Viatris stock unchanged as Goldman maintains Neutral rating on trial miss

Published 18/07/2025, 15:36
Viatris stock unchanged as Goldman maintains Neutral rating on trial miss

Investing.com - Viatris Inc (NASDAQ:VTRS), a prominent player in the pharmaceuticals industry with a market cap of $10.45 billion, maintained its Neutral rating and $10.00 price target at Goldman Sachs following disappointing clinical trial results for its eye medication. According to InvestingPro data, the company offers a substantial 5.18% dividend yield and appears undervalued based on current Fair Value analysis.

The pharmaceutical company announced that its Phase 3 study of MR-139 (pimecrolimus 0.3% ophthalmic ointment) failed to meet its primary endpoint in patients with blepharitis, an inflammatory eye condition. The trial specifically measured complete resolution of debris after six weeks of twice-daily dosing.

Viatris is now evaluating next steps for the program, which may include revising plans for an additional Phase 3 study that had been in development.

Goldman Sachs noted that while MR-139 was not included in its financial models or consensus estimates, the trial failure represents an "incremental set-back" to Viatris’s branded pipeline development efforts.

The investment bank also highlighted that Viatris has recently reported several positive Phase 3 results in other therapeutic areas, including pain management and presbyopia treatments, which it continues to monitor for insights into the company’s long-term growth prospects.

In other recent news, Viatris Inc. announced that its Phase 3 clinical trial for the blepharitis treatment MR-139 did not meet its primary endpoint, which aimed for a complete resolution of debris after six weeks. Despite this setback, Viatris emphasized its ongoing commitment to advancing its pipeline, highlighting positive results from other Phase 3 trials. The VEGA-3 trial for presbyopia treatment MR-141 showed significant improvement in near vision, meeting all primary and secondary endpoints. Additionally, the LYNX-2 trial for MR-142 demonstrated significant improvement in night vision for keratorefractive patients.

Goldman Sachs has initiated coverage on Viatris with a Neutral rating, citing structural dynamics in the company’s core business and modest growth in its generics segment. The firm noted challenges due to an FDA warning letter and import alert for a manufacturing site in India, expected to impact 2025 revenue by approximately $500 million. Viatris plans to submit an application for MR-141 to the U.S. FDA in the second half of 2025, with exclusive U.S. commercialization rights secured through a licensing agreement. The company remains focused on delivering novel therapies like Tyrvaya and RYZUMVI and addressing unmet needs in anterior segment eye conditions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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