President Donald Trump's proposed tariffs on imported generic medicines have raised fresh questions about whether low-cost drugmakers can shift production to the U.S. before duties of as much as 200% take effect.
Trump said Tuesday that imported generic medicines would face no tariffs for two years before duties rise to 100% for one year and then 200%, giving manufacturers time to invest in U.S. production.
The proposal targets a growing global industry, currently worth nearly $500 billion.
While the administration says tariffs will help bring pharmaceutical manufacturing back to the U.S., the generic drug industry argues that longstanding structural challenges, not just trade policy, limit domestic production.
"We need to understand more the specifics of the policy, but the generics industry is committed to pursuing policies that support and stabilize both the industry and the access necessary to ensure patients have reliable options for affordable medicines," John Murphy III, president and CEO of the Association for Accessible Medicines, said in a statement to CNBC.
Murphy said the industry has expanded its U.S. footprint across the supply chain over the past two years, but argued that problems with purchasing and reimbursement for many generic medicines continue to discourage further domestic manufacturing.
Here's what to know.
Why are generic drugs different from branded drugs?Makers of patented medicines and generic drug manufacturers have very different business models, which means they are likely to see varying impacts from potential tariffs.
Brand-name drugmakers typically spend years developing costly, new medicines and, once approved, benefit from exclusivity that allows them to sell those drugs without direct competition for a limited period of time. Those companies generally have higher margins and greater flexibility to absorb higher manufacturing costs.
A 100-200% tariff on a product with single-digit margins is a market-exit notice.
Salil Kallianpur
Independent pharmaceutical consultant
By contrast, generic manufacturers enter the market after patents expire and often compete against other companies selling identical versions of the same medicine, competing on price, manufacturing efficiency, and scale.
That means even relatively small increases in manufacturing costs can have an outsized impact on profitability.
Generic medicines account for about 90% of prescriptions in the U.S., but a relatively small share of overall drug spending due to their lower prices.
Can generic drugmakers absorb the tariffs?Industry representatives say many manufacturers have limited room to absorb tariffs as high as 100% or 200%.
Manufacturers facing higher costs would have limited options: absorb the tariffs, pass them on to customers, invest in shifting production to the U.S. over time or stop selling products that become uneconomic.
Building a domestic generic drug manufacturing ecosystem takes a minimum of four to five years, according to Namit Joshi, chairman of India's Pharmaceuticals Export Promotion Council (Pharmexcil), suggesting Trump's two-year implementation period may not be enough to meaningfully onshore production.
Indian manufacturers also operate on thin margins, he said. "We can only transfer that tariff. Or we can withdraw from the market," Joshi told Indian news agency ANI.
Independent pharmaceutical consultant Salil Kallianpur said the economics are particularly challenging for commodity generic manufacturers that export to the U.S.
If manufacturing costs rise sharply, companies may have to absorb part of the increase, pass it on to customers, invest in moving production over time or stop selling products that are no longer commercially viable.
"A 100-200% tariff on a product with single-digit margins is a market-exit notice," Kallianpur told CNBC over email.
If this holds as written, the effect is a likely split where companies with existing U.S. manufacturing footprint or complex, specialty portfolios can adapt, while pure-volume commodity exporters with no U.S. presence don't have an obvious answer, he said.
Will medicine prices rise?It remains unclear whether the proposed tariffs would ultimately increase medicine prices because much depends on how the policy is implemented and how manufacturers respond.
The administration argues the tariffs will encourage companies to manufacture more medicines in the U.S., strengthening domestic supply chains over the longer term.
Industry representatives, meanwhile, say tariffs could place additional pressure on an industry where prices are already driven down by intense competition.
Read more pharma newsNovo Nordisk's head start on GLP-1 pills forces investors to rethink Eli Lilly's dominancePrices, pipelines and patent cliffs: Inside pharma's big resetUK's biggest drugmakers see surprise profit bump, even as pharma grapples with U.S. policiesPharma bets a little-known form of cholesterol will underpin its next blockbuster heart drugsMany generic medicines sold in the U.S. are manufactured in India, while China supplies many of the active pharmaceutical ingredients used to make finished drugs. Those supply chains have developed over decades around lower production costs.
Murphy said the generic industry supports expanding U.S. manufacturing but believes broader policy changes are also needed.
"Our industry has several legislative and regulatory solutions to address the market deficiencies and we look forward to dialogue with the Administration and with Congress to pursue solutions that restore the generics industry to growth and to prioritize its place as a critical national security asset here in the U.S.," he said.
Which drugmakers could be most affected?The impact is also likely to vary significantly by company.
Analysts at Jefferies and Citi say manufacturers with substantial U.S. production, such as Amphastar Pharmaceuticals, ANI Pharmaceuticals, Hikma, and Fresenius Kabi, appear better positioned if the tariffs are implemented largely as proposed.
Companies including Teva, Viatris and Apotex have a greater exposure as they manufacture a larger share of products sold in the U.S. overseas, although analysts caution that much depends on the final policy.
One key unanswered question is whether the tariffs would apply only to imported finished medicines or also to drugs manufactured in the U.S. using imported active pharmaceutical ingredients.
Sandoz, one of the world's largest generic drugmakers, told CNBC it was too early to assess the proposal because "further details on the implementation and scope of the measure are still required."
The Swiss company declined to comment on whether the announcement could affect its manufacturing footprint or future investment plans.
What happens next?For now, Kallianpur said investors appear to be treating the two-year implementation period as breathing room rather than an immediate disruption.
Generic drugmakers had broadly expected the Trump administration to extend its pharmaceutical tariff strategy to generics after months of similar proposals targeting branded medicines, he added.
"What's new here isn't the direction, it's the specificity," he said, pointing to the timeline of two tariff-free years followed by duties of 100% and then 200%.
Much now depends on how the administration defines domestic manufacturing and implements the policy.
If the generic tariff follows the framework previously outlined for branded medicines, Kallianpur said, companies may only need to demonstrate that U.S. manufacturing projects are underway rather than fully operational before the deadline.
That distinction could shape how manufacturers respond over the next two years, and whether Trump's proposal leads to a significant expansion of U.S. drug production or simply a wave of announcements for new factories before the tariffs take effect.
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.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to 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 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 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 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 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 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.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and 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 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.
Investors interested in Medical Services stocks are likely familiar with Viatris (VTRS) and Danaher (DHR). But which of these two companies is the best option for those looking for undervalued stocks?
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.
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Viatris (VTRS - Free Report) , a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Viatris currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if VTRS is a promising momentum pick, let's examine some Momentum Style elements to see if this generic drugmaker holds up.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For VTRS, shares are up 6.25% over the past week while the Zacks Medical Services industry is up 3.09% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 3.98% compares favorably with the industry's 4.4% performance as well.
Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Over the past quarter, shares of Viatris have risen 19.23%, and are up 73.23% in the last year. In comparison, the S&P 500 has only moved 14.14% and 22.01%, respectively.
Investors should also take note of VTRS's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now VTRS is averaging 9,699,590 shares for the last 20 days..
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with VTRS.
Over the past two months, 4 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost VTRS's consensus estimate, increasing from $2.44 to $2.49 in the past 60 days. Looking at the next fiscal year, 4 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that VTRS is a #2 (Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Viatris on your short list.
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.
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.
Zacks Premium includes access to the Zacks Style Scores as well.
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 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 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 ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow 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 +23.94% 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.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee 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 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 #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Medical stock. VTRS has a Momentum Style Score of B, and shares are up 0.4% over the past four weeks.
Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.05 to $2.49 per share. VTRS boasts an average earnings surprise of +10%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, VTRS should be on investors' short list.
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.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of 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.
It also includes access to 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.
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 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 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 ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
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 +24% 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.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
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.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
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 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 6.37; value investors should take notice.
For fiscal 2026, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.03 to $2.47 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.
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.
Investors interested in Medical Services stocks are likely familiar with Viatris (VTRS - Free Report) and Danaher (DHR - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Viatris has a Zacks Rank of #2 (Buy), while Danaher has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that VTRS likely has seen a stronger improvement to its earnings outlook than DHR has recently. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
VTRS currently has a forward P/E ratio of 6.22, while DHR has a forward P/E of 21.09. We also note that VTRS has a PEG ratio of 1.35. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DHR currently has a PEG ratio of 2.27.
Another notable valuation metric for VTRS is its P/B ratio of 1.22. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, DHR has a P/B of 2.38.
These metrics, and several others, help VTRS earn a Value grade of A, while DHR has been given a Value grade of D.
VTRS sticks out from DHR in both our Zacks Rank and Style Scores models, so value investors will likely feel that VTRS is the better option right now.
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.
Beyond analysts' top-and-bottom-line estimates for Viatris (VTRS), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended March 2026.
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.
Viatris (VTRS - Free Report) came out with quarterly earnings of $0.59 per share, beating the Zacks Consensus Estimate of $0.52 per share. This compares to earnings of $0.5 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +13.46%. A quarter ago, it was expected that this generic drugmaker would post earnings of $0.52 per share when it actually produced earnings of $0.57, delivering a surprise of +9.62%.
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 $3.52 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 4.84%. This compares to year-ago revenues of $3.25 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 28.1% since the beginning of the year versus the S&P 500's gain of 7.6%.
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 mixed. 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 #3 (Hold) for the stock. So, the shares are expected to perform in line with 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 $0.62 on $3.65 billion in revenues for the coming quarter and $2.44 on $14.56 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 37% 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, Shoulder Innovations, Inc. (SI - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 13.
This company is expected to post quarterly loss of $0.44 per share in its upcoming report, which represents a year-over-year change of +99.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Shoulder Innovations, Inc.'s revenues are expected to be $14.35 million, up 41.7% from the year-ago quarter.
While the top- and bottom-line numbers for Viatris (VTRS) give a sense of how the business performed in the quarter ended March 2026, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
CompaniesMay 7 (Reuters) - Viatris (VTRS.O), opens new tab topped analysts' estimates for first-quarter revenue and profit on Thursday, buoyed by strength in its China business and strong demand for branded drugs.
Shares of the company were up over 3% in afternoon trading following the results.
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The drugmaker has been under pressure from manufacturing issues and generic-drug competition, prompting investors to watch whether its base business and new launches can support steadier growth this year.
Viatris posted quarterly adjusted profit of 59 cents per share, beating analysts' average estimate of 50 cents, according to LSEG data. Revenue rose 8% to $3.52 billion from a year ago, above estimates of $3.36 billion.
Revenue from its Greater China business rose 22% to $680.1 million, beating expectations of $547.7 million.
The company expects mid- to high-single-digit growth in China this year, up from its earlier forecast of low-single-digit, interim CFO Paul Campbell said on a call with analysts.
First-quarter revenue from its branded medicines, including cholesterol drug Lipitor and blood-pressure treatment Norvasc, rose 10% to $2.33 billion, helped by strong growth in China and emerging markets such as Eastern Europe and Latin America.
Viatris' stable base business, potential launch of fast-acting pain drug meloxicam and upcoming data for heart and immunology candidates selatogrel and cenerimod are driving investor interest, J.P. Morgan analyst Chris Schott said.
The company reaffirmed its 2026 adjusted profit forecast of $2.33 to $2.47 per share.
Despite the strong quarter, the management said it was too early to raise full-year forecast and that it would reassess trends after the second quarter.
Generic drug sales rose 5% to $1.18 billion during the first quarter.
Viatris expects the entry of generic GLP-1 weight-loss drugs by the end of the decade to be a longer-term growth driver.
"We have developed a significant strategy for GLP-1s and will be supplying a significant part of that market with an hyper focus on the U.S. going forward," Chief R&D Officer Philippe Martin said.
Reporting by Kunal Das in Bengaluru; Editing by Shilpi Majumdar and Shreya Biswas
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Viatris Inc. (Nasdaq: VTRS), a global healthcare company, today announced that the Company will present at the Bank of America Securities 2026 Healthcare Conference on Tuesday, May 12, 2026, at 8 a.m. PT / 11 a.m. ET.
Investors and the general public are invited to listen to the live webcast of the event at investor.viatris.com. An archived version of the presentation will be available following the live event and can be accessed at the same location for a limited time.
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.
Viatris Inc. delivered a clean Q1 2026 double beat driven almost entirely by Greater China, growing 18% operationally. The pipeline is finally shipping after years of underwhelming execution with Effexor and XULANE LO, while other assets will see their readout events in 2027. After Viatris Inc.'s 89% rally, the asymmetric value setup is gone, and while the stock is still cheap, it is not compensating for the associated risk in investing in VTRS stock now.
Viatris (VTRS) is upgraded to Strong Buy, underpinned by robust pipeline catalysts and a credible long-term growth framework. Viatris targets a five-year sales CAGR midpoint of 3.5%, exceeding consensus, with $450–550 million annual new product contributions and upside from branded assets. Key assets such as Selatogrel and Cenerimod, alongside upcoming launches (e.g., meloxicam), support reacceleration in growth and margin expansion.
, /PRNewswire/ -- Viatris Inc. (Nasdaq: VTRS), a global healthcare company, today announced that the U.S. Food and Drug Administration (FDA) has accepted for review the New Drug Application (NDA) 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 Dec. 27, 2026. Acute pain affects more than 80 million individuals in the United States each year, where opioids remain a commonly used treatment option.1,2
"FDA's acceptance of the New Drug Application for investigational fast-acting meloxicam takes us one step closer to bringing a potential non-opioid first-line treatment option to patients with moderate-to-severe acute pain, which will help address an important public health need in the United States," said Philippe Martin, Viatris Chief R&D Officer. "Fast-acting meloxicam is one of several value-added medicines in our pipeline. We are proud of the strength of the clinical profile supporting this program, which includes a fast speed of onset of action, strong and sustained analgesic efficacy with a significant reduction in opioid usage, together with an established mechanism of action and well characterized safety profile."
The NDA is supported by data from the Phase 3 program which was presented at PAINWeek 2025. The Phase 3 program consisted of two randomized, double-blind, placebo-(double-dummy) and active-controlled trials – one following herniorrhaphy surgery (NCT06215859) and one following bunionectomy surgery (NCT06215820).
Both Phase 3 trials evaluated the efficacy and safety of fast-acting meloxicam versus placebo and included an opioid arm (tramadol 50mg q6h) to confirm the sensitivity of the pain model. The primary endpoint in both trials was defined by the Sum of Pain Intensity Difference (SPID) based on the Numeric Rating Scale measured over 0-48 hours (SPID0-48h) versus placebo. Both trials evaluated the reduction in opioid usage that was defined by number of mean doses of opioid rescue medication and proportion of opioid-free patients over the combined in- and out-patient treatment phases. In both studies, fast-acting meloxicam met primary and secondary endpoints and demonstrated a safety profile consistent with the well-characterized safety profile of this mechanism of action.
Viatris is pursuing several value-added medicines, including fast-acting meloxicam, to drive high value products through life cycle optimization including new formulations, delivery technologies and indications.
Phase 3 Trial Design for Herniorrhaphy (NCT06215859) and Bunionectomy (NCT06215820)
Post-operative herniorrhaphy and bunionectomy patients aged 18 or older who experienced moderate-to-severe acute pain following surgery were eligible to participate in the trials, NCT06215859 and NCT06215820, respectively. 579 herniorrhaphy subjects and 410 bunionectomy subjects were randomized and received doses of either MR-107A-02, tramadol or placebo during the inpatient phase (0-48h). During the outpatient phase, subjects continued to receive the study drug. Subjects randomized to receive tramadol during the inpatient phase received placebo in the outpatient phase.
About Acute Pain
Acute pain is defined as pain of sudden onset associated with a known cause—such as surgery, trauma, or acute illness—and is typically self-limiting, resolving within 30 days to three months. It affects more than 80 million individuals in the United States. each year and is a primary driver of emergency department visits and postoperative morbidity. Clinically, it contributes to delayed recovery, impaired physical function, poor sleep, and reduced quality of life. Economically, the burden of acute pain is substantial, including both direct medical expenses and indirect costs such as lost productivity and disability. Societally, inadequate pain control affects patient satisfaction and rehabilitation outcomes, contributes to opioid prescribing and potential misuse. Despite the widespread impact, more than half of surgical patients report inadequate pain relief, reflecting a significant unmet need for effective, non-opioid treatment options with rapid onset and favorable safety profiles.
About Fast-Acting Meloxicam
Fast-acting meloxicam (MR-107A-02) is an investigational, novel fast-acting oral formulation of meloxicam being developed by Viatris for the treatment of moderate-to-severe acute pain. Meloxicam is a non-steroidal anti-inflammatory drug (NSAID), and this formulation was designed to enable more rapid dissolution and absorption than currently approved oral meloxicam products. Viatris has reported positive results from two pivotal Phase 3 studies of MR-107A-02 in acute post-surgical pain models following bunionectomy and herniorrhaphy. MR-107A-02 has been submitted to the U.S. Food and Drug Administration for review under the 505(b)(2) regulatory pathway and has not been approved by any regulatory authority.
References
Lopez et al. "A real-world database analysis of the prevalence of pain medication use in the United States." Pain Reports, vol. 11, 2026, e1396. Centers for Disease Control and Prevention. About Prescription Opioids. Accessed April 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 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 FDA has accepted for review the NDA 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 Dec. 27, 2026; FDA's acceptance of the NDA for investigational fast-acting meloxicam takes us one step closer to bringing a potential non-opioid first-line treatment option to patients with moderate-to-severe acute pain, which will help address an important public health need in the United States; fast-acting meloxicam is one of several value-added medicines in our pipeline; we are proud of the strength of the clinical profile supporting this program, which includes a fast speed of onset of action, strong and sustained analgesic efficacy with a significant reduction in opioid usage, together with an established mechanism of action and well characterized safety profile; information about clinical trials; in both studies, fast-acting meloxicam met primary and secondary endpoints and demonstrated a safety profile consistent with the well-characterized safety profile of this mechanism of action; Viatris is pursuing several value-added medicines, including fast-acting meloxicam, to drive high value products through life cycle optimization including new formulations, delivery technologies and indications. 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.
iShares U.S. Pharmaceuticals ETF (IHE 0.34%) offers concentrated exposure to domestic drugmakers, while iShares Global Healthcare ETF (IXJ 0.24%) provides a broader, international footprint across the wider healthcare sector.
While IHE narrows its focus to companies specifically engaged in the research, development, and production of pharmaceuticals in the U.S., IXJ casts a wider net across various healthcare subsectors on a global scale. This comparison evaluates how these different scopes impact costs, risk, and total performance.
Snapshot (cost & size)MetricIHEIXJIssueriSharesiSharesExpense ratio0.38%0.40%1-yr return (as of May 20, 2026)39.70%10.00%Dividend yield1.70%1.50%Beta0.490.58AUM$883.6 million$3.6 billionBeta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Investors pay nearly identical management fees for these funds, with the 0.40% expense ratio of the iShares global fund sitting just 0.02 percentage points above its pharmaceutical counterpart. The iShares pharmaceutical fund offers a slightly higher distribution yield of 1.70%.
Performance & risk comparisonMetricIHEIXJMax drawdown (5 yr)(16.00%)(18.10%)Growth of $1,000 over 5 years (total return)$1,570$1,220What's insideThe iShares global fund offers a diversified approach to the healthcare space, containing 114 holdings. Its portfolio includes global companies in the pharmaceuticals, biotechnology, and healthcare equipment industries. Its largest positions include Eli Lilly (LLY 2.41%) at 10.50%, Johnson & Johnson (JNJ +0.96%) at 7.19%, and AbbVie (ABBV +1.32%) at 4.88%. This fund was launched in 2001, has a trailing-12-month dividend of $1.36 per share, and maintains assets under management (AUM) of $3.6 billion.
In contrast, the iShares pharmaceutical fund targets a much narrower segment of the market with its 55 holdings. Its top holdings include Eli Lilly (LLY 2.41%) at 22.91%, Johnson & Johnson (JNJ +0.96%) at 21.22%, and Viatris (VTRS +1.04%) at 5.24%. Because it focuses exclusively on domestic drugmakers, it has high concentration in its top two holdings. Launched in 2006, the fund has paid $1.49 per share over the trailing 12 months and manages approximately $883.6 million in AUM.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors There’s been a significant performance gap between these two ETFs over the past year, and it comes down largely to one reason: GLP-1s.
Eli Lilly, whose weight-loss and diabetes drugs Mounjaro and Zepbound became two of the fastest-growing pharmaceutical products in history, sits as a top holding in IHE. As GLP-1 drugs reshaped the pharmaceutical landscape in 2025, concentrated domestic pharma funds captured that wave directly. IXJ's broader global mandate spread exposure across biotechnology, medical devices, and international healthcare companies, diluting the GLP-1 effect considerably.
For long-term investors, the lesson cuts both ways. Concentration in IHE delivered extraordinary recent returns but creates real vulnerability if the GLP-1 tailwind slows or drug pricing pressure intensifies. IXJ's broader approach smooths those peaks and valleys across the full healthcare ecosystem. Both funds charge nearly identical fees, making the choice purely about how much concentration an investor wants in a single corner of healthcare.
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.
Zacks Premium includes access to the Zacks Style Scores as well.
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 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 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 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 +23.7% 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.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
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.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking 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 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 #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 6.3; value investors should take notice.
For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.02 to $2.47 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.
Generic medicines remain one of the most important pillars of global healthcare, but the industry's growth drivers are changing. While traditional small-molecule generics continue to account for substantial prescription volumes, intense competition and ongoing price erosion have reduced their ability to generate meaningful profit growth. As a result, success in the generic drug industry increasingly depends on product differentiation rather than scale alone.
Across the sector, manufacturers are investing in areas with higher barriers to entry, including biosimilars, complex generics, specialty injectables and other difficult-to-develop therapies. These categories offer longer growth runways, more durable competitive positions and stronger margin potential than conventional generics. At the same time, companies are streamlining operations, optimizing portfolios and allocating capital to products that can support sustainable growth beyond the traditional commodity-generic model.
Here, we highlight three generic drugmakers — Sandoz (SDZNY - Free Report) , Teva Pharmaceuticals (TEVA - Free Report) and Viatris (VTRS - Free Report) — that appear well-positioned to capitalize on this evolution within the industry.
Industry Description The Medical - Generic Drugs industry comprises companies that develop and market chemically/biologically identical versions of a brand-name drug once the patents providing exclusivity to branded drugs expire. These drugs can be divided into generic and biosimilar categories based on their composition. The generic segment is controlled by a few large drugmakers and the generic units of large pharma companies. Several smaller companies also develop generic versions of branded drugs, which are significantly cheaper than the originals. Competition in this segment is stiff, resulting in thin margins for manufacturing companies. A few companies in this industry have some branded drugs in their portfolio, helping them tap a higher-margin market.
3 Trends Shaping the Future of the Generic Drugs Industry Loss of Patent Exclusivity Creates New Opportunities: Generic drugmakers depend on the loss of patent exclusivity of branded medicines to bring lower-cost alternatives to market. A company may launch an authorized generic version of a branded product, gaining exclusivity over competing generic versions for several months. Such opportunities can be particularly attractive in complex generics, which typically require greater development expertise and investment than traditional generics. Drugmakers also frequently engage in patent litigation to secure earlier entry into the market for generic products.
Beyond traditional generics, the industry's opportunity set is expanding as more blockbuster biologic drugs lose exclusivity. Recent high-profile launches included biosimilars of J&J’s Stelara, Amgen's Prolia/Xgeva and Regeneron's Eylea. Drugmakers are also advancing biosimilar candidates for Merck's blockbuster oncology drug Keytruda, which is expected to lose patent protection in 2028.
Competition Is Driving a Shift Beyond Traditional Generics: Competition remains intense across the generic drug market. Once a branded drug loses exclusivity, multiple manufacturers often enter the market, leading to price competition and margin pressure. To gain an advantage, drugmakers seek first-to-file (FTF) status, which can provide a period of exclusivity before additional generic competitors enter. Despite these opportunities, the generic market remains crowded, with numerous filings pending before the FDA and several generic and biosimilar launches expected over the next few years.
In response to persistent pricing pressure, companies are increasingly moving beyond commodity generics and investing in differentiated products such as complex generics, specialty injectables and biosimilars. These products typically require greater development expertise and investment, but face fewer competitors and offer stronger margins and more durable revenue opportunities than traditional generics.
Operational Efficiency & Portfolio Optimization Remain Key Priorities: With pricing pressure persisting across many generic drug categories, manufacturers are placing greater emphasis on operational efficiency and disciplined capital allocation. Companies are streamlining product portfolios, discontinuing lower-return programs and focusing resources on products and markets with stronger growth potential. Many drugmakers are also investing in manufacturing productivity, supply-chain optimization and cost-control initiatives to protect profitability. These efforts are helping companies offset pricing headwinds in mature generic markets while creating financial flexibility to invest in higher-growth areas such as biosimilars, complex generics and specialty medicines.
Zacks Industry Rank Indicates Gloomy Prospects The Zacks Medical – Generic Drugs industry is a small 12-stock group housed within the broader Zacks Medical sector.
The group’s Zacks Industry Rank is the average of the Zacks Rank of all the member stocks. The Zacks Medical – Generic Drugs industry currently carries a Zacks Industry Rank #174, placing it in the bottom 29% of the 246 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.
Against this backdrop, we will present a few noteworthy stocks. But before that, let us look at the industry’s stock market performance and current valuation.
Industry Versus Sector & S&P 500 The Zacks Medical – Generic Drugs industry has outperformed both the broader Zacks Medical and the S&P 500 Index in the past year.
The industry has surged about 44% over this period compared with the broader sector’s nearly 1% growth. Meanwhile, the S&P 500 has risen over 29%.
One-Year Price Performance
Image Source: Zacks Investment Research
Industry's Current Valuation Based on the forward 12-month price-to-earnings (P/E F12M), a commonly used multiple for valuing generic companies, the industry is currently trading at 15X compared with the S&P 500’s 21.99X and the Zacks Medical sector’s 19.49X.
Over the past five years, the industry has traded as high as 15.71X, as low as 6.51X and at the median of 9.66X, as the charts below show.
P/E F12M Ratio
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
3 Generic Drug Stocks to Keep an Eye On Sandoz: This Swiss-based generic drugmaker was spun off from Novartis in 2023. During the first quarter of 2026, Sandoz achieved net sales of $2.76 billion, up 3% year over year (excluding Fx). Growth was primarily driven by its biosimilars business, which grew 18%, led by strong demand for Afqlir (biosimilar to Eylea), Pyzchiva (biosimilar to Stelara), Jubbonti (biosimilar to Amgen’s Prolia) and Wyost (biosimilar to Amgen’s Xgeva). Biosimilars now account for nearly one-third of the company's total revenues and remain Sandoz's primary growth driver.
Sandoz expects 2026 sales to grow at a mid- to high-single-digit rate, supported by recent product launches and continued expansion of its biosimilars portfolio. In March, the company expanded its partnership with Samsung Bioepis to develop up to five biosimilars, including a biosimilar version of Takeda's Entyvio (vedolizumab). The agreement further strengthens what management describes as an industry-leading biosimilars pipeline and positions the company to capitalize on a significant wave of upcoming biologic patent expirations.
In the past year, the stock has surged 51%. The consensus estimate for 2026 EPS has increased from $4.11 to $4.13 in the past 30 days.
Sandoz carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price & Consensus: SDZNY
Image Source: Zacks Investment Research
Teva: This Israel-based company is the world’s largest generic drug company, in terms of both total and new prescriptions. Teva enjoys a leading position in the United States, the world’s largest generic market, where it commands a share of more than 6%. The company regularly pursues FTF and first-to-market opportunities and seeks approval for complex generics, which are likely to face less competition.
The company has a growing biosimilars pipeline, with some products being developed in partnership with Alvotech. These include Simlandi and Selarsdi, the first two biosimilars launched in the United States under the Teva-Alvotech strategic partnership, which includes seven biosimilar candidates. The company expects its biosimilars business to generate $800 million in revenues by 2027.
The company is also benefiting from continued growth in its branded medicines portfolio, which includes Austedo, Ajovy and Uzedy. These products support Teva's ongoing transformation into a more diversified biopharmaceutical company.
The consensus estimate for 2026 EPS has declined from $2.50 to $2.39 in the past 30 days. The stock has surged nearly 100% in the past year. Teva currently carries a Zacks Rank #3 (Hold).
Price & Consensus: TEVA
Image Source: Zacks Investment Research
Viatris: It offers a broad mix of generics, including oral solids, injectables and topicals. The company's generic business delivered strong performance in North America during the first quarter of 2026, supported by increased demand for estradiol, continued momentum from Breyna (generic version of Symbicort) and contributions from recently launched complex generic products. Viatris also benefited from new product launches, such as iron sucrose and octreotide, and expects additional growth from the planned U.S. launch of generic Abilify Maintena later this year.
Viatris’ branded business, which comprises two-thirds of its portfolio, also performed well. Key products such as Creon and Amitiza, along with other established brands, continued to support revenue growth.
The stock has surged 88% in the past year. The consensus estimate for 2026 EPS has increased from $2.44 to $2.47 in the past 30 days. Viatris carries a Zacks Rank #3 at present.
Price & Consensus: VTRS
Image Source: Zacks Investment Research
