[Executive Summary & Highlights](index=1&type=section&id=I.%20Executive%20Summary%20%26%20Highlights) Viatris reported strong Q2 2025 performance, exceeding expectations and making significant progress on 2025 strategic priorities, while reaffirming financial guidance and returning substantial capital to shareholders [CEO and CFO Commentary](index=1&type=section&id=1.1%20CEO%20and%20CFO%20Commentary) Viatris's CEO highlighted strong second-quarter performance, meaningful progress on 2025 strategic priorities, and the resilience of its diversified global business, with an advancing late-stage pipeline and significant capital return, while the CFO emphasized exceeding expectations, financial discipline, and reaffirming all key elements of the 2025 financial guidance - Viatris delivered a strong second quarter and continued to make meaningful progress against its key 2025 strategic priorities[3](index=3&type=chunk) - Second-quarter results exceeded expectations, demonstrating strong operational performance and financial discipline, with all key elements of 2025 financial guidance reaffirmed[3](index=3&type=chunk) - More than **$630 million** in capital has been returned to shareholders year-to-date[3](index=3&type=chunk) [Key Business and Financial Highlights](index=1&type=section&id=1.2%20Key%20Business%20and%20Financial%20Highlights) Viatris reported Q2 2025 total revenues above expectations, reflecting strong execution and business resilience, announced positive results from five Phase 3 data readouts, returned over $630 million in capital to shareholders, and reiterated its 2025 financial guidance, expecting to be in the top half of the range for Total Revenues and Adjusted EPS - Total Revenues were above expectations, reflecting strong execution and the resilience of the diversified global business[4](index=4&type=chunk) - Positive results from five Phase 3 data readouts this year reinforce the continued momentum of the late-stage pipeline[4](index=4&type=chunk) - Over **$630 million** of capital was returned to shareholders year-to-date, including **$350 million** in share buybacks[4](index=4&type=chunk) - The company reiterated its 2025 financial guidance ranges across all metrics and expects to be in the top half of the range for Total Revenues and Adjusted EPS[4](index=4&type=chunk) [Second Quarter and Year-to-Date Financial Performance](index=2&type=section&id=II.%20Second%20Quarter%20and%20Year-to-Date%20Financial%20Performance) This section details Viatris's Q2 and H1 2025 financial results, showing revenue declines, significant GAAP net losses due to goodwill impairment, and updates on product pipeline developments [Consolidated Financial Results (Q2 2025 vs Q2 2024)](index=2&type=section&id=2.1%20Consolidated%20Financial%20Results%20(Q2%202025%20vs%20Q2%202024)) In Q2 2025, Viatris reported a **6%** decrease in total revenues to **$3.58 billion** (**2%** divestiture-adjusted operational decrease), primarily due to the negative Indore Impact, while U.S. GAAP net loss significantly improved from **$(326.4) million** to **$(4.6) million**, and adjusted EBITDA and adjusted EPS saw declines of **11%** and **10%** respectively, with free cash flow decreasing by **48%** Q2 2025 vs Q2 2024 Key Financials | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Reported Change | Divestiture Adjusted Operational Change | | :-------------------------------- | :----------------- | :----------------- | :-------------- | :------------------------------------ | | Total Revenues | $3,582.1 | $3,796.6 | (6)% | (2)% | | U.S. GAAP Net Loss | $(4.6) | $(326.4) | NM | - | | U.S. GAAP Loss Per Share | $0.00 | $(0.27) | NM | - | | Adjusted Net Earnings | $726.0 | $826.5 | (12)% | - | | Adjusted EPS | $0.62 | $0.69 | (10)% | (4)% | | Adjusted EBITDA | $1,078.8 | $1,207.9 | (11)% | (4)% | | U.S. GAAP Net Cash from Ops | $219.7 | $379.1 | (42)% | - | | Free Cash Flow | $166.8 | $320.3 | (48)% | - | - Total revenues were **$3.6 billion**, down **6%** on a reported basis and down **2%** on a divestiture-adjusted operational basis compared to Q2 2024, primarily driven by the negative Indore Impact, though excluding the Indore Impact, divestiture-adjusted operational total revenues increased **3%**[9](index=9&type=chunk) - Brands net sales demonstrated strong performance in Greater China and Emerging Markets, in addition to growth in certain key brands in Developed Markets[9](index=9&type=chunk) [Consolidated Financial Results (H1 2025 vs H1 2024)](index=3&type=section&id=2.2%20Consolidated%20Financial%20Results%20(H1%202025%20vs%20H1%202024)) For the first six months of 2025, total revenues decreased by **8%** to **$6.84 billion** (**2%** divestiture-adjusted operational decrease), with the company reporting a significant U.S. GAAP net loss of **$(3,046.6) million**, primarily due to a **$2.9 billion** goodwill impairment charge, while Adjusted EBITDA and Adjusted EPS declined by **17%** and **18%** respectively, and free cash flow decreased by **25%** H1 2025 vs H1 2024 Key Financials | Metric | H1 2025 (Millions) | H1 2024 (Millions) | Reported Change | Divestiture Adjusted Operational Change | | :-------------------------------- | :----------------- | :----------------- | :-------------- | :------------------------------------ | | Total Revenues | $6,836.4 | $7,460.0 | (8)% | (2)% | | U.S. GAAP Net Loss | $(3,046.6) | $(212.5) | NM | - | | U.S. GAAP Loss Per Share | $(2.58) | $(0.18) | NM | - | | Adjusted Net Earnings | $1,326.3 | $1,639.2 | (19)% | - | | Adjusted EPS | $1.11 | $1.36 | (18)% | (9)% | | Adjusted EBITDA | $2,002.3 | $2,401.3 | (17)% | (8)% | | U.S. GAAP Net Cash from Ops | $755.2 | $993.7 | (24)% | - | | Free Cash Flow | $659.7 | $885.1 | (25)% | - | - The U.S. GAAP Net Loss for the six months ended June 30, 2025, includes a previously disclosed goodwill impairment charge of **$2.9 billion** as a result of an interim goodwill impairment test[7](index=7&type=chunk)[42](index=42&type=chunk) [Additional Business and Pipeline Highlights](index=4&type=section&id=2.3%20Additional%20Business%20and%20Pipeline%20Highlights) Generics net sales were impacted by the Indore event and competition but partially offset by growth in key products like Yupelri® and Breyna®, the company generated **$79 million** in new product revenues, reported positive Phase 3 results for Phentolamine Ophthalmic Solution (MR-142 and MR-141) for night driving impairment and presbyopia, while a Phase 3 study for Pimecrolimus Ophthalmic Ointment (MR-139) for blepharitis did not meet its primary endpoint, and Sotagliflozin received approval in UAE - Generics net sales reflect the expected negative Indore Impact and competition on Wixela®, partially offset by continued growth in Yupelri® and Breyna® in North America, strong performance across key European markets, and slight volume growth in JANZ[11](index=11&type=chunk) - The Company generated approximately **$79 million** in new product revenues in the quarter[11](index=11&type=chunk) - Positive top-line results were announced from pivotal Phase 3 trials for Phentolamine Ophthalmic Solution (MR-142) for night driving impairment and (MR-141) for presbyopia[11](index=11&type=chunk) - A Phase 3 study for Pimecrolimus Ophthalmic Ointment (MR-139) for blepharitis did not meet its primary endpoint, and the Company is evaluating next steps[11](index=11&type=chunk) - Sotagliflozin (INPEFA®) 200mg and 400mg film-coated tablets received approval in United Arab Emirates in June 2025[11](index=11&type=chunk) - Five abstracts from the Phase 3 program evaluating a novel fast-acting formulation of meloxicam (MR-107A-02) in moderate-to-severe acute surgical pain models will be presented at PAINWeek 2025, including positive results from two previously announced pivotal studies[11](index=11&type=chunk) [Capital Allocation and Business Development](index=5&type=section&id=III.%20Capital%20Allocation%20and%20Business%20Development) Viatris remains committed to returning capital to shareholders through repurchases and pursuing strategic regional licensing and partnership opportunities to enhance its core business [Capital Return to Shareholders](index=5&type=section&id=3.1%20Capital%20Return%20to%20Shareholders) Viatris reaffirmed its commitment to prioritizing returning capital to shareholders in 2025, having returned over **$630 million** year-to-date, including **$350 million** in share repurchases, and continues to expect total share repurchases for 2025 to be between **$500 million** and **$650 million** - The Company reaffirmed its commitment to prioritizing returning capital to shareholders in 2025[12](index=12&type=chunk) - Year-to-date, the Company returned more than **$630 million** of capital to shareholders, including **$350 million** in share repurchases[12](index=12&type=chunk) - The Company continues to expect **$500 million to $650 million** in total share repurchases in 2025[12](index=12&type=chunk) [Business Development Strategy](index=5&type=section&id=3.2%20Business%20Development%20Strategy) Viatris plans to continue pursuing regional licensing and partnership opportunities that offer immediate revenue contributions and leverage its unique commercial and R&D infrastructure and capabilities to enhance its core business - The Company expects to continue to pursue regional licensing and partnership opportunities with immediate revenue contribution[13](index=13&type=chunk) - These opportunities will leverage its unique commercial and R&D infrastructure and capabilities[13](index=13&type=chunk) - The strategy aims to enhance the core business[13](index=13&type=chunk) [2025 Financial Guidance](index=5&type=section&id=IV.%202025%20Financial%20Guidance) Viatris reaffirmed its 2025 financial guidance across all metrics, anticipating performance in the top half of the range for Total Revenues and Adjusted EPS [Reaffirmed Guidance](index=5&type=section&id=4.1%20Reaffirmed%20Guidance) Viatris reaffirmed its 2025 financial guidance across all metrics, expecting to be in the top half of the range for Total Revenues and Adjusted EPS, with U.S. GAAP net cash provided by operating activities estimated between **$2.2 billion** and **$2.5 billion**, excluding transaction-related costs and acquired IPR&D for unsigned deals 2025 Financial Guidance (Reaffirmed) | Metric | Estimated Ranges (Millions) | Midpoint (Millions) | | :------------------------------------------ | :------------------------ | :------------------ | | Total Revenues | $13,500 - $14,000 | $13,750 | | Adjusted EBITDA | $3,890 - $4,190 | $4,040 | | Adjusted EPS | $2.16 - $2.30 | $2.23 | | Free Cash Flow | $1,800 - $2,200 | $2,000 | | U.S. GAAP Net Cash provided by Operating Activities | $2,200 - $2,500 | $2,350 | - The Company expects to be in the top half of the range for Total Revenues and Adjusted EPS[4](index=4&type=chunk) - 2025 financial guidance excludes the impact of any acquisition and divestiture-related transaction costs, acquired IPR&D for unsigned deals, and any potential impact of future tariffs and trade restrictions[14](index=14&type=chunk)[15](index=15&type=chunk) [Company Information](index=6&type=section&id=V.%20Company%20Information) This section provides details on Viatris's Q2 2025 earnings conference call and an overview of the company's global healthcare mission and operations [Conference Call Details](index=6&type=section&id=5.1%20Conference%20Call%20Details) Viatris hosted a conference call and live webcast on August 7, 2025, at 8:30 a.m. ET to review its second quarter 2025 financial results, with investors and the public able to access the webcast and presentation materials on the company's investor relations website - Viatris hosted a conference call and live webcast on August 7, 2025, at 8:30 a.m. ET to review its second quarter 2025 financial results[16](index=16&type=chunk) - The 'Viatris Q2 2025 Earnings Presentation' and a replay of the webcast are available at investor.viatris.com[17](index=17&type=chunk) [About Viatris](index=6&type=section&id=5.2%20About%20Viatris) Viatris Inc. is a global healthcare company headquartered in the U.S., uniquely positioned to bridge generics and brands to holistically address healthcare needs worldwide, with a mission to empower people to live healthier, providing high-quality medicines to approximately **1 billion** patients annually through an extensive portfolio and global supply chain - Viatris Inc. (Nasdaq: VTRS) is a global healthcare company positioned to bridge the traditional divide between generics and brands[18](index=18&type=chunk) - Its mission is to empower people worldwide to live healthier at every stage of life, providing access to high-quality medicines to approximately **1 billion** patients annually[18](index=18&type=chunk) - Viatris is headquartered in the U.S., with global centers in Pittsburgh, Shanghai, and Hyderabad, India[18](index=18&type=chunk) [Non-GAAP Financial Measures & Key Terms](index=6&type=section&id=VI.%20Non-GAAP%20Financial%20Measures%20%26%20Key%20Terms) This section clarifies the definitions and rationale behind Viatris's non-GAAP financial measures and key operational terms used throughout the report [Non-GAAP Financial Measures Explanation](index=6&type=section&id=6.1%20Non-GAAP%20Financial%20Measures%20Explanation) This section explains the use of various non-GAAP financial measures, such as adjusted gross profit, adjusted net earnings, adjusted EPS, EBITDA, adjusted EBITDA, and free cash flow, which supplement U.S. GAAP reporting to provide a more complete understanding of the company's operational performance, especially given the impact of acquisitions, divestitures, and other significant events, and are used internally for forecasting, budgeting, and performance measurement - Non-GAAP financial measures, including adjusted gross profit, adjusted net earnings, adjusted EPS, EBITDA, adjusted EBITDA, and free cash flow, are presented to supplement investors' understanding of Viatris's financial performance[19](index=19&type=chunk) - Management uses these measures internally for forecasting, budgeting, measuring operating performance, and incentive-based awards[19](index=19&type=chunk) - Non-GAAP measures are considered useful supplemental information for investors, especially due to acquisitions, divestitures, and other significant events that may impact comparability of periodic operating results[19](index=19&type=chunk) - Free cash flow refers to U.S. GAAP net cash provided by operating activities less capital expenditures[19](index=19&type=chunk) - Constant currency (operational change) measures provide information on changes in total revenues, net sales, adjusted EBITDA, and adjusted EPS assuming foreign currency exchange rates had not changed, facilitating period-to-period comparison of operational activities[20](index=20&type=chunk) - Divestiture-adjusted operational change refers to operational change, further adjusted for the impact of divestitures that closed during 2024 by excluding proportionate net sales from those divested businesses[20](index=20&type=chunk) [Certain Key Terms and Presentation Matters](index=7&type=section&id=6.2%20Certain%20Key%20Terms%20and%20Presentation%20Matters) This section defines key terms used in the report to ensure clarity and consistent interpretation of financial results, including 'New product sales,' 'Operational change,' 'Divestiture-adjusted operational change,' 'Closed divestitures or divestitures closed in 2024,' 'Indore Impact,' and 'Transaction-related costs' - **New product sales:** Revenue from new products launched in 2025 and the carryover impact of new products, including business development, launched within the last 12 months[22](index=22&type=chunk) - **Operational change:** Constant currency percentage changes derived by translating current period amounts at prior year comparative period exchange rates[23](index=23&type=chunk) - **Divestiture-adjusted operational change:** Operational changes, further adjusted for the impact of proportionate results from divestitures that closed in 2024[24](index=24&type=chunk) - **Closed divestitures or divestitures closed in 2024:** Refers to the divestiture of rights to two women's healthcare products in the U.K., commercialization rights in most Upjohn Distributor markets, the women's healthcare business, the API business in India, and the OTC business[26](index=26&type=chunk) - **Indore Impact:** The estimated negative financial impact on 2025 total revenues and (loss) earnings from operations versus comparable 2024 periods, resulting from an FDA warning letter and import alert related to the oral finished dose manufacturing facility in Indore, India[27](index=27&type=chunk) - **Transaction-related costs:** The impact of any acquisition and divestiture-related transaction costs, including taxes[28](index=28&type=chunk) [Forward-Looking Statements](index=8&type=section&id=VII.%20Forward-Looking%20Statements) This section provides a standard legal disclaimer regarding forward-looking statements, highlighting inherent risks and uncertainties that may cause actual results to differ materially [Disclaimer](index=8&type=section&id=7.1%20Disclaimer) This section provides a standard legal disclaimer regarding forward-looking statements, emphasizing that actual future results may differ materially from those expressed or implied due to various risks and uncertainties, including regulatory actions, changes in laws, economic conditions, competition, and the ability to achieve strategic goals, and encourages investors to review detailed risk factors outlined in the company's SEC filings - This press release contains 'forward-looking statements' made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995[29](index=29&type=chunk) - Because forward-looking statements inherently involve risks and uncertainties, actual future results may differ materially from those expressed or implied[29](index=29&type=chunk) - Factors that could cause differences include actions and decisions of healthcare regulators, changes in laws, ability to attract and retain key personnel, liquidity, product market acceptance, manufacturing difficulties, legal proceedings, data security breaches, global operations risks, intellectual property protection, competition, economic conditions, and inflation rates[30](index=30&type=chunk)[31](index=31&type=chunk) - Investors are encouraged to review the risks described in Part I, Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and other SEC filings[31](index=31&type=chunk) [Contacts](index=10&type=section&id=VIII.%20Contacts) This section provides essential contact information for Viatris's Media and Investor Relations teams [Media and Investor Relations](index=10&type=section&id=8.1%20Media%20and%20Investor%20Relations) This section provides contact information for Viatris's Media and Investor Relations teams, including names, email addresses, and phone numbers for inquiries - Media Contacts: Jennifer Mauer and Matt Klein, Communications@viatris.com, +1.724.514.1968[32](index=32&type=chunk) - Investors Contact: Bill Szablewski, InvestorRelations@viatris.com, +1.724.514.1813[32](index=32&type=chunk) [Condensed Consolidated Financial Statements](index=11&type=section&id=IX.%20Condensed%20Consolidated%20Financial%20Statements) This section presents Viatris's condensed consolidated financial statements, including statements of operations, balance sheets, and detailed key product net sales for Q2 and H1 2025 [Statements of Operations](index=11&type=section&id=9.1%20Statements%20of%20Operations) The condensed consolidated statements of operations show a significant improvement in U.S. GAAP net loss for Q2 2025 to **$(4.6) million** from **$(326.4) million** in Q2 2024, however, for the six months ended June 30, 2025, a net loss of **$(3,046.6) million** was reported, primarily due to a goodwill impairment charge, compared to **$(212.5) million** in the prior year, with total revenues decreasing for both periods Condensed Consolidated Statements of Operations (Selected Items) | Metric (Millions) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------- | :------ | :------ | :------ | :------ | | Total revenues | $3,582.1 | $3,796.6 | $6,836.4 | $7,460.0 | | Gross profit | $1,332.9 | $1,445.4 | $2,494.1 | $2,949.4 | | Earnings (loss) from operations | $233.0 | $(239.9) | $(2,649.2) | $(36.0) | | Net loss | $(4.6) | $(326.4) | $(3,046.6) | $(212.5) | | Loss per share (Diluted) | $0.00 | $(0.27) | $(2.58) | $(0.18) | - The six-month net loss for 2025 includes a **$2.9 billion** goodwill impairment charge, which significantly impacted the U.S. GAAP results[7](index=7&type=chunk)[42](index=42&type=chunk) [Balance Sheets](index=12&type=section&id=9.2%20Balance%20Sheets) As of June 30, 2025, Viatris reported total assets of **$38.41 billion**, a decrease from **$41.50 billion** at December 31, 2024, primarily driven by a reduction in goodwill and intangible assets, and a decrease in cash and cash equivalents, while the current portion of long-term debt significantly increased Condensed Consolidated Balance Sheets (Selected Items) | Metric (Millions) | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Total assets | $38,411.5 | $41,500.9 | | Cash and cash equivalents | $566.4 | $734.8 | | Goodwill | $6,748.3 | $9,133.3 | | Intangible assets, net | $16,323.8 | $17,070.9 | | Total liabilities | $22,841.0 | $22,865.4 | | Current portion of long-term debt | $1,680.7 | $8.3 | | Long-term debt | $12,791.6 | $14,038.9 | | Shareholders' equity | $15,570.5 | $18,635.5 | - Goodwill decreased significantly from **$9,133.3 million** at December 31, 2024, to **$6,748.3 million** at June 30, 2025[37](index=37&type=chunk) - The current portion of long-term debt increased substantially from **$8.3 million** at December 31, 2024, to **$1,680.7 million** at June 30, 2025[37](index=37&type=chunk) [Key Product Net Sales](index=13&type=section&id=9.3%20Key%20Product%20Net%20Sales) Several key global products showed mixed performance in Q2 and H1 2025, with Lipitor®, Norvasc®, EpiPen®, Lyrica®, Creon®, Effexor®, and Zoloft® generally seeing increases in net sales for both periods, while Viagra®, Celebrex®, and Xalabrands experienced declines, and among key segment products, Yupelri® and Amitiza® grew, while Dymista® and Xanax® declined Key Product Net Sales (Selected Global Products) | Product | Q2 2025 (Millions) | Q2 2024 (Millions) | H1 2025 (Millions) | H1 2024 (Millions) | | :------------------ | :----------------- | :----------------- | :----------------- | :----------------- | | Lipitor ® | $387.9 | $348.4 | $775.9 | $737.3 | | Norvasc ® | $182.7 | $161.9 | $355.0 | $338.2 | | EpiPen® Auto-Injectors | $136.8 | $115.5 | $233.5 | $195.7 | | Lyrica ® | $128.1 | $124.3 | $240.7 | $238.5 | | Viagra ® | $100.3 | $106.1 | $198.8 | $206.8 | | Creon ® | $91.4 | $78.2 | $173.8 | $153.2 | | Celebrex ® | $70.0 | $72.2 | $133.4 | $144.4 | | Effexor ® | $63.1 | $62.7 | $122.4 | $122.1 | | Zoloft ® | $61.1 | $58.9 | $121.3 | $116.9 | | Xalabrands | $40.7 | $45.6 | $77.8 | $88.1 | Key Product Net Sales (Selected Segment Products) | Product | Q2 2025 (Millions) | Q2 2024 (Millions) | H1 2025 (Millions) | H1 2024 (Millions) | | :------------------ | :----------------- | :----------------- | :----------------- | :----------------- | | Yupelri ® | $66.6 | $54.5 | $124.9 | $109.7 | | Dymista ® | $48.4 | $55.0 | $91.2 | $103.2 | | Amitiza ® | $41.6 | $36.9 | $74.9 | $69.9 | | Xanax ® | $33.9 | $35.4 | $66.2 | $69.9 | [Reconciliation of Non-GAAP Financial Measures](index=14&type=section&id=X.%20Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides detailed reconciliations of U.S. GAAP financial measures to their non-GAAP counterparts, including adjusted net earnings, EBITDA, segment revenues, and free cash flow [U.S. GAAP Net Loss to Adjusted Net Earnings and EPS](index=14&type=section&id=10.1%20U.S.%20GAAP%20Net%20Loss%20to%20Adjusted%20Net%20Earnings%20and%20EPS) The reconciliation shows significant adjustments from U.S. GAAP net loss to adjusted net earnings, primarily due to purchase accounting amortization, goodwill impairment, litigation settlements, and other special items, with Q2 2025 adjusted net earnings at **$726.0 million** (Adjusted EPS **$0.62**) compared to a U.S. GAAP net loss of **$(4.6) million**, and H1 2025 adjusted net earnings at **$1,326.3 million** (Adjusted EPS **$1.11**) contrasting with a U.S. GAAP net loss of **$(3,046.6) million** Reconciliation of U.S. GAAP Net Loss to Adjusted Net Earnings and EPS (Selected Items) | Metric (Millions, except EPS) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | U.S. GAAP net loss | $(4.6) | $(326.4) | $(3,046.6) | $(212.5) | | Purchase accounting amortization | $597.8 | $709.9 | $1,181.3 | $1,321.6 | | Impairment of goodwill | $0.0 | $321.0 | $2,936.8 | $321.0 | | Litigation settlements and other contingencies, net | $(47.6) | $131.0 | $(121.1) | $207.8 | | Loss on divestitures of businesses | $43.8 | $258.8 | $80.7 | $188.4 | | Acquisition and divestiture-related costs | $53.7 | $105.1 | $94.4 | $192.6 | | Restructuring costs | $26.6 | $21.1 | $119.5 | $40.7 | | Share-based compensation expense | $37.1 | $34.7 | $92.3 | $81.4 | | Other special items | $395.2 | $(202.7) | $556.5 | $(203.5) | | Tax effect of above items | $(366.5) | $(222.8) | $(548.8) | $(286.9) | | **Adjusted net earnings** | **$726.0** | **$826.5** | **$1,326.3** | **$1,639.2** | | **Adjusted EPS** | **$0.62** | **$0.69** | **$1.11** | **$1.36** | - The goodwill impairment charge of **$2.9 billion** for the six months ended June 30, 2025, was a primary driver of the difference between U.S. GAAP net loss and adjusted net earnings[42](index=42&type=chunk) [U.S. GAAP Net Loss to EBITDA and Adjusted EBITDA](index=15&type=section&id=10.2%20U.S.%20GAAP%20Net%20Loss%20to%20EBITDA%20and%20Adjusted%20EBITDA) The reconciliation from U.S. GAAP net loss to EBITDA and Adjusted EBITDA highlights the impact of non-operating and non-cash items, with Q2 2025 EBITDA at **$577.8 million** and Adjusted EBITDA at **$1,078.8 million**, while H1 2025 EBITDA was **$(1,739.0) million**, primarily due to the goodwill impairment, and Adjusted EBITDA was **$2,002.3 million** Reconciliation of U.S. GAAP Net Loss to EBITDA and Adjusted EBITDA (Selected Items) | Metric (Millions) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | U.S. GAAP net loss | $(4.6) | $(326.4) | $(3,046.6) | $(212.5) | | Income tax (benefit) provision | $(212.5) | $(65.4) | $(267.5) | $25.3 | | Interest expense | $116.6 | $145.8 | $232.1 | $284.2 | | Depreciation and amortization | $678.3 | $786.3 | $1,343.0 | $1,477.3 | | **EBITDA** | **$577.8** | **$540.3** | **$(1,739.0)** | **$1,574.3** | | Share-based compensation expense | $37.1 | $34.7 | $92.3 | $81.4 | | Litigation settlements and other contingencies, net | $(47.6) | $131.0 | $(121.1) | $207.8 | | Loss on divestitures of businesses | $43.8 | $258.8 | $80.7 | $188.4 | | Impairment of goodwill | $0.0 | $321.0 | $2,936.8 | $321.0 | | Restructuring, acquisition and divestiture-related and other special items | $467.7 | $(77.9) | $752.6 | $28.4 | | **Adjusted EBITDA** | **$1,078.8** | **$1,207.9** | **$2,002.3** | **$2,401.3** | - EBITDA for the six months ended June 30, 2025, was significantly negative at **$(1,739.0) million**, primarily due to the **$2.9 billion** goodwill impairment charge[43](index=43&type=chunk) [Summary of Total Revenues by Segment](index=16&type=section&id=10.3%20Summary%20of%20Total%20Revenues%20by%20Segment) The segment revenue breakdown for Q2 2025 shows Developed Markets net sales decreased by **9%** (**4%** divestiture-adjusted operational), JANZ decreased by **13%** (**11%** divestiture-adjusted operational), and Emerging Markets decreased by **4%** (**1%** divestiture-adjusted operational increase), while Greater China was a strong performer, with net sales increasing by **9%** (**9%** divestiture-adjusted operational), and similar trends were observed for H1 2025 Total Net Sales by Segment (Q2 2025 vs Q2 2024) | Segment | Q2 2025 (Millions) | Q2 2024 (Millions) | Reported Change | Divestiture Adjusted Operational Change | | :---------------- | :----------------- | :----------------- | :-------------- | :------------------------------------ | | Developed Markets | $2,119.3 | $2,319.2 | (9)% | (4)% | | Greater China | $588.9 | $539.0 | 9% | 9% | | JANZ | $305.7 | $349.6 | (13)% | (11)% | | Emerging Markets | $555.1 | $578.1 | (4)% | 1% | | **Total net sales** | **$3,569.0** | **$3,785.9** | **(6)%** | **(2)%** | Total Net Sales by Segment (H1 2025 vs H1 2024) | Segment | H1 2025 (Millions) | H1 2024 (Millions) | Reported Change | Divestiture Adjusted Operational Change | | :---------------- | :----------------- | :----------------- | :-------------- | :------------------------------------ | | Developed Markets | $4,011.0 | $4,484.6 | (11)% | (4)% | | Greater China | $1,144.4 | $1,082.9 | 6% | 7% | | JANZ | $581.8 | $667.4 | (13)% | (9)% | | Emerging Markets | $1,075.0 | $1,204.5 | (11)% | (2)% | | **Total net sales** | **$6,812.2** | **$7,439.4** | **(8)%** | **(2)%** | - The estimated negative Indore Impact on total revenues was approximately **$160 million** for Q2 2025 and **$300 million** for H1 2025[27](index=27&type=chunk) [Reconciliation of Statements of Operations Line Items](index=17&type=section&id=10.4%20Reconciliation%20of%20Statements%20of%20Operations%20Line%20Items) This section provides detailed reconciliations of various U.S. GAAP operating expense lines to their adjusted non-GAAP counterparts, with key adjustments including purchase accounting amortization, acquisition and divestiture-related costs, restructuring costs, and share-based compensation, which significantly impact adjusted gross profit, R&D, SG&A, and earnings from operations Reconciliation of U.S. GAAP to Adjusted Operating Expenses (Selected Items) | Metric (Millions) | Q2 2025 (GAAP) | Q2 2025 (Adjusted) | H1 2025 (GAAP) | H1 2025 (Adjusted) | | :------------------------------------------ | :------------- | :----------------- | :------------- | :----------------- | | Cost of sales | $2,249.2 | $1,553.7 | $4,342.3 | $2,988.4 | | Gross profit | $1,332.9 | $2,028.4 | $2,494.1 | $3,848.0 | | Gross margin | 37% | 57% | 36.5% | 56.3% | | Research and development | $218.8 | $211.2 | $440.8 | $428.7 | | Selling, general and administrative | $928.7 | $826.0 | $1,876.8 | $1,604.7 | | Total operating expenses | $1,099.9 | $1,037.2 | $5,143.3 | $2,043.4 | | Earnings from operations | $233.0 | $991.2 | $(2,649.2) | $1,804.6 | | Interest expense | $116.6 | $126.1 | $232.1 | $250.8 | | Other expense (income), net | $333.5 | $(14.8) | $432.8 | $(53.8) | | Loss before income taxes | $(217.1) | $880.0 | $(3,314.1) | $1,607.7 | | Income tax (benefit) provision | $(212.5) | $154.0 | $(267.5) | $281.3 | | Adjusted effective tax rate | - | 17.5% | - | 17.5% | - Adjusted gross margin for Q2 2025 was **57%**, significantly higher than the U.S. GAAP gross margin of **37.2%**[6](index=6&type=chunk)[48](index=48&type=chunk) - Adjusted earnings from operations for H1 2025 were **$1,804.6 million**, contrasting sharply with the U.S. GAAP loss from operations of **$(2,649.2) million**, primarily due to the goodwill impairment adjustment[34](index=34&type=chunk)[49](index=49&type=chunk) [Reconciliation of Estimated 2025 U.S. GAAP Net Cash Provided by Operating Activities to Free Cash Flow](index=19&type=section&id=10.5%20Reconciliation%20of%20Estimated%202025%20U.S.%20GAAP%20Net%20Cash%20Provided%20by%20Operating%20Activities%20to%20Free%20Cash%20Flow) This section provides the reconciliation of the estimated 2025 U.S. GAAP Net Cash provided by Operating Activities to Free Cash Flow, projecting an estimated Free Cash Flow between **$1.8 billion** and **$2.2 billion** after deducting estimated capital expenditures of **$300 million** to **$400 million** from the estimated U.S. GAAP Net Cash provided by Operating Activities (**$2.2 billion** to **$2.5 billion**) Reconciliation of Estimated 2025 U.S. GAAP Net Cash Provided by Operating Activities to Free Cash Flow | (In millions) | Estimated Ranges | | :------------------------------------------ | :--------------- | | Estimated U.S. GAAP Net Cash provided by Operating Activities | $2,200 - $2,500 | | Less: Capital Expenditures | $(300) - $(400) | | Free Cash Flow | $1,800 - $2,200 | - The reconciliation excludes the impact of any transaction-related costs[50](index=50&type=chunk)[51](index=51&type=chunk)

Core Viewpoint - Viatris Inc. reported strong second quarter 2025 financial results, reaffirming its 2025 financial guidance across all metrics, reflecting the resilience of its diversified global business and progress in its late-stage pipeline [1][5][11]. Financial Performance - Total revenues for Q2 2025 were $3.582 billion, a decrease of 6% year-over-year, while adjusted operational revenues decreased by 2% [4][11]. - Total net sales were $3.569 billion, down 6% from $3.786 billion in Q2 2024 [4][11]. - Developed markets saw a 9% decline in sales, while emerging markets experienced a 4% decline [4][11]. - Greater China reported a 9% increase in sales, indicating strong performance in that region [4][11]. - U.S. GAAP net loss was $4.6 million, a significant improvement from a loss of $326.4 million in Q2 2024 [4][11]. Operational Highlights - Adjusted EBITDA for Q2 2025 was $1.079 billion, down 11% year-over-year, while adjusted EPS was $0.62, a decrease of 10% [4][11]. - The company generated approximately $79 million in new product revenues during the quarter [11]. - Free cash flow for Q2 2025 was $167 million, down 48% from $320.3 million in Q2 2024 [4][12]. Capital Allocation - Year-to-date, Viatris returned over $630 million to shareholders, including $350 million in share buybacks [5][13]. - The company expects total share repurchases in 2025 to be between $500 million and $650 million [13]. Strategic Focus - The company is focused on driving commercial execution and investing in strategic business development opportunities to position itself for sustainable growth in 2026 and beyond [2][5]. - Viatris is pursuing regional licensing and partnership opportunities that contribute immediate revenue and leverage its commercial and R&D capabilities [14]. 2025 Financial Guidance - Viatris reaffirmed its 2025 financial guidance, estimating total revenues between $13.5 billion and $14 billion, with a midpoint of $13.75 billion [16][17]. - Adjusted EBITDA is expected to be between $3.89 billion and $4.19 billion, with adjusted EPS projected between $2.16 and $2.30 [16][17].

Analysts on Wall Street project that Viatris (VTRS) will announce quarterly earnings of $0.56 per share in its forthcoming report, representing a decline of 18.8% year over year. Revenues are projected to reach $3.5 billion, declining 7.9% from the same quarter last year. The consensus estimate for 'Net Sales- Developed Markets- Brands' stands at $1.15 billion. The estimate indicates a change of -6.8% from the prior-year quarter. Analysts expect 'Other revenues' to come in at $10.35 million. The estimate su ...

Core Viewpoint - Viatris Inc. has appointed David Simmons to its Board of Directors, bringing extensive pharmaceutical industry experience and executive expertise to the company [1][4]. Group 1: Appointment Details - David Simmons has a strong background in the pharmaceutical industry, previously serving as CEO of Caliber Holdings Corporation and Chairman and CEO of PPD, Inc., where he led a workforce of over 30,000 employees and significantly increased the company's enterprise value [1][2]. - Under Simmons' leadership, PPD's total enterprise value tripled, and he oversaw its IPO in 2020 and subsequent sale to Thermo Fisher Scientific for $17.4 billion in 2021 [1][2]. Group 2: Previous Experience - Simmons has over 15 years of experience at Pfizer, where he became the first President and General Manager of the Established Products Unit, managing around 20,000 employees and 30% of Pfizer's global sales [2][3]. - He currently serves on the board of directors of Cordis and has held board positions at several other companies, including Curia Global, Launch Therapeutics, Medline Industries, and Owens & Minor [3]. Group 3: Strategic Importance - The Chair of Viatris' Board, Melina Higgins, emphasized that Simmons' background in the pharmaceutical industry and his familiarity with Viatris' established products portfolio make him a valuable addition to the Board [4]. - CEO Scott A. Smith expressed confidence that Simmons will contribute significantly to the Board's efforts in business execution and advancing the company's pipeline [4]. Group 4: Company Overview - Viatris Inc. is a global healthcare company that aims to bridge the gap between generics and brand-name products, providing access to high-quality medicines for approximately 1 billion patients annually [5]. - The company is headquartered in the U.S. with global centers in Pittsburgh, Shanghai, and Hyderabad, India, and focuses on addressing various healthcare needs across different life stages [5].

Core Viewpoint - Viatris (VTRS) is set to report its second-quarter 2025 results on August 7, 2025, with revenue estimates at $3.50 billion and earnings per share (EPS) at $0.56 [1][9] Summary by Segments Revenue Estimates - The Zacks Consensus Estimate for revenues from Developed Markets is $2.1 billion, driven by brands like Creon, Brufen, and the Thrombosis portfolio, which have likely offset declines in generics [2][3] - Revenues from Emerging Markets are estimated at $542 million, with growth in cardiovascular brands in Latin America and strengths in the Middle East and North America potentially offsetting pressures from the Indore facility [4] - For JANZ markets, the revenue estimate is $310 million, impacted by government price regulations and changes in Japan's reimbursement policies [5] - Greater China revenues are expected to be $546 million, benefiting from a diversified model across e-commerce, retail, and private hospitals [6] Product Category Performance - The brand business, which constitutes the majority of Viatris' portfolio, is likely to have benefited from the expansion of its cardiovascular portfolio in Latin America and strong growth in Europe and Greater China [6] Operating Expenses - Operating expenses may have increased due to investments in selling, general and administrative (SG&A) expenses for new product launches and advancements in key R&D programs [7] Share Price Performance - Viatris' shares have decreased by 29.3% over the past year, contrasting with an industry decline of 8.4% [8] Earnings Surprise History - The company has beaten earnings estimates in three of the last four quarters, with an average surprise of 2.14% [11]

Core Insights - Viatris, Inc. (VTRS) announced that its late-stage study on the ophthalmic ointment MR-139 failed to meet primary endpoints in patients with blepharitis, leading to a 4.21% drop in share price [1][6] - Year-to-date, VTRS shares have decreased by 26.8%, contrasting with a 9% decline in the industry [1] Study Details - The MR-139 study was a randomized, placebo-controlled, double-masked phase III trial involving approximately 477 patients, who self-administered the treatment twice daily for 12 weeks [3] - The primary endpoint of complete resolution of eyelid debris after six weeks was not achieved [3][6] Future Plans - VTRS is evaluating next steps for the MR-139 phase III program, which may involve revising the planned additional study [4][6] - The company is focusing on its ophthalmology portfolio, which includes therapies like Tyrvaya and Ryzumvi, and aims to address unmet needs in anterior segment conditions [4] Portfolio Strengthening - VTRS has established an ophthalmology franchise through acquisitions of Oyster Point Pharma and FamyLife Sciences [6] - The company is restructuring its business following the sale of its biosimilar portfolio and divesting its over-the-counter and Active Pharmaceutical Ingredients businesses in India, as well as its women's healthcare segment, to streamline core operations [7]

Core Insights - Viatris Inc. announced topline data from a Phase 3 study of pimecrolimus 0.3% ophthalmic ointment for blepharitis, a common eye condition characterized by eyelid inflammation [1] - The trial did not meet its primary endpoint of complete resolution of debris after six weeks of treatment [2] - The company is evaluating next steps for the Phase 3 program, which may include revising the planned additional Phase 3 study [3] Product Development - Viatris is focused on delivering novel therapies such as Tyrvaya and Ryzumvi while progressing a differentiated pipeline [3] - In June, Viatris and Opus Genetics announced topline results from the VEGA-3 trial evaluating MR-141 for presbyopia treatment [4] - MR-141 showed that more patients achieved significant visual acuity gains compared to placebo at various time points [5][6] Market Performance - Viatris shares have an average 1-year price target of $10, indicating an expected upside of 11.86% [7] - At the time of publication, Viatris shares were down 3.94% at $8.90 [7]

Core Insights - Viatris Inc. announced that its Phase 3 study for pimecrolimus 0.3% (MR-139) ophthalmic ointment did not meet its primary endpoint of complete resolution of debris in patients with blepharitis after six weeks of treatment [1][2][5] - The company is evaluating next steps for the Phase 3 program, which may include revising the planned additional Phase 3 study [2][5] - Viatris is focused on delivering novel therapies and has reported positive results from other ongoing clinical trials, including MR-142 and MR-141 [2][5] Study Details - The MR-139 3001 Phase 3 trial involved 477 patients who were randomized to receive either MR-139 or a placebo, with treatment administered twice daily over a 12-week period [3] Company Overview - Viatris is a global healthcare company that combines generics and brand medications to address healthcare needs worldwide, supplying high-quality medicines to approximately 1 billion patients annually [4] - The company is headquartered in the U.S. and has global centers in Pittsburgh, Shanghai, and Hyderabad, India [4]

Group 1 - The healthcare sector is underperforming the S&P 500 by over 11% [1] - Viatris Inc. has lost over 25% of its market cap year-to-date [1] - The author is focused on identifying undervalued stocks across various sectors and geographies [1] Group 2 - The author has been a Popular Investor on eToro since early 2022, showcasing investment opinions and decisions [1]

Core Insights - Viatris Inc. announced positive top-line results from the VEGA-3 Phase 3 trial for MR-141, demonstrating significant improvement in near visual acuity for patients with presbyopia without compromising distance vision [1][2] - The trial involved 545 patients and showed that MR-141 significantly outperformed placebo in achieving primary and secondary endpoints [5][6] - The company plans to submit an application to the U.S. FDA in the second half of 2025 [1][8] Company Overview - Viatris is a global healthcare company that combines generics and brand medications to address healthcare needs, supplying high-quality medicines to approximately 1 billion patients annually [7] - The company is headquartered in the U.S. with global centers in Pittsburgh, Shanghai, and Hyderabad [7] Industry Context - Presbyopia affects nearly 128 million people in the U.S., approximately 90% of adults over 45, and is projected to impact 2.1 billion people globally by 2030 [6] - The condition leads to significant economic losses, estimated between $11 billion and $25 billion due to uncorrected cases, highlighting the need for effective near-vision correction solutions [6]