What happened?

Generic drug manufacturer Viatris (VTRS 0.44%) is starting the week on a negative note. The company released its financial guidance for its fiscal year 2021 before the market opened on Monday, and investors didn't seem too impressed. At the close, Viatris' shares were down 14.9%.

So what

As a reminder, Viatris was formed last year when Mylan NV joined forces with Pfizer's off-patent medicine unit Upjohn. The new entity officially began trading on the stock market on Nov. 17. For its first full fiscal year in business, Viatris expects to record revenue between $17.2 billion and $17.8 billion. That is well below the consensus analyst estimate of $18.46 billion, which probably explains (at least in part) today's sell-off.

Pills coming out of a bottle forming a question mark.

Image source: Getty Images.

Meanwhile, the company expects to record adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) between $6 billion and $6.4 billion, and free cash flow in the range of $2 billion to $2.3 billion. Viatris thinks it will report a net loss between $100 million and $300 million for the year.

Rewarding shareholders by way of dividends features squarely in Viatris' plans. The healthcare company vowed to spend at least 25% of its free cash flow on dividends in 2021, which amounts to about $540 million (on an annualized basis), or $0.44 per share.

Now what

Even before today's sell-off, Viatris' stock was dirt cheap, but it is even more so now, given the nearly 15% loss in the market today. Shares currently trade at 3.9 times forward earnings. By way of comparison, the average forward P/E for the S&P 500 is 25.35. Even if Viatris' top line ends up coming in below expectations during the current fiscal year, its shares are definitely worth serious consideration for long-term investors, especially at current levels.