Current Report - Viatris
Photo by Nicholas Cappello on Unsplash
Viatris Inc, bearing the ticker symbol VTRS, has previously been mentioned as a candidate for my Viking portfolio. It was discussed January 25 for Viking. It was the 33rd selection for my seventh DOTW portfolio named Viital.
Viatris Inc 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 led to commodification of small-molecule generic drugs, the company has an edge over peers in its ability to manufacture complex generics (for example, generic Advair and Copaxone).
The company has collaboration and licensing agreements with Revance Therapeutics, Inc.; Momenta Pharmaceuticals, Inc.; Theravance Biopharma, Inc.; and Fujifilm Kyowa Kirin Biologics Co. Ltd.
Viatris Inc. was founded in 1961 and is headquartered in Canonsburg, Pennsylvania.
Three key data points gauge Viatris Inc or any dividend-paying firm. They are:
(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
Viatris’s price per share was $9.36 at Thursday’s market close. In the past year, its share price fell about 17.4% from $11.69 to today’s $9.36.
If Viatris’s stock trades in the range of $5.00 to $15.00 this next year, its recent $9.36 share price might pop up to $12.00 by next year. Of course, Viartris price could go down about the same $2.64 amount or more.
My upside estimate of $2.64 is
$0.66 under the the $12.66 annual target increase estimated by nine analysts tracking VTRS stock for brokers.
VTRS Dividend
Viatris’s recent $0.12 Quarterly dividend equates to $0.48 annually to yield 5.13% at Thursday’s closing price.
VTRS Returns
Adding the $0.48 projected annual dividend to my estimated $2.64 estimated price gain, reveals a $3.12 potential gross gain per share for the coming year.
At Thursday’s $9.36 closing price, a little over $1000 would buy 107 shares.
A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.09 per share.
Subtract that maybe $0.09 brokerage cost from my estimated $3.12 gross gain per share makes a net gain amount of $3.03 X 107 shares = $324.21 or a 32.4% net gain.
In the next year our $1K investment in shares of VTRS could generate about $51.30 in dividends. Furthermore, a single share of VTRS stock at Thursday’s $9.36 closing price is over five times less than the income estimated from $1000.00 invested.
So, by my dogcatcher ideal, this is a prime time to consider Viatris Inc based on its estimated dividends for 2023. The dividend from $1k invested is about 5.5 times greater than VTRS’s single-share price. Consider yourself alerted.
This may be time to pounce on VTRS but beware, its price is still falling.
All of the estimates above are speculation based on the past history of investment in shares of Viatris Inc. Only time and money invested in this stock will determine its future market value.
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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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