Summary of Viatris Conference Call Company Overview - **Company**: Viatris (NasdaqGS: VTRS) - **Event**: UBS Healthcare Conference - **Date**: November 11, 2025 Key Updates and Financial Performance - Viatris reported a positive momentum in business with an expected operational revenue growth of **2-3%** for 2025, excluding Indor [4][80] - The company is on track to return over **$1 billion** to shareholders, including **$500 million** in share repurchases for the year [4][80] New Product Launches - Anticipated new product revenue is projected to be in the range of **$450 million to $550 million** annually, driven by existing products and upcoming launches [6][4] - Key products contributing to this revenue include: - **Iron sucrose** - **Glucagon** - **Paclitaxel** - Upcoming launches: **Liraglutide**, **Effexor GAD**, **Sotagliflozin** [6][4] Geographic Performance - **North America**: - Experienced competition in generic products, particularly **XULANE LO** [17][22] - Decline primarily attributed to the impact of Indor [19][22] - Strong double-digit growth noted in products like **Breyna** and **Uptravi** [22][22] - **Emerging Markets**: - Strong growth driven by established brand business, particularly in **Turkey**, **Mexico**, and **emerging Asia** [23][23] - Stabilization of lower-margin ARV products has supported growth in the generics business [23][23] - **Japan**: - Facing normal price regulations but focusing on adding innovative assets to stabilize and grow the business [26][26] - Recent acquisition of **Pitolisant** and **Spidea** expected to enhance the portfolio [26][26] - **China**: - Achieved **9% operational growth** driven by a diversified commercial model and strong brand demand [28][28] - Over **10,000 customers** across various channels, with expectations for low to mid-single-digit growth over time [31][31] Pipeline and Future Products - Excitement around **fast-acting meloxicam** as a non-opioid alternative for acute pain management, targeting a launch in the second half of **2026** [34][41] - Anticipated FDA filings for several products, including **Effexor GAD** and **Salatogrel**, with enrollment for Salatogrel on track to complete by the end of **2026** [51][52] Indor Remediation and Strategic Review - Progress on remediation efforts for Indor, with operational readiness for reinspection expected in **2026** [54][54] - An enterprise-wide strategic review initiated to ensure sustainable growth, with details expected in **Q1 2026** [60][60] Capital Allocation Strategy - Viatris maintains a balanced capital allocation strategy, focusing on business development and capital return, with a **50/25/25** framework [71][71] - The company is looking for opportunities to invest in durable, higher-margin innovative assets, particularly in the U.S. market [73][73] Conclusion - Viatris is optimistic about its position going into **2026**, with a focus on executing its strategic priorities, enhancing its product pipeline, and addressing challenges in various markets [80][80]

Financial Data and Key Metrics Changes - Total revenues for Q3 2025 were $3.76 billion, down approximately 1% year-over-year. Excluding the impact from Indore, operational revenue growth was approximately 1% compared to the prior year [26][27] - Adjusted gross margin for the quarter was 56%, in line with expectations, but impacted by the Indore situation [28][29] - Free cash flow generated in the quarter was $658 million, with an adjusted figure of $728 million excluding transaction-related costs [29][30] Business Line Data and Key Metrics Changes - In developed markets, net sales decreased by 5%, primarily due to the Indore impact. However, the generics business grew by 5% year-over-year, driven by new product revenues in key markets like France and Italy [26][27] - The North America business saw a 12% decrease year-over-year, mainly due to the Indore impact and competition on certain generic products. Despite this, double-digit growth was observed in products like Breyna and Yupelri [27][28] - Emerging markets experienced a 7% increase in net sales, driven by established brands in key markets such as Turkey and Mexico [27][28] Market Data and Key Metrics Changes - In Japan, net sales decreased by approximately 9% due to government price regulations and changes in reimbursement policy affecting off-patent brands [27] - Greater China saw net sales exceed expectations with a growth of 9%, attributed to a diversified commercial model and increased demand for brands sensitive to patient choice [28] Company Strategy and Development Direction - The company is focusing on three key areas for sustained profitable growth: a global generics business evolving towards higher-margin complex products, an established brands business strengthened by adding brands, and an innovative brands business expanding through late-stage or in-market growth assets [6][7] - The strategic review aims to identify operating efficiencies across various functions, including sales, marketing, R&D, and supply chain, with an expectation of delivering meaningful net cost savings over a multi-year period [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fundamentals of the business, anticipating momentum to carry into 2026. They highlighted strong commercial execution and pipeline advancement as key drivers [5][11] - The company plans to provide a detailed outlook for 2026 in the first quarter of next year, considering factors such as timing of approvals and competitive dynamics [31][32] Other Important Information - The company has returned over $920 million to shareholders year-to-date, including $500 million in share repurchases, and is on track to return over $1 billion for the year [10][30] - The acquisition of Aculys Pharma in Japan adds innovative CNS assets to the portfolio, strengthening the company's presence in a strategically important market [10][11] Q&A Session Questions and Answers Question: Update on the Indore resolution situation - Management reported significant progress in remediation efforts at the Indore facility and a productive meeting with the FDA regarding reinspection timing, which remains at the agency's discretion [36][37] Question: Performance of EpiPen and Lipitor - The strength of the Lipitor brand outside the U.S., particularly in China, has driven performance. EpiPen has seen stable market share, with strong growth in Europe following a relaunch in Canada [38][39] Question: Feedback from the FDA on fast-acting meloxicam - The company is optimistic about obtaining opioid-sparing language in the product label, with a pre-NDA meeting scheduled with the FDA to discuss this [44][45] Question: Capital allocation priorities for 2026 - The company aims for a balanced approach in capital allocation, focusing on both returning capital to shareholders and pursuing business development opportunities [46][47] Question: Insights on the enterprise-wide strategic review - Management indicated that significant cost savings are expected from the review, with a focus on various operational areas. Specific details will be provided in Q1 [51][52]

Financial Data and Key Metrics Changes - Total revenues for Q3 2025 were $3.76 billion, down approximately 1% year-over-year. Excluding the impact from Indore, operational revenue growth was approximately 1% compared to the prior year [25][26] - Adjusted gross margin for the quarter was 56%, in line with expectations, but impacted by the Indore situation [27] - Free cash flow generated in the quarter was $658 million, with an adjusted figure of $728 million excluding transaction-related costs [28] Business Line Data and Key Metrics Changes - In developed markets, net sales decreased by 5%, primarily due to the Indore impact. However, the generics business grew by 5% year-over-year, driven by new product revenues in key markets like France and Italy [25][26] - The North America business saw a 12% decrease year-over-year, mainly due to the Indore impact and competition on certain generic products. Despite this, double-digit growth was observed in products like Breyna and Yupelri [26] - Emerging markets experienced a 7% increase in net sales, driven by established brands in key markets such as Turkey and Mexico [26] Market Data and Key Metrics Changes - In Japan, net sales decreased by approximately 9% due to government price regulations and changes in reimbursement policy affecting off-patent brands [26] - Greater China saw net sales exceed expectations with a growth of 9%, attributed to a diversified commercial model and increased demand for brands sensitive to patient choice [27] Company Strategy and Development Direction - The company is focusing on three key areas for sustained growth: a global generics business evolving towards higher-margin complex products, an established brands business strengthened by adding new brands, and an innovative brands business expanding through late-stage or in-market growth assets [5][6] - The strategic review aims to identify operating efficiencies across various functions, including sales, marketing, R&D, and supply chain, with an expectation of delivering meaningful net cost savings over a multi-year period [4][5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fundamentals of the business, anticipating continued momentum into 2026. They are raising full-year guidance for total revenues, adjusted EBITDA, and adjusted EPS [7][30] - The company plans to provide a detailed outlook for 2026 in the first quarter of next year, considering factors such as product approvals, competitive dynamics, and potential loss of exclusivity for certain products [31][73] Other Important Information - The company has returned over $920 million to shareholders year-to-date, including $500 million in share repurchases, and is on track to return over $1 billion for the year [10][29] - The acquisition of Aculis in Japan adds innovative CNS assets to the portfolio, enhancing the company's presence in a strategically important market [10][29] Q&A Session Summary Question: Update on the Indore resolution situation - Management reported significant progress in remediation at the Indore facility and a productive meeting with the FDA regarding reinspection timing, which remains uncertain [35][36] Question: Performance of EpiPen and Lipitor - EpiPen's market share remains stable at around 24-25%, with strong growth in Europe and a relaunch in Canada contributing to performance [37][38] Question: Feedback from FDA on fast-acting meloxicam - The company is optimistic about obtaining opioid-sparing language in the product label and has a pre-NDA meeting scheduled with the FDA [42][43] Question: Capital allocation priorities for 2026 - The company aims for a balanced approach in capital allocation, focusing on both returning capital to shareholders and pursuing business development opportunities [45][46] Question: Insights on the enterprise-wide strategic review - Management indicated that significant cost savings are expected from the review, with more details to be provided in Q1 2026 [50][51] Question: Differentiation of presbyopia treatment - The company believes its presbyopia treatment offers a differentiated benefit-risk profile compared to existing modalities, focusing on safety and efficacy [79]

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]

Summary of Viatris (VTRS) FY Conference Call - June 09, 2025 Company Overview - **Company**: Viatris (VTRS) - **Key Executives Present**: Scott Smith (CEO), Doretta Mistras (CFO), Corinne Lagoff (CCO), Philippe Martin (Head of R&D) [2][3] Core Industry Insights - **Industry**: Pharmaceutical and Biotechnology - **Market Dynamics**: Viatris operates in a competitive landscape with a focus on both branded (60%) and generic (40%) products, with a significant portion of branded products being past loss of exclusivity (LOE) [11][12] Key Points and Arguments 1. **Base Business Performance**: The base business is described as strong, with eight to nine consecutive quarters of operational revenue growth, despite some manufacturing issues at the Indoor plant [4][6] 2. **Capital Allocation Strategy**: Viatris has been actively buying back shares, totaling over $300 million, while also focusing on dividends and business development [5][63] 3. **Pipeline Development**: The company has a robust pipeline with 11 programs in Phase III, all showing positive results, including products for anxiety, pain, and eye care [6][10] 4. **Strategic Review**: An enterprise-wide strategic review is underway to optimize operations and ensure the right personnel are in place for future growth [7][9] 5. **FDA Resubmission**: The Indoor facility is on track for FDA re-inspection mid-year, with remediation efforts progressing ahead of schedule [8][32] 6. **Tariff Concerns**: Potential pharmaceutical tariffs could impact the generic market significantly, with 90% of dispensed products being generics, yet only accounting for 1% of total healthcare costs [19][22] 7. **Impact of Legislation**: The company has limited exposure to recent legislative changes, as 99% of its portfolio has gone through LOE, indicating minimal current impact but potential future considerations [30][31] 8. **Acute Pain Market Opportunity**: Viatris is developing a fast-acting meloxicam for acute pain, targeting a market of 70-80 million cases annually, with a significant unmet need for non-opioid treatments [43][44] 9. **Ocular Portfolio**: The company is expanding its eye care division, with recent positive Phase III data for a product addressing dim light disturbances post-surgery, indicating a potential first FDA-approved treatment for this condition [72][74] Additional Important Insights - **Market Size**: The acute pain market in the U.S. is valued at approximately $44 billion, highlighting the significant revenue potential for Viatris's new product [46] - **Patient Education**: For the emergency therapeutic option for heart attacks, Viatris is focusing on patient education to ensure timely self-administration of the treatment [60][61] - **Future Growth**: The company aims for sustainable revenue and EBITDA growth in 2026 and beyond, with a focus on innovative products and capital allocation strategies [10][12] This summary encapsulates the key themes and insights from the Viatris FY Conference Call, providing a comprehensive overview of the company's current status, strategic direction, and market opportunities.