- The merger proposal for the Mylan-Upjohn tie-up was recent, and the picture they gave there was unsurprisingly rosy.
- In particular, the dividend picture was attractive.
- It was known that the company was suffering from a combination of headwinds ranging from Chinese procurement to accelerating Lyrica erosion.
- However, the guidance for 2021 clarifies that the merger pitch was too optimistic, and the medium-term future of the business looks worse than expected.
- With management not substantiating the future for Viatris that it claims with a dividend, we will stay on the sidelines as the picture could bleaken further.
For further details see:
Viatris' Guidance Blames Forecasts On Short-Term Forces, But Still Low-Balls The Dividend