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Viatris Inc VTRS

Morningstar Rating
$11.83 +0.23 (1.98%)
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Company Report

Viatris: Deep-Dive Into Two New Assets Shows Solid Data and Reaffirms Novel Therapy Commitments

Viatris hosted its R&D day where it mainly discussed its two new phase III assets, selatogrel and cenerimod. Selatogrel is a self-administered injection that treats patients with a history of acute myocardial infarction (AMI), or heart attack, and cenerimod is a once-daily oral tablet that treats mild to severe systemic lupus erythematosus, or SLE. The firm added these two drugs in its pipeline through a partnership with Idorsia Pharmaceuticals (biotech company based in Switzerland) which was announced on the day of fourth-quarter earnings last month. After reviewing the materials, we have not made any meaningful changes to our model and maintain our fair value estimate of $13 per share and no-moat rating for the firm.

Price vs Fair Value

VTRS is trading at a 9% discount.
Price
$11.83
Fair Value
$26.00
Uncertainty
Very High
1-Star Price
$82.86
5-Star Price
$9.70
Economic Moat
Lflg
Capital Allocation
Gnywyqvv

Bulls Say, Bears Say

Bulls

A new focus on dermatology, ophthalmology, and gastroenterology will pave ways for many untapped opportunities that Viatris can utilize with its scale and manufacturing power.

Bears

Base business erosion will continue to persist in developed markets and act as headwinds that Viatris must try to offset with new product launches.

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News

Trading Information

Previous Close Price
$11.60
Day Range
$11.63–11.86
52-Week Range
$8.74–13.62
Bid/Ask
$11.78 / $11.89
Market Cap
$14.05 Bil
Volume/Avg
141 / 10.4 Mil

Key Statistics

Price/Earnings (Normalized)
4.03
Price/Sales
0.93
Dividend Yield (Trailing)
4.06%
Dividend Yield (Forward)
4.06%
Total Yield
5.81%

Company Profile

Viatris was formed in November 2020 through the combination of Upjohn, a wholly owned subsidiary of Pfizer that specialized in off-patent drugs, and Mylan, a global pharmaceutical manufacturer that focused on generic and specialty drugs. By joining forces, Viatris became one of the largest generic drug manufacturers in the world, servicing over 165 countries. Generics (commoditized and complex) and biosimilars make up roughly 40% of Viatris' total sales. Remaining 60% of sales is derived from its portfolio of legacy products which includes Lipitor, Norvasc, Lyrica, and Viagra. While it covers more than 10 major therapeutic areas, Viatris has identified dermatology, ophthalmology, and gastroenterology as its three key areas of focus for future innovations.
Sector
Healthcare
Industry
Drug Manufacturers - Specialty & Generic
Stock Style Box
Mid Value
Total Number of Employees
38,000

Competitors

Valuation

Metric
VTRS
TEVA
NVS
Price/Earnings (Normalized)
4.035.6414.08
Price/Book Value
0.692.164.20
Price/Sales
0.931.024.30
Price/Cash Flow
4.0711.2113.75
Price/Earnings
VTRS
TEVA
NVS

Financial Strength

Metric
VTRS
TEVA
NVS
Quick Ratio
0.670.540.88
Current Ratio
1.671.021.16
Interest Coverage
1.350.3910.94
Quick Ratio
VTRS
TEVA
NVS

Profitability

Metric
VTRS
TEVA
NVS
Return on Assets (Normalized)
7.24%6.70%12.15%
Return on Equity (Normalized)
16.98%39.00%27.10%
Return on Invested Capital (Normalized)
10.05%13.54%17.72%
Return on Assets
VTRS
TEVA
NVS
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