Viatris Earnings: Branded Growth Steady as Indore Weighs on Otherwise In-Line Q1; Tariff Minimal

No-moat Viatris reported soft first-quarter earnings. Total revenue of $3.2 billion was down 11.2% year over year and landed around our expectations. Adjusting for divestiture and currency headwinds, sales were down about 2% as 3% growth from the branded portfolio wasn’t enough to offset the 11% decline from generics. Indore's impact in the first quarter is about $140 million (4% headwind) in revenue, with the US suffering the majority of impact, and $80 million in adjusted EBITDA (7%). As we called out from last earnings, Indore's impact will last through the year and create a $500 million revenue headwind, or about 3.5% on 2024 base, and $385 million EBITDA headwind, 8.3% on 2025. The firm is expected to submit a reinspection request at midyear.