Viatris Inc. (VTRS), with a market capitalization of $14.8 billion, is a healthcare company with operations in four segments: Developed Markets, Greater China, JANZ, and Emerging Markets. The Canonsburg, Pennsylvania-based company offers prescription branded drugs, generic drugs, complex generic drugs, biosimilars, and active pharmaceutical ingredients (APIs).
Typically, companies with a valuation of more than $10 billion are classified as “large-cap stocks,” and Viatris' market capitalization exceeds this threshold, making it a perfect fit for that moniker. The pharmaceutical company is committed to driving 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, set on February 23rd. The healthcare company's stock has risen 8.3% over the past three months, significantly outperforming the broader Healthcare Select Sector SPDR Fund (XLV). In the same time frame, it decreased by 9.6%.
Looking further into the longer term, VTRS has surged 16.4% over the past 52 weeks, significantly outpacing XLV's return of 3.2%. Over the past six months, VTRS stock has increased 18.4%, significantly outpacing XLV's 5% decline over the same period.
Viatris has been trading below its 50-day moving average since late December, but above its 200-day moving average since early November.
Despite lowering its full-year 2024 adjusted EPS outlook, third-quarter results reported on Nov. 7 as revenue of $3.75 billion and adjusted earnings per share of $0.75 beat Wall Street expectations. Following the announcement, Viatris' stock price soared 13.5%. The company is also repaying its debt. As of early 2024, the company had $17 billion in debt, and VTRS plans to repay $3 billion by the end of the year. This may have further boosted investor confidence.
However, the company's revenue decreased 4.8% year over year, primarily due to lower revenue from developed and emerging markets. Additionally, adjusted EPS decreased by 5.1% annually.
VTRS's outperformance becomes more evident when compared to its rival Perrigo Company plc (PRGO), which is down 19.1% over the past 52 weeks and 1.8% over the past 6 months.
Despite Viatris' recent outperformance, analysts remain cautious about the company's prospects. The consensus rating from the six analysts covering the stock is a Hold, and the average price target of $13.17 suggests a 6.2% premium to current levels.
On the date of publication, Neharika Jain did not have (directly or indirectly) any positions in any securities mentioned in this article. All information and data in this article is for informational purposes only. For more information, please see the Barchart Disclosure Policy here. More news from Barchart
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