Daily Stock Analysis: Viatris
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Viatris Inc bears the ticker symbol VTRS and has been reviewed twice previously for this Viking portfolio in January and May.
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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. |
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.
The key three 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
Over the past year, Viatris Inc’s share price rose 5% from $9.98 to $10.48 as of Thursday’s market close.
If Viatris’s stock trades in the range of $8.00 to $14.00 this next year, its recent $10.47 share price might rise to $12.00 by next year. Of course, Viatris’s price could drop about the same $1.52 amount, or more.
My upside estimate of $1.52, however, is supported by analysts tracking the stock for brokers, in fact , analysts believe price my go $0.34 higher than $12.00
VTRS Dividend
Viatris Inc’s most recent $0.12 quarterly dividend, paid June 16th to shareholders of record May 23rd, equates to $0.48 annually to throw a yield of 4.58% as of Thursday’s closing price.
VTRS Returns
Adding the $0.48 anticipated annual dividend to Viatris’s estimated $1.52 price upside reveals a $2.00 potential gross gain per share for the coming year.
At Thursday’s $10.48 closing price, a little over $1000 would buy 95 shares.
A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.11 per share.
Subtracting that maybe $0.11 brokerage cost from my estimated $2.00 gross gain per share makes a net gain amounting to $1.89 X 95 shares = $179.55 for about an 18% net gain.
This may be the time to pounce on Viatris Inc. But beware, as its dividend is growing, its price is volatile, and has descended to $10.47 from it’s all-time high of $76.68 posted back on or about April 14, 2015.
The foregoing article is based on past history of Viatris Inc. The only accurate measure of future performance is from active investment in the company.
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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 ...
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