VTRS - Viatris Just Sold Off 3 Key Segments. Is It Still a Buy?
2023-10-13 09:15:00 ET
On Oct. 1, Viatris (NASDAQ: VTRS) made an announcement that's sure to shake up its fortunes. It's divesting nearly all of its over-the-counter (OTC) medicines, its entire women's healthcare segment, and its active pharmaceutical ingredients (API) manufacturing business in India.
So where does that leave the rest of Viatris' business? And do those sales help or detract from its prospects of being a good stock for dividend income with a splash of growth? Let's analyze in a bit more detail what's changing, and how much it matters for shareholders to find out.
Per management, the point of the divestitures is to advance the company's strategic plan of reducing its debt load, which totals nearly $19 billion. The moves will also involve laying off employees (around 15% of its total workforce), and should generate about $3.6 billion in proceeds. Viatris has been looking for buyers for these segments since at least November of 2022. All of the sales and closures will be done by the end of the second quarter of next year.
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Viatris Just Sold Off 3 Key Segments. Is It Still a Buy?