VTRS · 10-Q · 2026Q2 · Full report

Manufacturing and Supply Disruptions

Viatris Inc · 2026-08-06 · Importance 47 · Surprise 60 · In source text

An FDA warning letter and import alert affecting Viatris’ Indore, India facility continue to restrict 11 products from entering the U.S., with negative effects also reported in the Emerging Markets ARV business and selected European generic products. A February 2026 fire at the Nashik, India oral solid-dose facility temporarily suspended production, and subsequent FDA Form 483 observations caused intermittent disruptions even after production resumed. Viatris expects Nashik-related supply disruptions to reduce total revenues by $100 million to $150 million in the second half of 2026. The company recorded $86.8 million of six-month cost-of-sales charges for inventory and fixed assets damaged in the fire and incremental manufacturing variances.

Key facts

• The temporary manufacturing suspension due to the Nashik fire and intermittent disruptions are expected to impact product supply in the second half of the year and are currently anticipated to impact total revenues between $100 million and $150 million in the second half of 2026. source
• For the three and six months ended June 30, 2026, includes certain asset impairments, contractual termination costs, and incremental manufacturing variances and certain remediation costs at plants slated for sale or closure or undergoing remediation activities of approximately $44.2 million and $174.9 million, respectively, including charges of $14.9 million and $86.8 million, respectively, primarily related to the write off of inventory and fixed assets damaged in the fire at the Nashik manufacturing facility and incremental manufacturing variances. source
• The six months ended June 30, 2026 included $86.8 million related to the write off of inventory and fixed assets damaged in the fire at the Nashik manufacturing facility and incremental manufacturing variances. source
• In February 2026, a fire occurred in a service area at the Company’s oral solid dose manufacturing facility in Nashik, India and manufacturing at the facility was temporarily suspended. source
• The Company has 27 manufacturing, packaging, and distribution sites worldwide. source

Impact estimates