S&P gives Viatris BBB-

S&P said it assigned a BBB- rating to Viatris Inc. with a positive outlook. Viatris was created from the merger of Mylan NV and Pfizer former Upjohn subsidiary.

“We expect Viatris to have substantial scale (about $19 billion in annual revenues), making it the largest global generic player. We also view its competitive and market position as modestly improved from the stand-alone companies because of exposure to new markets with a larger portfolio of drugs and greater financial resources.

“We expect adjusted EBITDA margins, benefiting from Upjohn's portfolio of 20 branded drugs, in the 37% area compared with 29.6% for Mylan in 2019. The merger also improved the company's geographic diversity and should generate some revenue synergies,” S&P said in a press release.

The outlook reflects an expectation for leverage at the combined company to decline to below 3x within two years, the agency said.

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