Viatris Share Price Plunges Amid Weak 2021 Financial Guidance
Adjusted EBITDA Expectations Approximately $1bn Lower Than Expected
Viatris’ share price closed the day nearly 15% down after announcing weaker than anticipated revenue, adjusted EBITDA and cash flow guidance for 2021. The market reacted strongly to the company’s expectations and ambitions, with management continuing to stress the strength of the combined Mylan and Upjohn businesses.
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With a goal of reducing its cost base by at least $1bn by 2024, Viatris has delivered plans to significantly restructure its global manufacturing network. Up to 20% of Viatris’ 45,000-strong workforce could be impacted by the initiative which will see the firm close, divest or downsize 15 of its manufacturing plants around the globe.
With Mylan continuing to count down the days until its merger with Pfizer’s Upjohn completes, the US firm has struck a deal to acquire Aspen Pharmacare’s thrombosis business in Europe, bolstering what is already a $4bn operation.
Mylan and Pfizer’s Upjohn were all set to merge into Viatris by midway through this year, subject to certain approvals, but that will now not happen in that timeframe as the global coronavirus pandemic proves an insurmountable barrier to getting the deal over the line.