10 Best NASDAQ Stocks Under $20 to Buy

5. Viatris Inc. (NASDAQ:VTRS)

Number of Hedge Fund Holders In Q2 2024: 45

Share Price: $11.56

Viatris Inc. (NASDAQ:VTRS) is a sizeable pharmaceutical company that sells generic drugs, raw materials to make medicine, biologically similar drugs to well known treatments, and other associated products. Its product portfolio coupled with a global market presence provides the firm exposure to several markets to hedge against country specific downturns. It also allows the company to earn revenue during economic downturns and utilize economies of scale by selling generics. Viatris Inc. (NASDAQ:VTRS)’s significant financial resources, as evidenced by its cash and equivalents of $1.1 billion and receivables of $4 billion also allow the firm to acquire commercialization rights to lucrative assets by enabling small firms to bring their drugs to the market. Two such treatments that the firm has recently gotten hold of are cenerimod which is being developed to treat lupus and selatogrel for heart attacks. The two drugs are in phase three trials, and strong performance coupled with regulatory approval could create tailwinds for Viatris Inc. (NASDAQ:VTRS)’s shares. Such acquisitions are key for the firm as its business lacks differentiation and forces it to compete on the basis of costs.

Viatris Inc. (NASDAQ:VTRS)’s management has been busy raising cash by divesting some businesses. Here’s what it had to say during the Q2 2024 earnings call:

“Free cash flow for the quarter was primarily impacted by lower adjusted EBITDA due to the closing of divestitures. Our free cash flow and existing cash on hand allowed us to strengthen our balance sheet with debt paydown of approximately $800 million in the quarter. And as we look towards the rest of the year, we expect to have in excess of $3 billion in cash available for deployment. This takes into account divestiture proceeds received in the third quarter, expected divestiture costs and our latest outlook for free cash flow. We expect the significant financial flexibility will allow us to pay down additional debt to reach our long-term gross leverage target of approximately three times by the end of the year. We also expect to return capital in the form of dividends and will remain opportunistic with potential share repurchases and business development activity.”