strength of our well-recognized brands. As a result, we saw growth across all channels during the quarter, including e-commerce, where sales increased 36% versus the prior year. Now turning to the remainder of the P&L. Adjusted gross margin was 57.5% for the quarter, representing nearly 1% improvement versus the prior year. The increase was driven primarily by the strong performance in Greater China and the favorable product mix in our North American generics portfolio, as mentioned earlier. Operating expenses declined as a percentage of total revenues compared with the prior year, partially reflecting continued SG&A discipline and realization of the expected savings from our enterprise-wide strategic review. R&D investment progressed in line with our expectations, driven primarily by the ongoing Phase III programs for selatogrel and cenerimod. For free cash flow, we generated $329 million of cash during the quarter, inclusive of transaction and restructuring-related costs and taxes. Excluding these items, free cash flow would have been $449 million. The year-over-year improvement was primarily driven by stronger operating performance and favorable working capital dynamics. Turning to capital allocation. Through early August, we have deployed approximately $1.4 billion of capital, consistent with our balanced capital allocation strategy, including the return of approximately $550 million of capital to shareholders through dividends and approximately $270 million of share repurchases. Additionally, we continue to strengthen our balance sheet by repaying approximately $900 million of debt that matured in June while refinancing the remaining balance. As a result, we ended the quarter with a gross leverage ratio of approximately 2.9x, below the midpoint of our long-term target range of 2.8 to 3.2x. For the remainder of the year, we expect to have approximately $1.6 billion in deployable capital. This includes approximately $380 million of pretax proceeds from the sale of our equity stake in Biocon. Now a few comments on our updated financial guidance and phasing for the remainder of the year. Based primarily on our strong first half performance and our continued confidence in the momentum of our businesses, we are raising our 2026 financial guidance for all key metrics. The midpoint of each of our revised guidance ranges represents expected operational growth of approximately 2% for total revenues, 5% for adjusted EBITDA and 7% for adjusted EPS versus the prior year. To provide further visibility into the segments, our updated full year guidance for total revenues reflects the following expectations compared to the prior year: low double-digit growth in Greater China, developed markets roughly flat with North America declining slightly, low single-digit growth in emerging markets and low single-digit decline in JANZ. In addition, this takes into account the following expected second half dynamics. Moderation in Greater China growth due to the implementation of a procurement policy change expected to negatively impact volumes in our hospital channel; additional competitive pressure in developed markets, including Breyna and Wixela in North America; and additional expected supply disruptions, primarily resulting from our Nashik facility and primarily impacting our low-margin oral solid dose generics in emerging markets and certain generic products in Europe. We currently anticipate the impact of supply disruptions to be between $100 million and $150 million to total revenues in the second half of 2026. Lastly, as Scott mentioned, we reached an agreement to divest our global product rights for Tyrvaya. The transaction is expected to close in the second half of 2026, subject to customary closing conditions. The anticipated impact of this transaction has been fully considered in our updated 2026 financial guidance. Turning to phasing for the remainder of the year. Total revenues are expected to be weighted to the second half at approximately 51% of our full year outlook. Adjusted EBITDA and adjusted EPS are now expected to be slightly lower in the second half and free cash flow is still expected to be more heavily weighted to the second half. In closing, we are pleased with our performance through the first half of the year, reflecting strong execution against our strategy. As we look ahead, we believe our diversified portfolio, strong commercial execution and financial flexibility positions us well to deliver sustainable revenue and earnings growth. With that, I'll hand it back to the operator to begin the Q&A. Operator: [Operator Instructions] Our first question today comes from Ash Verma from UBS. Ashwani Verma: Congrats on the progress. Maybe just on China. So great to see solid operational growth here that you've seen in the first 2 quarters. I know you've noted e-commerce has been a big source of growth. Just help us understand what percentage of your revenue right now is coming from e-commerce, retail or the government channel, where I know you mentioned some headwinds on the procurement in the hospital channel. So if you can just give us a little bit of a breakdown, that will be helpful. And then secondly, just to help us understand the guidance. So at the midpoint of 2026 guide, you're raising revenue by $50 million, but EBITDA by $100 million. Is this because you're expecting some very high-margin products to launch? Or is there a chance that your reiterated OpEx guides come towards the lower end? Scott Smith: Good morning, Ash, and thank you for the questions. Let me make some comments. I'll kick it over to Paul for some more detail. Relative to China, a really strong quarter for China. Our commercial team, I believe, is doing an outstanding job. I think we've got great leadership there. We've made the right investments in China and are participating very, very well in health care in China. There's a real focus right now in China on health care, quality of life. There's a sizable aging middle class, et cetera, which really allows us to participate strongly in China. We're very, very pleased with the progress there. And we continue to see what I believe is real and strong demand for the iconic brands that we have in China, which is really nice to see. Relative to the guidance, very pleased based on the strength of the first half and the strength that we see throughout the rest of the year, being able to raise guidance on all our key financial metrics. And I think we're in really good shape as we sit here in August in '26 and are moving towards the second half '26 and '27 and feel very, very good about the strength of the business. Now I'll kick it over to Paul to comment specifically on China and also the guidance. Paul Campbell: Yes. Thanks, Ash. So as far as China goes, I think it's important to note that we have seen growth across all channels in the market, not just the retail platform or e-commerce. However, e-commerce is about 10% -- between 10% and 15% of the overall business, which is specifically why I know you didn't ask, but in the second half of the year, we expect some decline in the hospital channel growth as a result of the implementation of the policy. But we do expect -- I think in first quarter, we said it was too early. We do expect the growth overall to continue similar to the trajectory we saw in the first half. It's just going to be muted because of the policy issue. As far as the guidance goes, so we ran ahead of expectations for the first half, both revenue and EBITDA. Adjusted EBITDA was approximately twice the growth or the increase in expectation over revenue, right? And a lot of that is because of the cost containment measures. We are on track and even ahead of schedule in certain instances. However, in the back half of the year, we do see the challenges on the additional competition that we have in the North America products, which are high margin and the China business, which is high margin, kind of muting that. But if you also think about the revenue challenges from Nashik that we've talked about, the back half of the year, they're lower-margin generic products that are impacted. So the revenue component of the guidance, we had to mute a little bit because of that, whereas EBITDA ran pretty strong in the first half of the year. And even with the challenges in the second half of the year, we expect that, that will, for the full year, exceed the midpoint to where we put it compared to revenue. Scott Smith: Paul hit on, I think, an issue that I think it's good for us to expand on a little bit, and that's the enterprise-wide strategic review, which we've engaged in taking a look at the company, making sure we got the resources in the right place. And we're executing that. We're delivering on that. And from that, we're seeing real EBITDA leverage here for the second quarter in a row. So we're very pleased with the outcome of that particular enterprise-wide strategic review. Operator: Our next question comes from Umer Raffat from Evercore. Umer Raffat: I just wanted to ask a 3-part question on selatogrel, if I may. First, at what point in the patient's journey post an event are they initiating an oral antiplatelet? I understand in the trial, if you're on an active arm, you'll be on selatogrel perhaps right away. But at what point once you're in the hospital after the index event, are you initiating an oral antiplatelet number one, which sort of leads me to my second part, which is what -- I know what the half-life is, but what's the off time where no more platelet inhibition is in place? And I ask because if I go by your EC50, which is, I think, 14 nanomolar, it looks like the 16 mg dose doesn't get to that EC50 until 8 to 10 hours post the dosing. And then finally, for patients that do end up needing a more intensive procedure like a CABG, I guess, how is that being handled in the trial in terms of how they're taking on the blood thinner or the timing post initial selatogrel administration? Scott Smith: Before we get to that to answer the technicalities of your question, first of all, thank you for the question. We're really excited about selatogrel. We expect the readout when we get into the first half of '27 on this. We've enrolled a lot of patients. Philippe can give you some context on that. And I think we've been very, very pleased with the execution and enrollment and progress of this particular trial. We see -- if positive, we see real blockbuster opportunities for selatogrel here and a major expansion. I say the same thing for cenerimod. There's a lot of attention on selatogrel, which is great, very unique product, but we're also really excited about the progress execution and the potential of cenerimod as well. So I really appreciate the question. Love talking about new interesting products that can help drive our revenue future. And let me kick it over to Philippe to give you some context. Philippe Martin: Thanks, Scott, and thank you, Umer, for the question. So patients that are on the study, the vast majority are on dual antiplatelet therapy to begin with. So they're already on an oral clopidogrel for the most part is what we expect to see. So that -- while selatogrel is added on top of that. Now for those that are not necessarily on it, they could be post treatment within 24 hours or so, the effect of selatogrel is no longer present. And therefore, treatment with an oral P2Y12 could be initiated at that point in time should it be required. With regards to the offset, as I said, I think we know that within 6 to 7 hours, we get to peak platelet inhibition, 80% platelet inhibition after 15 minutes -- more than 80% after 15 minutes is what we've seen in Phase II. The offset is, as I said, within 24 hours, selatogrel is no longer present. Now in terms of the CABG, I think CABG can be initiated at any point should it be required, should it be deemed required the current guidelines. There is no need to wait if it is deemed urgent. But that being said, again, within post 8 hours, CABG -- post 8-hour post selatogrel injection, CABG can be initiated safely. Again, it is not a requirement to wait. Operator: Our next question comes from Matt Dellatorre from Goldman Sachs. Matthew Dellatorre: Congrats on the progress. Maybe a couple on the branded pipeline, starting with fast-acting meloxicam or FAM. Could you comment on any recent interactions with the FDA regarding the label being opioid sparing? And then just remind us how this asset is factored into your longer-term guidance targets and the degree to which success could represent upside to those, either the base or bull case? And then on selatogrel, could you just remind us what magnitude of benefit you believe we need to see? I think you've disclosed in the past that the study is powered for a 20% benefit. So I guess what's the minimum benefit that could drive meaningful uptake? And then when we see the data, will there be any subtleties that we need to keep in mind given it is a composite endpoint, for instance, it doesn't matter which of the components is driving the benefit? It seems like they're all fairly serious, but I just wanted to confirm. Scott Smith: Thanks, Matt. First of all, on meloxicam fast-acting, we think it's going to be a significant contributor to our pipeline, to our revenue to the U.S. business between now and 2030. And so I'm not getting into specific numbers at this point in time. We don't have a label yet, and there are some other things that we really need to look at. We see it being a very significant contributor in the U.S. to high-margin branded portfolio in the United States. Philippe can talk a little bit about the label and the progression of discussions with the FDA in selatogrel. And then maybe we can loop back to Corinne to talk a little bit about the potential she sees in selatogrel. Philippe Martin: Yes. Thank you. So with regards to meloxicam first and the progress of the review currently ongoing with FDA. We are reaching mid-cycle. Things are progressing as planned, FDA is very engaged. We are answering all the queries that they have and expect to get approval towards the end of the year at the time of PDUFA. In terms of the labeling negotiations, there's been -- I mean, there's interaction on the clinical data with the agency. Labeling negotiations won't start until October, November time frame. So this is when really we will start talking about the exact language around opioid sparing. As I previously mentioned, this was heavily discussed with the agency during Phase II and during the -- putting the protocol together for Phase III. And we've followed every recommendation that the agency had for us in order to be able to get this language included in the label section. Where in the label section and exactly what language, I can't tell you as of today, but we should get a better idea around the October, November time frame. Corinne Le Goff: And we see a lot of excitement about this product. We are getting very positive feedback from KOLs. Definitely, the results of the Phase III program and notably on the opioid-sparing effect is seen as a real positive. So in terms of potential that we see for fast-acting meloxicam, FAM, as you call it, the potential is large. You know that pain is -- and acute pain is a broad market with about 80 million patients suffering from acute pain every year. And unfortunately, half of those patients already are dependent on opioids for pain relief. So we see that this product has the right profile. It is generating a lot of interest, and we can imagine that with a market exclusivity that could potentially go beyond 3 years as we are finding more patents, we could reach up to $500 million in peak sales with this asset, and that will contribute meaningfully to our long-term guidance. Philippe Martin: And then on your question on selatogrel. So the actual benefit that the study is sized for is approximately a 20% risk reduction. We have discussed this obviously heavily with our KOLs and investigators. The minimal bar is much lower than that in the mind of the investigators and KOL. I think if we were to be able to show risk closer to 10% to 15%, that would be very much acceptable and the lowest bar commercially to get this drug to patients. So again, the study is overpowered for that 20% risk reduction. And that's really the minimum bar we're seeking at this point in time. In terms of the endpoint itself, as you know, it is -- the endpoint is ranked according to the outcome and according to their clinical importance. What we expect to see is that selatogrel is blunting acute MI from happening if injected at the right time. And we also expect to see that selatogrel will reduce the severity of the MI that these patients are expecting, making them a lot more manageable for the patient with a lot less sequelae over time, which leads to patients being in the hospital a lot less, a lot -- for a much shorter amount of time as well. So adds a lot of benefits to the patient and to the payers overall. Scott Smith: And these post-MI patients are very, very expensive for the health care system. They're very difficult to manage over time. And so being able to improve any particular outcome for a patient has not only tremendous benefits for that patient, but also on the health care system overall. So that's why part of the excitement that we feel about selatogrel being a unique drug in the space. Operator: Our next question comes from Glen Santangelo from Barclays. Glen Santangelo: Scott, I just had a couple of follow-up questions. I wanted to talk about this China dynamic. It seems like you're describing a situation that maybe has some durability in those commercial efforts beyond just 2026 because it seems like it's that market that gave you the ability to sort of raise guidance despite the fire-related disruptions you're sort of calling out in the back half of the year. And so I know it's a little bit too early to comment on '27, but I was kind of curious if you could comment on the durability of the strength there. And then should these fire-related disruptions be contained to just 2026? And then my follow-up was on meloxicam. It seems like meloxicam and the presbyopia solution are the 2 meaningful approvals you have left this year. At your Analyst Day, you sort of highlighted that value-added medicines pipeline. Would add about 1% to the growth algorithm. And in the previous question, you just sort of highlighted that you think it can be a meaningful contributor. And I'm just kind of curious, when I think about that value-added pipeline, are you still thinking about it as a 1% contributor to the growth algorithm? Or do you have maybe greater expectations at this point? Scott Smith: Thank you very much for the question. So yes, we're really pleased with the performance in China. There seems to be some good durability. We had good performance last year. We see good performance this year. I think we see some of the investments that we've made in China in terms of the channels that we're going to reaching to the patients, trying to restructure our business there, trying to make sure that we're overinvesting in some of the demand for some of these iconic brands. There seems to be good durability there. The only thing you worry about in China is there's policy changes at times and sometimes you see them coming and sometimes not. Sometimes they're inconsistently applied across provinces and things. We try and obviously work with the government in China to deliver the best health care we can. But China seems to me to be a good engine for us moving forward. And I think it's not only China that allowed us to sort of beat and raise and to have a good outlook for this particular year. There was some good strength in a number of other businesses as well. We see good strength in the value-added medicines that we're bringing in the United States and other places. So we're very pleased with the business overall. You raised Nashik. And just to put that in perspective for you, we currently operate 26 manufacturing facilities around the world. We have inspections and observations and things all the time. Specific to Nashik, as I said in my prepared remarks, we're communicating with the FDA. We're working closely with the external experts and initiated comprehensive remediation plan to address all the issues or any issues that we see there. And we had a fire, as you said, in Q1 and some inspection observations in May. We expect the remediations, as Paul was pointing out, to have some impact on second half revenues, but it's fully baked into our guidance. And as a reminder, we raised guidance for the year for all key financial metrics. We see this being sort of intermittent as we remediate the fire and some of the things from the observations and the inspection, and we don't expect this to be long-term affecting the business now. Paul Campbell: Yes. Maybe if I could just add one thing, too, from an expectation perspective. We do see the impact being larger in Q3 and moderating a bit in Q4. So I think as Scott intimated, we expect this supply disruption to be shorter term in nature. And hopefully, by exiting the end of the year into the beginning of next year, we will have been gotten ourselves past it. That's our expectation. Scott Smith: And, Nashik, just to characterize, it is a lot of smaller products. It's mainly emerging markets, JANZ. There's no one product there that's more than $20 million in revenue. So it's a lot of little pieces. And again, as we remediate and get things online, we expect to see relatively short-term intermittent effects of that. But the strength of the business allows us to get through that and again, be in a position to raise our guidance across all financial metrics. I think you had a question around meloxicam as well. Corinne Le Goff: Yes. And maybe I can address this again, Glen. Just to say that, again, we remain very optimistic about meloxicam. We're expecting PDUFA date at the end of the year. So of course, we'll wait for the label to be available to finalize our pricing strategy and value proposition. But everything we are seeing so far and the feedback that we get from the market is very positive. So we believe that there is room for another asset that is fast-acting that will have a meaningful role in acute pain and really expand the utilization of NSAID that with fast-acting meloxicam having a very well-characterized tolerability and safety profile. So we're looking forward to launching this product. It will be a branded asset. We will deploy a specialty sales force and I'm looking forward to talking about our launch at the next call. Scott Smith: And I think one of the reasons we're so excited is not only the strength of the data relative to the competitive set out there, but also the real market need. And I think Corinne hit on that earlier, the need for non-opioid solutions for patients with acute pain is really, really large, particularly in the U.S. And so we're excited about the profile. We're excited about the product, but we're also excited that it's going to fill a really significant need in the U.S. Operator: Our next question comes from Chris Schott from JPMorgan. Ethan Brown: This is Ethan on for Chris. Just starting off, what are your latest thoughts on the M&A environment? Are you still seeing a good amount of assets in the marketplace? Or has that changed at all over the past couple of months? And then secondly, just thoughts on the latest headlines for potential U.S. generic tariffs and maybe how you're thinking about the potential impact to Viatris specifically? Scott Smith: I think the M&A environment is obviously pretty active right now. It's a good environment. There's a lot of things going on. Certainly, there's a lot of assets still out there. Certainly, I still get a lot of inbound. I talk about getting inbound virtually every day, sometimes multiple times a day. And so we're looking hard at business development, adding things in market accretive things to the portfolio. We're going to be disciplined though. We're going to try and find the right assets, the ones that we can be good owners of at the right price to bring them in. So we're looking at a lot of things. We're excited about our ability to use our capital not only to pay back to shareholders, dividends and share buybacks, but also really build a portfolio of assets. And again, we're sort of focused on in-market accretive assets right now. And there's a lot of things out there that we're looking at for sure. The second part was tariffs. Yes, I mean, it's difficult for me to comment. We're still gathering information. The administration has not released any official policy details at all here. Just it's important to note that I think we're in a pretty good position regardless of how this goes, if it goes relative to tariffs. We currently have 8 manufacturing, R&D and distribution sites in the United States. Over half our U.S. revenues are from products that are manifested in the U.S. We're planning as we move forward to manufacture higher-margin products like complex generics, transdermal products, value-added products and such in the United States. And we'll always work to partner with the administration as we understand the details of what they're trying to do here from a policy perspective and work with them to help better health care for Americans. Operator: Our next question comes from Dennis Ding from Jefferies. Yuchen Ding: I have two pipeline questions. So one on lupus and one on selatogrel. So for cenerimod, I appreciate that the Phase III is enriching for high IFN-1 and we've seen with other lupus programs like iberdomide and Saphnelo that SRI-4 is consistently higher in this population versus low interferon-1. But when I look at your Phase II, this relationship breaks apart. It seems like the 4-milligram dose was a clear outlier on both SRI-4 and also SLEDAI. So what is it about the prior data that really gives you confidence going into that readout outside of this high interferon-1 relationship? And then question number two, on selatogrel. I believe the CVOT was initially 14,000 patients, but then you upsized the trial by almost 50% to 25,000. So I want to understand what went into that decision to add 11,000 patients? And what are you seeing on blinded event rates? Is it tracking with what you initially planned? Or are they lower than expected? Philippe Martin: Thank you for the question. So with regard to cenerimod and the interferon-1 signature, in Phase II, we saw that the 4-milligram dose, which was the highest dose tested was the dose that was clinically -- show a clinically meaningful improvement and a nominally statistically significant p-value. That was in the total population. And then in that 4-milligram arm dose, we had approximately 50%, actually 45% of patients that were interferon-1 high. The interferon-1 high patients responded better than the interferon-1 low with a delta versus placebo of about 24%, which is one of the highest delta reported for this population. So -- and we also saw, which is what is so much expected that the interferon-1 high patients were the patients that were the most active in terms of their disease. And this is the kind of patients we are actively enrolling in Phase III. We are ensuring that we're targeting patients with higher disease activity and higher interferon-1 high expression. Our goal was to get to approximately 70% of patients that were interferon-1 high in Phase III, and we have exceeded that goal in both studies. So that's the data from our Phase II and then we have also, just to finish on this, implemented a number of things in Phase III that were different than Phase II, obviously, that we believe will lead to better outcomes. First of all, the primary endpoint is at one year and not at six months, which will lead to, we believe, continued and better strength of the data as we've seen continued improvement in patients exposed to one year to cenerimod. And then another important part I would mention is the fact that -- because the endpoint is at one year, we're able to implement steroid sparing -- mandatory steroid sparing for patients that will lead to further differentiation versus placebo. So that's our strategy. We feel good about the data that we've generated so far, and we are actively cleaning that data so that we can report our top line results in 2027 -- early 2027. And then there's another question on... Scott Smith: Selatogrel powering. Paul Campbell: The patient enrollment... Scott Smith: 14 was the... Philippe Martin: Yes, yes. So yes, the protocol always contemplated enrolling up to 21,000 patients. That's the -- that's where we were. It was anywhere between 14,000 to 21,000. We have -- we are seeing an event rate that is what we expected. That being said, what we're trying to do is to enroll patients all the way to the end. By that, I mean, all the way to the time point where we get all the needed events that we need. We are not going to stop and wait for the events to happen. We will continue to enroll through that. And we may need a little bit more than 21,000 patients that remains to be determined. But we will continue to enroll through that. What's important is that we believe we'll get the events we need by the end of the year so that we can -- early next year so that we can get data in the first half of 2027. Operator: Our next question comes from Jason Gerberry from Bank of America. Jason Gerberry: Just 2 for me. Just wanted to follow up on the China policy question because I didn't quite understand. So it sounds like despite the policy change, you're still bullish on the market overall. Perhaps there might be a little bit of fluidity with the situation with the comment about the variability at the province levels. But I guess I'm just wondering, as I look at the back half of the year, sort of an implied low single-digit growth. Is that sort of what we should think about first half the carryover into next year? Does that create tough comps for 2027 is ultimately what I'm trying to get at? And then on selatogrel, just curious, once you complete enrollment towards the end of the year, for the primary endpoint, I think you only need to assess the patient for like 2 to 7 days to determine the impact on mortality or the other measures. And so could you just remind me the different lag factors that go into once you complete enrollment to actually the time to which you can generate top line data? Scott Smith: So just on China first. Again, we're very, very pleased with the business. It's running very strong. We think it's going to -- obviously, we're going to have strong results in '26, and we believe '27 and beyond as well. There's good momentum there. It's a very important part of our company going forward. Good growth. In terms of policy, it's not finalized at this point in time. There's discussions with the government around different policy executions. So we're being a little bit careful to try and understand that policy. We will be in a position, I think, in November to really talk about the policy, what it looks like with any changes, if we think it's going to impact our business or not, what that's going to look like. And so it's just an active discussion right now with the government. We're not exactly sure how that policy is going to be executed. And again, policy in China tends to get executed in a kind of a spotty way and different execution in different provinces and things. So we're taking a look at it. We're in active discussions. We think it could have some effect in the second half of the year. And we'll have a much better view on the policy execution when we get to November. Paul Campbell: Yes. And let me just add, we've built all of that into the forecast, right? So I would say, from my perspective, we are hopeful we'll continue to see momentum and grow beyond '26. But as of right now, we don't see the 16%, 17% continued growth, right? And so we do expect growth, but it will moderate back down. That's our current expectation based on everything we know. Corinne Le Goff: Right. And nothing to add to this, just to say that -- and you mentioned it, the implementation of this new policy, which is a new product revenue that concerns only public hospitals will be done at the provincial level, right? So there are 31 provinces in China. And some of our products that have high volume utilization might be impacted, but we will know more as those 31 provinces adopt this policy. And definitely, by the end of the year, we'll have a much better picture of the impact. But again, we are confident, as Paul said, that we're going to grow through this policy implementation. Philippe Martin: And then regarding your question on selatogrel. So yes, you are correct that the primary endpoint is that 7 days for death and within 2 days of injections for the other types of MI. That being said, the secondary endpoint are 30 days. So we need to get that data at 30 days. And then remember, this is a very sizable study with 45 countries involved and close to 900 sites. So we need to make sure that we gather all that data and clean all that data, which is why we're talking about the first half data. We take some time to clean all that and bring that back, right? So... Scott Smith: It's a very large study, right, large global study. So it takes some time to clean and prepare the data properly. Operator: Our next question comes from David Amsellem from Piper Sandler. David Amsellem: So 2 for me. First on cenerimod. My understanding is that background Benlysta is allowed in the trial. So I was wondering about the thought process there? And is it stratified or the patients stratified for background Benlysta? So that's number one. And then switching gears to complex generics. I wanted to ask about the hormonal patch business with the acceleration following the removal of the box warnings. I wanted to get your thoughts on how long you think that could be a relatively limited competition market for you and how big of a growth driver for generics in developed markets, namely the U.S., that could be in '27? Philippe Martin: So on your question about belimumab, yes, belimumab is considered standard of care and therefore, is included in the medications that can be given in combination with cenerimod as part of this trial. That being said, we don't expect a significant number of patients that will be on belimumab as part of the study. We expect it to be closer to 5% of the patients. So this will have limited potential impact on the data. Second, the randomization ensures balance and mitigation bias. It is the effect that you could see with belimumab and you feel in both placebo and the treatment arm. And then it's important to generate this data just from a pure safety and clinical value to show that the efficacy of cenerimod is seen on top of belimumab or Benlysta and that it is safe to co-administer these 2 drugs. So that's part of the reason why we also included it in the clinical trial. And then should we see an effect, I mean, we have sensitivity analysis that we would be looking at. Remember, we have 2 identical studies. This allows us to pull data across both studies to determine whether an effect that we would see is real or not. So that gives us more robustness behind that data. But overall, I would say that we do not expect this to affect the study in any way. Corinne Le Goff: And so regarding your question on estradiol patch, we have seen over the last year -- over the past year, a strong increase in demand for estradiol patch for hormone replacement therapy. And you're right that the first reason for this is the market expansion, which is due to the FDA removing a black box warning at the end of last year. And we believe that this market expansion is here to stay. Now there is a secondary factor, a bit less important, but worth mentioning as well, which is the increased use of GLP-1s that has an impact on the utilization of patches because it's been demonstrated that they are -- there is a contraindication with the use of not only oral contraceptive but HRT products as well. So we benefit from those 2 factors. Now it's -- we are -- we have a leading position in the manufacturing of patches. We have our facility, which is based out of Vermont that produces high-tech next-generation transdermal systems. And we continue to increase capacity there. We continue to drive efficiencies. So we will continue to be a major leader in this market as we see the expansion forward. Paul Campbell: Yes. And just to finalize the thought around estradiol, we do see it as an opportunity. Again, less about additional competition from my perspective. It is that demand has blown up. We're currently, as a data point, being able to fulfill about 70% of orders. So just as the demand is there, we're trying to ramp up production to meet that demand. And I think there's opportunity there. And as Corinne said, we are looking at our own plant. We're looking externally to see what's available to meet that demand in the future. Scott Smith: And certainly, this is a place that we're willing to invest to go forward to meet what we see as sort of unprecedented increases in demand for the reasons that Corinne was saying. So I think a real nice area of opportunity for us and one that we're going to invest in and likely to be a good driver of our revenues at least through now to 2030. Operator: And our next question comes from -- is a follow-up question from Umer Raffat from Evercore. Umer Raffat: I wanted to touch up on something I meant to ask early on as well. I think kind of came up on a question a few moments ago as well. So Philippe, I think you mentioned the original sample size was 14,000 to 21,000. And I think clinical trials has it, having gone from 14,000 to 25,000, even though in practice, what's happened is it's gone from 14,000 to 21,000 to 25,000 to 35,000. Could you just speak to that, if that was informed more by powering or more by sort of you're just letting it continue to enroll, so you just keep getting the events faster? Philippe Martin: That's exactly what the latter, right, which is that we are letting it enroll -- this is a sizable study. We spent quite a bit of time and energy and money, quite frankly, in this study. So we want to leverage it as best we can. Getting that data will be important for positioning of the drug. And therefore, we believe it is important to let it run as close to the time point where we're going to lock the data, so -- which will mean that we'll have more events that we need eventually, right? But for the timing of the primary endpoint that allows us to get there faster than if we were to stop now and wait for the events to occur, right? So that's that strategy that you see in play. These numbers that we put on ClinicalTrials.gov are to give us flexibility in how many patients we want to enroll. I don't want to have to change it 15 times. So we change it once, give a window, and then we'll end up somewhere there. Operator: And with that, we'll be concluding today's question-and-answer session. I'd like to turn the floor back over to Scott Smith, CEO, for closing remarks. Scott Smith: Thank you very much. And let me close with just 3 thoughts here. First, our second quarter performance and indeed sort of the strong first half results reinforce that the strategy we outlined earlier in the year is working. Second, we're entering an important time period for our company. Over the coming quarters, we expect multiple regulatory milestones, important product launches and continued progress across our pipeline. Finally, we're building a stronger company. We're improving the quality of our earnings, strengthening our operating model, sharpening our portfolio and investing behind the opportunities we believe will drive sustainable long-term growth. We're excited about the opportunities ahead, confident in our ability to execute and believe Viatris is well positioned to deliver sustainable long-term value to shareholders. Thank you very much for your attention this morning. Operator: And with that, we'll be concluding today's conference call and presentation. We thank you for joining. You may now disconnect your lines. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Viatris (VTRS) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Theravance Biopharma TBPH reported second-quarter 2026 adjusted earnings of 19 cents per share, matching the Zacks Consensus Estimate. In the year-ago quarter, the company had incurred an adjusted loss of 8 cents per share. Total revenues in the quarter were $20.7 million, marginally beating the Zacks Consensus Estimate of $20 million. In the absence of any licensing and milestone revenues, total revenues declined nearly 21% year over year. Year to date, shares of Theravance have lost 9.6% compared with the industry’s 1.2% decline. Image Source: Zacks Investment Research Theravance’s top line consisted solely of collaboration revenues from partner Viatris VTRS tied to Yupelri (revefenacin) sales in the United States and rose 11% year over year, driven by continued net sales growth of Yupelri and improved operating leverage. Theravance and VTRS have collaborated on the development and commercialization of Yupelri, which is approved in the United States for the maintenance treatment of patients with chronic obstructive pulmonary disease. Viatris and Theravance share U.S. profits and losses associated with the commercialization of Yupelri. While Viatris gets 65% of the profits, Theravance receives 35%. Viatris' collaboration revenues include Theravance’s 35% share of Yupelri net sales, as well as its proportionate amount of the total shared costs incurred by the two companies. Research and development expenses (excluding share-based compensation) totaled $4.2 million, down 56.4% from the year-ago quarter’s level, driven by cost savings from the restructuring announced in March and the ongoing wind-down of the CYPRESS study on its lead candidate, ampreloxetine. Selling, general and administrative expenses (excluding share-based compensation) declined 28.7% year over year to $10.6 million due to cost-cutting initiatives from the restructuring announced in March. As of June 30, 2026, Theravance had cash, cash equivalents and marketable securities worth $387.7 million compared with $394.7 million as of March 31, 2026. In late June, Theravance entered into an agreement with Zymeworks Inc. ZYME under which the latter will acquire TBPH in an all-cash transaction valued at approximately $929 million. The acquisition is expected to close in the second half of this year. The deal followed a strategic review initiated after Theravance's growth outlook deteriorated significantly. The company’s long-term growth strategy was centered on its lead candidate, ampreloxetine, a norepinephrine reuptake inhibitor being developed for symptomatic neurogenic orthostatic hypotension in patients with multiple system atrophy. However, in early March, the pivotal phase III CYPRESS study failed to meet its primary and secondary endpoints. Consequently, TBPH discontinued the ampreloxetine program. Following the setback, the company launched a broad strategic review, explored value-maximizing alternatives, including a potential sale and implemented a major organizational restructuring to reduce costs. Per management, the Zymeworks acquisition is the most value-maximizing option for Theravance shareholders after evaluating all available strategic alternatives. Theravance is currently undergoing a major organizational restructuring aimed at optimizing its cost structure and sharpening its focus on its commercial product, Yupelri. The restructuring is expected to cut operating costs by approximately 60% relative to the company’s 2025 operating costs of $111.1 million. Combined with continued sales of Yupelri, these savings are projected to drive approximately $60-$70 million in annualized cash flow beginning in the second half of 2026. Theravance Biopharma, Inc. price-consensus-eps-surprise-chart | Theravance Biopharma, Inc. Quote Theravance currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Theravance currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Theravance Biopharma, Inc. price-consensus-eps-surprise-chart | Theravance Biopharma, Inc. Quote Theravance Biopharma, Inc. price-consensus-eps-surprise-chart | Theravance Biopharma, Inc. Quote Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Theravance Biopharma, Inc. (TBPH) : Free Stock Analysis Report Zymeworks Inc. (ZYME) : Free Stock Analysis Report Viatris Inc. (VTRS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. The latest research on Viatris centers on a revised price target of US$22 per share and what that figure implies for investors following the story. Analysts are split, with more optimistic views pointing to execution on the product pipeline and cautious views questioning how fully the current stock price already reflects those expectations. As the article continues, you will see how this updated target fits into the evolving narrative around Viatris and how you can track the key signposts from here. Analyst Price Targets don't always capture the full story. Head over to our Company Report to find new ways to value Viatris. Barclays lifted its Viatris price target to US$22 from US$17 and kept an Overweight rating, which signals a more constructive view on where the stock could trade over time. The analyst at Barclays highlighted what was described as strong Q1 results for Viatris, which supports confidence in the company’s current execution. Barclays pointed to an expected slate of product approvals this year for Viatris, which the firm believes will help set up the company’s longer term growth profile. The same research comment argued that as Viatris closes the revenue growth gap to peers, its valuation multiple could trend higher over time. Even with the higher US$22 target from Barclays, the research highlights that part of the argument relies on Viatris narrowing a revenue growth gap to peers, which may take time and is not yet fully proven. Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there's more to the story. Head to the Simply Wall St Community to discover more perspectives! We've flagged 1 risk for Viatris. See which could impact your investment. The fair value estimate for Viatris has moved from US$17.94 to US$18.50 per share. The revenue growth assumption has shifted from 2.00% to 1.84%. The profit margin expectation has changed from 4.50% to 4.92%. The assumed future P/E multiple has adjusted from 36.72x to 34.43x. The discount rate has moved from 7.11% to 7.24%. Narratives connect Viatris' business story to analyst forecasts and a fair value estimate that update as new data comes in. They help you see how product news, guidance changes, and risks fit into one clear framework. Head over to the Simply Wall St Community and follow the Narrative on Viatris to stay up to date on: How expansion in emerging markets such as Greater China and emerging Asia, alongside late stage pipeline assets in chronic disease, pain, and ophthalmology, support broader revenue streams. The shift toward higher margin complex generics, biosimilars, and branded products, combined with company wide cost and efficiency measures, that is intended to support higher net margins. Key pressure points including reliance on mature generics, price and regulatory pressure in major markets, operational remediation at facilities like Indore and Nashik, and competition from lower cost manufacturers. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include VTRS. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Viatris VTRS delivered second-quarter 2026 adjusted earnings per share of 69 cents, which beat the Zacks Consensus Estimate of 62 cents. The company reported adjusted earnings of 62 cents in the year-ago quarter. Total revenues were $3.76 billion, up 5% year over year (4% on an operational basis), surpassing the Zacks Consensus Estimate of $3.68 billion. Growth was driven by sales in Developed Markets and a strong performance in Greater China. All growth rates mentioned below are on a year-over-year basis. Total net sales amounted to $3.75 billion, up 5% from $3.57 billion in the second quarter of 2025. Other revenues totaled $10.9 million compared with $13.1 million a year earlier. The company reports results across four geographical segments: Developed Markets, Emerging Markets, Japan, Australia and New Zealand (JANZ) and Greater China. The quarter’s sales growth reflected gains in Developed Markets and Greater China, partly offset by declines in Emerging Markets and JANZ. Developed Markets generated sales of $2.19 billion, up 4% from $2.12 billion in the year-ago period. The reported figure surpassed the Zacks Consensus Estimate of $2.18 billion. Emerging Markets sales declined 2% to $542.3 million from $555.1 million. The figure missed the consensus estimate of $558.5 million. Management attributed generics performance partly to supply constraints in the antiretroviral business within Emerging Markets. JANZ sales totaled $296.1 million, down 3% from $305.7 million. Nonetheless, the reported figure exceeded the Zacks Consensus Estimate of $285.1 million. Greater China remained the strongest regional contributor, with sales surging 21% to $713.8 million from $588.9 million. The figure comfortably beat the consensus estimate of $631.7 million and reflected continued strength across the company’s brands portfolio. VTRS’ shares have gained 41.8% year to date compared with the industry’s 0.9% growth. Image Source: Zacks Investment Research Brands net sales increased 6% to $2.42 billion from $2.28 billion. The improvement reflected continued strength in Greater China and Emerging Markets. Sales of Lipitor rose 17% to $452.2 million, while Norvasc sales increased 10% to $200.2 million. Viagra revenues advanced 13% to $112.9 million, and Zoloft sales climbed 17% to $71.4 million. Meanwhile, Lyrica sales declined 6% to $120.6 million. EpiPen Auto-Injectors sales declined 6% to $129.2 million in the second quarter of 2026. Generics sales increased 3% to $1.33 billion from $1.28 billion. Growth reflected contributions from new product launches and gains across certain products in North America, partly offset by supply constraints in Emerging Markets. Viatris generated approximately $101 million in new product revenues during the quarter. Viatris raised the lower end of its 2026 revenue guidance range following the strong first-half performance. The company now expects total revenues of $14.55-$14.95 billion compared with the previous range of $14.45-$14.95 billion. The midpoint increased to $14.75 billion from $14.70 billion. Adjusted EPS is now projected in the range of $2.45-$2.59, up from $2.33-$2.47 previously. The midpoint rose to $2.52 from $2.40. In July, the FDA approved Gwyn Lo, the company’s low-dose estrogen hormonal contraceptive patch. Viatris expects the product to become commercially available later in 2026. The FDA also approved the company’s generic ferric carboxymaltose injection in three strengths (750 mg/15 mL, 1000 mg/20 mL and 100 mg/2 mL) during June. The product is a substitutable generic version of Injectafer and is indicated for the treatment of iron deficiency anemia. Viatris also reported positive top-line results from a phase III study evaluating VR-205 (targeted-release budesonide formulation) (Nefecon) in Japanese adult patients with primary immunoglobulin A nephropathy at risk of developing end-stage renal disease. Separately, the FDA accepted for review VTRS’ new drug application for MR-107A-02 (fast-acting meloxicam), a non-opioid, to treat moderate-to-severe acute pain. A final decision is expected on Dec. 27, 2026. Viatris Inc. price-consensus-eps-surprise-chart | Viatris Inc. Quote VTRS delivered a solid second quarter, with both earnings and revenues exceeding estimates. Greater China remained the standout region, while Developed Markets also contributed to reported sales growth. Strength across brands and contributions from new generic launches helped offset weaker results in Emerging Markets and JANZ. The quarter also demonstrated progress across Viatris’ pipeline and product portfolio. Regulatory approvals for Gwyn Lo and generic ferric carboxymaltose, along with additional clinical and regulatory milestones, could support future product launches. Backed by the quarterly performance, management raised its 2026 financial guidance. Viatris currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the biotech sector are Harmony Biosciences HRMY, Repligen RGEN and Liquidia Corporation LQDA, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Over the past 60 days, estimates for Harmony Biosciences’ 2026 earnings per share have risen from $3.20 to $3.33, while estimates for 2027 have increased from $3.64 to $3.87 during the same time. HRMY shares have gained 2.2% year to date. Harmony Biosciences’ earnings missed estimates in three of the trailing four quarters and beat on the remaining occasion, delivering an average negative surprise of 13.97%. Over the past 60 days, estimates for Repligen’s 2026 earnings per share have risen from $1.99 to $2.06, while estimates for 2027 have increased from $2.57 to $2.62 during the same time. RGEN shares have declined 3.2% year to date. Repligen’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 16.80%. Over the past 60 days, estimates for Liquidia’s 2026 earnings per share have risen from $2.97 to $3.02, while estimates for 2027 have increased from $4.81 to $5.31 during the same time. LQDA shares have surged 158.4% year to date. Liquidia’s earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with the average surprise being 54.40%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Viatris Inc. (VTRS) : Free Stock Analysis Report Repligen Corporation (RGEN) : Free Stock Analysis Report Liquidia Corporation (LQDA) : Free Stock Analysis Report Harmony Biosciences Holdings, Inc. (HRMY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Total Revenues: $3.8 billion in Q2 2026, representing 3.5% operational growth year over year. Adjusted EBITDA: $1.2 billion for the quarter. Adjusted EPS: $0.69 per share. Adjusted Gross Margin: 57.5%, an improvement of nearly 1% versus the prior year. Free Cash Flow: $329 million generated in the quarter; $449 million excluding transaction, restructuring-related costs, and taxes. Developed Markets Net Sales: Increased 2% versus the prior year, with North America up 1% and Europe up 2%. Emerging Markets Net Sales: Declined 2% versus the prior year, impacted by supply constraints in the ARV generics portfolio. JANZ Net Sales: Essentially flat versus the prior year. Greater China Net Sales: Increased 16% year over year, with e-commerce sales up 36%. Capital Returned to Shareholders: Approximately $550 million to date through dividends and share repurchases. Share Repurchases: Approximately $270 million. Debt Repayment: Approximately $900 million of debt matured in June was repaid. Gross Leverage Ratio: Approximately 2.9 times at the end of the quarter. 2026 Guidance: Raised midpoint for total revenues, adjusted EBITDA, and adjusted EPS, expecting operational growth of approximately 2%, 5%, and 7%, respectively. Warning! GuruFocus has detected 8 Warning Signs with VTRS. Is VTRS fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Viatris Inc (NASDAQ:VTRS) delivered strong Q2 2026 results with total revenues of $3.8 billion, representing 3.5% operational growth year-over-year, and raised its full-year 2026 guidance across all key financial metrics. The company's Greater China segment continues to outperform, with net sales increasing 16% year-over-year, driven by strong demand for cardiovascular products and successful e-commerce and retail investments. The R&D pipeline is advancing well, highlighted by the FDA approval of Gwyn Lo, positive Phase 3 results for Nefecon in Japan, and on-track Phase 3 programs for Selatogrel and Cenerimod with readouts expected in 2027. The enterprise-wide strategic review is delivering cost savings ahead of schedule, leading to improved operating leverage and a 1% year-over-year improvement in adjusted gross margin to 57.5%. The company maintains a strong balance sheet with a gross leverage ratio of 2.9 times, and has deployed approximately $1.4 billion in capital, including $550 million returned to shareholders via dividends and buybacks. The complex generics portfolio, particularly transdermal patches and injectables, is experiencing strong demand, with the company expanding capacity to meet unprecedented growth in the estradiol patch market. The company faces ongoing supply disruptions at its Nashik facility, following a Q1 fire and FDA inspection observations, which are expected to impact total revenues by $100 million to $150 million in the second half of 2026. Greater China growth is expected to moderate in the second half due to a new procurement policy change that could negatively impact volumes in the hospital channel, with execution varying across provinces. Developed Markets face anticipated competitive pressures, including on key products like Breyna and Wixella in North America, which could impact high-margin revenue streams. Emerging Markets net sales declined 2% year-over-year, below expectations, primarily due to continued supply constraints affecting the lower-margin ARV generics portfolio. The JANZ segment is expected to decline low-single digits for the full year, impacted by government-driven price regulations in Japan and increased competition for certain brands in Australia. The company anticipates a moderation in overall growth rates, with total revenue growth expected to slow to approximately 2% operationally for the full year, down from the 3.5% seen in Q2. Q: Could you provide a breakdown of revenue by channel in China, particularly e-commerce, and explain the reasoning behind raising the revenue guidance by $50 million but EBITDA by $100 million?A: Scott Smith (CEO) noted strong performance in China, driven by investments in commercial capabilities and iconic brands. Paul Campbell (Interim CFO) stated e-commerce represents 10-15% of the business, with growth across all channels. The guidance raise reflects cost containment measures running ahead of schedule, with adjusted EBITDA growth approximately twice the revenue increase. However, second-half challenges include competition in high-margin North American products and China, plus supply disruptions at the Nashik facility impacting lower-margin generics. Q: What is the minimum benefit needed for Selatogrel to drive meaningful uptake, and what subtleties should be considered given the composite endpoint?A: Philippe Martin (Chief R&D Officer) explained the study is powered for a 20% risk reduction, but the minimum commercially acceptable bar is around 15%. The ranked composite endpoint prioritizes clinical importance, with expectations that Selatogrel will blunt acute MI occurrence and reduce severity, leading to shorter hospital stays and better patient outcomes. Scott Smith (CEO) added that post-MI patients are expensive for the healthcare system, so any improvement benefits both patients and payers. Q: What is the durability of China's growth beyond 2026, and are the Nashik fire-related disruptions contained to this year?A: Scott Smith (CEO) expressed confidence in China's durability, citing strong performance and investments in channels and iconic brands, though policy changes could create variability. Regarding Nashik, he noted 26 manufacturing facilities globally, with remediation efforts underway. Paul Campbell (Interim CFO) added that the impact will be larger in Q3 and moderate in Q4, expecting resolution by early next year. The disruptions affect many small products, none exceeding $20 million in revenue. Q: What are your latest thoughts on the M&A environment and potential US generic tariffs?A: Scott Smith (CEO) described the M&A environment as active with many assets available, emphasizing disciplined, in-market, accretive opportunities. Regarding tariffs, he noted the administration hasn't released official policy details, but Viatris is well-positioned with eight US manufacturing sites and over half of US revenues from domestically manufactured products. The company plans to manufacture higher-margin products in the US and will partner with the administration on policy details. Q: What gives you confidence in Cenerimod's Phase 3 readout given the Phase 2 data, and what drove the decision to upsize the Selatogrel trial?A: Philippe Martin (Chief R&D Officer) highlighted that in Phase 2, the 4mg dose showed clinically meaningful improvement, with interferon-1 high patients responding better (24% delta vs placebo). Phase 3 exceeds the 70% target for interferon-1 high patients, with a one-year primary endpoint and mandatory steroid sparing. For Selatogrel, the protocol always contemplated 14,000-21,000 patients, but enrollment continues to gather events faster, potentially exceeding 21,000. Data cleaning across 45 countries and 900 sites will take time, with readout expected in the first half of 2027. Q: How is background Benlysta (belimumab) handled in the Cenerimod trial, and what's the outlook for the estradiol patch market?A: Philippe Martin (Chief R&D Officer) confirmed belimumab is allowed as standard of care, but only about 5% of patients are expected to use it, with randomization ensuring balance. Sensitivity analyses across the two identical studies will validate results. Corinne Le Goff (Chief Commercial Officer) noted strong demand growth for estradiol patches following FDA's removal of the black box warning, plus increased GLP-1 usage creating contraindications with oral contraceptives and HRT. Paul Campbell (Interim CFO) added the company currently fulfills about 70% of orders and is ramping production to meet unprecedented demand. Q: What are the expectations for Fast-Acting Meloxicam's label and its contribution to long-term guidance?A: Philippe Martin (Chief R&D Officer) stated FDA interactions are progressing well, with labeling negotiations expected in October-November. Corinne Le Goff (Chief Commercial Officer) expressed strong KOL feedback on the opioid-sparing effect, with potential peak sales up to $500 million. The product addresses a large acute pain market where half of 80 million annual patients are opioid-dependent. Scott Smith (CEO) emphasized the significant unmet need for non-opioid solutions in the US. Q: What is the status of the China procurement policy and its potential impact on 2027 comps?A: Scott Smith (CEO) noted the policy isn't finalized, with active government discussions and provincial-level execution variability. Paul Campbell (Interim CFO) stated the company doesn't expect continued 16-17% growth but does expect moderation to lower growth levels. Corinne Le Goff (Chief Commercial Officer) added that implementation across 31 provinces will provide clarity by year-end, with high-volume products potentially impacted. Q: What is the timeline for Selatogrel data after enrollment completion?A: Philippe Martin (Chief R&D Officer) explained the primary endpoint is at seven days for death and two days for other MI types, with a secondary endpoint at 30 days. Given the study's scale (45 countries, ~900 sites), data collection and cleaning will take time, supporting the first-half 2027 readout timeline. Scott Smith (CEO) emphasized the study's size requires proper data preparation. Q: How is the company addressing the Nashik facility issues, and what is the expected financial impact?A: Scott Smith (CEO) confirmed communication with FDA, engagement of external experts, and a comprehensive remediation plan. Paul Campbell (Interim CFO) quantified the second-half revenue impact at $100-150 million, primarily affecting low-margin oral solid-dose generics in Emerging Markets and certain European products. The impact is expected to be larger in Q3, moderating in Q4, with resolution anticipated by early next year. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

For the quarter ended June 2026, Viatris (VTRS) reported revenue of $3.76 billion, up 4.9% over the same period last year. EPS came in at $0.69, compared to $0.62 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $3.68 billion, representing a surprise of +2.19%. The company delivered an EPS surprise of +11.29%, with the consensus EPS estimate being $0.62. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Viatris performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net Sales- Developed Markets: $2.19 billion versus the two-analyst average estimate of $2.18 billion. The reported number represents a year-over-year change of +3.5%. Net Sales- Greater China: $713.8 million versus $631.67 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +21.2% change. Revenues- Other revenues: $10.9 million versus $11.55 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -16.8% change. Net Sales- Emerging Markets: $542.3 million versus the two-analyst average estimate of $558.47 million. The reported number represents a year-over-year change of -2.3%. Revenues- Total Net Sales: $3.75 billion compared to the $3.65 billion average estimate based on two analysts. The reported number represents a change of +5% year over year. Net Sales- JANZ: $296.1 million versus the two-analyst average estimate of $285.14 million. The reported number represents a year-over-year change of -3.1%. View all Key Company Metrics for Viatris here>>> Shares of Viatris have returned +5.9% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Viatris Inc. (VTRS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Delivers Total Revenues of $3.8 Billion, Representing 5% Reported Growth Compared to Second Quarter 2025 and a U.S. GAAP Net Loss of $119 Million Total Revenues Were Up 3.5% Operationally Compared to Second Quarter 2025 Adjusted EBITDA was $1.2 Billion, Up 8% Operationally Compared to Second Quarter 2025 Advances Key Pipeline Milestones, Including U.S. FDA Approval of Gwyn LoTM Announces Sale of Global Rights to Tyrvaya® Returns Approximately $550 Million of Capital to Shareholders, Including Through Share Repurchases; Reduces Gross Leverage Ratio to 2.9x Raises 2026 Financial Guidance Midpoints for All Metrics [1] PITTSBURGH, Aug. 6, 2026 /PRNewswire/ -- Viatris Inc. (Nasdaq: VTRS), a global healthcare company, today announced its second-quarter 2026 financial results. Executive Commentary "Our second-quarter results reflect another quarter of strong execution and reinforce the momentum we're building across our business," said Scott A. Smith, CEO, Viatris. "Commercial execution, pipeline progress and the early benefits of our enterprise-wide strategic review continue strengthening our business and improving our financial performance. Our strong first-half results give us the confidence to raise our full-year guidance. We expect a more balanced operating environment in the second half of the year and we remain focused on disciplined execution, investing behind our future growth drivers and creating long-term value for patients and shareholders." "We delivered another strong quarter of Total Revenues and Adjusted EBITDA growth over the prior year, reflecting continued strong operational execution," said Paul Campbell, Interim CFO, Chief Accounting Officer & Corporate Controller, Viatris. "At the same time, we continued to execute on our balanced capital allocation strategy, returning approximately $550 million to shareholders, including approximately $270 million of share repurchases occurring through early August. In addition, we further strengthened our balance sheet and reduced our gross leverage ratio to 2.9x." [1] Viatris is not providing forward-looking guidance for U.S. GAAP net earnings (loss) or U.S. GAAP diluted EPS (loss) or a quantitative reconciliation of its 2026 Adjusted EBITDA or Adjusted EPS guidance. U.S. GAAP net cash provided by operating activities for 2026 is estimated to be between $1.9 billion and $2.1 billion, with a midpoint of approximately $2.0 billion. 2026 financial guidance ranges as provided on August 6, 2026, exclude the impact of any transaction-related and restructuring-related costs (as defined below) and acquired IPR&D for unsigned deals as they cannot be reasonably forecasted. Please see "2026 Financial Guidance" and "Non-GAAP Financial Measures" for additional information. Second-Quarter Results Financial Highlights for the Second Quarter of 2026 Total revenues were $3.8 billion, up 5% on a reported basis and up 3.5% on an operational basis compared to second-quarter 2025 results, primarily driven by new product sales in Developed Markets and strong growth in Greater China. Brands net sales reflect continued strength in Greater China and Emerging Markets. Generics net sales reflect contributions from new product launches, in addition to growth in certain products in Developed Markets, partially offset by supply constraints in the ARV business within Emerging Markets. The Company generated approximately $101 million in new product revenues (approximately $172 million for the year) and continues expecting to deliver approximately $450 million to $550 million in new product revenues in full-year 2026. U.S. GAAP net loss was $119 million compared to U.S. GAAP net loss of $5 million in the second quarter of 2025 and U.S. GAAP diluted loss per share was $(0.10) compared to a loss of less than $(0.01) per share in the second quarter of 2025. The loss in the second quarter of 2026 was primarily driven by a non-cash charge of $177.8 million related to the planned sale of the product rights for Tyrvaya® and the write down of that intangible asset to fair value, less cost to sell. Adjusted EBITDA was $1.2 billion, up 10% on a reported basis and up 8% on an operational basis compared to the second quarter of 2025, and adjusted EPS was $0.69 per share, up 11% on a reported basis and up 9% on an operational basis compared to the second quarter of 2025. The Company generated U.S. GAAP net cash provided by operating activities of $382 million ($770 million for the year) and free cash flow, excluding the impact of transaction-related and restructuring-related costs, of $449 million ($908 million for the year). Additional Highlights In August, the Company signed a definitive agreement to sell the global product rights for Tyrvaya to Harrow, Inc., a leading provider of ophthalmic disease management solutions in North America, for an upfront payment of $30 million and an additional $70 million in commercial contingent milestone payments. The transaction reflects the Company's continued focus on prioritizing its capital, talent and resources toward opportunities it believes offer the greatest long-term growth potential. In July, the Company announced that the U.S. Food and Drug Administration (FDA) approved Gwyn LoTM (norelgestromin and ethinyl estradiol transdermal system), a new combined hormonal contraceptive patch with low-dose estrogen. The Company expects Gwyn Lo to be commercially available later this year. In July, the Company completed the sale of its equity position in Biocon Limited for a pre-tax total consideration of approximately $380 million. The pre-tax sale proceeds include the impacts of an approximate 2.7% block sale discount to market, transaction fees and the strengthening of the U.S. dollar since the Company obtained the equity in January 2026. This sale completes the Company's monetization of its stake in Biocon Biologics Limited for a total of approximately $780 million. In June, the FDA approved the Company's generic ferric carboxymaltose injection in three strengths: 750 mg/15 mL, 1000 mg/20 mL and 100 mg/2 mL. Ferric carboxymaltose is a substitutable generic version of Injectafer®, which is indicated for the treatment of iron deficiency anemia and non-dialysis dependent chronic kidney disease, and iron deficiency. In June, the Company announced positive top-line results from a Phase 3 clinical trial evaluating the efficacy and safety of VR-205 (targeted-release budesonide formulation) (Nefecon®) in Japanese adult patients with primary immunoglobulin A nephropathy at risk of developing end-stage renal disease. In May, the FDA inspected the Company's oral solid dose manufacturing facility in Nashik, India, and issued Form 483 observations. The Company responded to the Form 483 observations and promptly initiated a comprehensive remediation plan. The Company has also engaged independent third-party subject matter experts to support its remediation plan. Activities under the remediation plan are ongoing and have led to intermittent disruptions at the facility. While production at the facility has resumed, the temporary manufacturing suspension due to the fire at the facility in February along with these intermittent disruptions are expected to impact product supply in the second half of the year. The Company currently anticipates the impact of product supply disruptions to be between $100 million and $150 million to total revenues in the second half of 2026. In May, the Company announced that the FDA accepted for review the New Drug Application for MR-107A-02 (fast-acting meloxicam), a non-opioid, for the treatment of moderate-to-severe acute pain. The FDA has assigned a PDUFA goal date of December 27, 2026. The Company signed a distribution agreement with Accord Healthcare to commercialize three biosimilar products (filgrastim, ustekinumab, teriparatide) in France. In addition, the Company signed a co-promotion partnership with Idorsia Ltd. for Quvivq® in Italy and Canada. These transactions reflect the Company's disciplined business development strategy of expanding its portfolio through complementary, accretive products that leverage its regional capabilities and commercial strengths. Capital Allocation Through August 5, 2026, the Company has returned approximately $550 million of capital to shareholders, including approximately $270 million through share repurchases at a weighted average purchase price of $16.42 per share. The Company has approximately $730 million remaining under its existing board-authorized share repurchase program, providing continued flexibility to return additional capital to shareholders. The Company repaid approximately $900 million of debt that matured in June 2026, refinancing the remaining balance with a public offering of €650 million aggregate principal amount of 4.250% euro-denominated senior notes due 2033. As a result, the Company ended the quarter with a gross leverage ratio of 2.9x. 2026 Financial Guidance Viatris is raising the midpoints of its 2026 financial guidance ranges, each as set forth below. The Company is not providing forward-looking guidance for U.S. GAAP net earnings (loss) or U.S. GAAP diluted earnings (loss) per share (EPS) or a quantitative reconciliation of its 2026 adjusted EBITDA or adjusted EPS guidance to the most directly comparable U.S. GAAP measures, U.S. GAAP net earnings (loss) or U.S. GAAP diluted EPS, respectively, because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items, including integration, acquisition and divestiture-related expenses, restructuring expenses, asset impairments, litigation settlements, future share repurchases, and other contingencies, such as changes to contingent consideration, acquired IPR&D and certain other gains or losses as well as related income tax accounting, because certain of these items have not occurred, are out of the Company's control and/or cannot be reasonably predicted without unreasonable effort. These items are uncertain, depend on various factors, and could have a material impact on U.S. GAAP reported results for the guidance period. With respect to the Estimated Ranges as provided on August 6, 2026, U.S. GAAP net cash provided by operating activities for 2026 is estimated to be between $1.9 billion and $2.1 billion, with a midpoint of approximately $2.0 billion. With respect to the Estimated Ranges reaffirmed on May 7, 2026, U.S. GAAP net cash provided by operating activities for 2026 was estimated to be between $1.7 billion and $2.0 billion, with a midpoint of approximately $1.85 billion. Conference Call and Earnings Materials As previously announced, Viatris will host a conference call and live webcast, today at 8:30 a.m. ET, to review the Company's second-quarter 2026 financial results. Investors and the general public are invited to listen to a live webcast of the call at investor.viatris.com or by calling 844.308.3344 or 412.317.1896 for international callers. The "Viatris Q2 2026 Earnings Presentation," which will be referenced during the call, can be found at investor.viatris.com. A replay of the webcast also will be available on the website. About Viatris Viatris Inc. (Nasdaq: VTRS) is a global healthcare company whose mission is to empower people worldwide to live healthier at every stage of life. We meet the needs of patients around the world by acting decisively with ingenuity and resolve. Whether we're developing new medicines, working to maintain a resilient supply of needed therapies, or pursuing bold innovation, we strive to deliver solutions that are effective at scale and built to endure. We're purpose-built to make an impact with a broad portfolio that spans generics, value-added medicines, established brands and innovative medicines that address areas of significant unmet need. We are headquartered in the U.S., with global centers in Pittsburgh, Shanghai, China, and Hyderabad, India. Learn more at viatris.com and investor.viatris.com, and connect with us on LinkedIn, Instagram, YouTube and X. Non-GAAP Financial Measures This press release includes the presentation and discussion of certain financial information that differs from what is reported under accounting principles generally accepted in the United States ("U.S. GAAP"). These non-GAAP financial measures, including, but not limited to, adjusted gross profit, adjusted gross margins, adjusted net earnings, adjusted EPS, EBITDA, adjusted EBITDA, free cash flow, free cash flow excluding the impact of transaction-related and restructuring-related costs, adjusted R&D and as a % of total revenues, adjusted SG&A and as a % of total revenues, adjusted earnings from operations, adjusted interest expense, adjusted other income, net, adjusted effective tax rate, constant currency total revenues, constant currency net sales, constant currency adjusted EBITDA, constant currency adjusted EPS, notional debt, gross leverage ratio and long-term gross leverage ratio target, are presented in order to supplement investors' and other readers' understanding and assessment of the financial performance of Viatris Inc. ("Viatris" or the "Company"). Free cash flow refers to U.S. GAAP net cash provided by operating activities less capital expenditures. Management uses these measures internally for forecasting, budgeting, measuring its operating performance, and incentive-based awards. Primarily due to acquisitions, divestitures and other significant events which may impact comparability of our periodic operating results, Viatris believes that an evaluation of its ongoing operations (and comparisons of its current operations with historical and future operations) would be difficult if the disclosure of its financial results was limited to financial measures prepared only in accordance with U.S. GAAP. We believe that non-GAAP financial measures are useful supplemental information for our investors and when considered together with our U.S. GAAP financial measures and the reconciliation to the most directly comparable U.S. GAAP financial measure, provide a more complete understanding of the factors and trends affecting our operations. The financial performance of the Company is measured by senior management, in part, using adjusted metrics included herein, along with other performance metrics. In addition, the Company believes that including EBITDA and supplemental adjustments applied in presenting adjusted EBITDA is appropriate to provide additional information to investors to demonstrate the Company's ability to comply with financial debt covenants and assess the Company's ability to incur additional indebtedness. The Company also believes that adjusted EBITDA better focuses management on the Company's underlying operational results and true business performance and is used, in part, for management's incentive compensation. We also report sales performance using the non-GAAP financial measures of "constant currency", also referred to herein as "operational change", total revenues, net sales, adjusted EBITDA, and adjusted EPS. These measures provide information on the change in total revenues, net sales, adjusted EBITDA, and adjusted EPS assuming that foreign currency exchange rates had not changed between the prior and current period. The comparisons presented at constant currency rates reflect comparative local currency sales at the prior year's foreign exchange rates. We routinely evaluate our net sales, total revenues, adjusted EBITDA, and adjusted EPS performance at constant currency so that sales results can be viewed without the impact of foreign currency exchange rates, thereby facilitating a period-to-period comparison of our operational activities and believe that this presentation also provides useful information to investors for the same reason. The "Summary of Total Revenues by Segment" table below compares total revenues and net sales on an actual and constant currency basis for each reportable segment for the three and six months ended June 30, 2026 and 2025. Also, set forth below, Viatris has provided reconciliations of such non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures. Investors and other readers are encouraged to review the related U.S. GAAP financial measures and the reconciliations of the non-GAAP measures to their most directly comparable U.S. GAAP measures set forth below, and investors and other readers should consider non-GAAP measures only as supplements to, not as substitutes for or as superior measures to, the measures of financial performance prepared in accordance with U.S. GAAP. For additional information regarding the components and uses of non-GAAP financial measures refer to Management's Discussion and Analysis of Financial Condition and Results of Operations--Use of Non-GAAP Financial Measures section of Viatris' Quarterly Report on Form 10-Q for the three and six months ended June 30, 2026. With respect to the guidance ranges reaffirmed on May 7, 2026, at that time the Company did not provide forward-looking guidance for U.S. GAAP net earnings (loss) or U.S. GAAP diluted EPS or a quantitative reconciliation of its 2026 adjusted EBITDA or adjusted EPS guidance to the most directly comparable U.S. GAAP measures, U.S. GAAP net earnings (loss) or U.S. GAAP diluted EPS, respectively, because it was unable to predict with reasonable certainty the ultimate outcome of certain significant items, including integration, acquisition and divestiture-related expenses, restructuring expenses, asset impairments, litigation settlements, future share repurchases, and other contingencies, such as changes to contingent consideration, acquired IPR&D and certain other gains or losses, including for the fair value accounting impact for equity investments, as well as related income tax accounting, because certain of these items had not occurred, were out of the Company's control, and/or could not be reasonably predicted without unreasonable effort. These items were uncertain, depended on various factors, and could have had a material impact on U.S. GAAP reported results for the guidance period. As previously disclosed, such guidance ranges excluded the impact of transaction-related and restructuring-related costs as well as any acquired IPR&D for unsigned deals to be incurred in any future period as it could not be reasonably forecasted. With respect to the Estimated Ranges reaffirmed on May 7, 2026, U.S. GAAP net cash provided by operating activities for 2026 was estimated to be between $1.7 billion and $2.0 billion, with a midpoint of approximately $1.85 billion. Certain Key Terms and Presentation Matters New product sales, new product launches or new product revenues: Refers to revenue from new products launched in 2026 and the carryover impact of new products, including business development, launched within the last 12 months. Operational change: Refers to constant currency percentage changes and is derived by translating amounts for the current period at prior year comparative period exchange rates and in doing so shows the percentage change from 2026 constant currency net sales, total revenues, adjusted EBITDA, and adjusted EPS to the corresponding amount in the prior year. Transaction-related costs: Refers to the impact of any acquisition and divestiture-related transaction costs, including taxes. Restructuring-related costs: Refers to the impact of any cash costs associated with the restructuring activities of the enterprise-wide strategic review, which are expected to be primarily related to severance and employee benefits expense, as well as other costs, including those related to contract terminations, vendor consolidations, product transfer costs and network related simplification and modernization costs. Forward-Looking Statements This press release contains "forward-looking statements". These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may include, without limitation, statements about our 2026 financial guidance; our second-quarter results reflect another quarter of strong execution and reinforce the momentum we're building across our business; commercial execution, pipeline progress and the early benefits of our enterprise-wide strategic review continue strengthening our business and improving our financial performance; our strong first-half results give us the confidence to raise our full-year guidance; we expect a more balanced operating environment in the second half of the year and we remain focused on disciplined execution, investing behind our future growth drivers and creating long-term value for patients and shareholders; we delivered another strong quarter of Total Revenues and Adjusted EBITDA growth over the prior year, reflecting continued strong operational execution; at the same time, we continued to execute on our balanced capital allocation strategy, returning approximately $550 million to shareholders, including approximately $270 million of share repurchases occurring through early August; in addition, we further strengthened our balance sheet and reduced our gross leverage ratio to 2.9x; the Company generated approximately $101 million in new product revenues (approximately $172 million for the year) and continues expecting to deliver approximately $450 million to $550 million in new product revenues in full-year 2026; the transaction to sell the global product rights for Tyrvaya® reflects the Company's continued focus on prioritizing its capital, talent and resources toward opportunities it believes offer the greatest long-term growth potential; the Company expects Gwyn Lo to be commercially available later this year; the outcomes of clinical trials; in May, the FDA inspected the Company's oral solid dose manufacturing facility in Nashik, India, and issued Form 483 observations; the Company responded to the Form 483 observations and promptly initiated a comprehensive remediation plan; the Company has also engaged independent third-party subject matter experts to support its remediation plan; activities under the remediation plan are ongoing and have led to intermittent disruptions at the facility; while production at the facility has resumed, the temporary manufacturing suspension due to the fire at the facility in February along with these intermittent disruptions are expected to impact product supply in the second half of the year; the Company currently anticipates the impact of product supply disruptions to be between $100 million and $150 million to total revenues in the second half of 2026; in May, the Company announced that the FDA accepted for review the New Drug Application for MR-107A-02 (fast-acting meloxicam), a non-opioid, for the treatment of moderate-to-severe acute pain and the FDA has assigned a PDUFA goal date of December 27, 2026; the Company signed a distribution agreement with Accord Healthcare to commercialize three biosimilar products (filgrastim, ustekinumab, teriparatide) in France; the Company signed a co-promotion partnership with Idorsia Ltd. for Quvivq® in Italy and Canada; these transactions reflect the Company's disciplined business development strategy of expanding its portfolio through complementary, accretive products that leverage its regional capabilities and commercial strengths; the Company has approximately $730 million remaining under its existing board-authorized share repurchase program, providing continued flexibility to return additional capital to shareholders; the goals or outlooks with respect to the Company's strategic initiatives and priorities, including but not limited to divestitures, acquisitions, strategic alliances, collaborations, or other potential transactions; the anticipated benefits of such strategic initiatives or priorities or restructuring activities; future opportunities for the Company and its products; the outcomes of clinical trials and research studies; R&D and new product development; and any other statements regarding the Company's future operations, financial or operating results, capital allocation, dividend policy and payments, share repurchases, debt ratio and covenants, anticipated business levels, future earnings, planned activities, anticipated growth, market opportunities, strategies, imperatives, competitions, commitments, confidence in future results, efforts to create, enhance or otherwise unlock value, and other expectations and targets for future periods. Forward-looking statements may often be identified by the use of words such as "will", "may", "could", "should", "would", "project", "believe", "anticipate", "expect", "plan", "estimate", "forecast", "potential", "pipeline", "intend", "continue", "target", "seek" and variations of these words or comparable words. Because forward-looking statements inherently involve risks and uncertainties, actual future results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: the possibility that the Company may not realize the intended benefits of, or achieve the intended goals or outlooks with respect to, its strategic initiatives and priorities; the possibility that the Company may be unable to achieve the intended or expected benefits of its enterprise-wide strategic review and related cost-saving and restructuring activities within the expected timeframe or at all; the possibility that the Company may be unable to achieve intended or expected benefits in connection with divestitures, acquisitions, strategic alliances, collaborations, or other transactions, or restructuring programs, within the expected timeframes or at all; goodwill or impairment charges or other losses; success of clinical trials and the Company's or its partners' ability to execute on new product opportunities and develop, manufacture and commercialize products; any changes in or difficulties with the Company's manufacturing facilities, including with respect to short- or long-term shutdowns, inspections, remediation and restructuring activities, supply chain continuity, inventory management, or the ability to meet anticipated demand; the Company's failure to achieve expected or targeted future financial and operating performance and results; the potential impact of natural or man-made disasters, public health outbreaks, fires, accidents, weather, unrest or other emergencies in regions where we or our partners or suppliers operate; actions and decisions of healthcare and pharmaceutical regulators; changes in relevant laws, regulations and policies and/or the application or implementation thereof, including but not limited to tax, healthcare and pharmaceutical laws, regulations and policies globally; the ability to attract, motivate and retain key personnel; the Company's liquidity, capital resources and ability to obtain financing; any regulatory, legal or other impediments to the Company's ability to bring new products to market; products in development that receive regulatory approval may not achieve expected levels of market acceptance, efficacy or safety; longer review, response and approval times as a result of evolving regulatory priorities and reductions in personnel at health agencies; the scope, timing and outcome of any ongoing legal proceedings, including government inquiries or investigations, and the impact of any such proceedings on the Company; any significant breach of data security or data privacy or disruptions to our IT systems; risks associated with having significant operations globally; the ability to protect intellectual property and preserve intellectual property rights; changes in third-party relationships; the effect of any changes in the Company's or its partners' customer and supplier relationships and customer purchasing patterns, including customer loss and business disruption being greater than expected following an adverse regulatory action, acquisition or divestiture; the impacts of competition, including decreases in sales or revenues as a result of the loss of market exclusivity for certain products; changes in the economic and financial conditions of the Company or its partners; uncertainties regarding future demand, pricing and reimbursement for the Company's products; uncertainties and matters beyond the control of management, including but not limited to general political and economic conditions, wars or other conflicts, potential for adverse impacts from future tariffs and trade restrictions, inflation rates and global exchange rates; and inherent uncertainties involved in the estimates and judgments used in the preparation of financial statements, and the providing of estimates of financial measures, in accordance with U.S. GAAP and related standards or on an adjusted basis. For more detailed information on the risks and uncertainties associated with Viatris, see the risks described in Part I, Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2025, and our other filings with the SEC. You can access Viatris' filings with the SEC through the SEC website at www.sec.gov or through our website, and Viatris strongly encourages you to do so. Viatris routinely posts information that may be important to investors on our website at investor.viatris.com, and we use this website address as a means of disclosing material information to the public in a broad, non-exclusionary manner for purposes of the SEC's Regulation Fair Disclosure (Reg FD). The contents of our website are not incorporated into this press release or our filings with the SEC. Viatris undertakes no obligation to update any statements herein for revisions or changes after the date of this press release other than as required by law. 304.625.5406.0Tax effect of the above items and other income tax related items (f)(122.7)(366.5)(698.7)(548.8)Adjusted net earnings and adjusted EPS$ 808.5$ 0.69$ 726.0$ 0.62$ 1,502.6$ 1.28$ 1,326.3$ 1.11Weighted average diluted shares outstanding1,172.41,176.81,173.81,189.9 Reconciliation of U.S. GAAP Net (Loss) Earnings to EBITDA and Adjusted EBITDA Below is a reconciliation of U.S. GAAP net (loss) earnings to EBITDA and adjusted EBITDA for the three and six months ended June 30, 2026, compared to the prior year period: Summary of Total Revenues by Segment Reconciliation of Statements of Operations Line Items Gross Leverage Ratio Gross Leverage Ratio is the ratio of Viatris' total debt at notional amounts at June 30, 2026 to the sum of Viatris' adjusted EBITDA for the quarters ended September 30, 2025, December 31, 2025, March 31, 2026 and June 30, 2026. Long-term Gross Leverage Target The stated forward-looking non-GAAP financial measure of long-term gross leverage target range of 2.8x – 3.2x, is based on the ratio of (i) targeted notional gross debt and (ii) targeted Adjusted EBITDA. However, the Company has not quantified future amounts to develop this target but has stated its goal to manage notional gross debt and Adjusted EBITDA over time in order to generally maintain or reach the target. This target does not reflect Company guidance. Reconciliation of U.S. GAAP Net (Loss) Earnings to EBITDA and Adjusted EBITDA – Last Twelve Months View original content to download multimedia:https://www.prnewswire.com/news-releases/viatris-reports-second-quarter-2026-financial-results-302844345.html

Viatris (VTRS) came out with quarterly earnings of $0.69 per share, beating the Zacks Consensus Estimate of $0.62 per share. This compares to earnings of $0.62 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +11.29%. A quarter ago, it was expected that this generic drugmaker would post earnings of $0.52 per share when it actually produced earnings of $0.59, delivering a surprise of +13.46%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Viatris, which belongs to the Zacks Medical Services industry, posted revenues of $3.76 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.19%. This compares to year-ago revenues of $3.58 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Viatris shares have added about 41.8% since the beginning of the year versus the S&P 500's gain of 12.8%. While Viatris has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Viatris was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.65 on $3.82 billion in revenues for the coming quarter and $2.46 on $14.74 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical Services is currently in the top 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Sera Prognostics, Inc. (SERA), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 12. This company is expected to post quarterly loss of $0.14 per share in its upcoming report, which represents a year-over-year change of +12.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Sera Prognostics, Inc.'s revenues are expected to be $0.13 million, up 550% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Viatris Inc. (VTRS) : Free Stock Analysis Report Sera Prognostics, Inc. (SERA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research