- Viatris was formed by the merger of Pfizer's Legacy Brands business Upjohn with generic drug developer Mylan.
- Organon was formed after Merck spun out its Women's Health, biosimilars and legacy brands division to form a separate company.
- Both companies are strikingly undervalued based on many approaches to valuing a company - primarily price to sales and price to earnings ratios.
- The share prices are likely being kept low as investors expect revenues of established brands to decline as a result of expired patent protections.
- But both managements have plans to grow revenues and pay down debt and both companies also pay a dividend. I make Viatris the marginally better buy, but there is little to choose between 2 very solid growth opportunities.
For further details see:
Viatris Vs. Organon: Surprisingly Undervalued, But Which Is The Better Buy?