Viatris Stock Rises on Branded Drug Sales, but Long-Term Growth Concerns Remain
-
Viatris' share price has risen 38% in recent months due to increased sales of branded drugs, market euphoria about expected Fed rate cuts, and management's cash flow projections.
-
However, margins and revenue have fallen after the biosimilars sale, shares seem overbought based on indicators, and sales of generics and the newly acquired Tyrvaya drug are sluggish.
-
Revenue missed estimates last quarter and is expected to decline through 2027 due to loss of the biosimilars business. The dividend yield is relatively high but unlikely to increase.
-
Risks include disappointing sales so far of the recently acquired Tyrvaya drug and lack of growth in Viatris' generic drug sales.
-
The stock price has reached strong resistance levels, while valuations remain in line with historical averages, signaling limited upside for long-term investors.