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Valued at a market cap of $14.8 billion, Viatris Inc. (VTRS) is a healthcare company that operates in four segments: developed markets, Greater China, JANZ, and emerging markets. Based in Canonsburg, Pennsylvania, the company offers prescription brand drugs, generic drugs, complex generic drugs, biosimilars, and active pharmaceutical ingredients (APIs).
Companies valued at over $10 billion are typically classified as “large-cap stocks,” and Viatris fits the label perfectly with its market cap exceeding this threshold. The drug manufacturer is committed to advancing sustainable operations and innovative solutions to improve patient health and supplies medicines to patients in more than 165 countries and territories.
VTRS is currently trading nearly 9% below its 52-week high of $13.62, reached on Feb. 23. Shares of this healthcare company have rallied 8.3% over the past three months, significantly outperforming the broader Health Care Select Sector SPDR Fund’s (XLV) 9.6% decline during the same time frame.
Moreover, in the longer term, VTRS has soared 16.4% over the past 52 weeks, significantly outpacing XLV’s 3.2% returns. Over the past six months, shares of VTRS are up 18.4%, massively surpassing XLV’s 5% decline over the same time frame.
While Viatris has been trading below its 50-day moving average since late December, it has remained above its 200-day moving average since early November.
Despite lowering its full-year 2024 adjusted EPS guidance, on Nov. 7, shares of Viatris skyrocketed 13.5% after its Q3 earnings release as its revenue of $3.75 billion and adjusted earnings of $0.75 per share outpaced the Wall Street estimates. The company has also been paying down its debt. At the start of 2024, it had $17 billion as debt, and VTRS projects to pay back $3 billion by the end of the year. This might have further bolstered investor confidence.
However, the company’s revenue declined 4.8% from the year ago quarter primarily due to lower revenues from developed markets and emerging markets. Moreover, its adjusted EPS also fell 5.1% annually.
VTRS’s outperformance becomes more evident when compared to its rival, Perrigo Company plc (PRGO), which declined 19.1% over the past 52 weeks and 1.8% over the past six months.
Despite Viatris’ recent outperformance, analysts remain cautious about its prospects. The stock has a consensus rating of “Hold” from the six analysts covering it, and the mean price target of $13.17 suggests a 6.2% premium to its current levels.
