Viatris Looks to New Launches, Pipeline Progression, and Cost Savings for Long-Term Growth

Viatris is one of the largest off-patent pharmaceutical manufacturers in the world. Generic drugs make up about 35% of the company's sales. Generics typically see a low- to mid-single-digit price erosion per year in developed markets like North America and the majority of Europe. Because price and margin headwinds are predominantly in small-molecule oral tablets that are easy to produce, Viatris’ pipeline has shifted to focus more on complex generics—drugs with complex formulations, dosage forms, or that are injected or have more complex administration. Complex generics are more difficult to manufacture, and since price, volume, and margin depend heavily on a drug's competitiveness, they pave an opportunistic path for Viatris' long-term growth. But other players in the industry are employing a similar strategy, so the firm's success hinges on its ability to identify profitable drugs and efficiently launch them to market.