Leerink starts Viatris at 'outperform' on improving growth

Leerink sees new branded-drug launches, including fast-acting pain drug meloxicam and contraceptive patches, supporting growth as Viatris' generics business stabilizes.

It says VTRS is targeting generic versions of about 70% of the $175 billion in branded-drug sales set to lose patent protection through 2030, while expanding into complex generics that face less competition and slower price declines.

Leerink models $1.2 billion in risk-adjusted 2036 sales for selatogrel, an experimental fast-acting injection designed for high-risk patients to self-administer at the first sign of a heart attack. It also models $700 million in risk-adjusted 2036 sales for experimental lupus drug cenerimod, but remains cautious as treatments for the autoimmune disease have historically struggled in clinical trials.

As of last close, VTRS was up 33.4% year to date.

Leerink Partners initiates coverage on drugmaker Viatris VTRS.O with an "outperform" rating and a price target of $20.