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- Viatris (NASDAQ:VTRS) traded ~3% lower on Monday after Bank of America downgraded the generic drugmaker to Underperform from Neutral and trimmed its price target to $9 from $12 per share, citing a company in transition.
- “We see VTRS as a transition story as it looks to redeploy $2.55bn proceeds for specialty brands,” analyst Jason Gerberry wrote, referring to the company’s recently-announced net proceeds from planned divestitures.
- Gerberry argues that Viatris (VTRS), formed when Pfizer (PFE) spinoff Upjohn combined with generic drugmaker Mylan in 2020, will have limited ability to form large M&A deals until divestments close.
- “It could be tough to secure quality assets in target therapeutic areas (dermatology, gastrointestinal, ophthalmic) given deal (size) capacity,” the analyst opined.
- Additionally, he says that VTRS shares realized no upside from recent divestments, including plans to sell its over-the-counter business.
More on Viatris
- Viatris: Get Paid 5%, Before Growth Materializes
- Viatris' Survival Guide: Strategic Divestitures And Margins
- Viatris: Generic Semaglutide Could Become The Poor Man's Option For Weight Loss
- 4 stocks to watch on Monday: Viatris, Rivian and more
- Viatris receives offer to divest all of its over the counter business