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Is Generic-Drug Maker Viatris a Keeper?

By Brian Orelli, PhD and Keith Speights - May 9, 2021 at 3:31PM

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It depends on what type of investor you are.

In this video from Motley Fool Live, recorded on April 5, Fool.com Contributors Brian Orelli and Keith Speights discuss a question from a member named Angel, who asks whether Viatris (VTRS 1.76%) is worth holding. The duo discuss Viatris' prospects and the type of investor that is most appropriate for holding the generic-drug maker.

Keith Speights: Is Viatris, the ticker there's VTRS, a keeper. The company was formed from the merger of Pfizer's (PFE -3.32%) Upjon unit with Mylan, and so look, Viatris is a keeper if you're an income investor because the company is soon to declare its first dividend. I think it's going to be a pretty good yield and stable. I think if you're looking for dividends, this isn't a bad stock to own.

If you're looking for growth, that's a horrible [laughs] stock to own. They're not going to deliver growth anytime soon. There many other stocks that will be better picks for you if you're looking for growth, but if you're an income investor, Angel, why not? This could be a good steady stock to own.

Brian Orelli: Yeah. It's generic drugs, so there's not going to be much growth. It's a steady-eddy, just adding more and more of the drugs as they go off patent. I think it's so difficult to see any substantial growth.

I think most of their growth is going to come from overseas. Am I remembering that correctly? That was part of the deal was one of them had more drugs and one of them had a better access to the overseas, and so they were going to combine the two and make money that way.

Speights: China is especially a big market for the company.

Brian Orelli, PhD has no position in any of the stocks mentioned. Keith Speights owns shares of Pfizer and Viatris. The Motley Fool recommends Viatris. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Viatris Inc. Stock Quote
Viatris Inc.
VTRS
$10.96 (1.76%) $0.19
Pfizer Inc. Stock Quote
Pfizer Inc.
PFE
$48.29 (-3.32%) $-1.66

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