Free Cash Flow Post-Divestitures
Q: Will free cash flow remain $2.3B post-divestitures?
A: Management affirmed that even after the divestitures, they expect to generate at least $2.3 billion in free cash flow annually from 2025 onwards, citing the diversity and stability of their base business and cash optimization initiatives.

Ophthalmology Sales Target
Q: How will you achieve $1B ophthalmology sales by 2028?
A: The company is optimistic about reaching $1 billion in ophthalmology sales by 2028, driven by the entire pipeline of products, not just Tyrvaya. They see positive trends and continued uptake of Tyrvaya, which performed in line with expectations in Q1. Recent launches like Ryzumvi, though niche, complement their portfolio, and they have several products in the pipeline fueling their confidence.

Capital Allocation Plans
Q: How are you deploying capital (buybacks, BD)?
A: Management is exploring various opportunities, favoring licensing partnerships due to their strong global presence. They have conducted share repurchases and completed the Idorsia deal this year. They expect to continue share buybacks and pursue business development opportunities as appropriate, leveraging their capital to drive future growth.

Divestiture Closings
Q: When will API and OTC sales close?
A: The divestiture of the API business is expected to close imminently. The OTC business sale is on track to close by midyear; while it may be in June or slightly later, it is pending regulatory approvals and consents. Management is pleased with the progress and anticipates completion around that timeframe.

New Product Revenue Guidance
Q: Can you meet guidance without Tyrvaya or GA Depot?
A: Management is confident in achieving $450 million to $550 million in new product revenues for the year, even excluding Tyrvaya, which is no longer classified as a new product. Despite potential delays with GA Depot, strong performance from products like Breyna and a broad portfolio underpin their confidence, as they are not reliant on any single product.

Emerging Markets Performance
Q: Is emerging markets growth sustainable?
A: The company is pleased with strong performance in emerging markets, notably in MENA and Eurasia regions across generics and branded products like Lipitor, Elidel, and Xalabrands. Despite FX headwinds and currency weaknesses against the U.S. dollar, they saw outperformance across the board and expect this growth to be sustainable.

Complex Injectables Priority
Q: How significant is complex injectables to R&D?
A: Complex injectables are a crucial part of the company's base business and R&D portfolio. They represent over 50 products, with about 15 currently under FDA review. Significant investment in this area reflects its importance, and they anticipate these products will contribute meaningfully to future growth.

Idorsia Assets Timeline
Q: Will adding sites accelerate Idorsia timelines?
A: While the company is adding a significant number of sites and expanding into regions not originally planned by Idorsia, this acceleration is not yet included in the timelines presented at the R&D Day. It's too early to determine the impact, but management will provide updates as they progress.

North America Brand Softness
Q: Can you offset North America brand softness?
A: Management expects to offset the impacts of formulary changes affecting EpiPen and channel dynamics through growth in other brands over the year. They highlighted 18% growth in Yupelri and positive trends with Tyrvaya. Despite a choppy Q1, they anticipate strong full-year performance in North America brands.

JANZ Performance Outlook
Q: What's the outlook for JANZ performance?
A: JANZ (Japan, Australia, New Zealand) is performing in line with expectations, showing 2% operational growth driven by business expansion in Australia, despite FX headwinds. While natural price erosion due to government regulations is expected, management anticipates the business will continue to perform as expected for the remainder of the year.