Viatris to Pay $335 Million for Settlement of Opioid-Related Claims

Viatris, Inc. VTRS announced that it has reached a nationwide settlement framework to resolve opioid-related claims by states, local governments, and tribes against it and certain of its subsidiaries.Per the terms of the settlement agreement, Viatris would pay up to a maximum of $335 million to all the above-mentioned parties. This sum consists of annual payments of approximately $27.5-$40 million to each party over a period of nine years to help support state and local efforts to address opioid-related issues.However, Viatris stated that the settlement is in no way an admission of wrongdoing or liability.VTRS’ share price has plunged 38.1% year to date compared with the industry’s 4.6% decline.Image Source: Zacks Investment ResearchMore on Viatris’ Opioid LitigationViatris, along with other manufacturers, distributors, pharmacies, pharmacy benefit managers and individual healthcare providers, is a defendant in more than 1,000 cases in the United States and Canada filed by various plaintiffs who seek damages and relief.VTRS and many other pharma companies were accused of not stating the health risks of opioid-related medications.  In addition, lawsuits have been filed as putative class actions, including on behalf of children with Neonatal Abstinence Syndrome due to alleged exposure to opioids.Viatris accrued approximately $270 million as of Dec. 31, 2024, in connection with the possible resolution of certain of these matters, which is included in other current liabilities in the consolidated balance sheets.Viatris was formed through the merger of the erstwhile Mylan and Pfizer’s PFE Upjohn businesses. The company has agreed to pay Pfizer approximately 57% of any loss actually incurred or suffered by the former, its predecessors or subsidiaries since 2019, arising out of third-party actions relating to the manufacture, distribution, marketing, promotion or sale of opioids by or on behalf of Viatris, its predecessors or subsidiaries.VTRS currently manufactures a generic injectable version of the life-saving overdose reversal drug, naloxone, as well as a generic buprenorphine/naloxone product used for the treatment of opioid addiction. It is also developing a novel delivery for meloxicam, a non-opioid pain medication.Challenges Confronting ViatrisIn February, VTRS reported lower-than-expected fourth-quarter results, wherein the top and bottom lines missed their respective estimates. The guidance for 2025 was disappointing as well.Viatris Inc. Price, Consensus and EPS Surprise Viatris Inc. price-consensus-eps-surprise-chart | Viatris Inc. QuoteFollowing an inspection of Viatris' oral finished dose manufacturing facility in Indore, India, in June 2024, the company received a warning letter and import alert from the FDA in December 2024.The import alert affects 11 actively distributed products, including lenalidomide and everolimus. However, the regulatory body made exceptions for four products based on shortage concerns.While these products continue to be shipped from the Indore facility to markets outside the United States, VTRS currently anticipates some impact in other markets. Due to this, VTRS estimates 2025 revenues to be negatively impacted by approximately $500 million.Zacks Rank and Stocks to ConsiderViatris currently carries a Zacks Rank #4 (Sell).Some better-ranked stocks from the sector are ADMA Biologics ADMA and BioMarin Pharmaceutical BMRN, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.In the past 60 days, ADMA’s earnings per share (EPS) estimates for 2025 have increased to 71 cents from 69 cents in the past 60 days. The EPS estimate for 2026 has increased to 93 cents from 87 cents in the same time frame. Shares of ADMA have gained 7.3% year to date.BMRN’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 32.36%.The Zacks Consensus Estimate for BMRN’s 2025 EPS has increased to $4.30 from $4.01 in the past 60 days. The consensus mark for 2026 EPS has risen 15 cents to $5.35 in the said time frame. Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report BioMarin Pharmaceutical Inc. (BMRN): Free Stock Analysis Report ADMA Biologics Inc (ADMA): Free Stock Analysis Report Viatris Inc. (VTRS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks