Goldman Sachs has initiated its analysis of Viatris (VTRS, Financial), assigning a Neutral rating with a price target of $10. The firm's assessment comes as it seeks greater clarity on the company's growth outlook amidst ongoing structural changes within its core operations. Goldman Sachs considers the current market expectations for Viatris to be reasonable.
In terms of the company's generics segment, Goldman anticipates only slight growth. The firm is closely watching Viatris' ability to counterbalance the decline of its older products by launching new items and optimizing its portfolio.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Viatris Inc (VTRS, Financial) is $14.85 with a high estimate of $35.00 and a low estimate of $8.00. The average target implies an upside of 75.74% from the current price of $8.45. More detailed estimate data can be found on the Viatris Inc (VTRS) Forecast page.
Based on the consensus recommendation from 10 brokerage firms, Viatris Inc's (VTRS, Financial) average brokerage recommendation is currently 2.7, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Viatris Inc (VTRS, Financial) in one year is $9.46, suggesting a upside of 11.95% from the current price of $8.45. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Viatris Inc (VTRS) Summary page.
VTRS Key Business Developments
Release Date: May 08, 2025
- Total Revenue: $3.3 billion, down 2% on a divestiture-adjusted operational basis.
- Revenue Impact from Indore: Approximately $140 million.
- Adjusted Gross Margin: Approximately 56%.
- Free Cash Flow: $493 million, $535 million excluding transaction costs and taxes from divestitures.
- Capital Returned to Shareholders: Approximately $450 million, including $300 million in share repurchases and $143 million in dividends.
- Goodwill Impairment Charge: $2.9 billion non-cash charge.
- New Product Revenue Target: $450 million to $550 million for the year.
- Regional Revenue Growth: Europe up 1%, Greater China up 4%, North America down 8%, Emerging Markets down 5%, JANZ down 6%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Viatris Inc (VTRS, Financial) reported Q1 2025 operational performance in line with expectations, with significant pipeline progress including three positive Phase 3 data readouts.
- The company returned approximately $450 million in capital to shareholders, with $300 million through share repurchases.
- Viatris Inc (VTRS) announced positive data for Phase 3 studies of novel fast-acting meloxicam for moderate to severe acute pain, highlighting its potential as a non-opioid treatment option.
- The company received positive results for XULANE LO, a low-dose estrogen combination birth control patch, with plans to submit an NDA in the second half of the year.
- Viatris Inc (VTRS) is on track with its enterprise-wide strategic review, aiming to streamline costs and set the organization up for future growth.
Negative Points
- Total revenues for Q1 2025 were $3.3 billion, down 2% on a divestiture-adjusted operational basis, primarily due to the impact of the Indore facility.
- The North American business decreased 8% versus the prior year, impacted by the Indore facility and competition on select generic products.
- The company recorded a non-cash goodwill impairment charge of $2.9 billion due to a decline in share price and increased business risk.
- Viatris Inc (VTRS) faces potential financial impact from tariffs on pharmaceuticals, which could affect the ability to provide access to medications.
- The company is dealing with ongoing remediation efforts at its Indore facility, which has affected revenue and operational performance.
