Current Report: Viatris

Viatris Inc, known by the ticker symbol VTRS is a large-cap medical care facilities owner, operating in the healthcare business sector. This is my first report on VTRS for this Viital portfolio or any of my past portfolios.

Formed by the combination of Mylan and Pfizer’s Upjohn business in 2020, Viatris is one of the world’s largest generic drug manufacturers, with a substantial off-patent branded drug portfolio.

Its portfolio consists of more than 1,400 molecules with penetration across most of the developed world and in select emerging markets. The company’s branded drug portfolio consists of off-patent blockbuster drugs that continue to generate strong sales, including Lipitor, Norvasc, Lyrica, Viagra, and EpiPen.

While global competition has facilitated the commodification of small-molecule generic drugs, the company has demonstrated an edge over peers in its ability to manufacture complex generics (for example, generic Advair and Copaxone).

The company distributes its products through pharmaceutical wholesalers/distributors, pharmaceutical retailers, institutional pharmacies, mail-order and e-commerce pharmacies, and specialty pharmacies.

It sells its products under the Lyrica, Lipitor, Creon, Influvac, Wixela Inhub, EpiPen auto-injector, Fraxiparine, and Yupelri; Norvasc and Viagra; AMITIZA, Lipacreon, and Effexor; and Celebrex and ARV names, as well as offers biosimilars franchises, including Fulphila, Ogivri, Hulio, and SEMGLEE. The company has collaboration and licensing agreements with Revance Therapeutics, Inc.; Momenta Pharmaceuticals, Inc.; Theravance Biopharma, Inc.; Biocon Ltd.; and Fujifilm Kyowa Kirin Biologics Co. Ltd.

Viatris Inc. was founded in 1961 and is headquartered in Canonsburg, Pennsylvania.

Three key data points gauge any dividend equity or fund such as Viatris Inc (VTRS)

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.


VTRS Price

person wearing lavatory gown with green stethoscope on neck using phone while standing

Photo by National Cancer Institute on Unsplash

Viatris Inc’s price per share was $11.68 as of yesterday's market close. One year ago its price was $15.59. Therefore, VTRS’s share price fell $3.91 or about 25% in the past year.

If VTRS’s  stock trades in the range of $9.50 to $15.00 this next year, its recent $11.68 share price might rise by $2.32 to reach $14.00 by May 19, 2023. My $2.32 upside estimate is $0.46 under the median of annual price estimates from 12 brokerage analysts.


VTRS Dividends

Viatris Inc’s most recently declared quarterly dividend of $0.12 is payable June 16th to shareholders on record as of May 23rd.  You’ve two days to claim your share.

VTRS reinstated a  quarterly dividend as of June 26, 2021. The dividend was increased  to $0.12 last year. Its payout equates to $0.48 at an Annual rate, VTRS annual payout is calculated to deliver a 4.11% annual yield per yesterday’s $11.68 share price.


VTRS Returns

Adding the $0.48 VTRS annual dividend to the estimated one-year price upside of $2.32 shows a $2.90 potential gross gain, per share, to be reduced by any costs to trade VTRS shares.

At yesterday's $11.68 closing price per share, a little over $1000 would buy 86 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.12 per share.

Subtract that maybe $0.12 brokerage cost from my estimated $2.90 gross gain estimate per share results in a net gain of $2.78 X 86 shares = $239.08 for a 23.9% net gain on a $1,0042.48 investment.

So it is that Viatris Inc shows a possible 23.9% net gain including a 4.11% forward looking dividend yield.

Over the next year at this time our $1000 investment in Viatris Inc shares might generate $41.10 in cash dividends. Of course a single share of VTRS stock bought at yesterday's $11.68 price is about 3.5 times less than the dividend income from our $1000.00 invested.

So, by my dogcatcher ideal, this may be the time to pick up Viatris Inc shares based on their forward looking dividends for the year 2022. A forthcoming annual dividend from $1K invested is estimated to be 3.52 times greater than yesterday's single share price. Consider yourself alerted. It's a sign.

All of the estimates above are speculation based on the past history of Viatris Inc  (VTRS). Only time and money invested in this stock will determine its market value.

Disclaimer:This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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