Summary of Viatris 2025 Conference Call Company Overview - **Company**: Viatris (NasdaqGS: VTRS) - **Event**: Jeffries London Healthcare Conference - **Date**: November 18, 2025 Key Points Industry and Company Progress - **2025 Overview**: The year has been characterized by both challenges and significant progress, including strong commercial execution across multiple geographies [2][4] - **Pipeline Success**: Five out of six phase three studies were positive, with launches expected in 2026 and beyond [2][4] - **Capital Return**: Approximately $500 million in share buybacks completed, with over $1 billion anticipated in total capital return to shareholders for 2025 [3][4] Financial Strategy - **Cost Review**: An enterprise-wide strategic review is underway to identify cost savings and ensure the right organizational structure post-merger [4][6] - **Cost Savings**: Expected meaningful savings from the review, with a majority falling to the bottom line and a portion reinvested for growth [10][7] Regulatory and Operational Updates - **FDA Inspection**: Product reinspection by the FDA is anticipated in the first half of 2026, with over 90% of remediation completed [11][12] - **Manufacturing Strategy**: Efforts are being made to qualify other plants and find third-party vendors to ensure product supply regardless of inspection timing [12] Business Development and Capital Allocation - **Balanced Approach**: The capital allocation strategy emphasizes a balance between dividends, share buybacks, and investment in growth assets [13][14] - **Acquisition Focus**: Interest in in-market, high-margin revenue assets, with recent acquisitions in Japan to enhance the portfolio [14][16] Pipeline Highlights - **Upcoming Products**: Excitement around fast-acting meloxicam and Xulane low-dose patch, with launches expected in 2026 [18][19] - **Sotagliflozin**: Currently being registered globally, with strong enthusiasm noted for its potential [19][20] - **Market Opportunity**: The acute pain market in the U.S. is approximately 80 million cases, with a significant portion currently treated with opioids [26][27] Competitive Landscape - **Differentiation**: Fast-acting meloxicam is positioned as a unique offering with a significant opioid-sparing effect, differentiating it from competitors [20][26] - **Presbyopia Market**: Viatris is optimistic about its asset for Presbyopia, highlighting a favorable safety profile compared to competitors [34][35] Revenue Projections - **New Product Revenue**: Anticipated new product revenue for 2026 is projected between $450 million and $550 million, driven by recent approvals and upcoming launches [37][40] - **Overall Growth**: 2026 is expected to be a strong year for revenue growth, supported by both new product launches and a stable base business [42] Conclusion - **Outlook**: Viatris is preparing for a period of sustained growth, with a focus on leveraging its diverse portfolio and geographic presence to capitalize on upcoming opportunities in 2026 and beyond [4][42]

Core Insights - Viatris Inc. reported strong third-quarter 2025 financial results, reflecting solid operational execution and strategic focus on growth initiatives [2][6][14] - The company updated its full-year financial guidance, raising and narrowing ranges for total revenues, adjusted EBITDA, and adjusted EPS, primarily due to foreign exchange impacts and share repurchases [2][18][19] Financial Performance - Total revenues for Q3 2025 were $3.76 billion, flat year-over-year, with a slight operational decline of 1% after adjusting for divestitures [4][14] - Net sales in developed markets decreased by 2%, while emerging markets saw a 7% increase, driven by strong performance in Greater China [4][14] - U.S. GAAP net loss for Q3 2025 was $(128.2) million, compared to net earnings of $94.8 million in Q3 2024, with diluted EPS at $(0.11) [4][14][37] Capital Allocation - The company returned over $920 million to shareholders year-to-date, including $500 million in share repurchases, and remains on track to exceed $1 billion in total capital returns in 2025 [2][12][14] - Free cash flow for Q3 2025 was $658 million, impacted by $70 million in transaction-related costs [5][14] Strategic Initiatives - Viatris is advancing its pipeline with key regulatory submissions, including a New Drug Application for a low-dose estrogen weekly patch and the acquisition of Aculys Pharma, enhancing its portfolio in Japan [2][14][11] - The company is conducting an enterprise-wide strategic review to identify operational efficiencies and reinvest savings into growth opportunities [14][16][17] Market Outlook - The company anticipates continued growth in emerging markets and specific developed markets, with a focus on launching new products and enhancing its operational capabilities [2][14][33] - Viatris plans to hold an Investor Event in Q1 2026 to provide updates on its strategic and financial outlook, including pipeline developments [17]