Over the last year, Viatris has been busy working to resolve FDA concerns at a critical drug manufacturing plant in India while also taking a hard look at its business with an eye on potential cuts. Thursday, the company revealed the results of its strategic review and disclosed a new facility hardship it must overcome in India.
After kicking off an enterprisewide strategic review a year ago, Viatris on Thursday said it plans to cut its global workforce by about 10% over the next three years. The company expects restructuring-related charges to come in between $700 million and $850 million, but it aims to save $600 million to $700 million annually once the plan is complete.
The restructuring charges will take the form of inventory write-offs, severance payments, contract terminations, vendor consolidations and other network "modernization costs," Viatris said in its fourth-quarter and full-year earnings release.
The changes will affect a range of functions including the company's commercial teams, R&D, medical affairs and manufacturing. As of last year, the company reported employing 32,000 people worldwide.
In India, meanwhile, Viatris has spent more than a year working to resolve the FDA's concerns at its plant in Indore after the agency slapped the drugmaker with a warning letter and import alert in late 2024. Last month, the company revealed it had "substantially completed remediation" at the facility and that it was awaiting an FDA reinspection of the site.
The FDA's clampdown on the facility caused Viatris to lose about $370 million in revenues last year, the company said in its earning release. In an accompanying investor presentation, Viatris said it expects a partial supply recovery from the plant to provide a financial tailwind for the year.
But, in a more recent setback in the country, Viatris said a fire broke out at a service area in its plant in Nashik, India, earlier this month. The company has suspended production at the facility and expects to get things back up and running there in about two months.
Overall last year, Viatris reported $14.3 billion in global sales, a 3% decline from 2024. In 2026, the company forecasts sales will reach $14.45 billion to $14.95 billion.