Viatris E Channel Gearslutz – A Closer Look at Viatris
In this article, we will be taking a closer look at Viatris, a global pharmaceutical company embarking on a massive restructuring. In addition, we will discuss the company's plans to start regular trading on the Nasdaq exchange. Viatris is a leading global pharmaceutical company that delivers quality medicines in 165 countries. Viatris
Viatris is a healthcare company focused on providing high-quality medicines for patients worldwide. Their portfolio includes more than 1,400 approved molecules for infectious and non-communicable diseases. Their brands include over-the-counter consumer products, generics, and biosimilars.
The company is undertaking a major global restructuring plan that aims to produce $1 billion in synergies. This program will reduce its cost base and rationalize its global manufacturing network. These changes are designed to improve the company's financial performance and create a more competitive company. Viatris is embarking on a significant global restructuring program
Viatris is embarking on sweeping changes to its global manufacturing footprint. The company plans to close or downsize as many as 15 manufacturing facilities around the world. While the company is cutting jobs in many areas, Viatris will retain its global manufacturing network and overall employee base. リパクレオンの関連資材はこちら
Viatris, the new company formed by the merger of Pfizer's Upjohn unit and Mylan, is laying out details of its massive global restructuring effort. The company plans to cut its cost base by $1 billion by 2024, and it estimates that up to 20 percent of its workforce will be cut.
Viatris' restructuring plans are designed to reduce debt levels and restore capital to shareholders. It anticipates paying out 25 percent of its free cash flows, which are determined by deducting capital expenditures and GAAP operating cash flows. The company also intends to increase its dividend over time. Viatris remains committed to achieving its goal of maintaining an investment-grade credit rating.
Viatris has a favorable risk-reward ratio, a good dividend yield, and attractive undervaluation. As a result, it is a strong buy at a price below $10 per share. Further, the company's free cash flow is high and its EV/EBTIDA is relatively low. Though the company has some risks, management is actively managing these.
The new company has a global workforce of nearly 45,000 employees and is committed to improving the lives of people around the world by providing high-quality medicines. It is one of the largest providers of antiretrovirals and other drugs for HIV and other infectious diseases. Its medicines are being used by more than two million people with HIV and six percent of all children worldwide.
Viatris uses adjusted EBITDA and free cash flow internally, and management uses the former for incentive-based compensation. Both measures should be considered as supplements and not as substitutes for GAAP measures. Further, investors should note that these measures reflect only a portion of Viatris' results.
The company expects to save between $250 million and $300 million per year from the restructuring program, and most of the savings will come from the company's operations. Its free cash flow will be between two-thirds of its revenues. The remaining costs are expected to be between $275 million and $325 million. They include severance and employee benefits expense and other costs related to the restructuring process. Viatris will begin regular way trading on Nasdaq
Viatris is a biotechnology company that offers innovative medicines for HIV and other diseases. The company's portfolio of over 1,400 approved molecules covers both infectious and non-communicable diseases. Its global brand portfolio features both generic and biosimilar products. It also offers a variety of over-the-counter consumer products.
Viatris' shares have a favorable risk-reward balance, an impressive dividend yield, and a high free cash flow yield. In addition, the company's deleveraging strategy and buyback program suggest that it is a safe buy.
Viatris has managed to reduce its debt to a manageable level. It is currently carrying a leverage ratio of 3.4x, which is lower than its target of 2.5x. It also plans to buy back shares to improve its dividend. In addition, the company just raised its dividend by 9%. At its current yield of 3.2%, the company is considered safe and has a low payout ratio.
Viatris maintains a high profitability through higher margin drugs. It has an EBITDA margin of 39%, which is well above the sector median of 6%. Management expects to realize $500M in synergies this year, while generating $1 billion in free cash flow by 2023.
The announcement of the merger of Mylan and Upjohn Business was made on July 29, 2019. Viatris will begin trading on Nasdaq on November 17, 2020. The company's shares will trade under the ticker symbol VTRS.
AUTHOR: JAZZY EXPERT – Search Engine Optimization Team Head at Linkedin