Viatris Inc

Viatris reported second-quarter revenue of $3.8 billion, up 3.5% operationally, and raised its full-year 2026 guidance across all key metrics. Adjusted EBITDA rose 8% operationally to $1.2 billion, and adjusted EPS grew 9% to $0.69, driven by 16% operational growth in Greater China and strength in North American complex generics. The company now expects 2026 revenue of $14.55 billion to $14.95 billion, adjusted EBITDA of $4.3 billion to $4.5 billion, and adjusted EPS of $2.45 to $2.59, with midpoints raised for all three. Viatris also announced FDA approval of its Gwyn Lo contraceptive patch, a $30 million upfront deal to sell Tyrvaya rights to Harrow, and completion of its Biocon stake sale for $380 million, while warning that Nashik facility disruptions could cut second-half revenue by $100 million to $150 million.

Simply Wall St has raised its fair value estimate for Viatris to $18.50 per share from $17.94, reflecting updated assumptions after the company's first-quarter results and pipeline progress. The revision incorporates a revenue growth assumption of 1.84%, down from 2.00%, a profit margin expectation of 4.92%, up from 4.50%, a future P/E multiple of 34.43x, down from 36.72x, and a discount rate of 7.24%, up from 7.11%. Separately, Barclays lifted its price target to $22 from $17 and maintained an Overweight rating, citing strong Q1 execution and an expected slate of product approvals this year that could help close the revenue growth gap to peers and support a higher valuation multiple over time.

Viatris has received U.S. FDA approval for its new combined hormonal contraceptive patch, Gwyn Lo. The product is a low-dose estrogen contraceptive patch with data supporting its efficacy and safety. This approval adds a branded asset to Viatris' women's health portfolio and may influence its U.S. market position. The stock has shown strong momentum, with a share price of $17.56, a 40.9% return year to date, and a 107.2% return over the past year.

Merck announced initial components of a multi-faceted strategy to provide rapid, broad and sustainable access in low- and middle-income countries to alimatravir, an investigational once-monthly oral pill for HIV-1 pre-exposure prophylaxis currently in Phase 3 development. The plan includes seven non-exclusive voluntary licensing agreements with generic manufacturers covering 129 countries that account for the substantial majority of new HIV diagnoses globally, with royalty-free terms for both public and private sectors. For the first time in HIV prevention, these licenses were signed before Phase 3 trial enrollment is complete, and they include three sub-Saharan African manufacturers—Aspen Pharmacare, Quality Chemical Industries, and UCL Kenya—alongside four Indian companies—Aurobindo, Cipla, Emcure, and Viatris. Merck is also investing early in its own manufacturing capacity to supply product after anticipated U.S. approval while licensed generics complete development, and is in active discussions with organizations including Fiocruz to enable rapid availability in Latin America. The access strategy was shaped by years of engagement with the HIV community and global health stakeholders, and Merck expects to provide initial supply until generic manufacturing capacity is established.

The presbyopia market across seven major markets is forecast to grow from approximately USD 11 billion in 2025 to nearly USD 18 billion by 2036, a compound annual growth rate of 4.9 percent. The United States accounted for about half of the total market in 2025 and is expected to remain the largest region. Presbyopia eye drops generated roughly USD 3 billion across the seven major markets in 2025, reflecting rising demand for noninvasive pharmacological treatments. Eyeglasses represented around half of US presbyopia market revenue in 2022 and are projected to stay the leading treatment category through 2036. The treatment landscape is shifting from conventional optical correction toward prescription therapies, with approved products including VUITY, QLOSI, and YUVEZZ, while late-stage pipeline candidates from Eyenovia, Opus Genetics and Viatris, and Glaukos Corporation may further reshape competition.

The systemic lupus erythematosus market is at a turning point as six late-stage emerging therapies advance toward potential approval, according to DelveInsight. The market, valued at approximately USD 3 billion in 2025 across the United States, EU4, the United Kingdom, and Japan, is projected to grow at a compound annual growth rate of 10.4% through 2036. Among the highlighted candidates, Biogen and Royalty Pharma's litifilimab has completed enrollment in two Phase III trials with topline results expected in the second half of 2026, while Roche has submitted regulatory applications for obinutuzumab and received FDA acceptance of its supplemental Biologics License Application with a decision anticipated by December 2026. Novartis' ianalumab is in Phase III studies with results expected in 2027 and a potential regulatory submission in 2028, Johnson & Johnson's nipocalimab received Fast Track Designation in March 2026, Idorsia Pharmaceuticals and Viatris' cenerimod is in two Phase III trials and also holds Fast Track Designation, and AbbVie's upadacitinib has advanced to Phase III testing following positive Phase II results.

Three healthcare stocks trading under $30—Kenvue, Pfizer, and Viatris—offer value setups heading into the second half of 2026. Kenvue, the consumer health company behind Tylenol and Neutrogena, closed at $19.83 and is being acquired by Kimberly-Clark for $3.50 cash plus 0.14625 Kimberly-Clark shares, with shareholder approval secured and the deal expected to close in the second half of 2026. Pfizer trades at $24.32 with a 7.2% dividend yield and a forward P/E of 8, having reaffirmed full-year 2026 revenue guidance of $59.5 to $62.5 billion and adjusted EPS of $2.80 to $3.00, supported by a pipeline that includes roughly 20 pivotal trial starts this year. Viatris, at $16.70, carries a forward P/E of 7 and has three FDA PDUFA decisions due before year-end 2026, while management reaffirmed 2026 guidance and is executing a restructuring targeting $600 to $700 million in annualized cost savings. Each name carries risks including deal execution, patent cliffs, and generic pricing pressure, but all three have reaffirmed 2026 outlooks and identifiable catalysts.

Viatris entered into a ¥40 billion senior unsecured term loan agreement with a group of lenders led by Mizuho Bank to support general business purposes and refinance an existing loan of the same amount. The loan carries an interest rate based on the TIBO rate plus 1.10%, matures in three years, and is backed by guarantees from key subsidiaries with financial conditions tied to the company's credit ratings. Separately, Viatris reported positive phase 3 results for Nefecon in primary immunoglobulin A nephropathy from a Japanese trial, where the drug met primary and secondary endpoints and reduced urine protein-to-creatinine ratio by about 33.75% after nine months.

Viatris announced positive top-line results from a Phase 3 clinical trial of VR-205, a targeted-release budesonide, in Japanese adults with primary immunoglobulin A nephropathy. The study met its primary endpoint, showing a statistically significant 33.75% reduction in urine protein-to-creatinine ratio after nine months of treatment, along with improvements in kidney function and sustained proteinuria reduction. The treatment was well tolerated, with no participants progressing to dialysis, kidney transplant, or severe renal impairment. Viatris plans to submit a New Drug Application in Japan by the end of 2026, aiming to make VR-205 the first IgAN-specific targeted-release budesonide oral therapy in the country.