The complaint alleges that Viatris made materially false and/or misleading statements and/or failed to disclose that: i) the Company was experiencing significantly more competition in its United States complex generics business than it had disclosed; (ii) Viatris was unable to effectively manage its base business erosion or create a stable revenue base; (iii) despite being one of the Company’s only drivers of growth, Viatris was actively planning to divest its biosimilars business in order to secure sufficient cash to meet its phase one goals; (iv) Viatris was deviating from the business model it touted throughout the Class Period and undertaking a significant global reshaping of its business which would undermine its ability to achieve stable revenue growth; and (v) the Company was anticipating less financial growth moving into 2022.
On February 28, 2022, Viatris announced that it had entered into an agreement to sell its biosimilar business to Biocon Biologics Limited, that it was seeking to divest additional business assets, and lowered its expected guidance for fiscal year 2022 citing competition around key core products and price deterioration in certain markets.
On this news, the price of Viatris common stock declined more than 24% in intraday trading on February 28, 2022.
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