Pfizer shareholders received a stake in Viatris because Pfizer's unit Upjohn is part of the transaction. Pfizer investors received 0.12 shares of Viatris for every one share of Pfizer held, which works out to 12 Viatris shares for every 100 Pfizer shares. Therefore, you may see VTRS stock in your account if you owned Pfizer shares.
Full Answer
Where did my Viatris shares come from?
Pfizer recently completed a spin-off of it's Upjohn business, combining it with Mylan N.V. to form a new entity, Viatris, which began trading on 11/16/2020 under the ticker symbol VTRS. Mylan N.V. was delisted from the Nasdaq stock exchange as a result of this corporate action and is no longer tradeable.
Is Viatris stock a good value?
Currently, Viatris Inc's price-earnings ratio is 86.5. Viatris Inc's trailing 12-month revenue is $17.6 billion with a 1.0% profit margin. Year-over-year quarterly sales growth most recently was -5.4%. Analysts expect adjusted earnings to reach $3.481 per share for the current fiscal year.
Should I sell Viatris stock?
1. Sales are flat. The biggest reason to consider selling Viatris stock right now is that revenue growth failed to materialize in 2021. Its total net revenue dropped by 4% last year compared to 2020, reaching $17.8 billion.
Will Viatris pay a dividend?
On May 7, 2021, Viatris' Board of Directors declared the Company's first quarterly cash dividend of $0.11 per share on the Company's issued and outstanding common stock. The cash dividend will be payable on June 16, 2021 to shareholders of record as of the close of business on May 24, 2021.
Why is Viatris stock so cheap?
Generic drug manufacturers are capable of making highly consistent cash flows over time. Viatris is valued cheaply, and its dividend payout is growing.
Is Viatris a big company?
Viatris ranked 254th on the 2021 Fortune 500 rankings of the largest United States corporations based on its 2020 total revenue.
What drugs does Viatris make?
EDLUAR® (Zolpidem Tartrate Sublingual Tablets)EFAVIRENZ Tablets.ELESTRIN® (estradiol gel)ELETRIPTAN HYDROBROMIDE tablets.EMSAM®* (selegiline transdermal system)EMTRICITABINE and TENOFOVIR DISOPROXIL FUMARATE tablets.ENTACAPONE Tablets.More items...
Is VTRS a spin off?
Pfizer spun off its Upjohn unit which immediately merged with Mylan to form Viatris, effective November 16, 2020 in a transaction meant to be tax-free to Pfizer shareholders. Viatris began normal trading on November 16, 2020.
How often does Viatris pay a dividend?
When does Viatris pay dividends? Viatris pays a dividend 3 times a year. Payment months are March, June, December.
Will VTRS pay a dividend in 2021?
VTRS Dividend HistoryEx/EFF DATETYPEPAYMENT DATE02/23/2022CASH03/16/202211/22/2021CASH12/16/202108/23/2021CASH09/16/202105/21/2021CASH06/16/20211 more row
Who is the transfer agent for Viatris?
American Stock Transfer & Trust Company, LLCAll whole shares of Viatris common stock have been issued in direct registration (book-entry) form by Viatris' transfer agent, American Stock Transfer & Trust Company, LLC (“AST”).
Is Viatris a good stock?
At the very least, Viatris appears to be a good value stock with a nice dividend that's well covered by its free cash flow. I think it makes sense to buy the stock at its current low valuation and hold on to see where it goes. In the meantime, investors will be rewarded with a nice dividend that's likely to grow, considering the company's free cash flow.
Is Viatris the largest company in the world?
That revenue forecast, by the way, would still make Viatris the world's largest generic company, larger than Teva Pharmaceuticals, which reported $16.7 billion in revenue in 2020.
Is Viatris a biosimilar?
Viatris is already a strong player in biosimilars, with more than 300 approvals for seven different biosimilar products in more than 75 countries. While its sales of branded products and generics were down slightly in the first quarter, the company's complex generics and biosimilars saw 27% growth, though for now, it's the smallest segment, ...
The dividend keeps getting bigger
One of the big draws to stable pharma manufacturers like Viatris is the prospect of collecting a sizable dividend.
Its shares are valued at a steal
Valuation shouldn't be the only reason why you buy a stock, but attractively priced shares can be a big part of the decision about when to make a purchase. And in this case, Viatris is valued so cheaply that it's hard to pass up. The pharmaceutical industry has an average price-to-sales (P/S) ratio of 4.84.
However, it (still) isn't profitable
Despite Viatris' virtues as an investment, it does have one major issue: Profitability.
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The company released its guidance for its fiscal year 2021
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What happened?
Generic drug manufacturer Viatris ( NASDAQ:VTRS) is starting the week on a negative note. The company released its financial guidance for its fiscal year 2021 before the market opened on Monday, and investors didn't seem too impressed. At the close, Viatris' shares were down 14.9%.
So what
As a reminder, Viatris was formed last year when Mylan NV joined forces with Pfizer 's off-patent medicine unit Upjohn. The new entity officially began trading on the stock market on Nov. 17. For its first full fiscal year in business, Viatris expects to record revenue between $17.2 billion and $17.8 billion.
Now what
Even before today's sell-off, Viatris' stock was dirt cheap, but it is even more so now, given the nearly 15% loss in the market today. Shares currently trade at 3.9 times forward earnings. By way of comparison, the average forward P/E for the S&P 500 is 25.35.
Is Viatris revenue stable?
Even with the company's headwinds, its revenue should be relatively stable throughout the first half of the decade and potentially grow in the second half. Viatris' bottom line should improve throughout the period as it realizes cost synergies.
Does Viatris pay dividends?
The new company doesn't pay a dividend yet. However, Viatris has committed to initiating a dividend program in its first full quarter of operations. Here's the kicker: Viatris intends to return a minimum of 25% of free cash flow to shareholders through its dividends.
Is Pfizer better than Viatris?
Pfizer will be able to deliver better growth going forward for one simple reason: It won't have older drugs such as Lyrica that are rapidly losing market share to generic alternatives weighing it down. However, Viatris will have those drugs in its lineup. Viatris also faces other headwinds.
Is Pfizer merging with Mylan?
Pfizer 's ( NYSE:PFE) long-awaited deal is finally done. Last week, the big drugmaker completed its merger of Upjohn with Mylan. The transaction created a new entity, Viatris ( NASDAQ:VTRS), that's a leader in branded and generic drugs and biosimilars.
Why did Pfizer spin off Upjohn?
That may be one reason why Pfizer was interested in spinning off Upjohn in the first place, as a new and dedicated manufacturing entity could find a way to effectively compete. The company will need to be excellent at producing drugs at scale (and for profit) if it is going to succeed.
How much will the Merger of Shares cost in 2024?
It'll take some time to realize the merger's expected $1 billion in cost synergies through 2024. This means that investors may need to wait longer than they'd prefer before there's enough money for sustainably raising the dividend or buying back shares.
When is the first shareholder update?
The first big update for shareholders will be on March 1, its first annual investor day . While you might get a small discount on shares by buying them ahead of time, it's probably better to hold off until the company demonstrates that the expected activities post-merger are going as planned.
Does Zoloft compete with Viatris?
Several of Viatris' products, like Lyrica, are facing strong competition from generics, thereby eroding its market share.
Will dividends be paid in the future?
With smooth cash flows, it'll be able to reward shareholders a tremendous amount over the long-term. On that note, shareholders can expect the stock to pay a dividend in the future. Management says that the dividend will be equal to at least 25% of free cash flow.
Is Viatris insolvent?
While it's in no danger of insolvency anytime soon, Viatris does have $12.51 billion in debt, and management is making de-leveraging a priority alongside shareholder returns. There's a chance that it won't have enough cash to pursue both goals equally, which might frustrate shareholders.
NASDAQ: VTRS
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This drugmaker might appeal to certain types of investors
Finding stocks that look undervalued is great, but sometimes shares of companies look cheap because the market has little faith in their prospects. And sometimes, the market happens to be correct. Of course, investors need to do their due diligence before making a final decision.
The new kid in town, with a rich history
Viatris is a relatively new company that started trading on Nov. 17, 2020. The entity was formed when pharma giant Pfizer spun off its off-patent medicine unit Upjohn, which merged with the company formerly known as Mylan. The transaction seems to have benefited both Pfizer and Mylan.
The challenges of the generic drug industry
Generic drug manufacturers can make a lot of money by introducing generic versions of blockbuster products marketed by other pharmaceutical companies. This business model highlights the importance of patents for drugmakers.
What does the future hold for Viatris?
Viatris is one of the leaders in many markets worldwide, including the U.S. and some parts of Europe. It also has a rich pipeline of products in addition to its already robust lineup of popular brands.
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