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Is Viatris (VTRS) A Bargain After Its FDA Approval Expanded RYZUMVI Use?

Simply Wall St · 3d ago

Viatris (VTRS) just picked up fresh U.S. regulatory momentum. The FDA approved an expanded use of its eye drop RYZUMVI for treating presbyopia in adults, widening the product’s potential patient pool.

The RYZUMVI approval comes after a strong run in Viatris’ shares. The stock closed at US$18.72 and posted a year-to-date share price return of 50.24%, while the 1-year total shareholder return of 88.37% points to building momentum as investors reassess future prospects and risk around the business.

Scan beyond Viatris and this FDA catalyst by sizing up other hand-picked healthcare opportunities in our 34 healthcare AI stocks, which are pushing new treatments and technologies toward larger patient pools.

Viatris now has a broader eye care product and a share price that has already run hard. The real tension is whether that stronger story is already fully baked into today’s valuation.

Most Popular Narrative: 6% Undervalued

Against Viatris’ last close at $18.72, the most followed narrative pegs fair value at $19.90. This frames today’s price as a modest discount while still leaving plenty of execution work ahead.

The company is well-positioned to benefit from sustained demand growth due to global population aging and increasing chronic disease prevalence, as demonstrated by positive late-stage pipeline developments in chronic disease, pain, and ophthalmology, setting the stage for long-term revenue growth through new branded and generic launches in large, underserved markets.

See why 48 investors see Viatris as 6% undervalued.

Result: Fair Value of $19.90 (UNDERVALUED)

Still, heavy exposure to mature generics and the risk of further regulatory or pricing pressure in major markets could quickly challenge the view that the stock is 6% undervalued.

Find out about the key risks to this Viatris narrative.

Next Steps

Curious whether this upbeat mood on Viatris really stacks up? Act while the data is fresh and stress test both sides of the debate with the 3 key rewards and 1 important warning sign.

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