What Happened?

Shares of medication company Viatris (NASDAQ:VTRS) fell 16.9% in the morning session after the company reported disappointing fourth-quarter 2024 results, with sales, earnings, and operating income all missing analysts' expectations. Sales came in soft, driven by strength in Greater China and new product launches, but weighed down by weaker performance in Developed and Emerging Markets​. Looking ahead, Viatris' 2025 guidance also disappointed, with revenue and adjusted EBITDA projections falling short of expectations. The company expects an approximately $500 million revenue hit and a $385 million impact on adjusted EBITDA due to ongoing regulatory challenges at its Indore facility​. Overall, this was a weaker quarter, and there were few positives to take away from the results.

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What The Market Is Telling Us

Viatris’s shares are not very volatile and have only had 3 moves greater than 5% over the last year. Moves this big are rare for Viatris and indicate this news significantly impacted the market’s perception of the business.

Viatris is down 21.5% since the beginning of the year, and at $9.76 per share, it is trading 27% below its 52-week high of $13.37 from November 2024. Investors who bought $1,000 worth of Viatris’s shares 5 years ago would now be looking at an investment worth $522.22.

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