Feb 26 (Reuters) – Drugmaker Viatris forecast annual profit below analysts’ expectations on Thursday, after a fire at one of its major plants in India disrupted operations.
A fire occurred at the company’s manufacturing facility in Nashik, India earlier this month, forcing a temporary shutdown at the site that makes tablets and capsules. Viatris said it expects to resume operations in April and has factored the impact into its 2026 forecast.
Viatris operates four manufacturing facilities in India, including major sites in Nashik and Indore.
The company forecast 2026 adjusted per-share profit to be between $2.33 and $2.47, compared with analysts’ average estimate of $2.49, according to data compiled by LSEG.
The Nashik fire deepens the strain on Viatris’ India manufacturing operations, already under pressure after the U.S. Food and Drug Administration in December 2024 restricted imports of certain products from one of its facilities in the country following violation of federal requirements.
Viatris, formed by the merger of Mylan and Pfizer’s Upjohn business in 2020, also said it would cut up to 10% of its global workforce as part of a multi-year restructuring plan.
The move is expected to generate $600 million to $700 million in savings once fully implemented and result in total pre-tax charges of $700 million to $850 million.
The company has more than 30,000 employees globally, according to its filing in November.
Its shares were up 2.3% in premarket trading.
Viatris expects annual revenue to be between $14.45 billion and $14.95 billion, while analysts estimate $14.35 billion.
The company makes both generic and branded drugs, including erectile dysfunction drug Viagra, anti-anxiety medication Xanax, epilepsy treatment Lyrica and arthritis treatment Celebrex.
Revenue for its branded drugs unit, which makes up most of the company’s total revenue, rose 8% during the fourth quarter.
Viatris’ total revenue was $3.70 billion, up 5% over the year earlier.
It posted an adjusted profit of 57 cents per share for the quarter ended December 31, compared with the estimate of 53 cents.
(Reporting by Kamal Choudhury in Bengaluru; Editing by Shilpi Majumdar)
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