Financial Data and Key Metrics Changes - In 2025, the company reported total revenues of $14.3 billion, representing approximately 2% growth compared to 2024, excluding the impact of the India pack [5][24] - Adjusted EBITDA for 2025 was $4.2 billion, with adjusted EPS of $2.35 per share and free cash flow of $2.2 billion, excluding transaction-related costs [24][30] - The company prioritized capital return with over $1 billion returned to shareholders through dividends and share repurchases [7][24] Business Line Data and Key Metrics Changes - The fourth quarter of 2025 saw total revenues of $3.7 billion, up 1% year-over-year, driven by strong commercial performance across key regions [23] - Growth in Greater China was supported by demand in the cardiovascular portfolio, while Europe and emerging markets benefited from the breadth and competitive strength of the portfolio [23][27] - The company expects new product revenues of $450-550 million in 2026, contributing to strong segment performance [26] Market Data and Key Metrics Changes - In developed markets, net sales are expected to grow by 2% versus 2025, with Europe anticipated to grow by 4% year-over-year [26][27] - Emerging markets are expected to grow by 6% year-over-year, driven by expansion in key growth markets such as Turkey, Mexico, India, and Brazil [27] - In Greater China, the company expects to deliver 3% year-over-year growth, primarily driven by cardiovascular products [29] Company Strategy and Development Direction - The company aims to drive its base business by executing successful launches and evolving its generics portfolio towards more profitable products [8][9] - The strategic review is expected to deliver approximately $650 million in gross cost savings over three years, with plans to reinvest up to $250 million into growth areas [7][25] - The company is focused on modernizing for sustainable growth by strengthening technology, data, and talent capabilities [9][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering a period of long-term sustainable growth beginning in 2026, with strong execution anticipated [5][10] - The company expects robust cash flow in 2026, providing financial flexibility for balanced capital allocation [11][32] - Management highlighted the importance of upcoming product launches and regulatory decisions as key drivers for future performance [10][12] Other Important Information - A fire occurred at the company's oral solid dose manufacturing facility in Nashik, India, temporarily suspending operations, with expectations to resume in April [30] - The company is preparing for regulatory decisions for several product candidates, including EFFEXOR and pitolisant in Japan, and fast-acting meloxicam in the U.S. [10][15] Q&A Session Summary Question: Path to mid-single-digit revenue growth - Management indicated that the path to mid-single-digit revenue growth involves a growing base business and upcoming product launches, with confidence in achieving this over the next few years [37][40] Question: Timing of $400 million savings from strategic review - The savings are expected to be phased over three years, with approximately 30% in 2026, 30% in 2027, and 40% in 2028 [38][42] Question: Breakdown of $650 million savings - About 50% of the savings will come from headcount reductions, with the other half from COGS efficiencies and inventory management [44][46] Question: India recovery impact on EBITDA guidance - Management assumes a little less than 1% recovery from India in the top line, with no material impact expected on 2026 guidance [44][49] Question: Restructuring charges versus net savings - The company estimates that the one-time costs necessary to achieve savings will be about 1 times the gross savings, with around $250 million expected this year [52][54] Question: Fast-acting meloxicam market focus - The initial focus for fast-acting meloxicam will be on post-operative and operative acute pain management, targeting specialty physicians [58][60] Question: Regulatory pricing challenges in Japan - Japan faces mandatory price decreases on LOE products, impacting revenue and EBITDA, but management is optimistic about future growth with new assets [62][64]

Financial Data and Key Metrics Changes - In 2025, the company reported total revenues of $14.3 billion, representing approximately 2% growth compared to 2024, excluding the impact of the India pack [5][24] - Adjusted EBITDA for 2025 was $4.2 billion, reflecting solid operating performance [24] - The company returned over $1 billion to shareholders through dividends and share repurchases [7] Business Line Data and Key Metrics Changes - The fourth quarter of 2025 saw total revenues of $3.7 billion, up 1% year-over-year, driven by strong commercial performance across key regions [23] - Growth in Greater China was supported by demand in the cardiovascular portfolio, while Europe and emerging markets benefited from the breadth and competitive strength of the portfolio [23] - The company anticipates new product revenues of $450 million to $550 million in 2026, contributing to strong segment performance [26] Market Data and Key Metrics Changes - The company expects net sales in developed markets to grow by 2% versus 2025, with Europe projected to grow by 4% year-over-year [26] - Emerging markets are expected to grow by 6% year-over-year, driven by expansion in key growth markets such as Turkey, Mexico, India, and Brazil [27] - In Greater China, a 3% year-over-year growth is anticipated, primarily driven by cardiovascular products [29] Company Strategy and Development Direction - The company aims to drive its base business by executing successful launches and evolving its generics portfolio towards more profitable products [8][9] - Strategic imperatives include fueling the innovative portfolio by advancing a pipeline of late-stage and in-market growth assets and modernizing for sustainable growth [9] - The company has identified approximately $650 million in gross cost savings over a three-year period, with plans to reinvest up to $250 million to enhance growth [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering a period of long-term sustainable growth beginning in 2026, with strong execution and disciplined capital allocation [5][11] - The company expects robust cash flow in 2026, providing significant financial flexibility for balanced capital allocation [11][32] - Management highlighted the importance of upcoming product launches and regulatory decisions as key drivers for future performance [10][12] Other Important Information - A fire occurred at the company's oral solid dose manufacturing facility in Nashik, India, leading to a temporary suspension of operations, with expectations to resume in April [30] - The company is focused on evolving and modernizing its organization to strengthen its operating model and ensure sustained growth [11][66] Q&A Session Summary Question: Path to Mid-Single-Digit Revenue Growth - Management indicated that the path to mid-single-digit revenue growth involves a growing base business and upcoming product launches, particularly in Japan and the US [37][40] Question: Timing of Strategic Review Savings - The company expects the $400 million of net savings from the strategic review to be phased over three years, with approximately 30% in 2026, 30% in 2027, and 40% in 2028 [42] Question: Breakdown of Cost Cuts - About 50% of the $650 million in savings will come from headcount reductions, with the other half from COGS efficiencies and inventory management [45][46] Question: India Recovery Impact - The company has assumed a less than 1% recovery from India in its top line for 2026, with no material impact expected from the previous year's challenges [48][49] Question: Fast-Acting Meloxicam Market Focus - The company plans to focus on post-operative and operative acute pain management for fast-acting meloxicam, targeting specialty physicians [59]

Financial Data and Key Metrics Changes - In 2025, the company reported total revenues of $14.3 billion, representing approximately 2% growth compared to 2024, excluding the impact of the India pack [4][21] - Adjusted EBITDA for 2025 was $4.2 billion, with adjusted EPS of $2.35 per share and free cash flow of $2.2 billion, excluding transaction-related costs [21][22] - For Q4 2025, total revenues were $3.7 billion, up 1% year-over-year, excluding the indoor impact [20] Business Line Data and Key Metrics Changes - The company achieved strong commercial performance across its global portfolio, with significant contributions from its cardiovascular portfolio in Greater China and competitive strength in Europe and emerging markets [20][21] - New product revenues are anticipated to contribute $450 million to $550 million in 2026, with growth expected in developed markets and emerging markets [23][24] Market Data and Key Metrics Changes - In Greater China, the company expects 3% year-over-year growth, driven primarily by cardiovascular products [25] - Emerging markets are projected to grow 6% year-over-year, supported by expansion in key markets like Turkey, Mexico, India, and Brazil [24] Company Strategy and Development Direction - The company aims to drive its base business through successful product launches and evolving its generics portfolio towards higher-margin products [6][7] - Strategic imperatives include fueling the innovative portfolio with late-stage and in-market growth assets, and modernizing operations for sustainable growth [6][7] - The company plans to deliver approximately $650 million in gross cost savings over three years, with $250 million earmarked for reinvestment in growth areas [5][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering a period of long-term sustainable growth beginning in 2026, with a focus on strong financial performance and commercial execution [4][8] - The company anticipates regulatory decisions for several product candidates in 2026, which are expected to support future performance [8][11] Other Important Information - A fire incident at the Nashik, India facility has temporarily suspended manufacturing, with operations expected to resume in April [26] - The company is focused on returning the JANZ segment to growth while managing pricing headwinds in certain Asian markets [24][25] Q&A Session Summary Question: Path to mid-single-digit revenue growth and confidence in approvals - Management indicated that the path to mid-single-digit growth involves a growing base business and upcoming product launches, with confidence in the six potential approvals this year [32][34] Question: Breakdown of $650 million savings and timing - The savings are expected to be phased over three years, with approximately 30% in 2026, 30% in 2027, and 40% in 2028 [33][38] Question: Cost cuts and India recovery assumptions - About 50% of the $650 million savings will come from headcount reductions, with less than 1% of India recovery included in the 2026 guidance [40][43] Question: Restructuring charges versus net savings - The company estimates that the one-time costs to achieve savings will be about 1 times the gross savings, with $250 million expected this year [47][49] Question: Fast-acting meloxicam market focus - The initial focus for fast-acting meloxicam will be on post-operative and operative acute pain management, targeting specialty physicians [52][54] Question: Regulatory pricing challenges in Japan - Japan faces mandatory price decreases impacting revenue and EBITDA, but new assets are expected to turn the business towards growth by 2028 [56][58]

Q4 & Full Year 2025 Earnings February 26, 2026 © 2026 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris company. Forward Looking Statements This presentation contains "forward-looking statements". These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may include, without limitation, statements about: 2026 financial guidance; enterprise-wide strategic review ...

Group 1 - Viatris Inc. is a global healthcare company formed from the merger of Mylan and Pfizer's Upjohn division in 2020, operating in over 165 countries and focusing on both generics and specialty pharmaceuticals [2] - The FDA approval of Viatris's first generic iron sucrose injection, a version of Venofer, is a significant development, with annual U.S. sales of approximately $515 million, marking an entry into the intravenous iron market [3] - Positive late-stage trial results for several pipeline assets, including fast-acting meloxicam for acute pain and the next-generation birth control patch XULANE LO, support the company's growth strategy and upcoming product launches through 2026 [4] Group 2 - Viatris's strategic emphasis on complex generics and specialty products indicates a shift from a primarily generic-focused business to a more innovation-driven company, highlighting the resilience of its diversified portfolio [5]

Core Viewpoint - The healthcare industry is currently facing significant challenges, with large-cap pharmaceutical companies particularly affected, leading to a poor performance compared to the market [2][3]. Group 1: Industry Challenges - The healthcare sector has only outperformed the market during downturns over the last decade, indicating a troubling trend [2]. - The current dynamics in the healthcare industry are described as the worst experienced in decades, with managed care and pharmaceuticals identified as the main contributors to market pressures [3]. Group 2: Investment Opportunities - A methodology was employed to identify cheap healthcare stocks, focusing on companies with a market capitalization above $2 billion and a forward P/E ratio below 15 [5]. - The article lists 12 healthcare stocks deemed attractive for investment, based on their valuation metrics and growth potential [6]. Group 3: Company Highlights - **Bausch Health Companies Inc. (NYSE:BHC)**: - Forward P/E Ratio: 1.45, recognized for strategic acquisitions and pipeline developments, particularly in hepatology [7]. - Recent acquisition of DURECT Corporation valued at $63 million upfront, with potential milestone payments of up to $350 million, enhancing its portfolio for alcoholic hepatitis [8]. - Key pipeline assets include larsucosterol and rifaximin SSD, with significant market potential in addressing hospitalizations for alcoholic hepatitis [9][10]. - **Organon & Co. (NYSE:OGN)**: - Forward P/E Ratio: 2.73, focused on women's health and biosimilars, expanding its market presence since spinning off from Merck [11]. - Recent FDA approvals for biosimilars BILDYOS and BILPREVDA, aimed at improving access to osteoporosis and bone cancer treatments [12]. - The company is pivoting towards biosimilars as a growth engine while maintaining focus on women's health and dermatology [13]. - **Viatris Inc. (NASDAQ:VTRS)**: - Forward P/E Ratio: 4.40, formed from the merger of Mylan and Pfizer's Upjohn division, focusing on generics and specialty pharmaceuticals [14]. - FDA approval of a generic iron sucrose injection, reflecting a strategic entry into the intravenous iron market with significant sales potential [15]. - Positive late-stage trial results for several pipeline assets, reinforcing the company's growth strategy and upcoming product launches [16][17].