Track market-moving stories before they get noisy

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.82% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

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That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Viatris (VTRS - Free Report) Viatris, a global healthcare company, was formed in November 2020 through the merger of the erstwhile Mylan and Pfizer’s Upjohn businesses. The company has operations in more than 165 countries. Viatris’ portfolio consists of generics (including complex products), globally recognized iconic brands and an expanding portfolio of innovative drugs. 

VTRS is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 7.27; value investors should take notice.

Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.02 to $2.51 per share. VTRS boasts an average earnings surprise of +10.2%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, VTRS should be on investors' short list.

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NEW YORK & NEW ORLEANS--(BUSINESS WIRE)--Former Attorney General of Louisiana Charles C. Foti, Jr., Esq. and the law firm of Kahn Swick & Foti, LLC (“KSF”) are investigating the proposed sale of Pacira BioSciences, Inc. (NasdaqGS: PCRX) to Viatris Inc. (NasdaqGS: VTRS). Under the terms of the proposed transaction, shareholders of Pacira will receive $36.50 in cash for each share of Pacira that they own. KSF is seeking to determine whether this consideration and the process that led to it are adequate, or whether the consideration undervalues the Company.

If you believe that this transaction undervalues the Company and/or if you would like to discuss your legal rights regarding the proposed sale, you may, without obligation or cost to you, e-mail or call KSF Managing Partner Lewis S. Kahn ([email protected]) toll free at any time at (833) 538-3612, or visit https://www.ksfcounsel.com/cases/nasdaqgs-pcrx/ to learn more.

Please note that the transaction is structured as a tender offer, such that time may be of the essence.

To learn more about KSF, whose partners include the Former Louisiana Attorney General, visit www.ksfcounsel.com.

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More News From Kahn Swick & Foti, LLC

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Bala Cynwyd, Pennsylvania--(Newsfile Corp. - October 8, 2026) - Law office of Brodsky & Smith announces that it is investigating potential claims against the Board of Directors of Pacira BioSciences, Inc. ("Pacira BioSciences" or the "Company") (NASDAQ: PCRX) for possible breaches of fiduciary duty and other violations of federal and state law in connection with the sale of the Company to Viatris Inc. (NASDAQ: VTRS) for $36.50 per share in cash, representing an aggregate equity value of $1.65 billion.

The investigation concerns whether the Pacira BioSciences Board breached its fiduciary duties to shareholders by failing to conduct a fair process, including whether the proposed transaction is paying fair value to shareholders of the Company.

If you own shares of Pacira BioSciences stock and wish to discuss the legal ramifications of the investigation, or have any questions, you may e-mail or call the law office of Brodsky & Smith who will, without obligation or cost to you, attempt to answer your questions. You may contact Jason L. Brodsky, Esquire, or Marc L. Ackerman by email at [email protected], visit https://www.brodskysmith.com/cases/pacira-biosciences-inc-nasdaq-pcrx/, or call toll free 855-576-4847.

Brodsky & Smith is a litigation law firm with extensive expertise representing shareholders throughout the nation in securities and class action lawsuits. The attorneys at Brodsky & Smith have been appointed by numerous courts throughout the country to serve as lead counsel in class actions and have successfully recovered millions of dollars for our clients and shareholders. Attorney advertising. Prior results do not guarantee a similar outcome.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/318170

Source: Brodsky & Smith

Adds Two Marketed, Patent-Protected, High-Margin Medicines in the U.S., EXPAREL® and ZILRETTA®, and Expects to Expand the Products' Reach Across Selected Markets Within Its International Infrastructure Expands U.S. Innovative Medicines Commercial, Market Access, Medical Affairs and Global R&D Capabilities Expected to Be Synergistic With Viatris' Fast-Acting Meloxicam Opportunity Deal Anticipated to Close By the End of 2026 and to Be Immediately Accretive to Viatris' Financial Guidance Metrics Transaction Consistent With Viatris' Disciplined and Balanced Capital Allocation Strategy and Preserves Financial Flexibility , /PRNewswire/ -- Viatris Inc. (Nasdaq: VTRS), a global healthcare company, and Pacira BioSciences, Inc. (Nasdaq: PCRX), a leader in innovative non-opioid pain therapies, today announced that they have entered into a definitive agreement under which Viatris has agreed to acquire all of the outstanding shares of common stock of Pacira for $36.50 per share in cash, representing an aggregate equity value of $1.65 billion.

Pacira brings two established, high-margin, patent-protected, in-market U.S. products – EXPAREL® (bupivacaine liposome injectable suspension) and ZILRETTA® (triamcinolone acetonide extended-release injectable suspension). Pacira generated approximately $746 million in total revenue and approximately $177 million in adjusted EBITDA during the last twelve months ended June 30, 2026.  Viatris plans to leverage its intellectual property expertise and proven ability to extend product lifecycles and sustain meaningful sales after the entry of competition to maximize the long-term value of the Pacira portfolio and expects to expand the products' reach across select markets within its global infrastructure.

"The pending acquisition of Pacira BioSciences is an important step in advancing our strategy to build our innovative medicines business," said Scott A. Smith, CEO, Viatris. "The addition of EXPAREL, for acute postsurgical pain, and ZILRETTA, for osteoarthritis knee pain, are synergistic with our fast-acting meloxicam market opportunity and position us as a leader in non-opioid pain management therapies, an area where patients and healthcare providers continue to seek more treatment options. Pacira also brings Viatris additional U.S. innovative commercial, market access, medical affairs and global R&D capabilities that are highly complementary to our existing infrastructure and portfolio. This transaction accelerates our path to sustained revenue and earnings growth and adds an innovative development pipeline in certain high-value, specialty-driven therapeutic areas with a high unmet need."

"The proposed transaction is expected to be immediately accretive to our financial guidance metrics," said Paul Campbell, Interim CFO, Chief Accounting Officer & Corporate Controller, Viatris. "Importantly, we expect to fund the transaction primarily from excess cash with the remainder from short-term borrowings. As such, we expect the transaction will have minimal impact on our gross leverage ratio. We believe the transaction is consistent with our disciplined and balanced approach to capital allocation, preserves our financial flexibility and provides opportunities to create additional value through both cost and revenue synergies."

"Our mission from the start has been to deliver innovative, non-opioid pain therapies to transform the lives of patients. Pacira has helped reshape pain management by advancing awareness, expanding patient access and driving the adoption of opioid-sparing therapies," said Frank D. Lee, CEO, Pacira BioSciences. "I am immensely proud of what our team has accomplished, from building a leading commercial portfolio that has helped nearly 20 million patients access non-opioid pain management, to advancing our 5x30 strategy and expanding our innovative pipeline. As we enter this next chapter, we are confident that Viatris' shared vision, substantial resources, and global scale will accelerate the impact of our mission and help bring our transformative therapies to even more patients."

A presentation with further details about the transaction can be found at investor.viatris.com.

Terms of the Transaction
Under the terms of the transaction, Viatris will commence a tender offer to acquire all of the outstanding shares of Pacira's common stock for $36.50 per share in cash. Following completion of the tender offer, Viatris will acquire all remaining shares of Pacira's common stock not tendered in the tender offer through a second-step merger for the same consideration.

The transaction, which was unanimously approved by the boards of directors of both companies, is subject to customary closing conditions, including the tender of a majority of the outstanding shares of Pacira's common stock and expiration of the applicable regulatory waiting period. Pacira's board of directors unanimously recommends that Pacira's stockholders tender their shares in the tender offer. The transaction is expected to close by the end of 2026.

Upon completion of the transaction, Pacira will become a wholly owned subsidiary of Viatris and Pacira's common stock will no longer be listed for trading on the Nasdaq Global Select Market.

Advisors
Morgan Stanley & Co. LLC is serving as financial advisor to Viatris, and Cravath, Swaine & Moore LLP is serving as legal advisor. Centerview Partners LLC also provided strategic and financial advice to Viatris.

Goldman Sachs & Co. LLC is serving as exclusive financial advisor to Pacira, and Ashurst Perkins Coie is serving as legal advisor.

Third-Quarter Conference Call
As previously announced, Viatris will report third-quarter 2026 financial results on Thursday, Nov. 5, 2026. Company executives will host a conference call and live webcast at 8:30 a.m. ET on the same date to discuss Viatris' quarterly results and the Pacira transaction. 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. 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 and Hyderabad, India. Learn more at viatris.com and investor.viatris.com, and connect with us on LinkedIn, Instagram, YouTube and X.

About Pacira BioSciences
Pacira BioSciences, Inc. (Nasdaq: PCRX) delivers innovative, non-opioid pain therapies to transform the lives of patients. Pacira has two commercial-stage non-opioid treatments: EXPAREL® (bupivacaine liposome injectable suspension), a long-acting local analgesic for post-surgical pain management and ZILRETTA® (triamcinolone acetonide extended-release injectable suspension), an extended-release, intra-articular injection indicated for the management of osteoarthritis knee pain. Pacira is also advancing a pipeline of clinical-stage assets for musculoskeletal pain and adjacencies. Its most advanced product candidate, PCRX-201 (enekinragene inzadenovec), a novel locally administered gene therapy, is in Phase 2 clinical development for osteoarthritis of the knee. To learn more about Pacira, visit www.pacira.com.

About EXPAREL® (bupivacaine liposome injectable suspension)
EXPAREL is indicated to produce postsurgical local analgesia via infiltration in patients aged 6 years and older, and postsurgical regional analgesia via an interscalene brachial plexus block in adults, a sciatic nerve block in the popliteal fossa in adults, and an adductor canal block in adults. The safety and effectiveness of EXPAREL have not been established to produce postsurgical regional analgesia via other nerve blocks besides an interscalene brachial plexus nerve block, a sciatic nerve block in the popliteal fossa, or an adductor canal block. The product combines bupivacaine with multivesicular liposomes, a proven product delivery technology that delivers medication over a desired time period. EXPAREL represents the first and only multivesicular liposome local anesthetic that can be utilized in the peri- or postsurgical setting. By utilizing the multivesicular liposome platform, a single dose of EXPAREL delivers bupivacaine over time, providing significant reductions in cumulative pain scores with up to a 78 percent decrease in opioid consumption; the clinical benefit of the opioid reduction was not demonstrated. Additional information is available at www.EXPAREL.com.

Important Safety Information about EXPAREL for Patients
EXPAREL should not be used in obstetrical paracervical block anesthesia. In studies in adults where EXPAREL was injected into a wound, the most common side effects were nausea, constipation, and vomiting. In studies in adults where EXPAREL was injected near a nerve, the most common side effects were nausea, fever, and constipation. In the study where EXPAREL was given to children, the most common side effects were nausea, vomiting, constipation, low blood pressure, low number of red blood cells, muscle twitching, blurred vision, itching, and rapid heartbeat. EXPAREL can cause a temporary loss of feeling and/or loss of muscle movement. How much and how long the loss of feeling and/or muscle movement depends on where and how much of EXPAREL was injected and may last for up to 5 days. EXPAREL is not recommended to be used in patients younger than 6 years old for injection into the wound, for patients younger than 18 years old, for injection near a nerve, and/or in pregnant women. Tell your health care provider if you or your child has liver disease, since this may affect how the active ingredient (bupivacaine) in EXPAREL is eliminated from the body. EXPAREL should not be injected into the spine, joints, or veins. The active ingredient in EXPAREL can affect the nervous system and the cardiovascular system; may cause an allergic reaction; may cause damage if injected into the joints; and can cause a rare blood disorder.

About ZILRETTA® (triamcinolone acetonide extended-release injectable suspension)
On October 6, 2017, ZILRETTA was approved by the U.S. Food and Drug Administration as the first and only extended-release intra-articular therapy for patients confronting osteoarthritis (OA)-related knee pain. ZILRETTA employs proprietary microsphere technology combining triamcinolone acetonide—a commonly administered, short-acting corticosteroid—with a poly lactic-co-glycolic acid (PLGA) matrix to provide extended pain relief. The pivotal Phase 3 trial on which the approval of ZILRETTA was based showed that ZILRETTA significantly reduced OA knee pain for 12 weeks, with some people experiencing pain relief through Week 16. Learn more at www.zilretta.com.

Indication and Select Important Safety Information for ZILRETTA
Indication: ZILRETTA is indicated as an intra-articular injection for the management of OA pain of the knee. Limitation of Use: The efficacy and safety of repeat administration of ZILRETTA have not been demonstrated.
Contraindication: ZILRETTA is contraindicated in patients who are hypersensitive to triamcinolone acetonide, corticosteroids or any components of the product.
Warnings and Precautions:

Intra-articular Use Only: ZILRETTA has not been evaluated and should not be administered by epidural, intrathecal, intravenous, intraocular, intramuscular, intradermal, or subcutaneous routes. ZILRETTA should not be considered safe for epidural or intrathecal administration. Serious Neurologic Adverse Reactions with Epidural and Intrathecal Administration: Serious neurologic events have been reported following epidural or intrathecal corticosteroid administration. Corticosteroids are not approved for this use. Hypersensitivity reactions: Serious reactions have been reported with triamcinolone acetonide injection. Institute appropriate care if an anaphylactic reaction occurs. Joint infection and damage: A marked increase in joint pain, joint swelling, restricted motion, fever and malaise may suggest septic arthritis. If this occurs, conduct appropriate evaluation and if confirmed, institute appropriate antimicrobial treatment. Adverse Reactions: The most commonly reported adverse reactions (incidence ≥1%) in clinical studies included sinusitis, cough, and contusions.

Please see ZILRETTALabel.com for full Prescribing Information.

Forward-Looking Statements
This communication contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. 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 the transaction (in which, among other things, Viatris, through its wholly-owned subsidiary, will commence a tender offer to acquire all of the outstanding shares of common stock, $0.001 par value per share, of Pacira and, following the consummation of such tender offer, for such wholly-owned subsidiary of Viatris to be merged with and into Pacira), the expected timetable for completing the proposed transaction, the anticipated benefits and synergies of the proposed transaction, the ability to complete the transaction or to satisfy the various closing conditions, future opportunities for Viatris or Pacira and either of their products and any other statements regarding Viatris' or Pacira's future operations, strategic initiatives and priorities, restructuring activities, 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, other expectations, plans, trends, outlooks, projections, prospects and targets for future periods, and any other statements that are not historical facts. Forward-looking statements may often be identified by the use of words such as "will", "may", "can", "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 known and unknown risks and uncertainties, actual future results, levels of activity, performance or achievements may differ materially from those expressed or implied by such forward-looking statements, and there can be no assurance that estimates, assumptions and expectations will prove to have been correct. Factors that could cause or contribute to such differences include, but are not limited to: the ability of Viatris and Pacira to meet expectations regarding the timing, completion and accounting and tax treatments of the proposed transaction; the ability of Viatris and Pacira to consummate the proposed transaction; the conditions to the completion of the proposed transaction (including, but not limited to, that the stockholders of Pacira validly tender and not withdraw, in the aggregate, at least a majority of the shares of Pacira's common stock outstanding as of immediately following the expiration of the tender offer) not being satisfied or waived on the anticipated timeframe or at all; the regulatory approvals required for the proposed transaction not being obtained on the terms expected or on the anticipated schedule or at all; the possibility that competing offers may be made; the possibility that Viatris may be unable to achieve the intended or expected benefits, synergies and operating efficiencies in connection with the proposed transaction within the expected timeframe or at all or to successfully integrate Viatris and Pacira; Viatris' or Pacira's failure to achieve expected or targeted future financial and operating performance and results; the possibility that Viatris or Pacira may not realize the intended benefits of, or achieve the intended goals or outlooks with respect to, its strategic initiatives and priorities; 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; Viatris' or Pacira's liquidity, capital resources and ability to successfully complete capital projections and obtain financing; Viatris' or Pacira's plans with respect to the repayment of indebtedness; any regulatory, legal or other impediments to Viatris' or Pacira's ability to bring new products to market; success of clinical trials and Viatris' or Pacira's (or, with respect to each, its partners') ability to execute on new product opportunities and develop, manufacture and commercialize products; any changes in or difficulties with Viatris' or Pacira's manufacturing facilities, including with respect to short- or long-term shutdowns, inspections, remediation and restructuring activities, product labeling or regulatory compliance, supply chain continuity, inventory management, or the ability to meet anticipated demand; the scope, timing and outcome of any ongoing legal proceedings, including government inquiries or investigations, and the impact of any such proceedings on Viatris or Pacira; any significant breach of data security or data privacy or disruptions to Viatris' or Pacira's information technology systems; risks associated with having significant operations globally; the strength and ability to protect Viatris' or Pacira's intellectual property and patent terms and preserve their respective intellectual property rights; changes in third-party relationships; the effect of any changes in Viatris' or Pacira's (or, with respect to each, its partners') customer and supplier relationships and customer purchasing patterns, including customer loss and business disruption being greater than expected following the proposed transaction; 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 Viatris or Pacira (or, with respect to each, its partners); uncertainties regarding future demand, pricing and reimbursement for Viatris' or Pacira'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, interest 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 and Pacira, see the risks described in Part I, Item 1A of their respective Annual Reports on Form 10-K for the year ended December 31, 2025, and their other filings with the U.S. Securities and Exchange Commission (the "SEC"). You can access their respective filings with the SEC through the SEC website at www.sec.gov or through their respective websites, and each of Viatris and Pacira 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 communication or our filings with the SEC. Each of Viatris and Pacira undertakes no obligation to update any statements herein for revisions or changes after the date of this communication other than as required by law.

Non-GAAP Financial Measures
This communication 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 EBITDA, adjusted earnings per share ("EPS"), free cash flow excluding transaction-related and restructuring-related costs, and gross leverage ratio, are presented in order to supplement investors' and other readers' understanding and assessment of the financial performance of Viatris and Pacira, as applicable.

Viatris 
Free cash flow refers to U.S. GAAP net cash provided by operating activities less capital expenditures. Free cash flow excluding transaction-related costs or restructuring-related costs refers to free cash flow further adjusted to exclude transaction-related costs and restructuring-related costs, as applicable. Adjusted EBITDA refers to U.S. GAAP net earnings (loss) adjusted for income tax provision (benefit), interest expense and depreciation and amortization (to calculate EBITDA), and further adjusted for share-based compensation expense, litigation settlements and other contingencies, net, loss on divestitures of businesses, impairment of goodwill and restructuring, acquisition and divestiture-related and other special items. Adjusted EPS refers to adjusted net earnings (loss) divided by the weighted average number of diluted shares of common stock outstanding. Adjusted net earnings (loss) refers to U.S. GAAP net (loss) earnings adjusted for purchase accounting amortization; impairment of goodwill; litigation settlements and other contingencies, net; interest expense; loss on divestitures of businesses; acquisition and divestiture-related costs; restructuring costs; share-based compensation expense; other special items included in cost of sales, research and development expense, selling, general and administrative expense, other (income) expense, net; and tax effect of the above items and other income tax related items. Gross leverage ratio refers to the ratio of notional gross debt to adjusted EBITDA. Notional gross debt is the sum of Viatris' long-term debt, including current portion, and short-term borrowings and other current obligations, adjusted for net premiums on various debt issuances and deferred financing fees.

Viatris is not providing forward-looking financial guidance metrics for U.S. GAAP net earnings (loss), U.S. GAAP diluted EPS or U.S. GAAP net cash provided by operating activities 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 in-process research and development ("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 Viatris' 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 a guidance period. 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.

Pacira BioSciences
This press release contains a Pacira financial measure that does not comply with U.S. GAAP, adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), because this non-GAAP financial measure excludes the impact of items that Pacira's management believes affect comparability or underlying business trends.

This measure supplements Pacira's financial results prepared in accordance with U.S. GAAP. Pacira management uses this measure to better analyze its financial results and to help make managerial decisions. In Pacira's management's opinion, this non-GAAP measure is useful to investors and other users of Pacira's financial statements by providing greater transparency into the ongoing operating performance of Pacira and its future outlook. Such a measure should not be deemed to be an alternative to U.S. GAAP requirements or a measure of liquidity for Pacira. The non-GAAP measure presented here is also unlikely to be comparable with non-GAAP disclosures released by other companies.

The Pacira financial measures included herein are consistent with such measures as reported in Pacira's earnings releases as furnished to the SEC. A reconciliation of Pacira's adjusted EBITDA, a non-GAAP financial measure, to the most directly comparable U.S. GAAP financial measure, U.S. GAAP net income (loss), is set forth below.

PACIRA BIOSCIENCES, INC

RECONCILIATION OF U.S. GAAP NET INCOME TO ADJUSTED EBITDA

Three Months Ended

Twelve
Months
Ended

(in Millions)
(Unaudited)

September
30, 2025

December
31, 2025

March
31, 2026

June 30,
2026

June 30,
2026

GAAP Net Income

$

5.4

$

1.6

$

2.9

$

4.7

$

14.6

Interest Income

(8.5)

(2.3)

(1.9)

(1.9)

(14.7)

Interest Expense

4.3

3.9

3.7

3.6

15.5

Income Tax Expense

4.1

(1.1)

2.1

(2.1)

3.0

Depreciation Expense

6.9

7.0

7.0

7.0

27.9

Amortization of Acquired Intangible Assets

14.3

14.3

14.3

14.3

57.3

EBITDA

26.5

23.5

28.1

25.5

103.6

Other Adjustments:

Divestiture and Acquisition-Related Expenses, and Other

7.3

1.4

0.9

6.5

16.1

    Changes in the Fair Value of Contingent Consideration

0.6

0.2

(2.3)

1.7

0.2

Stock-Based Compensation

14.0

13.5

13.5

15.0

56.0

Loss on Early Extinguishment of Debt

1.0

-

-

-

1.0

Adjusted EBITDA

$

49.4

$

38.7

$

40.2

$

48.7

$

177.0

Certain Key Terms and Presentation Matters
Financial guidance metrics: Refers to Viatris total revenues, adjusted EBITDA, free cash flow excluding transaction-related and restructuring-related costs and adjusted EPS. Financial guidance metrics exclude any acquired IPR&D for unsigned deals to be incurred in any future period as it cannot be reasonably forecasted.

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.

Important Information about the Transaction and Where to Find It
The tender offer for the outstanding shares of Pacira's common stock described in this communication has not yet commenced. This document is for informational purposes only and it is neither a recommendation, nor an offer to purchase nor a solicitation of an offer to sell shares of Pacira's common stock, nor is it a substitute for the tender offer materials that Viatris will file with the SEC on Schedule TO.  At the time any such tender offer is commenced, Viatris will prepare and file a Tender Offer Statement, containing an offer to purchase, a form of letter of transmittal and other related tender offer documents, with the SEC, and Pacira will file a Solicitation/Recommendation Statement on Schedule 14D-9 relating to such tender offer with the SEC.  The offer to purchase shares will only be made pursuant to the offer to purchase, the letter of transmittal and other related tender offer documents filed as a part of the Schedule TO. Pacira's stockholders are strongly advised to read these tender offer materials carefully and in their entirety when they become available, as they may be amended or supplemented from time to time, because they will contain important information about such tender offer that Pacira's stockholders should consider prior to making any decisions with respect to such tender offer, including the terms and conditions of the tender offer.  The offer to purchase, letter of transmittal and other related tender offer documents, as well as the Solicitation/Recommendation Statement on Schedule 14D-9, will be sent to all stockholders of Pacira at no expense to them.  Once filed, stockholders of Pacira will be able to obtain a free copy of these documents and each of Viatris' and Pacira's other documents filed with the SEC at the website maintained by the SEC at www.sec.gov. In addition, a copy of the offer to purchase, form of letter of transmittal and other related tender offer documents (once they become available) may be obtained free of charge by directing a request to Viatris at [email protected].  A copy of the Solicitation/Recommendation Statement on Schedule 14D-9 (once it becomes available) also may be obtained free of charge by directing a request to Pacira at [email protected].

SOURCE Viatris Inc.

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Viatris (VTRS - Free Report) is a stock many investors are watching right now. VTRS is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.

Investors should also recognize that VTRS has a P/B ratio of 0.75. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.17. Within the past 52 weeks, VTRS's P/B has been as high as 0.81 and as low as 0.55, with a median of 0.70.

Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. VTRS has a P/S ratio of 1.37. This compares to its industry's average P/S of 1.54.

Finally, our model also underscores that VTRS has a P/CF ratio of 5.21. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.92. Over the past 52 weeks, VTRS's P/CF has been as high as 8.41 and as low as 4.30, with a median of 5.49.

These are only a few of the key metrics included in Viatris's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, VTRS looks like an impressive value stock at the moment.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.86% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Viatris (VTRS - Free Report) Viatris, a global healthcare company, was formed in November 2020 through the merger of the erstwhile Mylan and Pfizer’s Upjohn businesses. The company has operations in more than 165 countries. Viatris’ portfolio consists of generics (including complex products), globally recognized iconic brands and an expanding portfolio of innovative drugs. 

VTRS is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Medical stock. VTRS has a Momentum Style Score of B, and shares are up 4.3% over the past four weeks.

For fiscal 2026, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.06 to $2.52 per share. VTRS boasts an average earnings surprise of +10.2%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, VTRS should be on investors' short list.

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.86% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Viatris (VTRS - Free Report) Viatris, a global healthcare company, was formed in November 2020 through the merger of the erstwhile Mylan and Pfizer’s Upjohn businesses. The company has operations in more than 165 countries. Viatris’ portfolio consists of generics (including complex products), globally recognized iconic brands and an expanding portfolio of innovative drugs. 

VTRS is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 7.05; value investors should take notice.

For fiscal 2026, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.06 to $2.52 per share. VTRS boasts an average earnings surprise of +10.2%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, VTRS should be on investors' short list.

, /PRNewswire/ -- Viatris Inc. (Nasdaq: VTRS), a global healthcare company, today announced it was named to Forbes' World's Best Employers list for the sixth consecutive year. The ranking is presented by Forbes and Statista, the world-leading statistics portal and industry ranking provider, and is based on independent employee feedback collected globally, highlighting employee trust, workplace experience and organizational culture at Viatris.

"Being recognized on Forbes' World's Best Employers list for the sixth consecutive year reflects the dedication and ingenuity of our colleagues around the world who make Viatris a place where people feel connected, supported and empowered to make an impact," said Lara Ramsburg, Chief People and Corporate Affairs Officer, Viatris. "By bringing together diverse perspectives, embracing new ideas and working collaboratively to solve meaningful challenges, our people are helping build a stronger Viatris while improving the lives of patients around the world."

Forbes and Statista recognized Viatris among the World's Best Employers based on employee survey data collected through an independent survey covering a broad sample of more than 300,000 participants across over 50 countries. Respondents worldwide rated their "willingness to recommend" their employer on a 1-to-10 scale and had the chance to evaluate their organization across multiple aspects of employment. They were also able to provide feedback on both current and former employers. Additionally, participants could share their public perception of other companies operating within their country and industry. In total, 900 companies were included in the ranking.  

To learn more about Viatris' culture that creates trust and a willingness to help one another succeed, please visit its careers site. You can also learn more by reading its 2025 Sustainability Report, which outlines the company's 2025 achievements and progress across key areas including Access and Global Health, Our People, the Environment and the Community. 

Being named to Forbes' list of World's Best Employers 2026 follows Viatris' inclusion on Fortune's World's Best Workplaces 2025, TIME's World's Most Impactful Companies 2026, TIME's World's Most Sustainable Companies 2026, Newsweek's World's Greenest Companies 2026, Business Insider's America's Most Innovative Businesses 2027 and 3BL's 100 Best Corporate Citizens 2026, among others.   

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, and Hyderabad, India. Learn more at viatris.com and investor.viatris.com, and connect with us on LinkedIn, Instagram, YouTube and X.

SOURCE Viatris Inc.

During times of turbulence and uncertainty in the markets, many investors turn to dividend-yielding stocks. These are often companies that have high free cash flows and reward shareholders with a high dividend payout.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of VTRS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Cavendish has reiterated its buy rating on Shield Therapeutics PLC (AIM:STX, OTCQB:SHIEF) following the pharmaceutical company's agreement to take full commercial control of its main United States (US) product from Viatris.

The broker kept its target price at 23 pence, implying potential upside of 318% from current share price of about 5.5 pence.

Shield, which is listed on London's AIM market, announced on Thursday that it would assume full responsibility for ACCRUFeR, an oral iron replacement therapy, in the US from 30 September.

The company will take over commercial operations without making any upfront cash payment.

Instead, Shield will pay Viatris a reduced royalty on US net sales, ranging from high single digits to the mid-teens, over five years.

Cavendish called the deal one of the most significant strategic developments for Shield since its original US agreement in 2022.

The broker said bringing the sales team in-house should improve profit margins, even as operating costs rise.

Shield's management expects the transaction to be immediately value accretive to the business.

Cavendish forecasts Shield's revenue will rise to £78.7 million in the 2026 financial year, up from £49.7 million in 2025.

No Investment Advice

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Viatris Inc. (VTRS) Q2 2026 Earnings Call August 6, 2026 8:30 AM EDT

Company Participants

William Szablewski - Head of Investor Relations & Capital Markets
Scott Smith - CEO & Director
Philippe Martin - Chief R&D Officer
Paul Campbell - Interim CFO, Chief Accounting Officer & Corporate Controller
Corinne Le Goff - Chief Commercial Officer

Conference Call Participants

Ashwani Verma - UBS Investment Bank, Research Division
Umer Raffat - Evercore ISI Institutional Equities, Research Division
Matthew Dellatorre - Goldman Sachs Group, Inc., Research Division
Glen Santangelo - Barclays Bank PLC, Research Division
Ethan Brown - JPMorgan Chase & Co, Research Division
Yuchen Ding - Jefferies LLC, Research Division
Jason Gerberry - BofA Securities, Research Division
David Amsellem - Piper Sandler & Co., Research Division

Presentation

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
Head of Investor Relations & Capital Markets

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

Harrow Inc. (NASDAQ:HROW) on Thursday agreed to acquire Tyrvaya (varenicline solution) nasal spray 0.03 mg from Viatris Inc. (NASDAQ:VTRS).

Viatris To Sell Tyrvaya To Harrow In Up To $100 Million DealTyrvaya is a cholinergic agonist indicated for signs and symptoms of dry eye disease and is currently approved in the U.S., China, and Taiwan, with marketing authorization applications pending in other countries.

Harrow will pay $30 million in cash and up to $70 million in contingent milestone payments tied to Tyrvaya’s net sales, for a potential total consideration of up to $100 million.

The transaction is expected to close in the second half of 2026.

Read Next

Viatris Q2 PerformanceViatris on Thursday reported second-quarter adjusted earnings of 69 cents per share, beating the consensus of 60 cents.

The generic drug maker reported sales of $3.756 billion, ahead of the consensus of $3.675 billion.

Sales jumped 5% year over year (+3.5% on an operational basis), primarily driven by new product sales in Developed Markets and strong growth in Greater China.

“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.”

In the company earnings conference call, Viatris said the Tyrvaya deal will help it focus on high-potential growth areas, particularly in complex generics and transdermal products, as well as continued investment in the Greater China market.

Viatris Raises 2026 Earnings And Sales Guidance“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,” Smith said.

Viatris raised its fiscal 2026 adjusted earnings guidance from $2.33-$2.47 per share to $2.45-$2.49 compared to the consensus of $2.44.

The company raised its 2026 sales guidance from $14.45 billion-$14.95 billion to $14.55 billion-$14.95 billion versus the Wall Street estimate of $14.783 billion.

VTRS Price Action: Viatris shares were down 4.16% at $16.91 at the time of publication on Thursday, according to Benzinga Pro data.

Read Next

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Viatris (VTRS - Free Report) 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%.

What's Next for Viatris?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 - Free Report) , 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.

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] , /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

Three Months Ended

June 30,

(Unaudited; in millions, except %s and per share amounts)

2026

2025

Reported
Change

Operational
Change(1) (2)

Total Revenues

$ 3,756.8

$ 3,582.1

5 %

4 %

Total Net Sales

$ 3,745.9

$ 3,569.0

5 %

4 %

Developed Markets

2,193.7

2,119.3

4 %

2 %

Emerging Markets

542.3

555.1

(2) %

(2) %

JANZ

296.1

305.7

(3) %

— %

Greater China

713.8

588.9

21 %

16 %

Net Sales by Product Category

Brands

$ 2,418.4

$ 2,284.5

6 %

4 %

Generics

1,327.5

1,284.5

3 %

3 %

U.S. GAAP Gross Profit

$ 1,456.5

$ 1,332.9

9 %

U.S. GAAP Gross Margin

38.8 %

37.2 %

Adjusted Gross Profit (2)

$ 2,158.9

$ 2,028.4

6 %

Adjusted Gross Margin (2)

57.5 %

56.6 %

U.S. GAAP Net Loss

$   (118.8)

$       (4.6)

NM

U.S. GAAP Loss Per Share

$     (0.10)

$         —

NM

Adjusted Net Earnings (2)

$    808.5

$    726.0

11 %

Adjusted EPS (2)

$      0.69

$      0.62

11 %

9 %

EBITDA (2)

$    729.0

$    577.8

26 %

Adjusted EBITDA (2)

$ 1,188.3

$ 1,078.8

10 %

8 %

U.S. GAAP Net Cash Provided by Operating Activities

$    381.8

$    219.7

74 %

Capital Expenditures

52.8

52.9

— %

Free Cash Flow (2)(3)

$    329.0

$    166.8

97 %

___________

(1)

See "Certain Key Terms and Presentation Matters" in this release for more information.

(2)

Non-GAAP financial measures. See "Non-GAAP Financial Measures" for additional information.

(3)

Excluding the impact of transaction-related and restructuring-related costs of $120 million, free cash flow for the three months ended June 30, 2026, was $449 million. Excluding the impact of transaction-related costs of $74 million, free cash flow for the three months ended June 30, 2025, was $241 million.

Six Months Ended

June 30,

(Unaudited; in millions, except %s and per share amounts)

2026

2025

Reported
Change

Operational
Change(1) (2)

Total Revenues

$  7,273.8

$  6,836.4

6 %

3 %

Total Net Sales

$  7,255.6

$  6,812.2

7 %

3 %

Developed Markets

4,214.5

4,011.0

5 %

1 %

Emerging Markets

1,077.7

1,075.0

— %

(1) %

JANZ

569.5

581.8

(2) %

(1) %

Greater China

1,393.9

1,144.4

22 %

17 %

Net Sales by Product Category

Brands

$  4,750.9

$  4,401.4

8 %

4 %

Generics

2,504.7

2,410.8

4 %

2 %

U.S. GAAP Gross Profit

$  2,613.7

$  2,494.1

5 %

U.S. GAAP Gross Margin

35.9 %

36.5 %

Adjusted Gross Profit (2)

$  4,129.2

$  3,848.0

7 %

Adjusted Gross Margin (2)

56.8 %

56.3 %

U.S. GAAP Net Earnings (Loss) (3)

$       57.6

$ (3,046.6)

NM

U.S. GAAP Earnings (Loss) Per Share (3)

$       0.05

$      (2.58)

NM

Adjusted Net Earnings (2)

$  1,502.6

$  1,326.3

13 %

Adjusted EPS (2)

$       1.28

$       1.11

15 %

11 %

EBITDA (2)

$  1,277.9

$ (1,739.0)

NM

Adjusted EBITDA (2)

$  2,237.8

$  2,002.3

12 %

9 %

U.S. GAAP Net Cash Provided by Operating Activities

$     770.1

$     755.2

2 %

Capital Expenditures

92.7

95.5

(3) %

Free Cash Flow (2)(4)

$     677.4

$     659.7

3 %

___________

(1)

See "Certain Key Terms and Presentation Matters" in this release for more information.

(2)

Non-GAAP financial measures. See "Non-GAAP Financial Measures" for additional information.

(3)

For the six months ended June 30, 2025, includes the previously disclosed goodwill impairment charge of $2.9 billion as a result of the interim goodwill impairment test performed as of March 31, 2025.

(4)

Excluding the impact of transaction-related and restructuring-related costs of $231 million, free cash flow for the six months ended June 30, 2026, was $908 million. Excluding the impact of transaction-related costs of $116 million, free cash flow for the six months ended June 30, 2025, was $776 million.

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.

(In millions, except Adjusted EPS)

Estimated Ranges (2)

May 7, 2026

Midpoint (2)

May 7, 2026

Estimated Ranges (3)

August 6, 2026

Midpoint (3)

August 6, 2026

Total Revenues

$14,450 - $14,950

$14,700

$14,550 - $14,950

$14,750

Adjusted EBITDA (1)

$4,150 - $4,450

$4,300

$4,300 - $4,500

$4,400

Adjusted EPS (1)

$2.33 - $2.47

$2.40

$2.45 - $2.59

$2.52

Free Cash Flow (1)

Excluding Transaction-related and Restructuring-related Costs

$1,950 - $2,350

$2,150

$2,050 - $2,350

$2,200

(1)

Non-GAAP financial measures. See "Non-GAAP Financial Measures" for additional information.

(2)

2026 Financial Guidance reaffirmed on May 7, 2026, excluded any acquired IPR&D for unsigned deals to be incurred in any future period as it could not be reasonably forecasted. 

(3)

2026 Financial Guidance as provided on August 6, 2026, excludes any acquired IPR&D for unsigned deals to be incurred in any future period as it cannot be reasonably forecasted.

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.

Viatris Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

(In millions, except per share amounts)

2026

2025

2026

2025

Revenues:

Net sales

$    3,745.9

$    3,569.0

$    7,255.6

$    6,812.2

Other revenues

10.9

13.1

18.2

24.2

Total revenues

3,756.8

3,582.1

7,273.8

6,836.4

Cost of sales

2,300.3

2,249.2

4,660.1

4,342.3

Gross profit

1,456.5

1,332.9

2,613.7

2,494.1

Operating expenses:

Research and development

248.3

218.8

496.9

440.8

Acquired IPR&D

(5.8)

—

0.2

10.0

Selling, general and administrative

1,134.5

928.7

2,063.3

1,876.8

Impairment of goodwill

—

—

—

2,936.8

Litigation settlements and other contingencies, net

73.2

(47.6)

126.7

(121.1)

Total operating expenses

1,450.2

1,099.9

2,687.1

5,143.3

Earnings (loss) from operations

6.3

233.0

(73.4)

(2,649.2)

Interest expense

120.7

116.6

240.8

232.1

Other (income) expense, net

(50.4)

333.5

(2.9)

432.8

Loss before income taxes

(64.0)

(217.1)

(311.3)

(3,314.1)

Income tax provision (benefit)

54.8

(212.5)

(368.9)

(267.5)

Net (loss) earnings

$     (118.8)

$       (4.6)

$       57.6

$  (3,046.6)

(Loss) earnings per share attributable to Viatris Inc. shareholders

Basic

$       (0.10)

$          —

$       0.05

$       (2.58)

Diluted

$       (0.10)

$          —

$       0.05

$       (2.58)

Weighted average shares outstanding:

Basic

1,163.3

1,173.0

1,159.4

1,182.7

Diluted

1,163.3

1,173.0

1,173.8

1,182.7

Viatris Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited)

(In millions)

June 30,
2026

December 31,
2025

ASSETS

Assets

Current assets:

Cash and cash equivalents

$        886.5

$      1,322.4

Accounts receivable, net

3,126.2

3,031.3

Inventories

3,933.2

3,999.2

Prepaid expenses and other current assets

2,109.8

1,436.3

Total current assets

10,055.7

9,789.2

Intangible assets, net

13,676.9

15,102.1

Goodwill

6,654.4

6,754.7

Other non-current assets

4,657.6

5,547.1

Total assets

$    35,044.6

$    37,193.1

LIABILITIES AND EQUITY

Liabilities

Current portion of long-term debt and other long-term obligations

$      1,738.9

$      1,933.3

Other current liabilities

4,606.9

5,161.0

Long-term debt

11,612.4

12,480.6

Other non-current liabilities

2,826.0

2,906.9

Total liabilities

20,784.2

22,481.8

Shareholders' equity

14,260.4

14,711.3

Total liabilities and equity

$    35,044.6

$    37,193.1

Viatris Inc. and Subsidiaries

Key Product Net Sales, on a Consolidated Basis

(Unaudited)

Three months ended June 30,

Six months ended June 30,

(In millions)

2026

2025

2026

2025

Select Key Global Products

Lipitor ®

$          452.2

$          387.9

$          914.2

$          775.9

Norvasc ®

200.2

182.7

410.2

355.0

EpiPen® Auto-Injectors

129.2

136.8

230.3

233.5

Lyrica ®

120.6

128.1

241.2

240.7

Viagra ®

112.9

100.3

207.9

198.8

Creon ®

97.4

91.4

194.8

173.8

Celebrex ®

76.4

70.0

143.5

133.4

Zoloft ®

71.4

61.1

144.0

121.3

Effexor ®

66.7

63.1

128.7

122.4

Xalabrands

38.8

40.7

78.0

77.8

Select Key Segment Products

Yupelri ®

70.7

66.6

$          133.2

$          124.9

Dymista ®

39.8

48.4

77.1

91.2

Amitiza ®

39.4

41.6

73.4

74.9

Xanax ®

38.1

33.9

72.9

66.2

____________

(a)

The Company does not disclose net sales for any products considered competitively sensitive.

(b)

Products disclosed may change in future periods, including as a result of seasonality, competition or new product launches.

(c)

Amounts include the impact of foreign currency fluctuations compared to the prior year period.

Viatris Inc. and Subsidiaries 
Reconciliation of Non-GAAP Financial Measures 
(Unaudited)

Reconciliation of U.S. GAAP Net (Loss) Earnings to Adjusted Net Earnings and U.S. GAAP (Loss) Earnings Per Share to Adjusted EPS

Below is a reconciliation of U.S. GAAP net (loss) earnings and diluted (loss) earnings per share to adjusted net earnings and adjusted EPS for the three and six months ended June 30, 2026, compared to the prior year period: 

Three Months Ended June 30,

Six Months Ended June 30,

(In millions, except per share amounts)

2026

2025

2026

2025

U.S. GAAP net (loss) earnings and U.S. GAAP diluted (loss) earnings per share

$ (118.8)

$         (0.10)

$   (4.6)

$   —

$   57.6

$ 0.05

$         (3,046.6)

$ (2.58)

Purchase accounting amortization (primarily included in cost of sales)

586.4

597.8

1,177.9

1,181.3

Impairment of goodwill

—

—

—

2,936.8

Litigation settlements and other contingencies, net

73.2

(47.6)

126.7

(121.1)

Interest expense (primarily amortization of premiums and discounts on long term debt)

(10.2)

(9.5)

(20.3)

(18.7)

Loss on divestitures of businesses (included in other (income) expense, net)

—

43.8

13.9

80.7

Acquisition and divestiture-related costs (primarily included in cost of sales and SG&A)(a)

51.4

53.7

113.7

94.4

Restructuring costs (b)

47.8

26.6

140.3

119.5

Share-based compensation expense

38.7

37.1

86.9

92.3

Other special items included in:

Cost of sales (c)

56.3

59.1

198.7

100.7

Research and development expense

1.1

1.4

3.9

2.1

Selling, general and administrative expense (d)

241.1

30.1

276.5

47.7

Other (income) expense, net (e)

(35.8)

304.6

25.5

406.0

Tax 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

$ 1.11

Weighted average diluted shares outstanding

1,172.4

1,176.8

1,173.8

1,189.9

____________

Significant items include the following:

(a)

Acquisition and divestiture-related costs consist primarily of contractual obligations related to divestitures, transaction costs including legal and consulting fees, and integration activities.

(b)

For the three and six months ended June 30, 2026, charges include approximately $26.9 million and $76.7 million in cost of sales, approximately $2.0 million and $2.6 million in R&D, and approximately $19.0 million and $61.0 million in SG&A, primarily relating to the 2026 restructuring program.

(c)

For the three and six months ended June 30, 2026, includes certain asset impairments, contractual termination costs, and incremental manufacturing variances and certain remediation costs at plants slated for sale or closure or undergoing remediation activities of approximately $44.2 million and $174.9 million, respectively, including charges of $14.9 million and $86.8 million, respectively, primarily related to the write off of inventory and fixed assets damaged in the fire at the Nashik manufacturing facility and incremental manufacturing variances.

(d)

For the three and six months ended June 30, 2026, includes a charge of $177.8 million related to the planned sale of the product rights for Tyrvaya®.

(e)

For the three and six months ended June 30, 2026, charges include a (gain)/loss of approximately $(56.3) million and $8.6 million, respectively, as a result of changes in the fair value of the Biocon Limited equity shares.

(f)

Adjusted for changes for uncertain tax positions. 

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:

Three Months Ended

Six Months Ended

June 30,

June 30,

(In millions)

2026

2025

2026

2025

U.S. GAAP net (loss) earnings

$    (118.8)

$       (4.6)

$       57.6

$  (3,046.6)

Add / (deduct) adjustments:

Income tax provision (benefit)

54.8

(212.5)

(368.9)

(267.5)

Interest expense (a)

120.7

116.6

240.8

232.1

Depreciation and amortization (b)

672.3

678.3

1,348.4

1,343.0

EBITDA

$     729.0

$     577.8

$   1,277.9

$  (1,739.0)

Add / (deduct) adjustments:

Share-based compensation expense

38.7

37.1

86.9

92.3

Litigation settlements and other contingencies, net

73.2

(47.6)

126.7

(121.1)

Loss on divestitures of businesses

—

43.8

13.9

80.7

Impairment of goodwill

—

—

—

2,936.8

Restructuring, acquisition and divestiture-related and other special items (c)

347.4

467.7

732.4

752.6

Adjusted EBITDA

$   1,188.3

$   1,078.8

$   2,237.8

$   2,002.3

____________

(a)

Includes amortization of premiums and discounts on long-term debt.

(b)

Includes purchase accounting related amortization.

(c)

See items detailed in the Reconciliation of U.S. GAAP Net (Loss) Earnings to Adjusted Net Earnings.

Summary of Total Revenues by Segment

Three Months Ended

June 30,

(In millions, except %s)

2026

2025

%
Change

2026
Currency
Impact (1)

2026
Constant
Currency
Revenues

Constant
Currency %
Change (2)

Net sales

Developed Markets

$ 2,193.7

$ 2,119.3

4 %

$   (30.8)

$  2,162.9

2 %

Greater China

713.8

588.9

21 %

(28.6)

685.2

16 %

JANZ

296.1

305.7

(3) %

8.1

304.2

— %

Emerging Markets

542.3

555.1

(2) %

2.1

544.4

(2) %

Total net sales

3,745.9

3,569.0

5 %

(49.2)

3,696.7

4 %

Other revenues (3)

10.9

13.1

NM

(0.1)

10.8

NM

Consolidated total revenues (4)

$ 3,756.8

$ 3,582.1

5 %

$   (49.3)

$  3,707.5

4 %

Six Months Ended

June 30,

(In millions, except %s)

2026

2025

%
Change

2026
Currency
Impact (1)

2026
Constant
Currency
Revenues

Constant
Currency %
Change (2)

Net sales

Developed Markets

$ 4,214.5

$ 4,011.0

5 %

$  (148.5)

$  4,066.0

1 %

Greater China

1,393.9

1,144.4

22 %

(54.2)

1,339.7

17 %

JANZ

569.5

581.8

(2) %

4.3

573.8

(1) %

Emerging Markets

1,077.7

1,075.0

— %

(12.5)

1,065.2

(1) %

Total net sales

$ 7,255.6

$ 6,812.2

7 %

$  (210.9)

$  7,044.7

3 %

Other revenues (3)

18.2

24.2

NM

(0.2)

18.0

NM

Consolidated total revenues (4)

$ 7,273.8

$ 6,836.4

6 %

$  (211.1)

$  7,062.7

3 %

____________

(1)

Currency impact is shown as unfavorable (favorable).

(2)

The constant currency percentage change is derived by translating net sales or revenues 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 or revenues to the corresponding amount in the prior year.

(3)

For the three months ended June 30, 2026, other revenues in Developed Markets, JANZ, and Emerging Markets were approximately $9.3 million, $0.1 million, and $1.5 million, respectively. For the six months ended June 30, 2026, other revenues in Developed Markets, JANZ, and Emerging Markets were approximately $14.5 million, $0.2 million, and $3.5 million, respectively.

(4)

Amounts exclude intersegment revenue which eliminates on a consolidated basis.

Reconciliation of Statements of Operations Line Items

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

(In millions, except %s)

2026

2025

2026

2025

U.S. GAAP cost of sales

$   2,300.3

$   2,249.2

$   4,660.1

$   4,342.3

Deduct:

Purchase accounting amortization and other related items

(586.4)

(597.8)

(1,177.9)

(1,181.3)

Acquisition and divestiture-related costs

(32.0)

(26.4)

(60.4)

(38.6)

Restructuring costs

(26.9)

(11.3)

(76.7)

(31.1)

Share-based compensation expense

(0.8)

(0.9)

(1.8)

(2.2)

Other special items, including restructuring related costs

(56.3)

(59.1)

(198.7)

(100.7)

Adjusted cost of sales

$   1,597.9

$   1,553.7

$   3,144.6

$   2,988.4

Adjusted gross profit (a)

$   2,158.9

$   2,028.4

$   4,129.2

$   3,848.0

Adjusted gross margin (a)

57 %

57 %

57 %

56 %

Three Months Ended

Six Months Ended

June 30,

June 30,

(In millions, except %s)

2026

2025

2026

2025

U.S. GAAP R&D

$     248.3

$     218.8

$     496.9

$     440.8

Deduct:

Acquisition and divestiture-related costs

(1.1)

(2.6)

(3.1)

(3.3)

Restructuring costs

(2.0)

(1.4)

(2.6)

(2.2)

Share-based compensation expense

(2.1)

(2.2)

(4.8)

(4.5)

Other special items

(1.1)

(1.4)

(3.9)

(2.1)

Adjusted R&D

$     242.0

$     211.2

$     482.5

$     428.7

Adjusted R&D as % of total revenues

6 %

6 %

7 %

6 %

Three Months Ended

Six Months Ended

June 30,

June 30,

(In millions, except %s)

2026

2025

2026

2025

U.S. GAAP SG&A

$   1,134.5

$     928.7

$   2,063.3

$   1,876.8

Deduct:

Acquisition and divestiture-related costs

(18.1)

(24.7)

(50.1)

(52.5)

Restructuring costs

(19.0)

(14.0)

(61.0)

(86.3)

Share-based compensation expense

(35.8)

(33.9)

(80.3)

(85.6)

Other special items and reclassifications

(241.1)

(30.1)

(276.5)

(47.7)

Adjusted SG&A

$     820.5

$     826.0

$   1,595.4

$   1,604.7

Adjusted SG&A as % of total revenues

22 %

23 %

22 %

23 %

Three Months Ended

Six Months Ended

June 30,

June 30,

(In millions)

2026

2025

2026

2025

U.S. GAAP total operating expenses

$     1,450.2

$     1,099.9

$   2,687.1

$   5,143.3

Add / (Deduct):

Litigation settlements and other contingencies, net

(73.2)

47.6

(126.7)

121.1

R&D adjustments

(6.3)

(7.6)

(14.4)

(12.1)

SG&A adjustments

(314.0)

(102.7)

(467.9)

(272.1)

Impairment of goodwill adjustments

—

—

—

(2,936.8)

Adjusted total operating expenses

$     1,056.7

$     1,037.2

$   2,078.1

$   2,043.4

Adjusted earnings from operations (b)

$     1,102.2

$       991.2

$   2,051.1

$   1,804.6

Three Months Ended

Six Months Ended

June 30,

June 30,

(In millions)

2026

2025

2026

2025

U.S. GAAP interest expense

$       120.7

$       116.6

$     240.8

$     232.1

Add / (Deduct):

Accretion of contingent consideration liability

(0.9)

(1.2)

(1.8)

(2.4)

Amortization of premiums and discounts on long-term debt

11.7

11.4

23.5

22.4

Other special items

(0.7)

(0.7)

(1.4)

(1.3)

Adjusted interest expense

$       130.8

$       126.1

$     261.1

$     250.8

Three Months Ended

Six Months Ended

June 30,

June 30,

(In millions)

2026

2025

2026

2025

U.S. GAAP other (income) expense, net

$       (50.4)

$       333.5

$      (2.9)

$     432.8

Add / (Deduct):

Fair value adjustments on non-marketable equity investments

—

(284.0)

—

(399.8)

Fair value adjustments on marketable equity investments

56.3

—

(8.6)

—

Loss on divestitures of businesses

—

(43.8)

(13.9)

(80.7)

Other items

(20.7)

(20.5)

(17.0)

(6.1)

Adjusted other income, net

$       (14.8)

$       (14.8)

$     (42.4)

$     (53.8)

Three Months Ended

Six Months Ended

June 30,

June 30,

(In millions, except %s)

2026

2025

2026

2025

U.S. GAAP loss before income taxes

$      (64.0)

$    (217.1)

$     (311.3)

$  (3,314.1)

Total pre-tax non-GAAP adjustments

1,050.0

1,097.1

2,143.7

4,921.8

Adjusted earnings before income taxes

$     986.0

$     880.0

$   1,832.4

$   1,607.7

U.S. GAAP income tax provision (benefit)

$       54.8

$    (212.5)

$     (368.9)

$     (267.5)

Adjusted tax expense

122.7

366.5

698.7

548.8

Adjusted income tax provision

$     177.5

$     154.0

$      329.8

$      281.3

Adjusted effective tax rate

18.0 %

17.5 %

18.0 %

17.5 %

___________

(a)

U.S. GAAP gross profit is calculated as total revenues less U.S. GAAP cost of sales. U.S. GAAP gross margin is calculated as U.S. GAAP gross profit divided by total revenues. Adjusted gross profit is calculated as total revenues less adjusted cost of sales. Adjusted gross margin is calculated as adjusted gross profit divided by total revenues.

(b)

U.S. GAAP earnings from operations is calculated as U.S. GAAP gross profit less U.S. GAAP total operating expenses. Adjusted earnings from operations is calculated as adjusted gross profit less adjusted total operating expenses. 

Reconciliation of Estimated 2026 U.S. GAAP Net Cash Provided by Operating Activities to Free Cash Flow as of August 6, 2026

(Unaudited)

A reconciliation of the estimated 2026 U.S. GAAP Net Cash provided by Operating Activities to Free Cash Flow is presented below:

(In millions)

Estimated U.S. GAAP Net Cash provided by Operating Activities

$1,900 - $2,100

Less: Capital Expenditures

$(350) - $(450)

Free Cash Flow

$1,450 - $1,750

Add: Estimated Transaction-related and Restructuring-related Costs

~$600

Free Cash Flow Excluding Transaction-related and Restructuring-related Costs

$2,050 - $2,350

Reconciliation of Estimated 2026 U.S. GAAP Net Cash Provided by Operating Activities to Free Cash Flow as of May 7, 2026

(Unaudited)

A reconciliation of the estimated 2026 U.S. GAAP Net Cash provided by Operating Activities to Free Cash Flow is presented below:

(In millions)

Estimated U.S. GAAP Net Cash provided by Operating Activities

$1,700 - $2,000

Less: Capital Expenditures

$(350) - $(450)

Free Cash Flow

$1,250 - $1,650

Add: Estimated Transaction-related and Restructuring-related Costs

~$700

Free Cash Flow Excluding Transaction-related and Restructuring-related Costs

$1,950 - $2,350

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.

Three Months Ended

Twelve
Months
Ended

(In millions, except ratio)

September 30,
2025

December 31,
2025

March 31,
2026

June 30,
2026

June 30, 2026

Adjusted EBITDA

$   1,154.6

$     1,003.1

$    1,049.5

$   1,188.3

$   4,395.5

Reported debt balances:

Long-term debt, including current portion

13,348.6

Short-term borrowings and other current obligations

—

Total

13,348.6

Add / (deduct):

Net premiums on various debt issuances

(423.7)

Deferred financing fees

23.1

Total debt at notional amounts

$  12,948.0

Gross debt to adjusted EBITDA

          2.9 x

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

Three Months Ended

September 30,
2025

December 31,
2025

March 31,
2026

June 30,
2026

U.S. GAAP net (loss) earnings

$       (128.2)

$       (340.1)

$         176.4

$       (118.8)

Add / (deduct) adjustments:

Income tax provision (benefit)

120.3

(2.9)

(423.7)

54.8

Interest expense (a)

119.6

119.6

120.1

120.7

Depreciation and amortization (b)

688.5

766.8

676.1

672.3

EBITDA

$         800.2

$         543.4

$         548.9

$         729.0

Add / (deduct) adjustments:

Share-based compensation expense

36.0

49.4

48.2

38.7

Litigation settlements and other contingencies, net

55.7

(3.1)

53.5

73.2

(Gain) loss on divestitures of businesses

(1.6)

21.9

13.9

—

Restructuring, acquisition and divestiture-related and other special items

264.3

391.5

385.0

347.4

Adjusted EBITDA

$      1,154.6

$      1,003.1

$      1,049.5

$      1,188.3

SOURCE Viatris Inc.

In its upcoming report, Viatris (VTRS - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $0.62 per share, reflecting no change compared to the same period last year. Revenues are forecasted to be $3.68 billion, representing a year-over-year increase of 2.6%.

The current level reflects a downward revision of 1% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

Given this perspective, it's time to examine the average forecasts of specific Viatris metrics that are routinely monitored and predicted by Wall Street analysts.

The average prediction of analysts places 'Net Sales- Developed Markets' at $2.18 billion. The estimate points to a change of +2.8% from the year-ago quarter.

It is projected by analysts that the 'Net Sales- Greater China' will reach $631.67 million. The estimate indicates a change of +7.3% from the prior-year quarter.

Based on the collective assessment of analysts, 'Net Sales- JANZ' should arrive at $285.14 million. The estimate indicates a change of -6.7% from the prior-year quarter.

Analysts expect 'Net Sales- Emerging Markets' to come in at $558.47 million. The estimate indicates a change of +0.6% from the prior-year quarter.

Analysts predict that the 'Net Sales- Developed Markets- Brands' will reach $1.12 billion. The estimate indicates a change of 0% from the prior-year quarter.

Analysts forecast 'Revenues- Other revenues' to reach $11.55 million. The estimate indicates a change of -11.8% from the prior-year quarter.

The consensus among analysts is that 'Net Sales- JANZ- Brands' will reach $145.53 million. The estimate points to a change of -9.3% from the year-ago quarter.

The combined assessment of analysts suggests that 'Net Sales- JANZ- Generics' will likely reach $139.62 million. The estimate indicates a year-over-year change of -3.9%.

The collective assessment of analysts points to an estimated 'Net Sales- Emerging Markets- Brands' of $443.10 million. The estimate indicates a year-over-year change of +6.5%.

Analysts' assessment points toward 'Net Sales- Emerging Markets- Generics' reaching $115.37 million. The estimate points to a change of -17% from the year-ago quarter.

According to the collective judgment of analysts, 'Revenues- Total Net Sales' should come in at $3.65 billion. The estimate points to a change of +2.4% from the year-ago quarter.

The consensus estimate for 'Net Sales- Developed Markets- Generics' stands at $1.06 billion. The estimate points to a change of +5.9% from the year-ago quarter.

View all Key Company Metrics for Viatris here>>>

Shares of Viatris have experienced a change of +4.4% in the past month compared to the +3.5% move of the Zacks S&P 500 composite. With a Zacks Rank #4 (Sell), VTRS is expected to underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

, /PRNewswire/ -- Viatris Inc. (Nasdaq: VTRS) today announced that on August 3, 2026, its Board of Directors declared a quarterly dividend of $0.12 per share for each issued and outstanding share of the Company's common stock. The dividend is payable on September 16, 2026, to shareholders of record as of the close of business on August 21, 2026.

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.

Forward-Looking Statements
This press release includes statements that constitute "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 statements that the Viatris Board of Directors declared a quarterly dividend of $0.12 per share for each issued and outstanding share of the Company's common stock, payable on September 16, 2026, to shareholders of record as of the close of business on August 21, 2026. 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: failure to achieve the intended benefits of our strategic initiatives and priorities; goodwill or impairment charges or other losses; any changes in or difficulties with the Company's manufacturing facilities; failure to achieve expected or targeted future financial and operating performance and results; Viatris' or its partners' ability to develop, manufacture, and commercialize products; any regulatory, legal or other impediments to Viatris' ability to bring new products to market; products in development and/or that receive regulatory approval may not achieve expected levels of market acceptance, efficacy or safety; actions and decisions of healthcare and pharmaceutical regulators; changes in healthcare and pharmaceutical laws and regulations in the U.S. and abroad; the scope, timing and outcome of any ongoing legal proceedings, and the impact of any such proceedings on Viatris; any significant breach of data security or data privacy or disruptions to our IT systems; risks associated with international operations; changes in third-party relationships; the effect of any changes in Viatris' or its partners' customer and supplier relationships and customer purchasing patterns; the impacts of competition; changes in the economic and financial conditions of Viatris 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, potential adverse impacts from future tariffs and trade restrictions, inflation rates and global exchange rates; and the other risks described in Viatris' filings with the Securities and Exchange Commission ("SEC"). Viatris routinely uses its website 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). Viatris undertakes no obligation to update these statements for revisions or changes after the date of this press release other than as required by law.

SOURCE Viatris Inc.

New Patch Will Provide Low-Dose Estrogen Combined Hormonal Contraceptive Option

Approval Marks an Important Milestone in Viatris' Efforts to Advance Women's Health

, /PRNewswire/ -- Viatris Inc. (Nasdaq: VTRS), a global healthcare company, today announced that the U.S. Food and Drug Administration (FDA) has approved Gwyn Lo™ (norelgestromin and ethinyl estradiol transdermal system). Gwyn Lo is a new combined hormonal contraceptive (CHC) patch with low-dose estrogen. The patch has demonstrated contraceptive efficacy for women of childbearing potential with a body mass index (BMI) below 30 kg/m² who are appropriate candidates for CHC. The Gwyn Lo dosage is norelgestromin 220 mcg/day and ethinyl estradiol 20 mcg/day.

"Gwyn Lo will provide a discreet option for women seeking a reversible, non-invasive, once-weekly contraception patch with a low dose of estrogen," said Philippe Martin, Viatris Chief R&D Officer. "Building on our expertise in transdermal drug delivery systems and legacy in women's health, we are pleased that the approved label for this new patch reflects the strength of our clinical program. This includes demonstrated efficacy in women with a BMI of 25 to less than 30 kg/m², with no BMI-based limitation of use in this population."

The approval was granted under the FDA's 505(b)(2) regulatory pathway and was supported by results from the Phase 3 Luminous Study (NCT05139121), which demonstrated contraceptive efficacy, a well-characterized safety profile and robust patch adhesion performance. Key outcomes of the Phase 3 study included:

The primary efficacy endpoint was the Pearl Index (PI), defined as the number of pregnancies per 100 woman-years of exposure in the efficacy evaluable population (women aged 18 to 35 years), which was 4.14 (95% CI: 2.77 to 5.95). The study demonstrated robust patch adhesion under real-world conditions, with only 1.3% of the 39,790 transdermal systems applied during the year-long trial fully detaching. The most common adverse reactions (2% or greater) reported during the study were application site irritation (4.8%), application site erythema (3.7%), application site pruritus (3.7%), intercycle bleeding (3.9%), heavy withdrawal bleeding (2.0%), and nausea (2.0%). Cycle control improved over time, as rates and duration of unscheduled bleeding or spotting decreased from 34.5% and a mean of 3.2 days in Cycle 1 to 20.0% and 2.4 days by Cycle 13. Data from four Phase 1 studies investigating various application sites and conditions demonstrated consistent drug delivery under conditions including sauna, whirlpool, treadmill exercise and cold-water bath.

Unintended pregnancy remains a significant public health issue in the United States, accounting for 41.6% of pregnancies in 2019.1 Women's contraceptive needs and preferences also vary: in a 2023 CDC survey, 18.1% of women who had used a contraceptive method changed or stopped a method within the previous 12 months.2 Among those women, 42.8% reported that they did not like the method they had been using.2 These findings underscore the continued need for a range of contraceptive options that can align with individual needs and preferences. Gwyn Lo helps address this need by offering a non-invasive, reversible, low-estrogen-dose CHC option for women who prefer once-weekly administration.

The Company expects Gwyn Lo to be commercially available later this year and will provide additional information during its upcoming financial results call.

About Gwyn Lo
Gwyn Lo is a once-weekly transdermal contraceptive patch for women of childbearing potential with a BMI below 30 kg/m² who are appropriate candidates for combined hormonal contraception and who prefer a non-invasive, reversible option with a low estrogen dose. The patch is applied once weekly for three consecutive weeks, followed by one patch-free week, and delivers norelgestromin and ethinyl estradiol over each seven-day wear interval.

Gwyn Lo is a multilayer matrix type transdermal system. The active ingredients and adhesive are contained in a matrix between a backing layer, which consists of a flexible film that provides structural support to the patch, and a release liner that protects the matrix and is removed just prior to application. Upon application to the skin, the system provides controlled delivery of norelgestromin 220 mcg/day and ethinyl estradiol 20 mcg/day throughout the wear interval.

Gwyn Lo is a trademark of Mylan Pharmaceuticals Inc., a Viatris company.

INDICATION AND USAGE
Gwyn Lo is indicated for the prevention of pregnancy in women with a body mass index (BMI) < 30 kg/m2 for whom a combined hormonal contraceptive is appropriate.

IMPORTANT SAFETY INFORMATION
Gwyn Lo is contraindicated in women who smoke and are over 35 years of age due to an increased risk of serious cardiovascular events. Gwyn Lo is contraindicated in women with a BMI ≥ 30 kg/m2. The risk of VTE may be greater with Gwyn Lo in women with a BMI > 30 kg/m2 compared to women with a lower BMI. Patients should discuss their medical history and risk factors with their healthcare provider before using Gwyn Lo.

Please see Full Prescribing Information.

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.

References

Rossen LM, Hamilton BE, Abma JC, Gregory ECW, Beresovsky V, Resendez AV, et al. Updated methodology to estimate overall and unintended pregnancy rates in the United States. National Center for Health Statistics. Vital Health Stat 2(201). 2023. doi:10.15620/cdc:124395 NCHS Rapid Surveys Systems. Contraception Use. National Center for Health Statistics. Available from: www.cdc.gov/nchs/rss/round2/contraception-use.html. Forward-Looking Statements

This press release includes statements that constitute "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 statements about FDA approval for Gwyn Lo; approval marks an important milestone in Viatris' efforts to advance women's health; Gwyn Lo will provide a discreet option for women seeking a reversible, non-invasive, once-weekly contraception patch with a low dose of estrogen; building on our expertise in transdermal drug delivery systems and legacy in women's health, we are pleased that the approved label for this new patch reflects the strength of our clinical program; and the Company expects Gwyn Lo to be commercially available later this year, and will provide additional information during its upcoming financial results call. 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 uncertainties inherent in research and development, including the outcomes of clinical trials; the ability to meet anticipated clinical endpoints; the possibility of unfavorable new clinical data and further analyses of existing clinical data; the risk that clinical trial data are subject to differing interpretations and assessments by regulatory authorities; whether regulatory authorities will be satisfied with the design of and results from clinical studies; failure to achieve the intended benefits of our strategic initiatives and priorities; goodwill or impairment charges or other losses; any changes in or difficulties with the Company's manufacturing facilities; failure to achieve expected or targeted future financial and operating performance and results; Viatris' or its partners' ability to develop, manufacture, and commercialize products; any regulatory, legal or other impediments to Viatris' ability to bring new products to market; products in development and/or that receive regulatory approval may not achieve expected levels of market acceptance, efficacy or safety; actions and decisions of healthcare and pharmaceutical regulators; changes in healthcare and pharmaceutical laws and regulations in the U.S. and abroad; the scope, timing and outcome of any ongoing legal proceedings, and the impact of any such proceedings on Viatris; any significant breach of data security or data privacy or disruptions to our IT systems; risks associated with international operations; changes in third-party relationships; the effect of any changes in Viatris' or its partners' customer and supplier relationships and customer purchasing patterns; the impacts of competition; changes in the economic and financial conditions of Viatris 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, potential adverse impacts from future tariffs and trade restrictions, inflation rates and global exchange rates; and the other risks described in Viatris' filings with the Securities and Exchange Commission ("SEC"). Viatris routinely uses its website 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). Viatris undertakes no obligation to update these statements for revisions or changes after the date of this press release other than as required by law.

SOURCE Viatris Inc.

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

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What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

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Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

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Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

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Stock to Watch: Viatris (VTRS - Free Report) Viatris, a global healthcare company, was formed in November 2020 through the merger of the erstwhile Mylan and Pfizer’s Upjohn businesses. The company has operations in over 165 countries. Viatris’ portfolio consists of generics (including complex products), globally recognized iconic brands and an expanding portfolio of innovative drugs. 

VTRS is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 6.57; value investors should take notice.

One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.02 to $2.49 per share. VTRS boasts an average earnings surprise of +10%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, VTRS should be on investors' short list.

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Viatris (VTRS - Free Report) . VTRS is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.

Another notable valuation metric for VTRS is its P/B ratio of 0.75. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.13. Over the past year, VTRS's P/B has been as high as 0.81 and as low as 0.55, with a median of 0.70.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. VTRS has a P/S ratio of 1.33. This compares to its industry's average P/S of 1.4.

Finally, investors should note that VTRS has a P/CF ratio of 5.21. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. VTRS's P/CF compares to its industry's average P/CF of 12.70. Over the past 52 weeks, VTRS's P/CF has been as high as 8.41 and as low as 4.30, with a median of 5.49.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Viatris is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, VTRS feels like a great value stock at the moment.

Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Viatris Inc. (Nasdaq: VTRS), a global healthcare company, today announced it will report second-quarter 2026 financial results on Thursday, August 6, 2026. Company executives will host a conference call and live webcast at 8:30 a.m. ET on the same date to discuss the 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. 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.

SOURCE Viatris Inc.

Also from this source

VR-205 Met Primary Endpoint and Key Secondary Endpoints and Was Well Tolerated

VR-205 Efficacy and Safety Profile in Japanese Patients Was Consistent with the Profile Observed in Global Studies 

Japanese New Drug Application Submission Targeted by End of 2026

, /PRNewswire/ -- Viatris Inc. (Nasdaq: VTRS), a global healthcare company, today 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 (IgAN) at risk of developing end-stage renal disease.

The Phase 3 clinical trial was a multicenter, interventional, open-label study designed to evaluate the efficacy and safety of 16 mg of VR-205 in Japanese adult patients with primary IgAN. Patients were treated for nine months, followed by a three-month follow-up period.

The study achieved its primary endpoint, with VR-205 demonstrating a 33.75 percent reduction in geometric mean urine protein-to-creatinine ratio (UPCR) at 9 months compared to baseline [95% CI: -45.27 to -19.80; p < 0.001]. These results were statistically significant and clinically meaningful, and were consistent with those observed in the global Phase 3 program for the product. Key findings included:

In addition to a statistically significant and clinically meaningful reduction in UPCR at 6 and 12 months, VR-205 demonstrated a significant improvement in estimated glomerular filtration rate (eGFR) and reductions in serum creatinine and urine albumin-to-creatinine ratio (UACR) at 9 months compared to baseline. The overall therapeutic benefit of VR-205 was further supported by improvements in microhematuria and a sustained proteinuria reduction. No study participants progressed to dialysis, kidney transplant or severe renal impairment (eGFR ≤15 mL/min per 1.73 m2) by the end of the study. VR-205 was generally well tolerated over the nine-month treatment period, with a safety profile consistent with the known safety profile of targeted-release budesonide in non-Japanese patients. "We are pleased with these top-line results, which highlight VR-205 as a potentially meaningful, disease-modifying treatment option for patients with primary IgAN," said Viatris Chief R&D Officer Philippe Martin. "In Japan, where IgAN incidence is the highest globally, VR-205 could become the first IgAN-specific, targeted-release budesonide oral therapy. This progress reflects the continued execution of Viatris' strategy focused on building a differentiated and increasingly innovative portfolio in Japan, with an emphasis on delivering therapies that provide meaningful value and address significant unmet needs."

"Primary IgAN is a designated intractable disease in Japan, and remains a significant unmet need, with no curative treatment despite the risk of progression to end-stage renal disease," said Yuko Asami, Head of R&D, Viatris Japan. "These top-line results mark an important step toward expanding treatment options for patients and healthcare providers."

Viatris is targeting submission of a New Drug Application in Japan by the end of 2026.

In 2022, Calliditas Therapeutics AB and Viatris Pharmaceuticals Japan Inc., a subsidiary of Viatris Inc., entered into an exclusive license agreement to obtain marketing authorization and to commercialize VR-205 for the treatment of primary IgAN in Japan. It is currently a specialty drug approved and marketed as Tarpeyo® in the U.S. and as Kinpeygo® in Europe.

About Phase 3 Study (VR-205A-01-CAZ-3001)
The Phase 3 trial was a multicenter, interventional, open-label study conducted in Japan to evaluate the efficacy and safety of oral VR-205 (targeted-release budesonide formulation) for the treatment of primary IgA nephropathy in Japanese adult patients at risk of developing end-stage renal disease. The study enrolled a total of 39 participants who were treated with 16 mg of VR-205 daily (four capsules) over a nine-month treatment period.

Following completion of treatment, participants entered a three-month follow-up period including a two-week dose tapered to 8 mg of VR-205 (two capsules) daily at the start of the follow-up period.

About Immunoglobulin A Nephropathy (IgAN)
IgAN is a progressive, immune-mediated kidney disease and the most common primary glomerulonephritis worldwide. Japan reports the highest incidence rates globally, at 39 to 45 cases per million population per year, with peak age at diagnosis between 30 and 39 years. In Japan, adult-onset IgAN is reported to progress to end-stage renal disease (dialysis or transplantation) in approximately 15-20 percent of patients within 10 years. Most patients reaching end-stage renal disease face decades of dialysis. The total national cost of maintenance hemodialysis in Japan is approximately JPY 1.5 trillion per year. Chronic glomerulonephritis (with IgAN as a leading underlying cause) accounts for 23.4 percent of Japan's more than 340,000 dialysis patients. Despite this burden, therapies that target the underlying immunological drivers of IgAN to preserve long-term kidney function have remained limited, and a clear need persists for disease-modifying treatment options.

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 dynamic portfolio that spans generics, 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.

Forward-Looking Statements
This press release includes statements that constitute "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 statements that 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 (IgAN) at risk of developing end-stage renal disease; VR-205 met primary endpoint and key secondary endpoints, and was well tolerated; VR-205 efficacy and safety profile in Japanese patients was statistically significant and clinically meaningful and were consistent with the profile observed in global studies; we are pleased with these top-line results, which highlight VR-205 as a potentially meaningful, disease-modifying treatment option for patients with primary IgAN; in Japan, where IgAN incidence is the highest globally, VR-205 could become the first IgAN-specific, targeted-release budesonide oral therapy; this progress reflects the continued execution of Viatris' strategy focused on building a differentiated and increasingly innovative portfolio in Japan, with an emphasis on delivering therapies that provide meaningful value and address significant unmet needs; these top-line results mark an important step toward expanding treatment options for patients and healthcare providers; Viatris is targeting submission of a New Drug Application in Japan by the end of 2026. 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 uncertainties inherent in research and development, including the outcomes of clinical trials; the ability to meet anticipated clinical endpoints; the possibility of unfavorable new clinical data and further analyses of existing clinical data; the risk that clinical trial data are subject to differing interpretations and assessments by regulatory authorities; whether regulatory authorities will be satisfied with the design of and results from clinical studies; failure to achieve the intended benefits of our strategic initiatives and priorities; goodwill or impairment charges or other losses; any changes in or difficulties with the Company's manufacturing facilities; failure to achieve expected or targeted future financial and operating performance and results; Viatris' or its partners' ability to develop, manufacture, and commercialize products; any regulatory, legal or other impediments to Viatris' ability to bring new products to market; products in development and/or that receive regulatory approval may not achieve expected levels of market acceptance, efficacy or safety; actions and decisions of healthcare and pharmaceutical regulators; changes in healthcare and pharmaceutical laws and regulations in the U.S. and abroad; the scope, timing and outcome of any ongoing legal proceedings, and the impact of any such proceedings on Viatris; any significant breach of data security or data privacy or disruptions to our IT systems; risks associated with international operations; changes in third-party relationships; the effect of any changes in Viatris' or its partners' customer and supplier relationships and customer purchasing patterns; the impacts of competition; changes in the economic and financial conditions of Viatris 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, potential adverse impacts from future tariffs and trade restrictions, inflation rates and global exchange rates; and the other risks described in Viatris' filings with the Securities and Exchange Commission ("SEC"). Viatris routinely uses its website 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). Viatris undertakes no obligation to update these statements for revisions or changes after the date of this press release other than as required by law.

SOURCE Viatris Inc.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Viatris (VTRS - Free Report) . VTRS is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.

We should also highlight that VTRS has a P/B ratio of 0.75. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.91. Over the past year, VTRS's P/B has been as high as 0.81 and as low as 0.55, with a median of 0.70.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. VTRS has a P/S ratio of 1.23. This compares to its industry's average P/S of 1.39.

Finally, we should also recognize that VTRS has a P/CF ratio of 5.21. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.44. Over the past 52 weeks, VTRS's P/CF has been as high as 8.41 and as low as 4.30, with a median of 5.49.

Value investors will likely look at more than just these metrics, but the above data helps show that Viatris is likely undervalued currently. And when considering the strength of its earnings outlook, VTRS sticks out as one of the market's strongest value stocks.

Viatris Inc. ends the first half of 2026 on a high note. On May 8, its stock reached a 52-week high of $17.53. One of the key drivers behind Viatris' recent rally is its pipeline, which includes more than 10 late-stage product candidates.

Delivers Total Revenues of $3.5 Billion, Representing 8% Reported Growth Compared to First Quarter 2025, and U.S. GAAP Net Earnings of $176 Million Total Revenues Were Up 3% Operationally Compared to First Quarter 2025 Adjusted EBITDA was $1.0 Billion Up 10% Operationally Compared to First Quarter 2025, Demonstrating Solid Operating Leverage Progresses Key Launches and Pipeline Milestones Across Multiple Products, Including the Launch of Effexor® for Generalized Anxiety Disorder in Japan Continues to Expect More Than $2.5 Billion of Cash Available for Deployment in 2026 Reaffirms 2026 Financial Guidance [1] PITTSBURGH, May 7, 2026 /PRNewswire/ -- Viatris Inc. (Nasdaq: VTRS) today announced its first-quarter 2026 financial results. Executive Commentary "We delivered a strong first quarter, reflecting disciplined execution across our global businesses," said Scott A.