Why Viatris Shares Are Soaring Higher

Viatris Inc VTRS shares are trading higher by 16.80% to $11.33 Monday morning after the company announced it will acquire Oyster Point Pharma.

What Happened?

Under the terms of a definitive agreement, Viatris says the company has agreed to acquire Oyster Point for $11 per share in cash upfront through a tender offer. In addition, each Oyster Point stockholder will receive one non-tradeable contingent value right, representing up to an additional $2 per share contingent upon Oyster Point's achieving certain metrics based on full year 2022 performance. 

Viatris added that the company is targeting to close the acquisition of Oyster Point in first-quarter 2023, subject to customary closing conditions, including receipt of regulatory approval and tender acceptance of more than 50% of Oyster Point shares.

What Else?

Viatris Monday reported quarterly sales of $4.08 billion which missed the analyst consensus estimate of $4.14 billion by 1.5%.

Viatris also expects to acquire Famy Life Sciences, which has a complementary ophthalmology portfolio.

Viatris says the company anticipates these acquisitions have the potential to add at least $1 billion in sales by 2028. As a result of the expected strong top-line growth, the Viatris anticipates it will also add at least $500 million in adjusted EBITDA by 2028.

According to data from Benzinga Pro, Viatris has a 52-week high of $15.60 and a 52-week low of $8.42.