Total Revenue

6.8% decline from $1,622 million in Q1 2024 to $1,513 million in Q1 2025

The decline is driven largely by substantial drops in key categories such as Biosimilars (–14% YoY) and Established Brands (–11% YoY), which counterbalanced the growth in Respiratory and Non-Opioid Pain/Bone/Derm. This suggests that while some segments recovered or surged, persistent headwinds in other areas led to the overall revenue downturn. " " " " " " "

Women’s Health

Modest growth of ~3% from $449 million in Q1 2024 to $463 million in Q1 2025

The modest increase indicates stable performance likely driven by sustained demand in core products despite challenging trends in other segments. The improvement, although slight, may reflect ongoing recovery or incremental market gains from strategic emphasis on this franchise compared to prior periods. " " " "

Biosimilars

14% decline from $164 million in Q1 2024 to $141 million in Q1 2025

The sharper decrease reflects intensified pricing pressures and competition in the biosimilars space, as well as a potential slowdown in the ramp-up of key products like Hadlima previously contributing to growth. These issues contrast with earlier periods when new launches were a key driver of revenue. " " " " "

Established Brands

11% decline from $994 million in Q1 2024 to $887 million in Q1 2025

This drop is consistent with ongoing challenges such as loss of exclusivity and competitive pressures experienced in earlier periods. The Established Brands segment continues to feel the impact of generic competition and pricing erosion that were already affecting revenues in previous quarters. " " " " "

Respiratory

16% increase from $187 million in Q1 2024 to $217 million in Q1 2025

The healthy growth in Respiratory revenue, with a 16% increase, likely stems from improved demand and favorable pricing dynamics in products like Nasonex and Dulera. This robust performance contrasts with the modest performance of other segments in prior periods and suggests effective market positioning within the Respiratory portfolio. " " "

Non-Opioid Pain/Bone/Derm

38% surge from $115 million in Q1 2024 to $159 million in Q1 2025

The dramatic growth is attributable to strong recovery from previous manufacturing issues (as seen with Diprospan) and the introduction of new products like Vtama from the Dermavant acquisition, along with increased demand for Arcoxia. Compared to prior periods, these factors contributed significantly to the segment's momentum. " " "

United States (Geographic)

11% increase from $371 million in Q1 2024 to $412 million in Q1 2025

The improvement in the U.S. market reflects strengthened domestic demand and possibly effective pricing strategies or product mix adjustments. This recovery in a major market contrasts with underperformance in other regions and supports the overall modest rebound in segments like Respiratory and Non-Opioid Pain/Bone/Derm. " " " "

Europe and Canada (Geographic)

16% decline from $450 million in Q1 2024 to $376 million in Q1 2025

The significant drop could be tied to continued pricing pressures, adverse market conditions, and potential adjustments in tender pricing, which adversely impacted revenues. This deterioration aligns with earlier signals of market challenges in these regions despite some strength in other geographies. " " " "

Long-term Debt

Over 99% drop from approximately $8,700 million in prior periods to only $8.96 million in Q1 2025

The dramatic decrease most likely results from major deleveraging actions, including refinancing, repayments, and possible de-recognition or reclassification of long-term obligations. This is a sharp contrast to the previous high debt levels and reflects significant financial restructuring or changes in the company's balance sheet management. "

Revenue (constant currency)

FY 2025

"$6.125B–$6.325B with a flat midpoint " " "

"About flat versus prior year " " "

no change

Adjusted gross margin

FY 2025

"60% to 61%, about 1 point lower versus last year " "

"60% to 61%, about 1 point lower versus last year " "

no change

SG&A expense

FY 2025

"25% of revenue " "

"25% of revenue " "

no change

R&D expense

FY 2025

"Upper single digits as a percentage of revenue " "

"7% of revenue, excluding IPR&D " "

lowered

Adjusted EBITDA margin

FY 2025

"31% to 32% (with a 31% floor ex‑IPR&D) " " "

"31% to 32% " "

no change

Interest expense

FY 2025

"$510 million, including $25 million related to Dermavant " "

"$510 million for the full year " "

no change

Non‑GAAP tax rate

FY 2025

"22.5% to 24.5% " "

"22.5% to 24.5% " "

no change

Depreciation expense

FY 2025

"$135 million " "

"$135 million " "

no change

Restructuring & manufacturing separation costs

FY 2025

"$325 million to $375 million " "

"$325 million to $375 million " "

no change

Free cash flow before onetime costs

FY 2025

"Approximately $900 million " "

"Exceed $900 million " "

no change

Operating expense savings

FY 2025

"Identified $200 million in savings " "

"Approximately $200 million savings over Q2–Q4 (annualizing to ~$275M in 2026+) " " "

no change

Foreign exchange impact

FY 2025

"Approximately $200 million negative impact, 300 bps headwind " "

"Initially estimated at a $200 million negative impact " "

no change

Net leverage ratio

FY 2025

no prior guidance

"Targeted to be below 4x by the end of 2025 " " "

no prior guidance

VTAMA Launch Dynamics

Q3 2024: Discussed strong early product traction with a $150 million revenue target and significant OpEx concerns. " " Q2 2024: Not mentioned.

Q1 2025: Emphasized robust early product traction in the atopic dermatitis indication with the same $150 million target, while acknowledging high OpEx and operational risks. " " " "

Consistent focus on strong product uptake coupled with high operational investment; sentiment remains positive on growth but cautious about expense levels.

NEXPLANON Growth Prospects

Q3 2024: Highlighted strong growth performance (11% ex FX, 18% U.S. growth), market leadership, and upcoming 5‑year indication with solid patent protection. " " " " Q2 2024: Detailed positive data from the 5‑year study, robust growth percentages, and strong data exclusivity protection. " " "

Q1 2025: Continued to tout revenue potential exceeding $1 billion, extended indications with FDA submission for a 5‑year label, and maintained confidence despite litigation risks. " " "

Recurring theme with steady optimism about revenue growth and innovation despite similar competitive and litigation challenges.

Capital Allocation and Deleveraging

Q2 2024: Emphasized maintaining dividends as the #1 priority while also highlighting strong free cash flow and disciplined debt reduction using cash cycle management. " " Q3 2024: Focused on robust free cash flow generation supporting dividends and overall financial flexibility. " "

Q1 2025: Announced a strategic shift from dividends to debt reduction, redeploying nearly $200 million to drive down net leverage below 4x, reflecting response to a volatile macro environment and investor concerns. " " " " "

Shift in emphasis—from sustaining dividends while managing cash flow to a more aggressive deleveraging approach driven by investor sentiment.

Dermavant Acquisition and Dermatology Market Entry

Q3 2024: Detailed the acquisition of Dermavant and VTAMA’s role as a strategic entry into U.S. dermatology, outlining expected revenues and integration synergies along with execution risks. " " " " Q2 2024: No discussion on this topic.

Q1 2025: Reiterated the acquisition and highlighted VTAMA as a "game changer" with strong revenue forecasts, while also addressing execution risks particularly in integrating new sales and marketing capabilities. " " " " "

Consistent focus on strategic expansion into dermatology with maintained optimism but with persistent acknowledgment of execution and integration risks.

Biosimilars Competition (Hadlima)

Q3 2024: Noted sequential growth in biosimilars overall, with Hadlima’s performance mentioned in the context of overall portfolio growth. " " Q2 2024: Detailed Hadlima’s strong growth momentum (60% prescription growth) alongside competitive challenges from Teva and interchangeability issues. " " "

Q1 2025: Focused on Hadlima’s exceptional 57% growth without highlighting direct competitive challenges (e.g. Teva wins). "

Recurring topic where earlier periods balanced growth with competitive challenges, while Q1 2025’s tone appears more upbeat, downplaying competitive headwinds.

Geographic Growth in China

Q2 2024: Discussed expectations of mid‑single‑digit growth for China, supported by overcoming VBP impacts as 80% of the Established Brands business had undergone VBP. " " Q3 2024: No specific mention.

Q1 2025: Only indirect references to China through fertility business performance, with no explicit mention of mid‑single‑digit expansion or VBP impacts. " "

Topic was detailed in Q2 2024 with future momentum expectations, but less emphasized in Q1 2025 and Q3 2024, suggesting a temporary de‐emphasis.

R&D Pipeline Visibility and Innovation Spending

Q2 2024: Adopted a cautious and prudent approach with emphasis on targeted, “tuck‑in” deals and careful evaluation in Women’s Health, raising mild concerns about long‑term innovation. " Q3 2024: Presented a more positive view with good near‑term pipeline visibility and advancement of key biosimilar candidates. " "

Q1 2025: Did not explicitly highlight long‑term growth concerns regarding R&D, instead focusing on cost management and select innovation drivers such as late‑2025 launches. " " " " "

Mixed sentiment across periods: cautious tone in Q2 2024 shifted to a more upbeat, stable view in Q3 2024 and Q1 2025, indicating a recalibration of innovation spending strategy.

Financial Discipline vs Operating Margin Pressures

Q2 2024: Discussed stable operating margins amid LOE, VBP, and pricing pressures while highlighting strong free cash flow (~$1B) and robust adjusted EBITDA margins (31%‑33%). " " " " Q3 2024: Reinforced strong free cash flow and disciplined cost management despite regulatory pricing challenges and LOE impacts. " " " " "

Q1 2025: Emphasized robust free cash flow generation (over $900M), continued strong EBITDA growth, and outlined specific operating margin pressures due to pricing revisions and LOE (e.g., Atozet in Europe), while continuing cost-saving initiatives. " " " " "

Consistent commitment to financial discipline across all periods, with recurring challenges from regulatory pricing and LOE being offset by strong free cash flow and targeted cost savings.