Matt Dellatorre

Matt Dellatorre asked about the anticipated label for Viatris's fast-acting meloxicam, particularly the inclusion of opioid-sparing language, and the company's business development strategy regarding in-market branded assets versus earlier-stage pipeline acquisitions.

Answer

CEO Scott Smith stated Viatris's BD focus is on in-market accretive growth assets, not early pipeline, with many interesting opportunities available. Chief R&D Officer Philippe Martin confirmed a positive pre-PMDA meeting for meloxicam, with strong opioid-sparing data expected in the label, though the specific section is still under discussion.

Matt Dellatorre asked about the latest expectations for the fast-acting meloxicam label, specifically how opioid sparing would be reflected, and any FDA feedback received. He also questioned Viatris's business development strategy, focusing on substantial branded assets versus smaller deals, comfort with earlier-stage (Phase II) assets, and preferred therapeutic verticals.

Answer

CEO Scott Smith stated that the business development focus is on in-market accretive growth assets, not early pipeline, to drive short-term growth. Chief R&D Officer Philippe Martin confirmed a positive pre-PMDA meeting for meloxicam, with filing imminent, and anticipated opioid-sparing language in the label, though its specific placement is still under discussion with the agency.

Matt Dellatorre asked for feedback from the FDA regarding a potential opioid-sparing label for fast-acting meloxicam and its significance for access and pricing. He also questioned the partnership strategy for broader market reach, including value split and deal structure, and Viatris's capital allocation priorities for 2026, specifically regarding US-based business development and midsize licensing deals.

Answer

Chief R&D Officer Philippe Martin discussed meloxicam's opioid-sparing label, confirming the phase III study was designed with FDA collaboration and expressing confidence in the strong data. CEO Scott Smith stated Viatris is exploring partnership discussions for meloxicam but is prepared to commercialize it independently if a partnership isn't significantly additive. He reiterated a balanced capital allocation approach over a three-to-five-year period, aiming for 50/50 return to shareholders and growth asset building, noting a focus on share buybacks in 2025 and a desire for in-market, accretive U.S.-based innovative products.

Matt Dellatorre asked about FDA feedback on fast-acting meloxicam's potential opioid-sparing label and its impact on access/pricing. He also inquired about the partnership strategy for broader market reach, including value split, and Viatris's 2026 capital allocation priorities, particularly for U.S.-based, mid-sized licensing deals.

Answer

Chief R&D Officer Philippe Martin confirmed the phase 3 study for fast-acting meloxicam was designed for opioid-sparing language, with strong data supporting this goal. CEO Scott Smith noted active partnership discussions but emphasized Viatris's capability to commercialize independently if a partnership isn't significantly additive. For 2026 capital allocation, Scott Smith reiterated a balanced, long-term approach (50/50 return vs. growth assets), including in-market, accretive U.S. innovative products, with yearly mix depending on opportunities.

Matt Dellatorre of Goldman Sachs inquired about Viatris's capital allocation strategy, the balance between share buybacks and business development (BD), and the company's long-term growth targets for 2026 and beyond.

Answer

CEO Scott Smith stated that the capital allocation plan remains balanced between shareholder returns and strategic, accretive BD to build a growth portfolio. He highlighted upcoming product launches and pipeline readouts as key organic growth drivers, declining to provide a specific 2026 growth target. CFO Doretta Mistras added that the base business is expected to generate low single-digit revenue growth, with BD investments being additive to that baseline.