Viatris Statement on Nationwide Settlement to Resolve Opioid-Related Claims

Rhea-AI Summary

Viatris (VTRS) has announced a nationwide settlement framework to resolve opioid-related claims by states, local governments, and Tribes. The settlement, which does not admit wrongdoing or liability, requires the company to pay up to $335 million over nine years, with annual payments ranging between $27.5 and $40 million.

The company had previously accounted for this potential settlement in its 2024 Form 10-K. Viatris, which has a minimal presence in the U.S. opioids market, manufactures generic versions of naloxone (overdose reversal drug) and buprenorphine/naloxone (opioid addiction treatment). The company is also developing a novel delivery system for meloxicam, a non-opioid pain medication.

Positive

• Settlement provides closure on opioid-related claims
• Settlement amount was already accounted for in 2024 financial statements
• Company maintains minimal exposure to U.S. opioids market
• Development of non-opioid pain medication alternative

Negative

• Settlement payment of up to $335 million over nine years
• Ongoing financial obligation of $27.5-40 million annually for nine years

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PITTSBURGH, April 7, 2025 /PRNewswire/ -- Viatris Inc. (Nasdaq: VTRS) (the "Company") today announced it has reached a nationwide settlement framework to resolve opioid-related claims by states, local governments, and Tribes against the Company and certain of its subsidiaries. While the Company's presence in the U.S. opioids market is very small, the Company has agreed to this settlement to provide closure on these matters. This settlement is in no way an admission of wrongdoing or liability.

Under the agreed upon framework, depending on the level of participation in the settlement, the Company would pay up to a maximum of $335 million, consisting of annual payments over a nine-year period of between approximately $27.5 and $40 million each, to help support state and local efforts to address opioid-related issues. The Company had already accrued an estimate in respect of a potential settlement, which is reflected in the Company's annual report on Form 10-K for the year ended December 31, 2024.  

The Company will also continue its longstanding role of working to identify solutions to address pressing public health challenges like those relating to opioids. For example, the Company manufactures a generic injectable version of the life-saving overdose reversal drug, naloxone, as well as a generic buprenorphine/naloxone product used for the treatment of opioid addiction. The Company is also developing a novel delivery for meloxicam, a non-opioid pain medication.

The settlement enables the Company to further focus on its mission of empowering people worldwide to live healthier at every stage of life, advance its efforts to address unmet patient needs through an expanded innovative portfolio and continue to serve approximately 1 billion patients annually with its diverse portfolio of medicines.

About Viatris
Viatris Inc. (Nasdaq: VTRS) is a global healthcare company uniquely positioned to bridge the traditional divide between generics and brands, combining the best of both to more holistically address healthcare needs globally. With a mission to empower people worldwide to live healthier at every stage of life, we provide access at scale, currently supplying high-quality medicines to approximately 1 billion patients around the world annually and touching all of life's moments, from birth to the end of life, acute conditions to chronic diseases. With our exceptionally extensive and diverse portfolio of medicines, a one-of-a-kind global supply chain designed to reach more people when and where they need them, and the scientific expertise to address some of the world's most enduring health challenges, access takes on deep meaning at Viatris. We are headquartered in the U.S., with global centers in Pittsburgh, Shanghai and Hyderabad, India. Learn more at viatris.com and investor.viatris.com, and connect with us on LinkedIn, Instagram, YouTube and X (formerly Twitter).

Forward-Looking Statements

This press release includes statements that constitute "forward-looking statements." These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may include statements regarding the Company's nationwide settlement framework to resolve opioid-related claims by states, local governments, and Tribes against the Company and certain of its subsidiaries; under the agreed upon framework, depending on the level of participation in the settlement, the Company would pay up to a maximum of $335 million, consisting of annual payments over a nine-year period of between approximately $27.5 and $40 million each, to help support state and local efforts to address opioid-related issues; that the Company will also continue its longstanding role of working to identify solutions to address pressing public health challenges like those relating to opioids; the Company is also developing a novel delivery for meloxicam, a non-opioid pain medication; and that the settlement enables the Company to further focus on its mission of empowering people worldwide to live healthier at every stage of life, advance its efforts to address unmet patient needs through an expanded innovative portfolio and continue to serve approximately 1 billion patients annually with its diverse portfolio of medicines. Because forward-looking statements inherently involve risks and uncertainties, actual future results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: the inability or unwillingness on the part of any of the parties to agree to a final settlement; any legal or regulatory challenges to the settlement; the level of participation by litigants or claimants in the settlement framework; any failure by third parties to comply with their contractual obligations; actions and decisions of healthcare and pharmaceutical regulators; our ability to comply with applicable laws and regulations; changes in healthcare and pharmaceutical laws and regulations in the U.S. and abroad; any regulatory, legal or other impediments to Viatris' ability to bring new products to market; Viatris' or its partners' ability to develop, manufacture, and commercialize products; the scope, timing and outcome of any ongoing legal proceedings, and the impact of any such proceedings on Viatris; Viatris' failure to achieve expected or targeted future financial and operating performance and results; risks associated with international operations; changes in third-party relationships; the effect of any changes in Viatris' or its partners' customer and supplier relationships and customer purchasing patterns; the impacts of competition; changes in the economic and financial conditions of Viatris or its partners; uncertainties and matters beyond the control of management, including but not limited to general political and economic conditions, tariffs and trade policies, inflation rates and global exchange rates; and the other risks described in Viatris' filings with the Securities and Exchange Commission ("SEC"). Viatris routinely uses its website as a means of disclosing material information to the public in a broad, non-exclusionary manner for purposes of the SEC's Regulation Fair Disclosure (Reg FD). Viatris undertakes no obligation to update these statements for revisions or changes after the date of this press release other than as required by law. 

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SOURCE Viatris Inc.

FAQ

How much will Viatris (VTRS) pay in the opioid settlement agreement?

Viatris will pay up to $335 million over nine years, with annual payments between $27.5 and $40 million.

What opioid-related products does Viatris (VTRS) currently manufacture?

Viatris produces generic versions of naloxone (overdose reversal drug) and buprenorphine/naloxone (opioid addiction treatment).

How will the 2025 opioid settlement affect Viatris (VTRS) financially?

The settlement amount was already accounted for in Viatris's 2024 Form 10-K, indicating the company had anticipated and prepared for this financial obligation.

What new pain medication is Viatris (VTRS) developing as an alternative to opioids?

Viatris is developing a novel delivery system for meloxicam, a non-opioid pain medication.