Shares of Viatris Inc. VTRS, -11.94% tumbled 11.0% in premarket trading, to pace all of the S&P 500’s SPX, -0.54% decliners ahead of the open, after the pharmaceutical and health care services company provided a downbeat 2021 revenue outlook, while saying it was initiating a dividend. The company, formed in November through the combination of Mylan and Pfizer Inc.’s PFE, -0.87% Upjohn business, said it expects 2021 revenue of $17.2 billion to $17.8 billion, compared with the FactSet consensus of $18.36 billion. Free cash flow is expected to be $2.0 billion to $2.3 billion, below the FactSet consensus of $3.78 billion. “We are confident that our financial guidance for 2021 is the right starting point for Viatris and continue to expect 2021 to be our trough year in terms of revenue, adjusted EBITDA and free cash flow, reflecting a balanced view of both near-term tailwinds and headwinds, particularly given the delay in closing of the combination between Mylan and Pfizer’s Upjohn business,” said Viatris Chief Executive Michael Goettler. The company said it was initiating an annualized dividend of 44 cents a share, with the first quarterly dividend of 11 cents a share to be distributed in June.
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