New York, New York--(Newsfile Corp. - July 7, 2023) - Pomerantz LLP announces that a class action lawsuit has been filed against Viatris, Inc. ("Viatris" or the "Company") (NASDAQ: VTRS), and certain officers. The class action, filed in the United States District Court for the Western District of Pennsylvania and docketed under 23-cv-01098, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Viatris common stock between March 1, 2021 and February 25, 2022, inclusive (the "Class Period"), seeking remedies under the Securities Exchange Act of 1934 (the "Exchange Act"). Plaintiff's claims are asserted against Viatris and certain of Viatris' executive officers and directors.
If you are a shareholder who purchased or otherwise acquired Viatris common stock during the Class Period, you have until July 14, 2023 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at newaction@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
[Click here for information about joining the class action]
Viatris is a global healthcare corporation, organized under the laws of the State of Delaware. Viatris was formed on November 16, 2020 through a combination of Mylan N.V. and Pfizer Inc.'s Upjohn Business.
At the outset of the Class Period, Viatris announced a multi-phase plan, the first phase of which that would allow it to, inter alia: (i) create a stable revenue base; (ii) realize $1 billion in cost synergies by 2024; and (iii) improve cash conversion and free cash flow generation.
Defendants claimed that Viatris would achieve its first phase goals through, inter alia, its strong pipeline of new products, including those in its biosimilars business. Defendants further represented that Viatris' strong pipeline and business development would offset erosion of the Company's base business.
The complaint alleges that throughout the Class Period, the Company falsely represented that: (i) 2021 was a "trough year" for Viatris; (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, contrary to Defendants representations, the Company was 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, before the market opened, Defendants revealed that, in light of the prolonged failure of Viatris' Class Period plan, the Company had decided to undertake yet another significant global reshaping of its business. Indeed, Defendants unexpectedly announced that 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.
Contrary to Defendants repeated representations, 2021 was far from the Company's "trough year" and an adjusted EBITDA of $6.2 billion was not its "floor." Indeed, that same day, Defendants announced lower-than expected guidance for fiscal year 2022 with total revenues expected to be between $17.0 to $17.5 billion, adjusted EBITDA expected to be $5.8 to $6.2 billion, and free cash flow expected to be $2.5 to $2.9 billion. Viatris attributed the lower-than expected guidance, in part, to competition around key core products and price deterioration in certain markets, including the United States.
On this news, Viatris' stock price declined $3.53 per share of common stock, or approximately 24%, from a closing price of $14.54 per share on February 25, 2022, to a close of $11.01 on February 28, 2022.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
888-476-6529 ext. 7980
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/172696
