Viatris Sells Biocon Stake for $815 Million, Accelerates Market Access
Written by Emily J. Thompson, Senior Investment Analyst
Source: PRnewswire
Updated: 1 hour ago0mins
- Significant Transaction Value: Viatris has entered into agreements with Biocon to sell its equity stake in Biocon Biologics for a total consideration of $815 million, comprising $400 million in cash and $415 million in newly issued Biocon shares, reflecting the company's proactive capital management strategy.
- Accelerated Market Access: This transaction not only allows Viatris to regain access to the global biosimilars market but also accelerates the expiration of non-compete restrictions imposed in 2022, which is expected to provide significant flexibility for future business growth.
- Optimized Equity Structure: By divesting its entire convertible preferred equity in Biocon Biologics, Viatris enhances its equity structure, thereby strengthening its competitive position in the global pharmaceutical market.
- Future Growth Potential: Viatris CEO Scott A. Smith stated that this agreement marks an important step in the company's evolution, which is anticipated to support the development of its portfolio of generics, established brands, and innovative brands for future growth.
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Analyst Views on VTRS
Wall Street analysts forecast VTRS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VTRS is 11.00 USD with a low forecast of 9.00 USD and a high forecast of 14.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
1 Buy
3 Hold
1 Sell
Hold
Current: 10.760
Low
9.00
Averages
11.00
High
14.00
Current: 10.760
Low
9.00
Averages
11.00
High
14.00
Truist
Buy
initiated
$15
2025-10-15
Reason
Truist
Price Target
$15
2025-10-15
initiated
Buy
Reason
Truist initiated coverage of Viatris with a Buy rating and $15 price target. While acknowledging that legacy Viatris concerns are "still prevalent across the franchise," the firm sees "an affirmative change" in the direction of the company under a refreshed leadership team, supported by a market leading branded portfolio, a progressive generics foothold, and "a robust pipeline with blockbuster potential," the analyst tells investors. Upside could come from an earlier than anticipated return to full operations at the Indore manufacturing facility and pipeline "overdelivery," the analyst added.
Goldman Sachs
Neutral
initiated
$10
2025-06-06
Reason
Goldman Sachs
Price Target
$10
2025-06-06
initiated
Neutral
Reason
Goldman Sachs initiated coverage of Viatris with a Neutral rating and $10 price target. The firm awaits clarity on the company's growth outlook given current structural dynamics in the core business and believes consensus estimates appear fair. On the generics side, it expects modest growth as Goldman monitors Viatris' ability to more meaningfully off-set legacy product erosion via new product launches and portfolio optimization.
Jefferies
Glen Santangelo
Strong Buy
Maintains
$15 → $13
2025-03-07
Reason
Jefferies
Glen Santangelo
Price Target
$15 → $13
2025-03-07
Maintains
Strong Buy
Reason
Piper Sandler
David Amsellem
Hold
Reiterates
$14 → $10
2025-03-05
Reason
Piper Sandler
David Amsellem
Price Target
$14 → $10
2025-03-05
Reiterates
Hold
Reason
Piper Sandler analyst David Amsellem lowered the firm's price target on Viatris to $10 from $14 and keeps a Neutral rating on the shares after hosting a dinner with senior leadership and investors. The firm came away with a better understanding of the company's challenges out of its manufacturing facility in Indore, India. Taking a step back, Piper says that though it would be tempting to assert that shares are now trading at an attractive risk/reward profile at an EV/2025 EBITDA of 6-turns and in the context of what in its view are resolvable manufacturing issues, it would be equally tempting to assert that the lack of visibility into a clear growth catalyst could translate into the shares trading sideways for the foreseeable future.
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About VTRS
Viatris Inc. is a global healthcare company. The Company's segments include Developed Markets, Greater China, JANZ, and Emerging Markets. The Developed Markets segment comprises its operations primarily in North America and Europe. The Greater China segment includes its operations in China, Taiwan and Hong Kong. The JANZ segment reflects its operations in Japan, Australia, and New Zealand. The Emerging Markets segment encompasses its presence in more than 125 countries with developing markets and emerging economies, including in Asia, Africa, Eastern Europe, Latin America, and the Middle East, as well as the Company’s Antiretroviral medicines (ARV) franchise. Its pipeline and research and development capabilities include expertise in formulation, device development, toxicology, analytical, clinical, bioanalytical, medical affairs, product safety and risk management across a range of therapeutic areas. It produces oral solid doses, injectables, and products with complex dosage forms.
About the author
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Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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