Viatris Inc 3Q Preview: Anticipating Inline Qtr But Looking For Update On China Policy Headwinds, Updating Model For PCRX Deal

Ahead of Viatris' 3Q earnings on November 5, J.P. Morgan expects 3Q sales of $3.7bn (about $75mm below consensus) and EPS of $0.66 (+$0.02), and full-year sales of $14.7bn with EPS of $2.50, near the midpoint of company guidance. The report will focus on updated expectations for China's new hospital procurement policy, while incorporating headwinds from the Nashik facility, Breyna/Wixela competition and the Isosulfan Blue LOE. The model is updated for the Pacira (PCRX) acquisition, with 2027 EPS of $2.77 and roughly 5% accretion through 2030. J.P. Morgan maintains a Neutral rating and a Dec-2027 price target of $20 based on DCF (9.5% WACC, -1% terminal growth).