General Information [Filing Details](index=1&type=section&id=Filing%20Details) Viatris Inc. filed a Quarterly Report on Form 10-Q for Q2 2025, identifying as a large accelerated filer with common stock traded on NASDAQ under VTRS - **Filing Type**: Quarterly Report on Form 10-Q for the period ended June 30, 2025[2](index=2&type=chunk) - **Registrant**: Viatris Inc. (Commission file number 001-39695)[2](index=2&type=chunk) Registrant Status | Status | Indicator | | :---------------------- | :-------- | | Large accelerated filer | ☑ | Common Stock Information (as of August 4, 2025) | Metric | Value | | :-------------------------------- | :------------ | | Shares Outstanding (par value $0.01 per share) | 1,165,872,127 | Index to Form 10-Q [Report Structure](index=2&type=section&id=Report%20Structure) The Form 10-Q is structured into Part I (Financial Information) and Part II (Other Information), covering financial statements, management analysis, and legal/risk disclosures - **Part I** includes Condensed Consolidated Financial Statements and Management's Discussion and Analysis of Financial Condition and Results of Operations[7](index=7&type=chunk) - **Part II** covers Legal Proceedings, Risk Factors, Unregistered Sales of Equity Securities, Other Information, and Exhibits[7](index=7&type=chunk) Glossary of Defined Terms [Key Definitions](index=3&type=section&id=Key%20Definitions) This section defines key financial measures, regulatory terms, business segments, and transaction-specific terms used throughout the Form 10-Q - The glossary defines key financial terms including **Adjusted EBITDA** and **Adjusted EPS**[10](index=10&type=chunk) - It clarifies company-specific transactions such as the **Biocon Biologics Transaction** and the **Idorsia Transaction**[10](index=10&type=chunk)[11](index=11&type=chunk) - Key business segments defined include **Developed Markets**, **Emerging Markets**, **Greater China**, and **JANZ**[10](index=10&type=chunk)[11](index=11&type=chunk) PART I — FINANCIAL INFORMATION [ITEM 1. Condensed Consolidated Financial Statements (unaudited)](index=6&type=section&id=ITEM%201.%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) This section presents Viatris Inc.'s unaudited condensed consolidated financial statements for Q2 2025 and 2024, including operations, comprehensive earnings, balance sheets, equity, cash flows, and explanatory notes [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Viatris Inc. reported a net loss of **$4.6 million** for Q2 2025, improving from the prior year, but a **$3.05 billion** net loss for H1 2025 due to goodwill impairment Condensed Consolidated Statements of Operations (in millions, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net sales | $3,569.0 | $3,785.9 | $6,812.2 | $7,439.4 | | 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) | | Basic loss per share | $0.00 | $(0.27) | $(2.58) | $(0.18) | | Diluted loss per share | $0.00 | $(0.27) | $(2.58) | $(0.18) | [Condensed Consolidated Statements of Comprehensive Earnings (Loss)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Earnings%20(Loss)) Viatris reported **$201.9 million** comprehensive earnings for Q2 2025, a significant improvement, but a **$2.50 billion** comprehensive loss for H1 2025, both influenced by foreign currency Condensed Consolidated Statements of Comprehensive Earnings (Loss) (in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | $(4.6) | $(326.4) | $(3,046.6) | $(212.5) | | Foreign currency translation adjustment | $507.0 | $(89.7) | $1,005.8 | $(432.2) | | Other comprehensive earnings (loss), net of tax | $206.5 | $(34.2) | $548.5 | $(227.8) | | Comprehensive earnings (loss) | $201.9 | $(360.6) | $(2,498.1) | $(440.3) | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Viatris Inc.'s total assets decreased to **$38.41 billion** as of June 30, 2025, primarily due to reduced goodwill, while total equity declined to **$15.57 billion** Condensed Consolidated Balance Sheets (in millions) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :-------------- | :---------------- | | Cash and cash equivalents | $566.4 | $734.8 | | Total current assets | $9,774.6 | $9,520.7 | | Intangible assets, net | $16,323.8 | $17,070.9 | | Goodwill | $6,748.3 | $9,133.3 | | Total assets | $38,411.5 | $41,500.9 | | Total current liabilities | $7,133.4 | $5,779.4 | | Long-term debt | $12,791.6 | $14,038.9 | | Total liabilities | $22,841.0 | $22,865.4 | | Total equity | $15,570.5 | $18,635.5 | [Condensed Consolidated Statements of Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) Viatris Inc.'s total equity decreased to **$15.57 billion** by June 30, 2025, driven by a **$3.05 billion** net loss and **$351.5 million** in share repurchases Key Changes in Equity (Six Months Ended June 30, 2025, in millions) | Item | Amount | | :-------------------------------- | :------- | | Balance at December 31, 2024 | $18,635.5 | | Net loss | $(3,046.6) | | Other comprehensive earnings, net of tax | $548.5 | | Share-based compensation expense | $92.3 | | Common stock repurchase | $(351.5) | | Cash dividends declared | $(292.2) | | Balance at June 30, 2025 | $15,570.5 | Key Changes in Equity (Six Months Ended June 30, 2024, in millions) | Item | Amount | | :-------------------------------- | :------- | | Balance at December 31, 2023 | $20,467.4 | | Net loss | $(212.5) | | Other comprehensive loss, net of tax | $(227.8) | | Share-based compensation expense | $81.4 | | Common stock repurchase | $(252.5) | | Cash dividends declared | $(293.3) | | Balance at June 30, 2024 | $19,520.0 | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations decreased to **$755.2 million** in H1 2025, investing activities shifted to a **$117.6 million** net use, and financing cash use decreased to **$829.4 million** Condensed Consolidated Statements of Cash Flows (Six Months Ended June 30, in millions) | Activity | 2025 | 2024 | | :-------------------------------------- | :------- | :------- | | Net cash provided by operating activities | $755.2 | $993.7 | | Net cash (used in) provided by investing activities | $(117.6) | $221.5 | | Net cash used in financing activities | $(829.4) | $(1,273.5) | | Net decrease in cash, cash equivalents and restricted cash | $(168.3) | $(75.1) | | Cash, cash equivalents and restricted cash — end of period | $567.8 | $918.5 | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail Viatris' accounting policies, revenue, acquisitions, divestitures, share-based compensation, balance sheet components, goodwill, financial instruments, debt, segment information, and litigation [Note 1. General](index=12&type=section&id=Note%201.%20General) Interim financial statements adhere to U.S. GAAP and SEC rules, with reclassifications made to conform prior period presentations, including goodwill impairment charges - Interim financial statements are prepared in accordance with **U.S. GAAP** and **SEC rules** for Form 10-Q[27](index=27&type=chunk) - **Goodwill impairment charges** are now presented separately in the condensed consolidated statements of operations and cash flows[30](index=30&type=chunk) [Note 2. Revenue Recognition and Accounts Receivable](index=12&type=section&id=Note%202.%20Revenue%20Recognition%20and%20Accounts%20Receivable) Viatris recognizes revenue net of variable consideration; Q2 2025 net sales were **$3.57 billion**, with **Brands** contributing **$2.28 billion** and **Generics $1.28 billion** - Revenue is recognized under **ASC 606**, net of variable consideration[31](index=31&type=chunk) Net Sales by Product Category and Segment (Three Months Ended June 30, 2025, in millions) | Product Category | Developed Markets | Greater China | JANZ | Emerging Markets | Total | | :--------------- | :---------------- | :------------ | :--- | :--------------- | :------ | | Brands | $1,121.4 | $586.5 | $160.5 | $416.1 | $2,284.5 | | Generics | $997.9 | $2.4 | $145.2 | $139.0 | $1,284.5 | | Total Viatris | $2,119.3 | $588.9 | $305.7 | $555.1 | $3,569.0 | Net Sales by Product Category and Segment (Six Months Ended June 30, 2025, in millions) | Product Category | Developed Markets | Greater China | JANZ | Emerging Markets | Total | | :--------------- | :---------------- | :------------ | :--- | :--------------- | :------ | | Brands | $2,141.2 | $1,139.3 | $302.3 | $818.6 | $4,401.4 | | Generics | $1,869.8 | $5.1 | $279.5 | $256.4 | $2,410.8 | | Total Viatris | $4,011.0 | $1,144.4 | $581.8 | $1,075.0 | $6,812.2 | Consolidated Net Sales for Select Key Products (Three Months Ended June 30, in millions) | Product | 2025 | 2024 | | :---------------------- | :------- | :------- | | Lipitor® | $387.9 | $348.4 | | Norvasc® | $182.7 | $161.9 | | EpiPen® Auto-Injectors | $136.8 | $115.5 | | Lyrica® | $128.1 | $124.3 | | Viagra® | $100.3 | $106.1 | | Creon® | $91.4 | $78.2 | | Celebrex® | $70.0 | $72.2 | | Effexor® | $63.1 | $62.7 | | Zoloft® | $61.1 | $58.9 | | Xalabrands | $40.7 | $45.6 | | Yupelri® | $66.6 | $54.5 | | Dymista® | $48.4 | $55.0 | | Amitiza® | $41.6 | $36.9 | | Xanax® | $33.9 | $35.4 | Reconciliation of Gross Sales to Net Sales (Six Months Ended June 30, in millions) | Category | 2025 | 2024 | | :----------------------------------------- | :--------- | :--------- | | Gross sales | $11,545.0 | $12,558.5 | | Total gross to net adjustments | $(4,732.8) | $(5,119.1) | | Net sales | $6,812.2 | $7,439.4 | - The Company derecognized **$123.0 million** of accounts receivable as of June 30, 2025, under factoring arrangements[40](index=40&type=chunk) [Note 3. Recent Accounting Pronouncements](index=15&type=section&id=Note%203.%20Recent%20Accounting%20Pronouncements) The SEC's climate-related disclosure rules, though stayed, would impact fiscal year 2025; no other significant accounting standard changes were noted from the 2024 Form 10-K - The **SEC's Final Rules on climate-related disclosures** have been stayed pending litigation[42](index=42&type=chunk) - The **SEC** withdrew its defense of the Final Rules in pending litigation on March 27, 2025[42](index=42&type=chunk) - No other significant changes in new accounting standards were disclosed from Viatris' 2024 Form 10-K[43](index=43&type=chunk) [Note 4. Acquisitions and Other Transactions](index=15&type=section&id=Note%204.%20Acquisitions%20and%20Other%20Transactions) Viatris acquired global rights to selatogrel and cenerimod from Idorsia for **$350 million** upfront, with a 2025 amendment reducing contingent milestones by **$250 million** in exchange for assuming **$100 million** in development costs - On March 15, 2024, Viatris acquired global development and commercialization rights to **selatogrel** and **cenerimod** from Idorsia for an upfront payment of **$350 million**[44](index=44&type=chunk) Idorsia Acquisition Purchase Price Allocation (in millions) | Asset/Liability | Amount | | :-------------------- | :------- | | Current assets | $2.1 | | IPR&D | $675.0 | | Goodwill | $19.5 | | Total assets acquired | $696.6 | | Current liabilities | $1.6 | | Net assets acquired | $695.0 | - An amendment on February 25, 2025, reduced contingent milestone payments by **$250 million** and transferred additional territory rights and personnel to Viatris, in exchange for assuming **$100 million** of Idorsia's development cost obligation[50](index=50&type=chunk) [Note 5. Divestitures](index=16&type=section&id=Note%205.%20Divestitures) Viatris completed major divestitures by end of 2024, recording **$80.7 million** in additional pre-tax charges in H1 2025 due to increased transaction costs - Viatris substantially completed divestitures of its **OTC Business**, **women's healthcare business**, and **API business** by the end of 2024[51](index=51&type=chunk) - Additional pre-tax charges of **$80.7 million** were recorded in H1 2025 for divestitures, primarily due to increased transaction costs[52](index=52&type=chunk) TSA Income from Divestitures (in millions) | Period | 2025 | 2024 | | :---------------------- | :------- | :------- | | Three Months Ended June 30, | $12.4 | $6.0 | | Six Months Ended June 30, | $29.8 | $19.5 | [Note 6. Share-Based Incentive Plan](index=17&type=section&id=Note%206.%20Share-Based%20Incentive%20Plan) Viatris' 2020 Incentive Plan was amended to increase authorized shares by **49 million**; **$236.2 million** in unrecognized compensation expense remains as of June 30, 2025 - The **2020 Incentive Plan** was amended on December 6, 2024, to increase authorized shares by **49,000,000**[55](index=55&type=chunk) Stock Awards Activity (December 31, 2024 to June 30, 2025) | Metric | Number of Shares Under Stock Awards | Weighted Average Exercise Price per Share | | :-------------------------- | :---------------------------------- | :-------------------------------------- | | Outstanding at Dec 31, 2024 | 3,350,786 | $35.94 | | Exercised | (12,291) | $6.51 | | Forfeited | (515,096) | $37.04 | | Outstanding at June 30, 2025 | 2,823,399 | $35.86 | - As of June 30, 2025, Viatris had **$236.2 million** of unrecognized compensation expense related to stock-based awards, with a weighted average vesting period of **1.7 years**[58](index=58&type=chunk) [Note 7. Pensions and Other Postretirement Benefits](index=18&type=section&id=Note%207.%20Pensions%20and%20Other%20Postretirement%20Benefits) Viatris' global pension and postretirement plans incurred an **$8.0 million** net periodic benefit cost in H1 2025, with **$112.2 million** in benefit payments and **$68.8 million** in contributions expected in 2025 Net Periodic Benefit Cost (in millions) | Component | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Service cost | $7.4 | $7.8 | $14.9 | $15.7 | | Interest cost | $16.3 | $16.7 | $32.5 | $33.3 | | Expected return on plan assets | $(16.8) | $(16.9) | $(33.6) | $(33.8) | | Net periodic benefit cost | $4.0 | $4.0 | $8.0 | $7.8 | - The Company expects to make total benefit payments of approximately **$112.2 million** from pension and other postretirement benefit plans in 2025[61](index=61&type=chunk) - The Company anticipates making contributions to pension and other postretirement benefit plans of approximately **$68.8 million** in 2025[61](index=61&type=chunk) [Note 8. Balance Sheet Components](index=19&type=section&id=Note%208.%20Balance%20Sheet%20Components) This note details balance sheet components, showing inventories increased to **$4.26 billion** by June 30, 2025, and other current liabilities rose due to financial instrument fair value Cash and Restricted Cash (in millions) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------------- | :-------------- | :---------------- | | Cash and cash equivalents | $566.4 | $734.8 | | Restricted cash | $1.4 | $1.3 | | Cash, cash equivalents and restricted cash | $567.8 | $736.1 | Inventories (in millions) | Category | June 30, 2025 | December 31, 2024 | | :--------------- | :-------------- | :---------------- | | Raw materials | $1,547.4 | $1,345.9 | | Work in process | $531.7 | $527.3 | | Finished goods | $2,185.2 | $1,980.9 | | Inventories | $4,264.3 | $3,854.1 | Other Current Liabilities (in millions) | Category | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :-------------- | :---------------- | | Accrued sales allowances | $1,046.3 | $989.4 | | Payroll and employee benefit liabilities | $567.8 | $729.3 | | Legal and professional accruals | $540.8 | $472.8 | | Fair value of financial instruments | $377.0 | $125.8 | | Other current liabilities | $3,670.1 | $3,724.7 | [Note 9. Loss per Share](index=20&type=section&id=Note%209.%20Loss%20per%20Share) Viatris reported a basic and diluted loss per share of **$0.00** for Q2 2025 and **$(2.58)** for H1 2025, while continuing its **$2.0 billion** share repurchase program Loss per Share Attributable to Viatris Inc. Shareholders (in millions, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss attributable to Viatris Inc. common shareholders | $(4.6) | $(326.4) | $(3,046.6) | $(212.5) | | Weighted average shares outstanding (basic) | 1,173.0 | 1,191.1 | 1,182.7 | 1,193.1 | | Basic loss per share | $0.00 | $(0.27) | $(2.58) | $(0.18) | | Diluted loss per share | $0.00 | $(0.27) | $(2.58) | $(0.18) | - The Board of Directors declared a quarterly cash dividend of **$0.12 per share**[72](index=72&type=chunk) - The Company's share repurchase program authorizes up to **$2.0 billion** in common stock repurchases, with **$850.4 million** (79.3 million shares) repurchased as of June 30, 2025[73](index=73&type=chunk) [Note 10. Goodwill and Intangible Assets](index=22&type=section&id=Note%2010.%20Goodwill%20and%20Intangible%20Assets) Viatris recorded a **$2.94 billion** goodwill impairment charge in Q1 2025, impacting several segments, while Greater China's fair value exceeded its carrying value by **$322.0 million** Goodwill Carrying Amount Changes (Six Months Ended June 30, 2025, in millions) | Segment | Balance at Dec 31, 2024 | Impairment | Foreign Currency Translation | Balance at June 30, 2025 | | :---------------- | :---------------------- | :----------- | :--------------------------- | :----------------------- | | Developed Markets | $6,752.9 | $(2,261.0) | $527.3 | $5,019.2 | | Greater China | $921.5 | — | $6.3 | $927.8 | | JANZ | $295.1 | $(300.8) | $5.7 | — | | Emerging Markets | $1,163.8 | $(375.0) | $12.5 | $801.3 | | Total | $9,133.3 | $(2,936.8) | $551.8 | $6,748.3 | - A **$2.94 billion** goodwill impairment charge was recorded in Q1 2025, triggered by a sharp decline in share price and increased geopolitical/economic uncertainty[74](index=74&type=chunk)[77](index=77&type=chunk)[80](index=80&type=chunk) - The **Greater China** reporting unit's estimated fair value exceeded its carrying value by approximately **$322.0 million** (5.8%) as of March 31, 2025[85](index=85&type=chunk) Intangible Assets, Net (in millions) | Category | June 30, 2025 Net Book Value | December 31, 2024 Net Book Value | | :-------------------------------- | :----------------------------- | :------------------------------- | | Product rights, licenses and other | $15,521.9 | $16,256.7 | | In-process research and development | $801.9 | $814.2 | | Total | $16,323.8 | $17,070.9 | Intangible Asset Amortization Expense (in millions) | Period | 2025 | 2024 | | :----------------------------------------------------------------- | :------- | :------- | | Three Months Ended June 30, Total intangible asset amortization expense | $585.5 | $699.2 | | Six Months Ended June 30, Total intangible asset amortization expense | $1,156.7 | $1,300.2 | [Note 11. Financial Instruments and Risk Management](index=25&type=section&id=Note%2011.%20Financial%20Instruments%20and%20Risk%20Management) Viatris manages foreign currency and interest rate risks with derivatives; contingent consideration liability totaled **$367.2 million** at June 30, 2025, with an Idorsia Transaction fair value adjustment gain - Viatris uses **foreign exchange forward contracts** and **interest rate swaps** to mitigate foreign currency and interest rate risks[92](index=92&type=chunk)[101](index=101&type=chunk) - The Company designated certain **Euro** and **Yen** borrowings as a hedge of investments in Euro-functional and Yen-functional currency subsidiaries to manage foreign currency translation risk[95](index=95&type=chunk) Fair Value of Derivative Instruments (June 30, 2025, in millions) | Category | Asset Derivatives Fair Value | Liability Derivatives Fair Value | | :------------------------------------ | :--------------------------- | :----------------------------- | | Total derivatives designated as hedges | $4.0 | $81.9 | | Total derivatives not designated as hedges | $138.4 | $301.0 | | Total derivatives | $142.4 | $382.9 | - **Contingent consideration liability** totaled **$367.2 million** at June 30, 2025, including **$288.0 million** for the Idorsia Transaction and **$77.5 million** for the Respiratory Delivery Platform[108](index=108&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk) - A **fair value adjustment gain** related to the Idorsia Transaction contingent consideration liability was recorded in H1 2025 due to amended agreement terms[110](index=110&type=chunk) [Note 12. Debt](index=31&type=section&id=Note%2012.%20Debt) Viatris has a **$600 million** Receivables Facility with no outstanding borrowings; the fair value of outstanding notes was **$11.81 billion**, and mandatory long-term debt repayments total **$14.012 billion** - The Company has a **$600 million Receivables Facility** expiring April 2028, with no outstanding borrowings as of June 30, 2025[115](index=115&type=chunk)[320](index=320&type=chunk) Long-Term Debt Summary (June 30, 2025, in millions) | Category | Amount | | :------------------------------------------ | :----------- | | Current portion of long-term debt | $1,673.1 | | Non-current portion of long-term debt | $12,791.6 | | Total long-term debt | $14,464.7 | - The aggregate fair value of the Company's outstanding notes was approximately **$11.81 billion** at June 30, 2025[119](index=119&type=chunk) Mandatory Minimum Repayments on Long-Term Debt (as of June 30, 2025, in millions) | Year | Total | | :----- | :------ | | 2025 | $0 | | 2026 | $1,953 | | 2027 | $1,752 | | 2028 | $1,634 | | 2029 | $0 | | Thereafter | $8,673 | | Total | $14,012 | [Note 13. Comprehensive Loss](index=33&type=section&id=Note%2013.%20Comprehensive%20Loss) Viatris Inc.'s accumulated other comprehensive loss improved to **$(2.66 billion)** by June 30, 2025, driven by a favorable foreign currency translation adjustment Accumulated Other Comprehensive Loss (in millions) | Component | June 30, 2025 | December 31, 2024 | | :----------------------------------------------------------------- | :-------------- | :---------------- | | Net unrealized loss on available-for-sale fixed income securities, net of tax | $(0.6) | $(1.2) | | Net unrecognized gain and prior service cost related to defined benefit plans, net of tax | $253.8 | $254.2 | | Net unrecognized loss on derivatives in cash flow hedging relationships, net of tax | $(12.8) | $32.3 | | Net unrecognized gain on derivatives in net investment hedging relationships, net of tax | $80.2 | $492.6 | | Foreign currency translation adjustment | $(2,985.0) | $(3,990.8) | | Total Accumulated other comprehensive loss | $(2,664.4) | $(3,212.9) | - Other comprehensive earnings before reclassifications for H1 2025 included a **$1.01 billion** foreign currency translation adjustment[125](index=125&type=chunk) [Note 14. Segment Information](index=37&type=section&id=Note%2014.%20Segment%20Information) Viatris operates four segments; H1 2025 segment profitability was **$3.02 billion**, resulting in a **$(2.65 billion)** consolidated loss from operations after unallocated costs and impairment - Viatris has four reportable segments: **Developed Markets**, **Greater China**, **JANZ**, and **Emerging Markets**[130](index=130&type=chunk) Segment Profitability (Six Months Ended June 30, 2025, in millions) | Segment | Net Sales | Total Revenues | Segment Profit | | :---------------- | :-------- | :------------- | :------------- | | Developed Markets | $4,011.0 | $4,028.2 | $1,613.6 | | Greater China | $1,144.4 | $1,144.4 | $786.5 | | JANZ | $581.8 | $583.8 | $145.9 | | Emerging Markets | $1,075.0 | $1,080.0 | $474.1 | | Total Reportable Segments | $6,812.2 | $6,836.4 | $3,020.1 | Reconciliation of Segment Profit to Loss from Operations (Six Months Ended June 30, 2025, in millions) | Item | Amount | | :------------------------------------------------- | :----------- | | Segment profit | $3,020.1 | | Intangible asset amortization expense | $(1,154.5) | | Impairment of goodwill | $(2,936.8) | | Research and development | $(440.8) | | Acquired IPR&D | $(10.0) | | Litigation settlements and other contingencies, net | $121.1 | | Transaction related and other special items | $(469.3) | | Corporate and other unallocated | $(776.8) | | Loss from operations | $(2,649.2) | [Note 15. Licensing and Other Partner Agreements](index=41&type=section&id=Note%2015.%20Licensing%20and%20Other%20Partner%20Agreements) Viatris has **$398 million** in potential unaccrued development milestones; the FDA's Q1 2024 Complete Response Letter for GA Depot led to a **$184.6 million** asset impairment - Potential maximum development milestones not accrued totaled approximately **$398 million** at June 30, 2025, with **$24 million** estimated payable through 2025[141](index=141&type=chunk) - **Mapi** is eligible for up to **$90.0 million** in regulatory approval and commercial launch milestone payments for GA Depot[142](index=142&type=chunk) - In Q1 2024, **Mapi** received a **Complete Response Letter** from the FDA for GA Depot 40 mg, resulting in a **$184.6 million** impairment of Viatris' related equity investment and prepaid assets in Q4 2024[143](index=143&type=chunk) [Note 16. Income Taxes](index=42&type=section&id=Note%2016.%20Income%20Taxes) The U.S. enacted the **OBBBA** on July 4, 2025, with unknown impacts; Viatris anticipates no 15% CAMT in 2025, and Pillar Two Rules were immaterial, with a **$263.6 million** tax reserve - The U.S. enacted the **One Big Beautiful Bill Act (OBBBA)** on July 4, 2025, with impacts on tax rate and deferred tax assets not yet determinable[146](index=146&type=chunk) - Viatris does not anticipate being subject to the **15% U.S. corporate alternative minimum tax (CAMT)** in 2025[147](index=147&type=chunk) - The impact of the **Pillar Two Global Anti-Base Erosion Rules** on Viatris' H1 2025 results was not material[148](index=148&type=chunk) - The Company has a net reserve for uncertain tax positions of **$263.6 million** at June 30, 2025, related to international audits[156](index=156&type=chunk) [Note 17. Litigation](index=44&type=section&id=Note%2017.%20Litigation) Viatris faces complex litigation including EpiPen, drug pricing, opioids, and intellectual property, with accruals of **$25.0 million** for EpiPen and **$335 million** for opioid claims - Viatris has a total accrual of approximately **$25.0 million** related to **EpiPen® Auto-Injector** litigation matters at June 30, 2025[169](index=169&type=chunk) - The Company reached a nationwide settlement framework for opioid-related claims, agreeing to pay up to **$335 million** over nine years, with approximately **$335 million** accrued at June 30, 2025[187](index=187&type=chunk)[189](index=189&type=chunk) - Viatris has accrued approximately **€12.2 million** as of June 30, 2025, related to the **Citalopram EU competition rules violation case**[192](index=192&type=chunk) - The Company has accrued approximately **$66.8 million** as of June 30, 2025, for its product liability matters[197](index=197&type=chunk) - Viatris has approximately **$5.3 million** accrued related to its intellectual property matters at June 30, 2025[210](index=210&type=chunk) [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=53&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's analysis of Viatris Inc.'s financial performance, condition, and liquidity, covering operational results, market factors, recent developments, and non-GAAP reconciliations [Company Overview](index=54&type=section&id=Company%20Overview) Viatris is a global healthcare company operating in over 165 countries with **32,000 employees**, **1,400+ molecules**, and **26 manufacturing sites**, structured into four reportable segments - Viatris is a global healthcare company supplying high-quality medicines to approximately **1 billion patients annually**[217](index=217&type=chunk) - The Company operates in more than **165 countries** with approximately **32,000 employees**, **26 manufacturing sites**, and over **1,400 approved molecules**[218](index=218&type=chunk) - Viatris has four reportable segments: **Developed Markets**, **Greater China**, **JANZ**, and **Emerging Markets**[219](index=219&type=chunk) [Certain Market and Industry Factors](index=54&type=section&id=Certain%20Market%20and%20Industry%20Factors) The pharmaceutical industry faces challenges from rigorous regulatory approvals, rapid generic entry, government price reductions, and international risks including inflation and geopolitical events - Obtaining regulatory approval for new pharmaceutical products is **rigorous, costly, and unpredictable**, with delays impacting commercial success[221](index=221&type=chunk)[222](index=222&type=chunk) - **Generic products** contribute significantly to revenues and gross margins at launch but face negative impacts from additional competition[223](index=223&type=chunk) - **Branded products** experience substantial and rapid sales declines upon generic entry after market exclusivity expires[224](index=224&type=chunk) - **Government-imposed price reductions** and **tender systems** negatively impact sales and gross profit in international markets[225](index=225&type=chunk)[226](index=226&type=chunk) - International operations are exposed to risks including **inflation**, **geopolitical events**, **trade controls**, **sanctions**, **supply chain disruptions**, and **foreign currency exchange fluctuations**[227](index=227&type=chunk) [Recent Developments](index=55&type=section&id=Recent%20Developments) Recent developments include a **$2.9 billion** goodwill impairment, an FDA warning for the Indore facility impacting **$500 million** in 2025 revenues, an Idorsia acquisition amendment, and continued share repurchases [Goodwill Impairment](index=55&type=section&id=Goodwill%20Impairment) Viatris recorded a **$2.9 billion** non-cash goodwill impairment charge in Q1 2025, triggered by share price decline and increased geopolitical/economic uncertainty, leading to higher discount rates - A non-cash goodwill impairment charge of **$2.9 billion** was recorded in Q1 2025[231](index=231&type=chunk) - The impairment was triggered by a sharp and sustained decline in **Viatris' share price** and increased geopolitical and economic uncertainty[228](index=228&type=chunk)[230](index=230&type=chunk) - Increased business risks and uncertainty led to an increase in **discount rate assumptions** impacting all reporting units[231](index=231&type=chunk) [Indore Manufacturing Facility](index=56&type=section&id=Indore%20Manufacturing%20Facility) The FDA issued a warning letter and import alert for Viatris' Indore facility, impacting 11 U.S. products and estimated to negatively affect 2025 revenues by **$500 million** and earnings by **$385 million** - The **FDA** issued a warning letter and import alert for Viatris' **Indore** manufacturing facility, affecting **11 U.S. products**[232](index=232&type=chunk) - The Company has implemented a comprehensive remediation plan and is in regular communication with the FDA[233](index=233&type=chunk)[234](index=234&type=chunk) - Estimated negative impact to 2025 total revenues is approximately **$500 million**, and to 2025 earnings from operations is approximately **$385 million**[236](index=236&type=chunk) [Acquisition of Idorsia Products](index=56&type=section&id=Acquisition%20of%20Idorsia%20Products) Viatris acquired global rights to selatogrel and cenerimod from Idorsia; a 2025 amendment reduced contingent milestone payments by **$250 million** in exchange for assuming **$100 million** in development costs - On March 15, 2024, Viatris acquired global development and commercialization rights to **selatogrel** and **cenerimod** from Idorsia for an upfront payment of **$350 million**[238](index=238&type=chunk) - An amendment on February 25, 2025, granted Viatris additional territory rights for **cenerimod**, a **$250 million** reduction in contingent milestone payments, and additional personnel[239](index=239&type=chunk) - In exchange for amended terms, Viatris assumed **$100 million** of Idorsia's development cost obligation[240](index=240&type=chunk) [Share Repurchase Program](index=57&type=section&id=Share%20Repurchase%20Program) Viatris' Board authorized a **$1.0 billion** increase to its share repurchase program, totaling **$2.0 billion**, with **$850.4 million** in shares repurchased as of June 30, 2025 - The share repurchase program was increased by **$1.0 billion** in February 2024, authorizing repurchases of up to **$2.0 billion** of common stock[242](index=242&type=chunk) - During H1 2025, Viatris repurchased approximately **38.9 million shares** at a cost of **$350.4 million**[242](index=242&type=chunk) - As of June 30, 2025, the Company had repurchased a total of approximately **79.3 million shares** at a cost of **$850.4 million** under the program[242](index=242&type=chunk) [Financial Summary](index=57&type=section&id=Financial%20Summary) Viatris reported **$3.58 billion** in Q2 2025 revenues (down 6%) and a **$4.6 million** net loss; H1 2025 revenues were **$6.84 billion** (down 8%) with a **$3.05 billion** net loss due to goodwill impairment Financial Summary (in millions, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change (YoY) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change (YoY) | | :-------------------------- | :------------------------------- | :------------------------------- | :----------- | :----------------------------- | :----------------------------- | :----------- | | Total revenues | $3,582.1 | $3,796.6 | $(214.5) | $6,836.4 | $7,460.0 | $(623.6) | | Gross profit | $1,332.9 | $1,445.4 | $(112.5) | $2,494.1 | $2,949.4 | $(455.3) | | Earnings (loss) from operations | $233.0 | $(239.9) | $472.9 | $(2,649.2) | $(36.0) | $(2,613.2) | | Net loss | $(4.6) | $(326.4) | $321.8 | $(3,046.6) | $(212.5) | $(2,834.1) | | Diluted loss per share | $0.00 | $(0.27) | $0.27 | $(2.58) | $(0.18) | $(2.40) | [Results of Operations](index=59&type=section&id=Results%20of%20Operations) Viatris' total revenues decreased by 6% in Q2 2025 and 8% in H1 2025 due to divestitures and the Indore Impact, with a **$2.94 billion** goodwill impairment impacting H1 operating expenses [Total Revenues](index=59&type=section&id=Total%20Revenues) Total revenues decreased by 6% to **$3.58 billion** in Q2 2025 and by 8% to **$6.84 billion** in H1 2025, primarily due to divestitures and the Indore Impact Consolidated Total Revenues (in millions, except %s) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | % Change | | :-------------------------- | :------------------------------- | :------------------------------- | :------- | :----------------------------- | :----------------------------- | :------- | | Total net sales | $3,569.0 | $3,785.9 | (6)% | $6,812.2 | $7,439.4 | (8)% | | Consolidated total revenues | $3,582.1 | $3,796.6 | (6)% | $6,836.4 | $7,460.0 | (8)% | - Net sales decreased by approximately **$212.2 million** (6%) in Q2 2025 and **$449.6 million** (6%) in H1 2025 due to 2024 divestitures[248](index=248&type=chunk)[273](index=273&type=chunk) - The **Indore Impact** contributed approximately **$160 million** to the Q2 2025 net sales decrease and **$300 million** to the H1 2025 net sales decrease[248](index=248&type=chunk)[273](index=273&type=chunk) - On a constant currency basis, net sales from the remaining business decreased by approximately **2%** for both Q2 and H1 2025[248](index=248&type=chunk)[273](index=273&type=chunk) [Developed Markets Segment](index=60&type=section&id=Developed%20Markets%20Segment) Developed Markets net sales decreased by 9% to **$2.12 billion** in Q2 2025 and 11% to **$4.01 billion** in H1 2025, primarily due to divestitures and the Indore Impact - **Developed Markets** net sales decreased by **$199.9 million** (9%) in Q2 2025 and **$473.6 million** (11%) in H1 2025[252](index=252&type=chunk)[277](index=277&type=chunk) - The **Indore Impact** contributed approximately **$110 million** to Q2 2025 net sales decrease and **$190 million** to H1 2025 net sales decrease in Developed Markets[252](index=252&type=chunk)[277](index=277&type=chunk) [Greater China Segment](index=60&type=section&id=Greater%20China%20Segment) Greater China net sales increased by 9% to **$588.9 million** in Q2 2025 and 6% to **$1.14 billion** in H1 2025, driven by strong performance across multiple channels - **Greater China** net sales increased by **$49.9 million** (9%) in Q2 2025 and **$61.5 million** (6%) in H1 2025[253](index=253&type=chunk)[278](index=278&type=chunk) - Constant currency net sales increased by approximately **9%** in Q2 2025 and **7%** in H1 2025, driven by strong growth across e-commerce, retail, and private hospitals[253](index=253&type=chunk)[278](index=278&type=chunk) [JANZ Segment](index=60&type=section&id=JANZ%20Segment) JANZ net sales decreased by 13% to **$305.7 million** in Q2 2025 and **$581.8 million** in H1 2025, primarily due to government price reductions, increased competition, and the Indore Impact - **JANZ** net sales decreased by **$43.9 million** (13%) in Q2 2025 and **$85.6 million** (13%) in H1 2025[254](index=254&type=chunk)[279](index=279&type=chunk) - The decrease was primarily driven by lower volumes in Japan and Australia due to **government price reductions** and **additional competition**[254](index=254&type=chunk)[279](index=279&type=chunk) - The **Indore Impact** contributed approximately **$3 million** to Q2 2025 net sales decrease and **$6 million** to H1 2025 net sales decrease in JANZ[254](index=254&type=chunk)[279](index=279&type=chunk) [Emerging Markets Segment](index=60&type=section&id=Emerging%20Markets%20Segment) Emerging Markets net sales decreased by 4% to **$555.1 million** in Q2 2025 and 11% to **$1.08 billion** in H1 2025, largely due to divestitures and the Indore Impact on the ARV business - **Emerging Markets** net sales decreased by **$23.0 million** (4%) in Q2 2025 and **$129.5 million** (11%) in H1 2025[255](index=255&type=chunk)[280](index=280&type=chunk) - The decrease was partially driven by an unfavorable foreign currency translation impact of approximately **$4.3 million** (1%) in Q2 and **$32.0 million** (3%) in H1[255](index=255&type=chunk)[280](index=280&type=chunk) - Lower volumes in the **ARV business**, mainly due to the **Indore Impact**, contributed approximately **$45 million** to the Q2 2025 decrease and **$103 million** to the H1 2025 decrease[255](index=255&type=chunk)[280](index=280&type=chunk) [Cost of Sales and Gross Profit](index=60&type=section&id=Cost%20of%20Sales%20and%20Gross%20Profit) Cost of sales decreased in Q2 and H1 2025 due to lower net sales; gross profit for Q2 2025 was **$1.33 billion** (37% margin) and for H1 2025 was **$2.49 billion** (36% margin) - Cost of sales decreased from **$2.35 billion** in Q2 2024 to **$2.25 billion** in Q2 2025, and from **$4.51 billion** in H1 2024 to **$4.34 billion** in H1 2025[256](index=256&type=chunk)[281](index=281&type=chunk) - Gross profit for Q2 2025 was **$1.33 billion** (**37% gross margin**), and for H1 2025 was **$2.49 billion** (**36% gross margin**)[257](index=257&type=chunk)[282](index=282&type=chunk) - Adjusted gross margins were approximately **57%** for Q2 2025 and **56%** for H1 2025[257](index=257&type=chunk)[282](index=282&type=chunk) [Operating Expenses](index=61&type=section&id=Operating%20Expenses) R&D expense increased in Q2 and H1 2025 due to development programs, SG&A decreased due to divestitures, and a **$2.94 billion** goodwill impairment charge was recorded in H1 2025 - **R&D expense** increased by **$14.7 million** in Q2 2025 and **$37.0 million** in H1 2025, primarily due to selatogrel and cenerimod development programs[259](index=259&type=chunk)[284](index=284&type=chunk) - **SG&A expense** decreased by **$108.3 million** in Q2 2025 and **$177.7 million** in H1 2025, mainly due to divestitures and lower acquisition/divestiture-related costs[260](index=260&type=chunk)[286](index=286&type=chunk) - A **goodwill impairment charge** of **$2.94 billion** was recorded in Q1 2025[287](index=287&type=chunk) Litigation Settlements and Other Contingencies, Net (in millions) | Period | 2025 | 2024 | | :------------------------------------------ | :------- | :------- | | Three Months Ended June 30, Net | $(47.6) | $131.0 | | Six Months Ended June 30, Net | $(121.1) | $207.8 | [Interest Expense](index=62&type=section&id=Interest%20Expense) Interest expense decreased by **$29.2 million** to **$116.6 million** in Q2 2025 and by **$52.1 million** to **$232.1 million** in H1 2025, primarily due to 2024 debt repayments - **Interest expense** decreased by **$29.2 million** in Q2 2025 and **$52.1 million** in H1 2025, primarily due to 2024 debt repayments[265](index=265&type=chunk)[291](index=291&type=chunk) [Other Expense (Income), Net](index=62&type=section&id=Other%20Expense%20(Income),%20Net) Other expense, net, significantly increased to **$333.5 million** in Q2 2025 and **$432.8 million** in H1 2025, driven by losses from remeasuring Biocon Biologics CCPS to fair value - Other expense, net, totaled **$333.5 million** in Q2 2025 and **$432.8 million** in H1 2025[266](index=266&type=chunk)[292](index=292&type=chunk) - The increase was primarily driven by a loss of **$284.0 million** in Q2 2025 and **$399.8 million** in H1 2025 from remeasuring the **CCPS in Biocon Biologics** to fair value[267](index=267&type=chunk)[293](index=293&type=chunk) [Income Tax (Benefit) Provision](index=62&type=section&id=Income%20Tax%20(Benefit)%20Provision) Viatris recognized an income tax benefit of **$212.5 million** in Q2 2025 and **$267.5 million** in H1 2025, primarily due to the loss before income taxes, partially offset by minimal goodwill impairment tax benefit - **Income tax benefit** was **$212.5 million** for Q2 2025 and **$267.5 million** for H1 2025[268](index=268&type=chunk)[294](index=294&type=chunk) - The benefit was primarily driven by the loss before income taxes, partially offset by minimal tax benefit from the **goodwill impairment charge** and a **$17.7 million** accrual for a Swedish tax matter[268](index=268&type=chunk)[294](index=294&type=chunk) [Use of Non-GAAP Financial Measures](index=67&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) Viatris uses non-GAAP measures such as adjusted cost of sales, adjusted gross margin, adjusted net earnings, and adjusted EBITDA to provide a clearer view of operational performance - **Non-GAAP measures** are used internally for forecasting, budgeting, measuring operating performance, and incentive-based awards[296](index=296&type=chunk) - **Adjusted cost of sales** and **adjusted gross margin** exclude restructuring, acquisition/divestiture-related costs, purchase accounting amortization, and share-based compensation expense[297](index=297&type=chunk) - **Adjusted net earnings** and **adjusted EPS** exclude items such as purchase accounting amortization, goodwill impairment, litigation settlements, and fair value adjustments[298](index=298&type=chunk)[301](index=301&type=chunk)[302](index=302&type=chunk)[306](index=306&type=chunk) Reconciliation of U.S. GAAP Net Loss to Adjusted Net Earnings and EPS (in millions, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | U.S. GAAP net loss | $(4.6) | $(326.4) | $(3,046.6) | $(212.5) | | Adjusted net earnings | $726.0 | $826.5 | $1,326.3 | $1,639.2 | | U.S. GAAP diluted loss per share | $0.00 | $(0.27) | $(2.58) | $(0.18) | | Adjusted EPS | $0.62 | $0.69 | $1.11 | $1.36 | Reconciliation of U.S. GAAP Net Loss to EBITDA and Adjusted EBITDA (in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | U.S. GAAP net loss | $(4.6) | $(326.4) | $(3,046.6) | $(212.5) | | EBITDA | $577.8 | $540.3 | $(1,739.0) | $1,574.3 | | Adjusted EBITDA | $1,078.8 | $1,207.9 | $2,002.3 | $2,401.3 | [Liquidity and Capital Resources](index=70&type=section&id=Liquidity%20and%20Capital%20Resources) Net cash from operations decreased to **$755.2 million** in H1 2025; investing activities used **$117.6 million**, and financing activities used **$829.4 million**, with **$566.4 million** cash and **$4.1 billion** in credit facilities [Operating Activities](index=70&type=section&id=Operating%20Activities) Net cash from operating activities decreased by **$238.5 million** to **$755.2 million** in H1 2025, primarily due to lower operating earnings from divestitures and the Indore Impact - Net cash provided by operating activities decreased by **$238.5 million** to **$755.2 million** for H1 2025[311](index=311&type=chunk) - The decrease was principally due to lower operating earnings from 2024 divestitures and the timing of cash payments and collections[312](index=312&type=chunk) [Investing Activities](index=71&type=section&id=Investing%20Activities) Net cash used in investing activities was **$117.6 million** in H1 2025, a **$339.1 million** decrease from the prior year, including **$95.5 million** in capital expenditures - Net cash used in investing activities was **$117.6 million** for H1 2025, compared to **$221.5 million** provided in the prior year[314](index=314&type=chunk) - Capital expenditures for H1 2025 totaled approximately **$95.5 million**, with **$300 million to $400 million** expected for the full 2025 calendar year[315](index=315&type=chunk) [Financing Activities](index=71&type=section&id=Financing%20Activities) Net cash used in financing activities decreased to **$829.4 million** in H1 2025, including **$350.4 million** for share repurchases and **$283.1 million** for cash dividends - Net cash used in financing activities was **$829.4 million** for H1 2025, compared to **$1.27 billion** in the prior year[316](index=316&type=chunk) - Significant financing activities in H1 2025 included **$350.4 million** for share repurchases and **$283.1 million** for cash dividends paid[317](index=317&type=chunk) [Capital Resources](index=71&type=section&id=Capital%20Resources) As of June 30, 2025, Viatris had **$566.4 million** in cash and access to **$3.5 billion** Revolving Facility and **$600 million** Receivables Facility, with no outstanding borrowings - **Cash and cash equivalents** totaled **$566.4 million** at June 30, 2025[317](index=317&type=chunk) - The Company has access to a **$3.5 billion Revolving Facility** and a **$600 million Receivables Facility**, with no outstanding borrowings as of June 30, 2025[318](index=318&type=chunk)[320](index=320&type=chunk) - Viatris is in compliance with its **debt covenants** at June 30, 2025, and expects to remain in compliance for the next twelve months[327](index=327&type=chunk) [Long-term Debt Maturity](index=72&type=section&id=Long-term%20Debt%20Maturity) Mandatory minimum repayments on Viatris' long-term debt total **$14.012 billion**, with significant amounts due in 2026 (**$1.953 billion**), 2027 (**$1.752 billion**), and 2028 (**$1.634 billion**) Mandatory Minimum Repayments on Long-Term Debt (as of June 30, 2025, in millions) | Year | Total | | :----- | :------ | | 2025 | $0 | | 2026 | $1,953 | | 2027 | $1,752 | | 2028 | $1,634 | | 2029 | $0 | | Thereafter | $8,673 | | Total | $14,012 | [Supplemental Guarantor Financial Information](index=72&type=section&id=Supplemental%20Guarantor%20Financial%20Information) This section provides unaudited combined summarized financial information for Viatris Inc. and its guarantors, reporting a **$(3.0466 billion)** net loss for H1 2025 - **Viatris Inc.**, **Mylan Inc.**, **Utah Acquisition Sub Inc.**, and **Mylan II B.V.** are issuers or guarantors of various Senior U.S. Dollar Notes[328](index=328&type=chunk)[329](index=329&type=chunk) Combined Summarized Balance Sheet Information (in millions) | Category | June 30, 2025 | December 31, 2024 | | :---------------- | :-------------- | :---------------- | | Current assets | $484.9 | $786.7 | | Non-current assets | $59,025.5 | $61,424.7 | | Current liabilities | $32,812.0 | $30,796.9 | | Non-current liabilities | $11,127.9 | $12,779.0 | Combined Summarized Income Statement Information (Six Months Ended June 30, 2025, in millions) | Metric | Amount | | :---------------- | :----------- | | Revenues | $0 | | Gross profit | $0 | | Loss from operations | $(498.4) | | Net loss | $(3,046.6) | [Other Commitments](index=74&type=section&id=Other%20Commitments) Viatris has accrued approximately **$454.4 million** for legal contingencies and has ongoing financial obligations from transition services, manufacturing, supply, and distribution agreements - Viatris has approximately **$454.4 million** accrued for legal contingencies at June 30, 2025[335](index=335&type=chunk) - The Company has ongoing financial obligations under **transition services**, **manufacturing and supply**, and **distribution agreements** related to its divestitures[337](index=337&type=chunk) [Application of Critical Accounting Policies](index=74&type=section&id=Application%20of%20Critical%20Accounting%20Policies) This section details the **$2.94 billion** goodwill impairment charge in Q1 2025, triggered by market conditions and increased business risks, leading to higher discount rates in valuation models - The Company reviews goodwill for impairment annually on **April 1st** or more frequently if triggering events occur[338](index=338&type=chunk) - A **$2.94 billion** goodwill impairment charge was recorded in Q1 2025, affecting **North America ($707.0 million)**, **Europe ($1.554 billion)**, **JANZ ($300.8 million)**, and **Emerging Markets ($375.0 million)**[342](index=342&type=chunk) - The impairment was driven by a sharp decline in share price and increased geopolitical/economic uncertainty, leading to higher **discount rate assumptions**[338](index=338&type=chunk)[341](index=341&type=chunk) - The **Greater China** reporting unit's estimated fair value exceeded its carrying value by approximately **$322.0 million** (5.8%) as of March 31, 2025[347](index=347&type=chunk) PART II — OTHER INFORMATION [ITEM 3. Quantitative and Qualitative Disclosures About Market Risk](index=76&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) For comprehensive market risk disclosures, including foreign currency and interest rate risks, refer to 'Item 7A' in Viatris' 2024 Form 10-K - For disclosures about market risk, refer to **'Item 7A. Quantitative and Qualitative Disclosures about Market Risk'** in Viatris' 2024 Form 10-K[349](index=349&type=chunk) [ITEM 4. Controls and Procedures](index=76&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Viatris Inc.'s disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting identified in Q2 2025 - The Company's **disclosure controls and procedures** were effective as of June 30, 2025[350](index=350&type=chunk) - No material changes in the Company's **internal control over financial reporting (ICFR)** occurred during Q2 2025[351](index=351&type=chunk) [ITEM 1. Legal Proceedings](index=76&type=section&id=ITEM%201.%20Legal%20Proceedings) Information regarding Viatris Inc.'s legal proceedings is detailed in **Note 17, 'Litigation,'** within the accompanying Notes to interim financial statements - For information regarding legal proceedings, refer to **Note 17 Litigation** in the accompanying Notes to interim financial statements[353](index=353&type=chunk) [ITEM 1A. Risk Factors](index=76&type=section&id=ITEM%201A.%20Risk%20Factors) No material changes to Viatris Inc.'s risk factors from its 2024 Form 10-K, except for a risk factor previously disclosed in the Q1 2025 Form 10-Q - No material changes in risk factors from Viatris' 2024 Form 10-K, except for the risk factor disclosed in the **Q1 2025 Form 10-Q**[354](index=354&type=chunk) [ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=77&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2025, Viatris Inc. repurchased approximately **20.2 million shares** for **$175.0 million** under its program, with **$1.15 billion** remaining available Issuer Purchases of Equity Securities (Three Months Ended June 30, 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | | :---------------------- | :------------------------------- | :--------------------------- | :----------------------------------------------------------------- | :--------------------------------------------------------------------------------- | | April 1 - April 30, 2025 | 6,346,050 | $8.33 | 6,346,050 | $1,271,743,899 | | May 1 - May 31, 2025 | 13,897,492 | $8.79 | 13,897,492 | $1,149,630,459 | | June 1 - June 30, 2025 | — | — | — | — | | Total | 20,243,542 | $8.64 | 20,243,542 | $1,149,630,459 | - During Q2 2025, the Company repurchased approximately **20.2 million shares** of common stock at a cost of approximately **$175.0 million**[357](index=357&type=chunk) [ITEM 5. Other Information](index=77&type=section&id=ITEM%205.%20Other%20Information) Corinne Le Goff, Chief Commercial Officer, adopted a Rule 10b5-1(c) trading plan on June 12, 2025, for the sale of up to **7,032 shares** of common stock - **Corinne Le Goff**, Chief Commercial Officer, adopted a **Rule 10b5-1(c) trading plan** on June 12, 2025[358](index=358&type=chunk) - The plan provides for the sale of up to **7,032 shares** of common stock until July 31, 2026[358](index=358&type=chunk) [ITEM 6. Exhibits](index=78&type=section&id=ITEM%206.%20Exhibits) This section lists Form 10-Q exhibits, including certifications from the Principal Executive Officer and Principal Financial Officer, and Inline XBRL documents for financial data - Exhibits include certifications from the **Principal Executive Officer** and **Principal Financial Officer**[361](index=361&type=chunk) - **Inline XBRL documents** are provided for interactive data[361](index=361&type=chunk) [SIGNATURES](index=79&type=section&id=SIGNATURES) The Form 10-Q is signed by Scott A. Smith, Chief Executive Officer, and Theodora Mistras, Chief Financial Officer, on August 7, 2025 - The report is signed by **Scott A. Smith**, Chief Executive Officer, and **Theodora Mistras**, Chief Financial Officer, on August 7, 2025[365](index=365&type=chunk)

Core Insights - Viatris Inc. reported second-quarter 2025 adjusted earnings of 62 cents per share, exceeding the Zacks Consensus Estimate of 56 cents, but down from 69 cents per share in the same quarter last year [1][7] - Total revenues for the quarter were $3.58 billion, a decrease of 6% year over year, yet surpassing the Zacks Consensus Estimate of $3.5 billion [1][5] - The company's share price has declined 29.7% year to date, compared to an 8.6% decline in the industry [2] Revenue Breakdown - Sales from Developed Markets were $2.11 billion, down 4% on a divestiture-adjusted operational basis, but above the Zacks Consensus Estimate of $2.01 billion [5] - Emerging Markets generated sales of $555.1 million, up 1% on a divestiture-adjusted operational basis, beating the Zacks Consensus Estimate of $542 million [6] - Sales from Japan, Australia, and New Zealand (JANZ) totaled $305.7 million, down 11% on a divestiture-adjusted operational basis, missing the Zacks Consensus Estimate of $310 million [6] - Greater China sales reached $588.9 million, up 9% on a divestiture-adjusted operational basis, exceeding the Zacks Consensus Estimate of $546 million [6] Product Category Performance - Revenues from Brands decreased 3% to $2.3 billion, but increased 3% on a divestiture-adjusted operational basis, driven by strong performance in Greater China and Emerging Markets [7] - Lipitor sales rose to $388 million, Norvasc sales increased to $182.7 million, and Lyrica sales grew to $128.1 million compared to the previous year [8] - Generics revenues were $1.28 billion, down 10%, with a 9% decline on an operational change basis, attributed to the negative impact from the Indore facility [9] Financial Metrics - Adjusted gross margin was 56.3%, down from 58.4% in the prior year [11] - The company has returned over $630 million to shareholders in the year to date, including more than $350 million in share repurchases [11] - Viatris expects total share repurchases of $500 million to $650 million in 2025 [11] Guidance and Updates - The company reaffirmed its 2025 revenue guidance of $13.5 billion to $14 billion and raised its adjusted earnings per share forecast to a range of $2.16 to $2.30 [12] - Positive top-line results were announced from phase III studies evaluating MR-142 and MR-141 for treating vision impairments [13] - A phase III study for MR-139 did not meet its primary endpoint [14]

Financial Data and Key Metrics Changes - Total revenues for Q2 2025 were $3,580 million, down approximately 2% year-over-year, but operational revenue growth was approximately 3% when excluding the impact from Indoor [27][28] - Adjusted gross margin for the quarter was 56.6%, consistent with expectations, and operating expenses decreased due to planned cost-saving initiatives [31][32] - Free cash flow generated in the quarter was $167 million, with an adjusted figure of $241 million when excluding transaction-related costs [32] Business Line Data and Key Metrics Changes - In developed markets, brand performance helped offset the Indoor impact, with European business growing approximately 2% and brands portfolio growing approximately 3% [28] - North American business decreased 11% year-over-year, primarily due to Indoor impact and competition, while Emerging Markets saw a 1% increase driven by Turkey and Emerging Asia [29] - Greater China net sales grew 9%, benefiting from proactive patient choice and customer purchasing patterns [30] Market Data and Key Metrics Changes - The company serves approximately one billion patients worldwide each year, with a global supply chain supporting patient access [13] - The U.S. market is expected to see continued growth in generics, although moving additional manufacturing of non-complex generics to the U.S. is deemed difficult in the short term [14][15] - The company anticipates no material impact from proposed U.S. tariffs on its 2025 financial picture, while monitoring developments closely [12][35] Company Strategy and Development Direction - The company is focused on driving strong commercial execution, advancing its late-stage pipeline, and exploring strategic business development opportunities [6][11] - The enterprise-wide strategic review aims to position the company for sustainable growth in 2026 and beyond, with updates expected in the Q3 earnings call [11][54] - The company is committed to returning capital to shareholders through dividends and share buybacks, having returned over $630 million year-to-date [10][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term trajectory of the company, citing a strong business foundation and a maturing late-stage pipeline [15][16] - The company reiterated its 2025 financial guidance, expecting to be in the top half of the range for revenue and adjusted EPS [15][34] - Management acknowledged the challenges posed by tariffs but does not anticipate a material financial impact in 2025 [48][35] Other Important Information - Five of the six anticipated Phase III readouts have shown positive results, reinforcing the strength of the company's pipeline [7][18] - The company is making progress on remediation efforts at its Indoor facility, with plans to discuss reinspection with the FDA [11][69] - The company has received FDA approval for dorunavir tablets manufactured at its Nashik facility, indicating positive operational progress [12][70] Q&A Session Summary Question: Capital allocation priorities and growth expectations - Management emphasized a balanced approach to capital allocation, focusing on returning capital to shareholders while building a growth portfolio through strategic business development [40][41] Question: Impact of tariffs on revenue from India versus EU - Management stated that it is monitoring the situation closely and does not anticipate a material financial impact from tariffs in 2025 [48] Question: Performance of the China business - The China business saw a 9% operational growth, with expectations for moderate growth in the future, driven by strong brand equity and proactive patient demand [55][56] Question: Contribution from new products in developed markets - Management expects to generate approximately $450 million to $550 million from new product revenue, with a back-half weighting based on approval and launch timing [61][62] Question: Commercial strategy for meloxicam - The company is in the midst of launch planning for meloxicam, focusing on market research and positioning, with expectations for significant opportunity in the acute pain market [66][67]

Core Viewpoint - Viatris reported quarterly earnings of $0.62 per share, exceeding the Zacks Consensus Estimate of $0.56 per share, but down from $0.69 per share a year ago, indicating a mixed performance in earnings despite a positive surprise [1][2]. Financial Performance - The company achieved revenues of $3.58 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.40%, although this represents a decline from $3.8 billion in the same quarter last year [2]. - Over the last four quarters, Viatris has exceeded consensus EPS estimates three times and has also topped consensus revenue estimates three times [2]. Stock Performance - Viatris shares have declined approximately 29.7% since the beginning of the year, contrasting with the S&P 500's gain of 7.9% [3]. - The stock currently holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the market in the near future [6]. Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.63 on revenues of $3.64 billion, while for the current fiscal year, the estimate is $2.25 on revenues of $13.85 billion [7]. - The outlook for the Medical Services industry, where Viatris operates, is favorable as it ranks in the top 40% of over 250 Zacks industries, indicating potential for better performance compared to lower-ranked industries [8].

Financial Performance - Q2 2025 total revenues were $3582 million, a decrease of 6% compared to Q2 2024[39] - Adjusted EBITDA for Q2 2025 was $1079 million, an 11% decrease compared to Q2 2024[39] - Adjusted EPS for Q2 2025 was $062, a 10% decrease compared to Q2 2024[39] - Free cash flow for Q2 2025 was $167 million, or $241 million excluding transaction-related costs[39, 40] Impact of Indore Facility - The estimated negative impact on 2025 total revenues due to the Indore facility is approximately $500 million, with an estimated $385 million impact on adjusted EBITDA[2, 58] - The Q2 2025 Indore impact to earnings from operations and adjusted EBITDA is estimated to be approximately $110 million[58, 60] - Estimated 2025 net sales impact by region due to the Indore facility: North America ~$300 million, Europe ~$75 million, and Emerging Markets ~$125 million[2, 58] Financial Guidance - The company reaffirms its 2025 financial guidance, with total revenues expected to be between $135 billion and $140 billion[2, 63] - Adjusted EBITDA is expected to be between $389 billion and $419 billion, and adjusted EPS is expected to be between $216 and $230[2, 63] - The company expects to complete share repurchases totaling between $500 million and $650 million in 2025[2] Business Segment Performance - Developed Markets net sales were $2119 million, a decrease of 9% compared to Q2 2024[46] - Emerging Markets net sales were $555 million, a decrease of 4% compared to Q2 2024[49] - Greater China net sales were $589 million, an increase of 9% compared to Q2 2024[55]

[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]