Viatris Inc. (VTRS)

Viatris sells generics and off-patent medicines — drugs with no premium for novelty.

The company was formed by combining a generics maker with the ageing brand portfolio of a large pharmaceutical corporation. The logic was scale: billions of low-priced tablets only pay off at very large volume and very cheap manufacturing.

The problem lies in the nature of the base: sales of such medicines decline every year, because competitors appear and prices fall. The company is cutting debt, selling secondary lines and trying to add products with complex delivery forms, where competitors are fewer. Risks: price pressure, manufacturing quality inspections and execution of its own development. The dividend is high.