Viatris forecasts 2026 profit below estimates on India manufacturing woes

Core Viewpoint - Viatris forecasts 2026 profit below analysts' expectations due to operational disruptions from a fire at its manufacturing facility in Nashik, India [1] Financial Performance - Viatris expects adjusted per-share profit for 2026 to be between $2.33 and $2.47, compared to analysts' average estimate of $2.49 [1] - The company anticipates annual revenue to be between $14.45 billion and $14.95 billion, while analysts estimate $14.35 billion [1] - Total revenue for the fourth quarter was $3.70 billion, reflecting a 5% increase year-over-year [1] - Revenue from the branded drugs unit, which constitutes the majority of total revenue, rose by 8% during the fourth quarter [1] - The company posted an adjusted profit of 57 cents per share for the quarter ended December 31, exceeding the estimate of 53 cents [1] Operational Challenges - A fire at the Nashik facility has led to a temporary shutdown, with operations expected to resume in April [1] - The manufacturing operations in India are already under strain due to a U.S. FDA restriction on imports from one of its facilities following federal requirement violations [1] Restructuring Plans - Viatris plans to cut up to 10% of its global workforce as part of a multi-year restructuring plan [1] - This restructuring is expected to generate savings of $600 million to $700 million once fully implemented, with total pre-tax charges estimated between $700 million and $850 million [1]