Pharmaceutical company Viatris announced Thursday it expects to earn less profit than Wall Street predicted for 2026, citing disruptions from a blaze that damaged one of its key production facilities in India.
The fire broke out earlier in February at the company’s manufacturing plant in Nashik, India, which produces tablets and capsules. Operations at the site had to be temporarily halted, though Viatris officials say they anticipate restarting production in April and have included the financial impact in their 2026 projections.
The pharmaceutical manufacturer runs four production facilities across India, with major operations in both Nashik and Indore.
Company executives projected 2026 adjusted earnings per share will fall between $2.33 and $2.47, falling short of the $2.49 average that Wall Street analysts had predicted, based on LSEG data.
The Nashik facility fire adds to mounting challenges for Viatris’ Indian manufacturing operations, which were already facing difficulties after the U.S. Food and Drug Administration imposed import restrictions in December 2024 on certain products from another company facility due to federal regulation violations.
Viatris, which was created through the 2020 combination of Mylan and Pfizer’s Upjohn division, also announced plans to eliminate up to 10% of its worldwide staff as part of a comprehensive restructuring initiative.
The workforce reduction is projected to save between $600 million and $700 million once complete, though it will result in total pre-tax costs ranging from $700 million to $850 million.
Based on company filings from November, Viatris employs more than 30,000 people worldwide.
Stock shares climbed 2.3% in pre-market trading following the announcement.
The company projects annual revenue will reach between $14.45 billion and $14.95 billion, exceeding analysts’ estimates of $14.35 billion.
Viatris manufactures both generic and brand-name medications, including well-known drugs like Viagra for erectile dysfunction, Xanax for anxiety, Lyrica for epilepsy, and Celebrex for arthritis.
The branded pharmaceuticals division, which accounts for the majority of company revenue, saw sales increase 8% in the fourth quarter.
Total company revenue reached $3.70 billion, marking a 5% increase compared to the previous year.
The company reported adjusted quarterly earnings of 57 cents per share for the period ending December 31, surpassing analyst expectations of 53 cents.
