44th Annual J.P. Morgan Healthcare Conference January 13, 2026 1 Non-GAAP Financial Measures This presentation includes the presentation and discussion of certain financial information that differs from what is reported under accounting principles generally accepted in the United States ("U.S. GAAP"). These non-GAAP financial measures, including, but not limited to, adjusted EBITDA, free cash flow, free cash flow excluding transaction-related costs, and adjusted EPS, are presented in order to supplement inv ...

Core Insights - Viatris Inc. reported first quarter 2025 financial results, reaffirming its 2025 outlook, with total revenues of $3.25 billion, down 11% year-over-year, primarily due to the negative Indore Impact [1][6][12] - The company experienced a significant non-cash goodwill impairment charge of $2.9 billion, leading to a U.S. GAAP net loss of $3.04 billion for the quarter [12][27][38] - Viatris continues to focus on capital allocation, returning over $450 million to shareholders year-to-date, including over $300 million in share repurchases [4][14] Financial Performance - Total revenues for Q1 2025 were $3,254.3 million, down from $3,663.4 million in Q1 2024, reflecting an 11% decrease [6][38] - Total net sales decreased to $3,243.2 million from $3,653.5 million, also an 11% decline [6][38] - Gross profit was reported at $1,161.2 million, down 23% from $1,504.0 million in the previous year [8][38] - Adjusted EBITDA for the quarter was $923 million, a decrease of 23% compared to $1,193.4 million in Q1 2024 [8][12] Market Segments - Developed markets saw a revenue decline of 13%, while emerging markets experienced a 17% drop [6] - Greater China reported a 2% increase in revenues, indicating some resilience in that market [6] - Brands net sales decreased by 8%, while generics saw a 16% decline, reflecting the expected negative Indore Impact [6][12] Pipeline and Product Development - The company achieved positive results from three Phase 3 studies, including EFFEXOR® for anxiety disorder and a novel formulation of meloxicam for acute pain [12][35] - Viatris plans to submit a New Drug Application (NDA) for the new meloxicam formulation by the end of 2025 [35] - The company expects to generate approximately $450 million to $550 million in new product revenues in 2025 [12][35] Capital Allocation Strategy - Viatris reaffirmed its commitment to returning capital to shareholders, with expectations of $500 million to $650 million in total share repurchases for 2025 [14][16] - Year-to-date, the company has returned over $450 million to shareholders, including dividends and share repurchases [4][14] Financial Guidance - The company estimates U.S. GAAP net cash provided by operating activities for 2025 to be between $2.2 billion and $2.5 billion, with a midpoint of approximately $2.35 billion [16][26] - Financial guidance for 2025 remains unchanged, excluding the impact of divestiture-related taxes and transaction costs [16][18]