Viatris (VTRS) Stock Forecast & Price Target

Viatris, formed through the merger of Upjohn and Mylan, has positioned itself as a leading player in the global pharmaceutical market, generating substantial revenue from its diverse product portfolio, which includes both generics and legacy branded products. The company's strategic focus on key therapeutic areas such as dermatology, ophthalmology, and gastroenterology, along with increased investment in R&D, suggests a commitment to innovation that could drive future growth. Additionally, management's emphasis on expanding its pipeline through targeted acquisitions and the anticipated normalization of operational challenges, particularly at its Indore facility, indicates a favorable outlook for the company’s performance and valuation metrics moving forward.

Viatris's stock outlook is negatively impacted by a significant reduction in EBITDA estimates for 2026, now projected at $4,358 million, down from a previous estimate of $4,498 million, reflecting concerns about growth catalysts and ongoing operational challenges. The company is grappling with the implications of an FDA warning and import alert related to its Indore manufacturing facility, which is expected to result in an EBITDA trough in 2025. Additionally, the limited revenue contribution from the less critical Nashik facility, primarily consisting of lower-margin generics, further underscores the lack of visibility into a viable growth strategy moving forward.