Healthcare company Viatris (VTRS) grabbed investors’ attention when its first interchangeable biosimilar drug received FDA approval recently. However, given that it could still be some time before VTRS becomes a viable growth company, is the stock worth betting on now? Let’s find out. Global pharmaceutical company Viatris Inc. (VTRS) manufactures and distributes complex generic drugs, biosimilars, and active pharmaceutical ingredients (APIs) worldwide. The company was created in November 2020 from Pfizer Inc.’s (NYSE:PFE) generic medicine unit’s (Upjohn Business) spin-off and its merger with Mylan (NASDAQ:VTRS) N.V., a specialty pharmaceuticals company. VTRS is based in Canonsburg, Pa.
VTRS’ diverse global portfolio and progress in advancing key pipeline programs have accelerated the company’s sales and growth opportunities. In addition, its new product launches helped it generate $163 million in revenue for the first quarter of 2021.
The stock has gained 5.7% over the past three months on the news of tentative FDA approval of its new drug application. But its shares are down 24.1% year-to-date and 11.9% over the past year. The stock is now trading 24.2% below its all-time high of $18.86. While the recent FDA approval of its first interchangeable biosimilar product has helped the stock attract investor attention, the company has incurred significant operating losses in its last reported quarter due to higher expenses. Since rapid growth and profitability are unlikely to be in the picture for the stock, we think its near-term prospects look uncertain now.