Shares of drug maker Viatris VTRS dropped Monday after JPMorgan noted the company's EBITDA forecast is short of Wall Street expectations in a note Monday.
Viatris said it expects adjusted 2021 EBITDA between $6 billion and $6.4 billion, well below consensus estimates of $7.19 billion, according to Bloomberg.
“Street expectations into VTRS’s 2021 guidance were fairly low following recent commentary at the JPMorgan Healthcare conference, but today’s guidance suggests even lower initial Ebitda results for the company,” JPMorgan analyst Chris Schott said.
Schott maintained his overweight rating and $24 price target, but Viatris shares were down 14.0% to $15.66 at last check on volume that was nearly triple its 30-day average, according to Yahoo Finance.
JPMorgan's sentiment echoed that of CEO Michael Goettler who said the company expects 2021 to be a trough year in terms of revenue, adjusted EBITDA and free cash flow, according to Bloomberg.
In December, the company announced it expects to close or divest up to 15 factories and may cut up to 20%, or 9,000, of its employees.
Viatris was formed in November when Pfizer (PFE) spun off its Upjohn Business and combined it with generic drug titan Mylan.
"Viatris' restructuring initiative incorporates and expands on the restructuring program announced by Mylan earlier this year as part of its business transformation efforts,” the company said in a statement. “Viatris' initiative is intended to reduce the company's cost base by at least $1 billion by the end of 2024 or sooner, with a significant portion of the reduction expected to be achieved within the first two years.”