Divestitures Muddy Viatris' 2025, but New Launches and Pipeline Support Our Outlook

Viatris is one of the largest generic drug manufacturers in the world. Generic drugs make up about 40% of the company's sales. Generics continue to suffer annual low- to mid-single-digit erosion in developed markets like North America and the majority of Europe. Because price and margin headwinds exist predominantly in small-molecule oral tablets that are easy to produce, we expect Viatris’ pipeline to focus more on complex generics—drugs that have complex formulations, dosage forms, or are injected or have more complex administration.