Viatris names Hemanth J. Varghese as Chief Strategy Officer

PITTSBURGH - Viatris Inc. (NASDAQ:VTRS), a global healthcare company with a market capitalization of $9 billion and annual revenue exceeding $14.7 billion, announced today that Hemanth J. Varghese has been appointed as the new Chief Strategy Officer. Varghese, an experienced healthcare executive with over two decades of expertise in strategy and operations, joins Viatris’ Executive Leadership Team. According to InvestingPro data, the company maintains a strong financial health score, reflecting its position as a prominent player in the pharmaceuticals industry.

The newly appointed officer has a history of leading growth initiatives and strategic transformations at multinational healthcare organizations. Varghese’s previous roles include President and Chief Operating Officer at Venus Concept, Senior Vice President at HLS Therapeutics, and several executive positions at Endo International. His career also spans positions at Valeant Pharmaceuticals, Bausch & Lomb, and Biovail Corporation. Varghese holds a Ph.D. in medical biophysics from the University of Western Ontario and is a Chartered Financial Analyst.

CEO of Viatris, Scott A. Smith, expressed confidence in Varghese’s addition to the team, anticipating his contribution to the company’s growth trajectory. This appointment comes at a crucial time, as InvestingPro analysis indicates the company is currently trading below its Fair Value, with analysts projecting positive net income growth this year. Varghese himself is looking forward to the role, aiming to leverage his experience to strengthen Viatris as the company prepares for expansion in 2026 and beyond.

Viatris operates with the mission to empower people worldwide with better health solutions, delivering high-quality medicines to roughly 1 billion patients annually. The company prides itself on a diverse portfolio of medicines and a robust global supply chain designed to meet global healthcare needs.

This appointment comes as part of Viatris’ strategy to enhance its leadership and position itself for future growth. While the company’s forward-looking statements indicate optimism for growth in the coming years, they also acknowledge the inherent risks and uncertainties that could impact future results.

The information regarding Varghese’s appointment and the company’s outlook is based on a press release statement from Viatris Inc. For investors seeking deeper insights, InvestingPro offers comprehensive analysis of Viatris’s financial health, including its attractive 6.37% dividend yield and strong free cash flow metrics, along with 8 additional ProTips that could help inform investment decisions.

In other recent news, Viatris Inc. reported its fourth-quarter earnings for 2024, revealing a shortfall as both earnings per share (EPS) and revenue missed analysts’ expectations. The company posted an EPS of $0.54, below the projected $0.58, and revenue of $3.52 billion, falling short of the anticipated $3.62 billion. Additionally, Viatris has announced a settlement framework to resolve opioid-related claims in the U.S., agreeing to pay up to $335 million over nine years, though this agreement is not an admission of wrongdoing. The financial implications of this settlement have already been accounted for in the company’s annual report for 2024.

Analysts have adjusted their outlooks for Viatris, with Jefferies lowering the stock price target to $13 while maintaining a Buy rating, and Piper Sandler cutting it to $10, maintaining a neutral stance. The adjustments reflect challenges at Viatris’ Indore manufacturing facility, which have impacted revenue and EBITDA guidance. S&P Global Ratings downgraded Viatris’ corporate credit rating to ’BB+’ from ’BBB-’, citing elevated leverage expectations due to financial pressures anticipated in 2025.

Despite these challenges, Viatris ended 2024 with a total revenue of $14.7 billion, marking a 2% increase year-over-year, and a strong adjusted EBITDA of $4.7 billion. The company has also announced a share repurchase program valued between $500 million and $650 million. Viatris continues to focus on debt reduction, having retired approximately $3.7 billion in debt, and aims to return capital to shareholders while investing in its product pipeline.

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