How Viatris’ (VTRS) Removal from the FTSE All-World Index Could Affect Investor Sentiment

• Viatris Inc. was recently dropped from the FTSE All-World Index, prompting required portfolio adjustments by funds tracking the benchmark.
• This removal can influence trading activity and liquidity for Viatris shares as index-linked investors rebalance their holdings.
• We'll explore how Viatris’ exclusion from the FTSE All-World Index might impact perceptions of risk and future positioning in its investment narrative.

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Viatris Investment Narrative Recap

Viatris stock holders need to believe that the company can pivot from legacy generics to higher-margin innovative products and drive profitable growth, even as it faces pricing pressure and regulatory changes. The recent removal from the FTSE All-World Index, while likely to prompt short-term trading volume and liquidity changes, does not materially alter the main catalyst, the ramp-up of new branded and complex generic launches, or the top risk of ongoing price erosion in mature markets.

Recent FDA approval of Viatris' Iron Sucrose Injection represents progress in broadening its product portfolio, supporting the narrative that new launches can diversify revenue and offset pressures in core generics. However, with sales and profitability challenges persisting, investors remain sensitive to any hurdles with product approvals or execution on pipeline initiatives.

In contrast, what remains critical for investors to watch is the risk of further regulatory changes impacting margins...

Read the full narrative on Viatris (it's free!)

Viatris is forecast to generate $14.5 billion in revenue and $419.7 million in earnings by 2028. This outlook assumes a yearly revenue decline of 0.9% and an earnings increase of about $3.9 billion from current earnings of -$3.5 billion.

Uncover how Viatris' forecasts yield a $11.43 fair value, a 17% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members contributed five separate fair value estimates for Viatris, ranging from US$11.43 to US$43.65 per share. As opinions vary widely, weigh this dispersion against Viatris' ongoing reliance on off-patent products and evolving industry risks when considering your own stance.

Explore 5 other fair value estimates on Viatris - why the stock might be worth just $11.43!

Build Your Own Viatris Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Viatris research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Viatris research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Viatris' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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