Viatris Inc.

Viatris sells branded and generic medicines around the world. Its portfolio includes established brands such as Lipitor, alongside complex generics and a growing innovative medicines business. Its shares trade on Nasdaq as VTRS.

The company was formed in November 2020 through the combination of Mylan and Pfizer's Upjohn business. It reports through Developed Markets, Greater China, Japan/Australia/New Zealand, and Emerging Markets.

Quarterly results

Quarterly results. Dollars in millions. Q2 ends June 30; Q3 ends September 30.

Measure	Q3 2025	Q2 2026	Q3 2026
Revenue	$3,759.9	$3,756.8	$3,749.5
Operating profit	$178.8	$6.3	$261.5
Net loss	($128.2)	($118.8)	($325.3)
Adjusted EBITDA	$1,154.6	$1,188.3	$1,195.7
Operating cash flow	$744.9	$381.8	$899.4
Free cash flow	$658.1	$329.0	$813.7

Adjusted EBITDA removes interest, taxes, depreciation, amortization and specified items, including restructuring and acquisition-related costs. Free cash flow here is operating cash flow less capital spending, with transaction and restructuring cash costs left in.

Third-quarter 2026 revenue was essentially unchanged from a year earlier. A stronger mix of higher-margin business in Greater China and North America lifted operating profit. The larger net loss reflected a $453.2 million tax provision, compared with $120.3 million a year earlier. Second-quarter results included a $177.8 million noncash charge on the planned sale of Tyrvaya product rights.

Our analysis of the higher profit target and supply shortfall compares the latest operating outlook with the company's August expectations.

Supply disruptions and outlook

Viatris estimated that supply constraints reduced third-quarter 2026 revenue by about $100 million and expects a similar fourth-quarter impact. In August, it had expected $100 million to $150 million of lost revenue across the entire second half.

Its Nashik factory in India suffered a fire in February. Production resumed, but further interruptions followed remediation work after an FDA inspection. The company voluntarily suspended manufacturing in October and expects a restart in the first quarter of 2027. Management does not expect to recover the lost 2026 revenue in 2027 while production ramps up.

Management's full-year 2026 guidance. Dollars in millions, except earnings per share.

Measure	August 6	November 5
Revenue	$14,550 to $14,950	$14,700 to $14,900
Adjusted EBITDA	$4,300 to $4,500	$4,450 to $4,550
Adjusted EPS	$2.45 to $2.59	$2.56 to $2.63
Operating cash flow	$1,900 to $2,100	$2,025 to $2,100
Free cash flow	$1,450 to $1,750	$1,625 to $1,775

The company's separate free cash flow outlook before transaction and restructuring cash costs is $2.225 billion to $2.375 billion. It excludes about $600 million of those costs. The range in the table includes them.

New-product revenue is now expected at about $450 million for 2026, compared with an August range of $450 million to $550 million. This includes sales from recent launches and their carryover over a twelve-month period.

Cash, debt and portfolio changes

At September 30, Viatris held $1.79 billion of cash and a separate $3.5 million of restricted cash. Debt principal was $12.92 billion; its carrying value was $13.31 billion after premiums and financing fees. The September maturity schedule showed about $1.71 billion of principal due in 2027.

The $3.5 billion revolving credit facility was undrawn and matures in September 2029. It also supports the commercial paper program. A separate, undrawn receivables facility offers up to $600 million, depending on qualifying receivables.

Viatris completed the sale of its remaining Biocon equity position in July for about $380 million before tax. Combined with an earlier $400 million payment, the monetization generated $779.8 million of investing cash proceeds in the first nine months of 2026.

The Tyrvaya rights sale also closed following an October 1 amendment. Viatris retained the Japanese rights, subject to royalties. The agreement provides $30 million upfront and up to $70 million in sales-based milestone payments.

The pending Pacira acquisition

On October 8, Viatris agreed to buy Pacira BioSciences for $36.50 per share in cash, valuing its equity at $1.65 billion. The tender offer began on October 30 and is scheduled to expire late on November 16. Management expects closing by the end of November, subject to the offer's conditions.

Viatris plans to fund the purchase mainly with cash, with the rest from short-term borrowings. Its November 2026 financial guidance excludes Pacira's contribution. Completing the purchase and restoring production at Nashik are the next major developments to track.