This drugmaker is developing breakthroughs like an ‘EpiPen for heart attacks.’ The market has yet to give it credit Viatris is experiencing improving sales trends and margins, driven by a pipeline of three major development opportunities in diverse therapeutic areas. The company’s strategy involves leveraging stable cash flow from established drugs and a lower-risk development approach to achieve steadier earnings growth. Recent operational improvements, including a 3% revenue increase and 14% EPS growth in the first quarter, alongside cost-cutting measures and better execution in Greater China, signal a turning point after years of declining revenue.

• 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.