health
This drugmaker is developing breakthroughs like an 'EpiPen for heart attacks.' The market has yet to give it credit
The key to its growth are a non-opioid pain reliever, a potential blockbuster lupus treatment and a drug that has been dubbed an "EpiPen for heart attacks."
TL;DR
- Viatris' valuation could increase due to improving sales, margins, and pipeline development opportunities.
- The company's growth strategy focuses on a non-opioid pain reliever, a lupus treatment (cenerimod), and a heart attack drug (selatogrel).
- First-quarter results showed a 3% year-over-year revenue increase and a 14% growth in adjusted EPS, exceeding estimates.
- Cost-cutting measures are expected to save the company $400 million by the end of 2028.
- Sales in Greater China grew 18% due to an aging population and increased demand for cardiovascular drugs.
- Viatris is shifting its sales focus in China from hospitals to retail and e-commerce to mitigate policy change risks.
- The company targets a compound annual growth rate of 3%-4% for total revenue through 2030.
- Fast-acting meloxicam, a non-opioid pain reliever, is expected to peak at $500 million in annual revenue.
- Cenerimod, a potential lupus treatment, is in Phase 3 trials with data expected in the first half of 2027.
- Selatogrel, an auto-injector for heart attack patients, aims to reduce severe heart attacks by 20%.
- Viatris stock trades at a lower multiple compared to peers, suggesting potential for re-rating.