Viatris Earnings: Solid Results Thanks to Stable Generics and Wins in Eye Care

No-moat Viatris reported third-quarter earnings that were largely in line with our expectations. Total sales were down 3.3% year over year but up 1% excluding foreign exchange impacts and divestitures. The base business remains healthy, and prescription trends across different regions look to be generally stable. Management slightly lowered sales guidance for the year to $15.4 billion-$15.6 billion from $15.5 billion-$16.0 billion mainly due to adverse foreign exchange. After adjusting our near-term assumptions and accounting for time value of money impacts, we are maintaining our fair value estimate of $13 per share.