Viatris Reports 11% Revenue Decline and $3.04 Billion Net Loss in Q1 2025

Viatris Inc. reported a significant decline in its financial performance for the first quarter of 2025, with total revenues of $3.25 billion, down 11% from $3.66 billion in the same period last year. The decrease was primarily driven by a drop in net sales, which fell to $3.24 billion from $3.65 billion, reflecting a loss of approximately $410 million. The company attributed this decline to the impact of divestitures completed in 2024 and challenges related to its Indore manufacturing facility, which resulted in an estimated revenue loss of $140 million. The gross profit also decreased to $1.16 billion, leading to a gross margin of 36%, down from 41% in the prior year.

The company's operating expenses surged to $4.04 billion, largely due to a non-cash goodwill impairment charge of $2.94 billion, which was recorded following an interim goodwill impairment test. This charge was a response to a significant decline in the company's share price and increased uncertainty in the geopolitical and economic environments. As a result, Viatris reported a net loss of $3.04 billion for the quarter, compared to a net profit of $113.9 million in the previous year. The diluted loss per share was $(2.55), a stark contrast to the earnings of $0.09 per share reported in the first quarter of 2024.

In terms of strategic developments, Viatris completed the acquisition of exclusive global development and commercialization rights to two Phase 3 assets from Idorsia in March 2024, which included an upfront payment of $350 million. This acquisition is expected to enhance Viatris' portfolio of innovative products. Additionally, the company has been actively managing its share repurchase program, having repurchased approximately 18.6 million shares at a cost of $175.4 million during the quarter.

Operationally, Viatris faced challenges in its Emerging Markets segment, where net sales decreased by 17% to $519.9 million, impacted by the Indore facility's issues. Conversely, the Greater China segment saw a slight increase in net sales, up 2% to $555.5 million, driven by growth across various channels. The company reported a total employee headcount of approximately 32,000, reflecting its global operational scale.

Looking ahead, Viatris anticipates continued challenges due to the ongoing impact of the Indore facility's import alert and the broader economic environment. The company expects a negative impact on its total revenues for 2025 to be approximately $500 million, alongside a projected $385 million impact on earnings from operations. Viatris remains focused on executing its strategic initiatives, including the integration of the Idorsia assets and addressing the operational challenges posed by its manufacturing facilities.