Current Assets [USD, Millions]

Cash and Cash Equivalents [USD, Millions]

Accounts Receivable [USD, Millions]

Inventory [USD, Millions]

Non-Current Assets [USD, Millions]

Property, Plant, and Equipment (PP&E) [USD, Millions]

Goodwill [USD, Millions]

Intangible Assets [USD, Millions]

Current Liabilities [USD, Millions]

Accounts Payable [USD, Millions]

Short-term Debt [USD, Millions]

Accrued Expenses [USD, Millions]

Non-Current Liabilities [USD, Millions]

Long-term Debt [USD, Millions]

Lease Liabilities [USD, Millions]

Deferred Tax Liabilities [USD, Millions]

Shareholders' Equity [USD, Millions]

Retained Earnings [USD, Millions]

Common Stock [USD, Millions]

Additional Paid-in Capital [USD, Millions]

72205ea091c23a86e5172bea5e5020970f9808383467266df94af6d0197dd7ff

Viatris is a global healthcare company that operates through a diversified portfolio of branded and generic products across various markets. The company is organized into four main business segments: Developed Markets, Greater China, JANZ (Japan, Australia, and New Zealand), and Emerging Markets, with the Developed Markets segment being the largest contributor to its revenue **[0001792044-24-000008_vtrs-20231231.htm:23]** **[0001792044-24-000008_vtrs-20231231.htm:150]**. Viatris offers a wide range of pharmaceuticals, including well-known branded products like Lipitor®, Norvasc®, Lyrica®, and EpiPen® Auto-Injectors, as well as a stable generics segment featuring complex generics such as Wixela and Breyna **[0001792044-24-000008_vtrs-20231231.htm:150]** **[VTRS_3375437_3]**. The company emphasizes new product launches and continues to invest in its pipeline, particularly in complex injectables and eye care products, to drive future growth **[VTRS_3375437_3]** **[0001792044-24-000004_exhibit991-4q23earningsrel.htm:6]** **[0001193125-24-118165_d758146d10ka.htm:39]**.

1. **Branded Pharmaceuticals** - Offers a range of well-known branded medications, including Lipitor®, Norvasc®, Lyrica®, and EpiPen® Auto-Injectors, making up a significant portion of the company's portfolio.
2. **Generic Pharmaceuticals** - Provides a stable selection of generic drugs, including complex generics like Wixela and Breyna, contributing significantly to the company's revenue.
3. **Developed Markets** - Focuses on operations in North America and Europe, contributing the largest share to the company's overall revenue.
4. **New Product Launches** - Drives growth through recent product introductions, such as Breyna™ in the U.S., and continues to expand its offerings.
5. **Pipeline Investments** - Invests in future growth through the development of complex injectables and eye care products.

9b2285b82d5ae4f3cae6d6fa9d286d3121e029c3d23d1cf39a237b7c27c95000

Number of patients served annually (billion patients)

Number of employees (employees)

Number of manufacturing and packaging sites (sites)

Number of countries and territories served (countries and territories)

d12ae6d4f005ada732b6bc02510174a8d1b08fcfe4fead4d4465b0b13af3186e

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD]

EPS - Diluted [USD]

3d120fe12a1f5709e602ab75a0e9a26a13e22c5a8985ee446abc7e4cb8d330fb

Adjustments for Non-Cash Items

Stock-Based Compensation

Changes in Working Capital

Capital Expenditures (CapEx)

Proceeds from / Repayments of Debt

Share Repurchases

Dividend Payments

Net Change in Cash

76c3f4c7f7a46e9c9cfb03b17614c6fccba3cb6f8d26bd80ec222a1c9d05d215

| Product Category | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 |
|------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Brands (USD millions)** | N/A | **2,533.1**  **[0001792044-23-000033_vtrs-20230930.htm:11]**  | **2,444.7**  **[0001792044-23-000024_vtrs-20230630.htm:11]**  | **2,420.3**  **[0001792044-23-000017_vtrs-20230331.htm:10]**  | N/A | N/A | N/A | N/A |
| **Complex Generics (USD millions)** | N/A | **174.4**  **[0001792044-23-000033_vtrs-20230930.htm:11]**  | **139.2**  **[0001792044-23-000024_vtrs-20230630.htm:11]**  | **136.1**  **[0001792044-23-000017_vtrs-20230331.htm:10]**  | N/A | N/A | N/A | N/A |
| **Generics (USD millions)** | N/A | **1,226.4**  **[0001792044-23-000033_vtrs-20230930.htm:11]**  | **1,325.6**  **[0001792044-23-000024_vtrs-20230630.htm:11]**  | **1,162.7**  **[0001792044-23-000017_vtrs-20230331.htm:10]**  | N/A | N/A | N/A | N/A |

f29670ebbf87717b9883bfe5181a61ffba5096e9967bb3cb5c35a7eede7fd7b8

1. You've mentioned confidence in delivering $450 million to $550 million in new product revenue next year, including key products like glucagon, iron sucrose, and liraglutide; can you provide specific guidance on the expected contributions from each of these products and any potential risks that could impact these projections?
2. With supply chain delays affecting your ARV products in emerging markets, when do you expect to fully resolve these issues, and what measures are you implementing to prevent similar disruptions in the future?
3. Given your leverage target is nearly achieved and the stock is trading at a low multiple, how do you plan to balance capital allocation between share repurchases and business development investments, and what factors will influence a more aggressive approach towards buybacks versus investing in pipeline assets?
4. Regarding your recent licensing agreement for sotagliflozin, which is expected to start contributing to revenue around 2027, can you clarify how this aligns with your strategy for near-term growth and what interim milestones investors should watch for?
5. With potential generic competition for Symbicort expected next year from competitors like Teva, how do you plan to address the anticipated market share erosion, and what strategies are in place to mitigate the impact on your revenues?

54ddf8a64ea036e196ccde5433cb95e1ef8e4b246ae404f753eac982db1ee162

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Operational Revenue Growth**: Approximately **2%**  **[VTRS_3406538_4]** .
  2. **Adjusted EBITDA and Adjusted EPS**: Expected to be flat versus the previous year due to IP R&D impacts  **[VTRS_3406538_4]** .
  3. **Free Cash Flow**: Expected to be lower in Q4 due to divestiture costs, taxes, higher CapEx, and semiannual interest payments  **[VTRS_3406538_4]** .
  4. **Gross Leverage Target**: **2.8 to 3.2x**  **[VTRS_3406538_4]** .
  5. **New Product Revenue**: Expected to be at the higher end of **$500 million to $600 million**  **[VTRS_3406538_3]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Operational Revenue Growth**: Approximately **2%** versus 2023  **[VTRS_3397435_7]** .
  2. **Adjusted EBITDA and Adjusted EPS**: Expected to be stable  **[VTRS_3397435_7]** .
  3. **New Product Revenue**: **$500 million to $600 million**  **[VTRS_3397435_2]** .
  4. **Adjusted Gross Margin**: Expected to increase due to a better segment mix  **[VTRS_3397435_7]** .
  5. **SG&A as a Percentage of Revenue**: Expected to be higher  **[VTRS_3397435_7]** .
  6. **Debt Paydown**: Target of approximately **3x** gross leverage by year-end  **[VTRS_3397435_7]** .
  7. **Cash Available for Deployment**: In excess of **$3 billion**  **[VTRS_3397435_7]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Total Revenue**: Adjustments represent approximately **$270 million** for the remainder of 2024  **[VTRS_3387849_5]** .
  2. **Adjusted EBITDA**: Adjustments represent approximately **$86 million**  **[VTRS_3387849_5]** .
  3. **Adjusted EPS**: Adjustments represent approximately **$0.04**  **[VTRS_3387849_5]** .
  4. **Base Business Growth**: Approximately **2% operationally**  **[VTRS_3387849_5]** .
  5. **New Product Revenue**: **$450 million to $550 million**  **[VTRS_3387849_5]** .
  6. **Foreign Exchange Impact**: Potential headwind of approximately **2%**  **[VTRS_3387849_5]** .
  7. **Revenue Phasing**: Higher in the second half due to seasonality  **[VTRS_3387849_5]** .
  8. **Adjusted Gross Margin**: Higher in the first half  **[VTRS_3387849_5]** .
  9. **Operating Expenses**: Evenly phased throughout the year  **[VTRS_3387849_5]** .
  10. **Adjusted EBITDA and Adjusted EPS**: Slightly higher in the second half  **[VTRS_3387849_5]** .
  11. **Free Cash Flow**: More weighted to the second half  **[VTRS_3387849_5]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: N/A
- **Guidance**: The documents do not contain information about the Q4 2023 earnings call for Viatris, so the guidance metrics and period are unavailable.

aa4971e7fc975b819926ba4b2e3033bfc12913ad606ad6f65aa25c40b0ae0e2b

Developed Markets

Greater China

JANZ

Emerging Markets

- United States

- China

Total Net Sales

Total Revenue

dd1d74eea3913f217e597d7e43bf2131f838b5bcd5ca1be474f210d63290f792

Brands

Generics

- Developed Markets

- Greater China

- JANZ

- Emerging Markets

Complex Generics (Complex Gx)

d11ec56b77ef84bb3122601a7de89e1ffa2c41b2bbb045112992ca144ec84e3b

| Name                     | Position                                      | Start Date       | Short Bio                                                                                                                                                                                                 |
|--------------------------|-----------------------------------------------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Scott A. Smith           | Chief Executive Officer                       | April 1, 2023    | Scott A. Smith has served as the CEO of Viatris Inc. since April 1, 2023. He was previously the President of BioAtla, Inc. and held various executive roles at Celgene Corporation  **[0001193125-24-118165_d758146d10ka.htm:5]** **[0001193125-24-118165_d758146d10ka.htm:16]** **[0001193125-23-127172_d487324d10ka.htm:32]** .                                                   |
| Theodora (Doretta) Mistras | Chief Financial Officer                      | March 1, 2024    | Theodora Mistras has served as the CFO of Viatris since March 1, 2024. She joined as CFO-elect on January 1, 2024, and was previously Managing Director of Healthcare Investment Banking at Citigroup Global Markets  **[0001193125-24-118165_d758146d10ka.htm:5]** **[0001193125-24-244173_d816790ddef14a.htm:59]** **[0001792044-24-000008_ex_1013xvtrsx20231231x10-k.htm:1]** .                  |
| Paul Campbell            | Chief Accounting Officer and Corporate Controller | November 16, 2020 | Paul Campbell has served as Viatris' Chief Accounting Officer and Corporate Controller since November 16, 2020. He was previously Mylan's Chief Accounting Officer, Senior Vice President, and Controller  **[0001193125-24-118165_d758146d10ka.htm:5]** **[0001193125-24-244173_d816790ddef14a.htm:59]** **[0001193125-23-261703_d448836dpre14a.htm:62]** **[0001193125-23-270437_d448836ddef14a.htm:62]** **[0001193125-23-127172_d487324d10ka.htm:5]** .                      |
| Brian Roman              | Chief Legal Officer                           | April 1, 2024    | Brian Roman has served as Viatris' Global General Counsel since November 16, 2020, and was named Chief Legal Officer on April 1, 2024. He oversees the company's global legal organization  **[0001193125-24-244173_d816790ddef14a.htm:60]** **[0001193125-24-118165_d758146d10ka.htm:5]** **[0001193125-24-244173_d816790ddef14a.htm:59]** .                                           |
| Dr. Corinne Le Goff      | Chief Commercial Officer                      | April 15, 2024   | Dr. Corinne Le Goff has served as the Chief Commercial Officer of Viatris Inc. since April 15, 2024. She previously held roles at Imunon, Inc., Moderna, Inc., and Amgen Inc.  **[0001193125-24-118165_d758146d10ka.htm:6]** **[0001193125-24-244173_d816790ddef14a.htm:61]** **[0001193125-24-118165_d758146d10ka.htm:27]** .                                                      |

092bfd22da522c199e3ad883f005022a518e29eecea6ee6606ef0e8e404b5476

| Program Details          | Program 1          | Program 2          |
|--------------------------|--------------------|--------------------|
| Approval Date            | February 28, 2022  **[0001792044-24-000033_vtrs-20240930.htm:24]** **[0001792044-24-000033_vtrs-20240930.htm:65]**  | February 26, 2024  **[0001792044-24-000033_vtrs-20240930.htm:24]** **[0001792044-24-000033_vtrs-20240930.htm:65]**  |
| End Date/Duration        | No expiration  **[0001792044-24-000033_vtrs-20240930.htm:24]** **[0001792044-24-000033_vtrs-20240930.htm:65]**  | No expiration  **[0001792044-24-000033_vtrs-20240930.htm:24]** **[0001792044-24-000033_vtrs-20240930.htm:65]**  |
| Total Additional Amount  | $1.0 billion  **[0001792044-24-000033_vtrs-20240930.htm:24]** **[0001792044-24-000033_vtrs-20240930.htm:65]**  | $1.0 billion  **[0001792044-24-000033_vtrs-20240930.htm:24]** **[0001792044-24-000033_vtrs-20240930.htm:65]**  |
| Remaining Authorization  | $0.5 billion  **[0001792044-24-000033_vtrs-20240930.htm:24]** **[0001792044-24-000033_vtrs-20240930.htm:65]**  | $1.0 billion  **[0001792044-24-000033_vtrs-20240930.htm:24]** **[0001792044-24-000033_vtrs-20240930.htm:65]**  |
| Details                  | Part of strategy to enhance shareholder value  **[0001792044-24-000008_vtrs-20231231.htm:97]** **[0001792044-24-000008_vtrs-20231231.htm:74]** **[0001792044-24-000025_vtrs-20240630.htm:25]** **[0001792044-24-000033_vtrs-20240930.htm:24]** **[VTRS_1200731_2]**  | Increase return of capital to shareholders  **[0001792044-24-000008_vtrs-20231231.htm:97]** **[0001792044-24-000008_vtrs-20231231.htm:74]** **[0001792044-24-000025_vtrs-20240630.htm:25]** **[0001792044-24-000033_vtrs-20240930.htm:24]** **[VTRS_1200731_2]**  |

87e3dbb258f451a12b04880610593d4fa37215a5c79d4ca1e75cd5921234fb21

**Annual guidance for FY 2024:**
- **Operational Revenue Growth**: 2%  **[VTRS_3406538_4]**  (no change from 2%  **[VTRS_3397435_7]** )  
- **Adjusted EBITDA and Adjusted EPS**: Flat versus the previous year  **[VTRS_3406538_4]**  (no change from “stable”  **[VTRS_3397435_7]** )  
- **New Product Revenue**: Expected to be at the higher end of $500 million to $600 million  **[VTRS_3406538_3]**  (raised from $500 million to $600 million  **[VTRS_3397435_2]** )  
- **Gross Leverage Target**: 2.8 to 3.2x  **[VTRS_3406538_4]**  (no change from approximately 3x  **[VTRS_3397435_7]** )  
- **Free Cash Flow**: Expected to be lower in Q4  **[VTRS_3406538_4]**  (no prior guidance)  

ba80ea2e018981ad4949bb7084161f96376fa4c02e972fa6ced5a9003b8b6085

| Name               | Start Date | End Date   | Reason for Change                                                                                     |
|--------------------|------------|------------|-------------------------------------------------------------------------------------------------------|
| Deloitte & Touche LLP | 1976  **[0001792044-21-000009_vtrs-20201231.htm:128]**  | Present | Current auditor.                                                                                 |
| KPMG LLP           | N/A    | November 19, 2020  **[0001193125-20-303718_d50629d8k.htm:2]**  | The change was made in connection with the Combination of Mylan and Pfizer's off-patent branded and generic established medicines business. Mylan, the accounting acquirer in the Combination, had Deloitte & Touche LLP as its independent registered public accounting firm since 1976.  **[0001193125-20-303718_d50629d8k.htm:2]**  |

c83af386037ed6046be9f712a5e2dd9bbc2fff18b4dc9da2bf55401778ae282d

4ae72a988478b65cba67db6276f75a2205d729338d928d7823116d95f2527218

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $3,751.2 million (-5% YoY)  **[0001792044-23-000033_vtrs-20230930.htm:65]** **[0001792044-23-000033_vtrs-20230930.htm:6]** **[0001792044-24-000033_vtrs-20240930.htm:5]**   
- Brands: $2,362.2 million (-7% YoY)  **[0001792044-23-000033_vtrs-20230930.htm:11]** **[0001792044-24-000033_vtrs-20240930.htm:11]**   
- Generics: $1,375.8 million (**+12% YoY**)  **[0001792044-23-000033_vtrs-20230930.htm:11]** **[0001792044-24-000033_vtrs-20240930.htm:11]**   
- Emerging Markets: $533.2 million (**-17% YoY**)  **[0001792044-23-000033_vtrs-20230930.htm:65]** **[0001792044-24-000033_vtrs-20240930.htm:42]**   
- Net Income: $94.8 million (**-71% YoY**)  **[0001792044-23-000033_vtrs-20230930.htm:6]** **[0001792044-24-000033_vtrs-20240930.htm:5]** **[0001792044-23-000033_vtrs-20230930.htm:64]** **[0001792044-24-000033_vtrs-20240930.htm:9]** **[0001792044-24-000033_vtrs-20240930.htm:77]**   
- EPS (Diluted): $0.08 (**-70% YoY**)  **[0001792044-23-000033_vtrs-20230930.htm:6]** **[0001792044-24-000033_vtrs-20240930.htm:5]** **[0001792044-23-000033_vtrs-20230930.htm:64]** **[0001792044-24-000033_vtrs-20240930.htm:9]** **[0001792044-24-000033_vtrs-20240930.htm:77]**   

f23015d11848df811e744ca5e89863222e7f9d89dd182b5fadc5001fb959ccf2

1. **Capital Allocation and Share Buybacks**  
   **Q:** How will you balance business development investment and share repurchases?  
   **A:** With debt repayment nearing our target leverage ratio of **approximately 3.0**, we're implementing our full capital allocation strategy of allocating a **minimum of $2.3 billion** in free cash flow, with **half** returning to shareholders via dividends and share buybacks and **half** to business development. Given the current **share price and valuation**, we may be **more aggressive on share buybacks** than on business development in **2025**, aiming to allocate approximately half to shareholders and half to business development over the next **3–5 years**.  **[VTRS_3406538_7]** 

2. **2025 EBITDA Expectations**  
   **Q:** Any initial color on 2025 expectations for EBITDA?  
   **A:** While we're not providing forward-looking revenue and EBITDA guidance, we expect momentum from our base business to continue at the top line. For **EBITDA and EPS**, we're working through post-divestiture adjustments and focusing on **adjusted EBITDA stability** in the coming year. We're balancing business growth with necessary investments in **R&D and commercial** to drive future growth. We feel confident in our **$2.3 billion** cash flow and will provide more clarity next year.  **[VTRS_3406538_6]** 

3. **New Product Contributions**  
   **Q:** How much will products like Sandostatin LAR contribute next year?  
   **A:** We're confident about achieving **$450 million to $550 million** in new product revenue next year, including carryover from **2024**, generic launches in North America and Europe, and complex products such as **glucagon**, **iron sucrose**, and **liraglutide**. These products are clearly in the mix for next year as we continue to work on our broad portfolio.  **[VTRS_3406538_8]** 

4. **Sotagliflozin Launch Plans**  
   **Q:** What are your plans for sotagliflozin in the next 1–2 years?  
   **A:** We plan to leverage the **U.S. approval** of sotagliflozin and register it in markets like **Canada, Australia, and New Zealand**. In **Japan and China**, it may require another clinical study. We expect sotagliflozin to start contributing to revenue around **2027**, generating growth through the end of the decade.  **[VTRS_3406538_9]** 

5. **Symbicort Market Competition**  
   **Q:** How will potential competition affect your Symbicort generic?  
   **A:** We're pleased with the performance of **Breyna**, our generic in this market, currently holding **TRx market share**. We expect Breyna to continue delivering growth into **2025**, offering durable and sustainable value despite potential new competition.  **[VTRS_3406538_8]** 

6. **China Business Outlook**  
   **Q:** Is China's investigation impacting your business there?  
   **A:** We have no direct comment on the investigation of another company. We recently met with our team in China and maintain the **highest standards** with a strong compliance organization. We've developed deep partnerships within the healthcare community and feel very strongly about our business in China.  **[VTRS_3406538_5]** 

7. **Impact of New Administration**  
   **Q:** How could the new administration affect U.S. generics?  
   **A:** It's too early to fully understand healthcare implications, but we'll work positively with the **Trump administration** as we would with any administration. We're optimistic about what's ahead in **2025** and beyond.  **[VTRS_3406538_9]** 

03b84b39060ceb21c7fc41cbbdaafa0047fedb665149f5a559d54a1b0f65c5ef

1301f9ee8d1a7749e02a9c7aca04aa3bfcf8ec3a597198d5d68690fba555fe07

82f7d72b7dee4ac50431206ee8cee03959c7b1890629ef0c1b5bf53163aa36ff

f169e0434512cfe1161561b17a9d130a431a2752d72a543ed4ef8f779e9beb81

1. **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.  **[VTRS_3387849_7]** 

2. **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.  **[VTRS_3387849_7]** 

3. **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.  **[VTRS_3387849_10]** 

4. **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.  **[VTRS_3387849_8]** 

5. **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.  **[VTRS_3387849_9]** 

6. **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.  **[VTRS_3387849_12]** 

7. **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.  **[VTRS_3387849_11]** 

8. **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.  **[VTRS_3387849_10]** 

9. **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.  **[VTRS_3387849_6]** 

10. **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.  **[VTRS_3387849_9]** 

dcb700032a49cc7a029b1643f0f421f2ebd0e1800892dff66c61a0e2fe99b644

- *1. Uncertainty in Product Approvals May Delay Growth:** Viatris acknowledged potential delays in launching key products like the generic version of Sandostatin, as they are still under FDA review and expect to provide updates only after scheduled meetings with agencies in mid-December  **[VTRS_3406538_5]** . Such delays could impact anticipated revenue growth from new product launches.
- *2. Limited Near-Term Revenue from New Innovative Products:** The company does not expect its newly licensed product, sotagliflozin, to contribute to revenue growth until around **2027**, indicating a potential gap in near-term revenue expansion from innovative assets  **[VTRS_3406538_10]** .
- *3. Supply Chain Issues Affecting Key Product Segments:** Viatris is experiencing supply delays in its antiretroviral (ARV) products, leading to backlogs that are impacting their emerging markets segment  **[VTRS_3406538_7]** . These supply chain challenges could hinder revenue in important markets.

6b62fd40310847a16e88453b3d94200307cd63c08eef1189958fa6530546f20b

- **Significant Foreign Exchange (FX) Headwinds**: Viatris is experiencing substantial FX pressures due to the strengthening of the U.S. dollar against key currencies like the euro, Japanese yen, and Chinese RMB, impacting revenues by **$250 million** in 2023, especially concentrated in Q4.  **[VTRS_3365058_12]**
- **Dependence on Divestitures and Uncertain Timing of Growth Initiatives**: The company's transition to Phase II growth relies on proceeds from planned divestitures and investments in new business development activities, whose timing and success are uncertain, potentially delaying the acceleration of top-line growth beyond the base **3% revenue CAGR** target.  **[VTRS_3365058_8]** ,  **[VTRS_3365058_7]**
- **Potential Industry-wide Weakness in China**: Despite company optimism, there is concern that Viatris may experience weakness in China similar to its peers, which could impact future results in the region due to broader industry challenges.  **[VTRS_3365058_9]**

46252dff646f9b3e7e063c469a3f151c1a4f45dd008bddeb644930f45769ec05

- **Strong new product launches, notably Breyna (generic Symbicort), expected to be a significant contributor in 2024 with no anticipated competition, driving revenue growth**.  **[VTRS_3365058_14]**
- **Effective management of inflationary pressures leading to better-than-expected gross margins**, with adjusted EBITDA and free cash flow guidance reaffirmed despite FX headwinds.  **[VTRS_3365058_11]** **[VTRS_3365058_12]**
- **Confidence in generating at least $2.3 billion in free cash flow in 2024 and beyond**, with active pursuit of business development opportunities to leverage the global platform and accelerate growth beyond the base business.  **[VTRS_3365058_8]** **[VTRS_3365058_7]**

cff1ebb56162f5c5771b9f9d843b55fc41894d08e9bf1e5d6ebe2eaac80a4e72

- Viatris demonstrated strong performance in emerging markets, with outperformance across both generics and branded products like **Lipitor**, **Elidel**, and **Xalabrands**, despite FX headwinds, indicating robust growth potential in these regions.  **[VTRS_3387849_12]**
- The company is confident in achieving its new product revenue guidance of **$450 million to $550 million** for 2024, driven by a broad portfolio including better-than-expected performance from products like **Breyna**, and not dependent on any single product.  **[VTRS_3387849_9]** **[VTRS_3387849_11]**
- Viatris expects to generate at least **$2.3 billion** in annual free cash flow even after divestitures, and continues to invest in growth opportunities, including a significant pipeline of complex injectables with more than **50 products** and **15 under FDA review**, positioning the company for future growth and shareholder returns.  **[VTRS_3387849_7]** **[VTRS_3387849_11]** **[VTRS_3387849_10]**

80deb095030e35913c0ac86ab5c04d7862789d2c403566fb1a7ff7f67c0a77d1

1. **2025 EBITDA Guidance**  
   **Q:** Are you comfortable with 2025 EBITDA of $4.5 to $4.6 billion?  
   **A:** Management acknowledged the **$2.3 billion** free cash flow guidance for 2025 but stated it's still too early to discuss specific EBITDA figures for that year. They feel good about the momentum in 2024 and will continue to focus on EBITDA conversion going forward.  **[VTRS_3397435_8]** 

2. **New Product Revenue Drivers**  
   **Q:** What's driving the raised guidance for new product revenues?  
   **A:** The company reported strong new product revenue of **$210 million** this quarter and **$354 million** year-to-date, expecting **$500 million to $600 million** for the full year. Growth is broad-based across products and regions, including Breyna, lisdexamfetamine, and other generics in North America, Europe, emerging markets, and JANZ.  **[VTRS_3397435_8]** 

3. **Business Development Strategy**  
   **Q:** How are you approaching business development and growth opportunities?  
   **A:** Management is engaged in numerous discussions and will take a disciplined approach to business development. After completing divestitures, they aim to pay down debt and are committed to returning at least **$2.3 billion** in free cash flow to shareholders through dividends and share buybacks. They are looking for assets to supercharge growth in 2025 and beyond, focusing on derisked innovative assets with unmet medical needs and long runways, as well as strengthening the base business.  **[VTRS_3397435_9]** 

4. **GLP-1 Aspirations**  
   **Q:** What are your GLP-1 aspirations and investment plans?  
   **A:** The company is developing multiple GLP-1 products, including semaglutide, liraglutide, and Mounjaro. They have secured API supply and invested in manufacturing capabilities, anticipating a significant role in the GLP-1 market.  **[VTRS_3397435_11]** 

5. **Complex Generics Pipeline**  
   **Q:** What are your expectations for complex generic launches in 2025?  
   **A:** With over **250 products** in the pipeline under development or regulatory review, the company expects a steady flow of complex generics launching in 2025 and beyond. They are confident in their complex generic pipeline but did not highlight specific products.  **[VTRS_3397435_10]** **[VTRS_3397435_11]** 

6. **Investment in Cenerimod**  
   **Q:** How does cenerimod fit into the lupus treatment landscape?  
   **A:** Management believes cenerimod offers high efficacy with a differentiated safety profile compared to CAR-T therapies and bispecifics, which have significant safety concerns. As an oral drug, cenerimod provides convenience and is expected to be positioned prior to biologics or CAR-Ts in the treatment sequence.  **[VTRS_3397435_11]** 

7. **Base Business Erosion**  
   **Q:** What's the impact of government price regulations in Japan and Australia?  
   **A:** The ongoing normal government price declines in Japan and Australia are impacting the base business, but this is being offset by better volume in Japan. The JANZ region is performing better than expectations for the year.  **[VTRS_3397435_12]** 

8. **R&D Investment Allocation**  
   **Q:** How will you balance R&D spend between innovative and non-innovative pipelines?  
   **A:** The company will continue to invest in both the base business and innovative pipeline. As they bring in more innovative assets like selatogrel and cenerimod, there may be some shift in R&D allocation, but they will invest in all components to drive growth.  **[VTRS_3397435_12]** 

9. **Divestitures Impact on EBITDA**  
   **Q:** Can you approximate the full-year 2024 EBITDA contribution from divestitures?  
   **A:** Management has adjusted guidance and actuals to reflect divestitures as they close. They will provide additional detail as they move into 2025 but feel good about the stability of EBITDA margins as they continue to invest in growth.  **[VTRS_3397435_13]** 

10. **Selatogrel Development Timeline**  
    **Q:** What's the timeline update for the selatogrel Phase III SOS-AMI trial?  
    **A:** The company is making significant progress to accelerate the development of selatogrel and plans to update timelines in 2025. They are opening new sites and investing in development to move the timelines forward.  **[VTRS_3397435_13]** 

09939b11e541b9125c1329cc57e0168131cacf569c2fccf2c32a4c092d2cd126

- **Strong pipeline of new products expected to drive future growth**, including complex generics like glucagon, iron sucrose, liraglutide, and the expected launch of Sandostatin LAR generic in 2025.  **[VTRS_3406538_9]** **[VTRS_3406538_5]**
- **Robust cardiovascular portfolio with significant opportunities**, leveraging sotagliflozin's approval to expand into new markets, expected to contribute to revenue growth from 2027 onwards. The company has about **$2.5 billion in annual cardiovascular revenues** and the infrastructure to promote new assets.  **[VTRS_3406538_10]**
- **Focused capital allocation strategy emphasizing shareholder returns**, with plans to be more aggressive on share buybacks in 2025 due to current undervaluation, and returning half of their **minimum $2.3 billion in free cash flow** to shareholders via dividends and share repurchases.  **[VTRS_3406538_6]** **[VTRS_3406538_7]**

56ac24d3f80625a519fb9e60844b56a99db9687a1dbf9b2e44970f84644a50db

- **Viatris is experiencing softness in its North America brand segment due to formulary changes impacting key products like EpiPen and higher-than-expected utilization in noncommercial channels, which may continue to pressure revenues in this segment.**  **[VTRS_3387849_6]**
- **Government price regulations in Japan and Australia are causing expected declines in the JANZ segment; ongoing regulatory pressures may limit future growth in these markets.**  **[VTRS_3387849_9]**
- **Uncertainties and potential delays in regulatory approvals for key new products, such as GA Depot which received a Complete Response Letter from the FDA, could impact Viatris' ability to meet its revenue targets dependent on new product launches.**  **[VTRS_3387849_6]** **[VTRS_3387849_9]**

ea7b128e11b16992a658e9cd21e30755cef54a7619b7af20d1020cc0f9ba7213

- **Viatris is facing ongoing government price declines in key markets like Japan and Australia**, which could negatively impact revenues. The CFO acknowledged that these declines are "driven by the ongoing price normal government price declines that we're seeing in Japan and Australia."  **[VTRS_3397435_12]**
- **Supply chain constraints for GLP-1 APIs may hinder Viatris's ability to enter the GLP-1 market as anticipated.** While the company is developing multiple GLP-1s, they admit that "as you know, supply chain can be a little tight" and that they have "secured supply of API for all these assets," indicating potential risks.  **[VTRS_3397435_11]**
- **Uncertainty about the timing and success of key pipeline assets like cenerimod and selatogrel**, especially given competition from groundbreaking therapies, could impact future growth. The CEO stated, "I don't have a specific update for you on the date... we'll be able to be in a better position to give you sort of specifics on where we think those time lines are going."  **[VTRS_3397435_13]**  Additionally, there are concerns about competition from CD19 CAR-Ts and bispecifics in lupus treatment.  **[VTRS_3397435_11]**

fd9e35763c8b22ad058699bcef8957fb90826e459426179f48eb49d48410a84b

1. **2024 Outlook and Growth Targets**  
   **Q:** How are businesses trending towards the 3% revenue CAGR in Phase II?  
   **A:** Management is confident about 2024, expecting at least **$2.3 billion** in free cash flow in '24 and beyond, even accounting for inflation and FX headwinds.  **[VTRS_3365058_8]**  The base business is stable and growing globally, targeting a **3% revenue CAGR** in Phase II, with potential for higher growth through business development.  **[VTRS_3365058_8]** 

2. **Capital Deployment and Divestitures**  
   **Q:** Are you actively pursuing divestitures and redeploying cash into verticals?  
   **A:** The company is actively looking for innovative high-growth assets with predictable revenue streams.  **[VTRS_3365058_7]**  While focusing on specific verticals, they remain open to opportunities outside them.  **[VTRS_3365058_7]**  Timing is not specified, but they are excited about current opportunities.  **[VTRS_3365058_7]** 

3. **China Business Performance**  
   **Q:** Why is China performing differently than peers, and are there risks ahead?  
   **A:** The China business remains stable despite FX impacts.  **[VTRS_3365058_9]**  After VBP cycles, they've shifted focus to private pay channels, finding equilibrium between hospital and private pay.  **[VTRS_3365058_9]**  Investing in pipeline products like **Yupelri** and **Dymista**, they are confident and optimistic about China's fundamentals.  **[VTRS_3365058_9]** 

4. **Generics Pricing Environment**  
   **Q:** How is the generics pricing environment, and are trends sustainable?  
   **A:** After years, the company sees a longer stretch of stability in generics pricing.  **[VTRS_3365058_10]**  Supply disruptions in key molecules continue, but their strong portfolio and supply flexibility provide stability.  **[VTRS_3365058_10]**  No concerning trends are observed currently.  **[VTRS_3365058_10]** 

5. **Inflationary Pressures on Costs**  
   **Q:** Are inflationary pressures on cost of goods affecting margins?  
   **A:** Inflation impact exists but is less than anticipated.  **[VTRS_3365058_11]**  The team is managing costs well, reflected in better-than-expected gross margins.  **[VTRS_3365058_11]**  Full-year gross margin metrics have been raised to **58.75%** due to mix and effective cost management.  **[VTRS_3365058_11]** 

6. **FX Impact on Revenue**  
   **Q:** Why is the FX headwind larger in Q4, lowering revenue guidance?  
   **A:** Strengthening of the U.S. dollar against the euro, yen, and RMB since September increased FX impact.  **[VTRS_3365058_12]**  About **70%** of business is non-U.S. dollar denominated, with **50%** from these three currencies.  **[VTRS_3365058_12]**  The larger FX impact in Q4 is reflected in the full-year guidance adjustment.  **[VTRS_3365058_12]** 

7. **Breyna (Generic Symbicort) Outlook**  
   **Q:** How significant will Breyna's contribution be next year?  
   **A:** Breyna is expected to be a significant contributor in 2024, with no competition anticipated.  **[VTRS_3365058_14]**  The company is pleased with the launch and market share pickup.  **[VTRS_3365058_14]**  They are on track to exceed **$450 million** in new launches, having already achieved **$345 million**.  **[VTRS_3365058_14]** 

aac8b202c3056efcf42f7ba385ed0d6906e89a6c0ee2c2449560c99db21e329e

- **Viatris is focusing on disciplined business development to acquire innovative, patent-protected assets** that can drive future growth, such as **selatogrel and cenerimod**, which are considered important potential assets. The company plans to **continue to add assets to their pipeline in 2025 and beyond** to **accelerate growth**.  **[VTRS_3397435_10]** ,  **[VTRS_3397435_9]** ,  **[VTRS_3397435_13]**
- **Viatris is investing in developing multiple GLP-1 products**, including **semaglutide, liraglutide, and Mounjaro**, having **secured API supply and invested in manufacturing capabilities**. They **anticipate a significant role in the GLP-1 market**, which is rapidly growing.  **[VTRS_3397435_11]**
- **Strong new product revenue momentum** with **$210 million in Q2**, adding to **$154 million in Q1**, totaling **$354 million year-to-date**, leading to an **increased full-year guidance of $500 million to $600 million**. This growth is **driven by products already launched and a broad pipeline**, indicating continued confidence in the company's growth prospects.  **[VTRS_3397435_8]**

49548c61c72fc2a50597ec1de5a24d39e0c31d7220b39ad862b02d2aa39ca15b

Viatris Inc (VTRS)

Financials