Viatris Inc. (VTRS) Misled Investors Regarding its Business Prospects
A shareholder filed a class action on behalf of persons or entities who purchased or otherwise acquired Viatris (NASDAQ: VTRS) common stock between March 1, 2021 and February 25, 2022. Viatris is a global healthcare corporation.
According to the complaint, during the class period, Viatris falsely represented that: (i) 2021 was a “trough year” for the Company; (ii) $6.2 billion was the adjusted EBITDA “floor” for Viatris; (iii) its biosimilars business was a core part of the Company’s long-term investment strategy; (iv) it was managing resource allocation to meet its phase one objectives and manage Viatris’ base business erosion; (v) base business erosion was being and would continue to be offset by new product launches, including those in its biosimilars business; and (vi) base business erosion was in line with Defendants’ expectations.
However, Viatris was actually experiencing significantly more competition in its United States complex generics business than disclosed. As a result, the Company was not able to effectively manage its base business erosion or create a stable revenue base. Instead, throughout 2021, Viatris’ total revenues were declining quarter-over-quarter.
On February 28, 2022, defendants announced Viatris had entered into an agreement to sell its biosimilars business to Biocon Biologics Limited, which was anticipated to close in the second half of 2022. The Company also divulged that it was seeking to divest additional business assets and focus on developing products in three core therapeutic areas as a part of its global reshaping. The same day, Viatris announced lower than expected guidance for fiscal year 2022. On this news, Viatris’ stock price declined $3.53 per share, or approximately 24%, to close at $11.01 on February 28, 2022.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Viatris Inc. Shareholders who want to act as lead plaintiff for the class must file their papers by July 14, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
