Viatris (VTRS) 28 Feb 222021 Q4 Earnings call transcript

Good morning, everyone. I'm Bill Szablewski, Global Head of Capital Markets for Viatris. It is my pleasure to welcome you to our Investor event. With us today is our CEO, Michael Goettler; our President, Rajiv Malik; and our CFO, Sanjeev Narula.

We have a lot to share today regarding the reshaping of Viatris into a simpler, stronger and more focused company. started, to get few off we disclaimers. before I cover need a But

for event, making future for will a today's uncertainties statements we During investor risks to to be furnished events strategic These differ materially matters, and to X-K our a that are or we to subject the risks various and SEC presentation could number explanation including forward-looking or and financial earlier and from today's guidance to the cause full today today's XXXX projections. those of limits that press initiatives. forward-looking slide results of Please forward-looking Form on statements the refer on uncertainties release statements. applicable

an adjusted which financial referring non-GAAP be basis, certain measures. will projected to on financial and are We Viatris actual metrics of

to today's Michael at like With replay today's I'd expressed the our consent GAAP. questions, except with our measures a financial following refer a that, website comparable measures Viatris webcast, Viatris' performance. the archived measures participant our or along on available and with accordance of presentation. as of The reconciliations information GAAP over are and permission. of and present your hand not for discussed during slide to investor.viatris.com financial those as in the to and written non-GAAP of substitute is today's Goettler. our will or be recorded supplement of as the well copy The event. appendix CEO, without presentation, to presentation, rebroadcast measures property be adjusted them at in for it understanding the to to of investor.vetris.com, on and We considered calculated as assessment will the conclusion should be GAAP Non-GAAP measures measures direct available website An now of these cannot superior most

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that to I'll over and But further transaction, Biocon Rajiv? come details hand the on later. to explain biosimilar I like I'll on would back further strategy details for it later. now, Rajiv Now for

Thank you, Michael.

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to over turn it I'll Michael. Now

Thank you, Sanjeev.

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Now Sanjeev. over turn it to will I

It's successful out on year strong another Thank organizations incredibly first closed quarter had together. excellent how full for the Viatris, come X note. a We year really you, Rajiv. been I'm and and have pleased

Our the platform. strong breadth global financial performance demonstrate of our

reshape strategic met on a XXXX, As I commitment our plan bold we and delivered reflect for deleveraging to integration company going forward. developed plan, our on dividend and action financial for our

the was approximately XX, into business new move Moving working our Greater November pressure guidance us which cash cash XX generation XXXX, reported strong year products in driven allowed EBITDA driven the total key In on came exceeded is to impact our adjusted from sold our and captures X% on and into LOE erosion underlying has treatment margin continue strong capture line to quarter financial flow and were due America. into cash taxes. our combined line, developed saw accelerated which to flow. as the of the goods Taking by estimates in year. to thrombosis generic account to which factors growth China, million the the prior an SG&A. benefit in by gross XXXX. midpoint execute we complex free partially products. products. across approximately us for flat the business in to which Lyrica and in market, initiatives base we optimization performance, results Slide $XXX largely pleased which the in relative In benefited were retail in taking on for identifies flow low performance now and by brand Total with offset performance benefit Emerging was driver offset we the I'm cash from by revenue we approximately was revenue and and included free America, and regimens, and Slide competition full integration meet $XXX revenue, JANZ, to Celebrex year. us the enabled operational behind free operational Adjusted synergies North competition the Europe, totaled In anticipated our account, In as shift able of capital channel. XX for by revenue was the time COVID-related for of year, at these cost commitment. erosion million adjusted prior to new ARB financial impacted to of with Slide XX.X% market year, franchise. price expectation. product flow our revenue North Free business business was

As cash interest we onetime flow XXXX CapEx higher phasing by several anticipated impacted included timing last and These anticipated cash free costs. we payment, of QX mentioned late year, of to factors. be

onetime and activities. our as cash year, total the XXXX and we the in cost. integration restructuring performance, cash full to For The dividends erosion base approximately higher down of and capital benefits financial plan. range. captures complete in taxes We mid-single-digit expected absorbed business business key million paid delivered XXXX lower assumptions These and revenue billion on step returned working be costs to $X debt. in and XXXX assumes Slide commitment XX financial over $XXX down in estimate are

XX% Foreign given adjusted over incorporates international the and total recently, our XXXX. financial the exchange XXXX, on into more impact second revenue approximately dollar U.S. euro And X% has yen, headwind revenue. exposures guidance strong EBITDA. exposure, our a of in which results on approximately significant the Key our comprises with and half of total include appreciation

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guidance Our million in of $XXX which assumed is adjusted total revenue a approximately approximately $XXX and year EBITDA biosimilar, million. of full

corresponding item biosimilars. revenue includes free our Slide for captures $XXX ranges approximately for product New revenue, million line and cash EBITDA detailed financial metrics. total XX adjusted flow guidance and

relative of XXXX drivers XXXX XX. Removing for illustrated bridges the major impact on Now foreign This revenue expected actuals. to the exchange. Slide turning to build

revenue total year-on-year approximately of business erosion X%. by consists Our is Base buckets. declining X

is and Miacalcin Performist. million to on $XXX approximately related products, key continued is including competition first The expected and

reset treatment the we annual and price portfolio pressure ARB higher and to business America from business, regimens lower The base erosion Japan continuing second deterioration price products. new Europe and captures due In the categories across China. in across in expected North the product strength COVID-related generics, the in on volumes expect

inflationary expecting cost, pressures We're across XX. goods. finished for third-party distribution chain Slide and to supply Moving input

invest and under of drive segments to more initiatives financial guidance strategy we ARB NCEs slight key Through our now in-market margin gross emerging due planned towards between and capabilities. products side, on some expect and reflect pressure markets. to generation XXXX, XXX(b)(X)s. in in On R&D commercial our reshaping build erosion We in pipeline adjusted be volumes our to and and to intend to investment demand competition

Turning XX. to Slide

of expect will free litigation for another be strong Lower and integration We impact costs EpiPen cash offset year settlement. flow generation. by the restructuring partially

to payable optimization capital We receivable expect to initiatives generation. areas free and implementation to working flow continue benefit cash broaden of on in us

Before I phasing. on few close, point a

the a expected timing to start quarter due initiatives to for interest tend slightly for transactions, of strong year be ramp other revenue closing, product strengthen we're products are estimate proceeds and semiannual Biocon free flow normal in us be between the We and and second EBITDA success. In be due higher The first solid expect a company fourth new weighted of adjusted second in XXXX. from estimated half evenly position the long-term off a with coming to the will cash and and We and to well-positioned general, total In payments. seasonality. along lower to half. reshaping half second

Rajiv. Thank you, Sanjeev. you, Thank

really the that that, if years put, dividend, we the and the made 'XX this, this, that of and the look against cash and but build simply for the enhanced flow, the strategy, debt team the are execution, excited. And put for to really forward execution generics, As outlined growth has set entire synergies, we from down, that commitments I, Viatris. and/or a Phase significantly and all to off-patent for we've we're today. focused, at from of away the a 'XX and complex many that presented initiatives years the today, against XXXX take in flexibility R&D. to want pay going short you share you after also years now entire to break, generics, stronger, we is success we're That's is NCEs you that now an We're for that's management increasing of the financial what properly entire engine I That's come consisting company, forward look of And can bottom your use to laying we're we out to a either up Look, line about. And go back, brands XXX(b)Xs; on portfolio laid with simpler, has questions. today, ourselves more the a out beyond. and innovative break. company, BD focused company looking we everything we're vision what the can future repurchases Thank that excited to the we you. company that say,

to Thank Q&A to for in Good investor our you now. to event. morning, going everyone. portion the move listening We're

First we're Schott JPMorgan. Chris to from question operator, Thank take, going you. is

little like bit strategy bit a the it are in terms creating of I broader this. portfolio you Upjohn. the from triggered seem departure clarify just what with does to Because wanted a a of

on the a And year more to of to the these stock divestitures. one something bit at on trying look can is you for or or portfolio seen the kind performance the of for this experienced a billion are, financial asset talk So a process. company's to about of over changes this? a more do sense makes this billion sense where some more was you've $X a color get second considering in valuations Or financial driven from just in bit you're So about little you little incremental the I'm assets today, where trading whole what the it that you've clarification was X? decision? this -- when last of was $X your valuation triggered

$XXX to million XX, $XXX tied to Slide to assets. I it think I go if EBITDA back looks of like these million there's

thinking those valuation the that low about then a implies I code on Is about of think valuation Am ZIP the properly? think color So I be products? right range that for EBITDA that to appreciated. any kind would there? multiple double-digit

was missed your very seconds. Chris, for the missing the we question. sound of was XX about There beginning

that Let me that repeat if then, works.

right. All

was I like there portfolio kind the a the Upjohn-Mylan departure just -- of to was original think, with triggered, I created wanting of from that I bit seems transaction. It it's broader divestiture this this clarify a strategy. what departure

you trying these something you to trading where just worth to performance a business is portfolio? chance understand in I some out, assets, this just trying valuations opportunistic more it's, terms stock these of be figure could you relative as what consider strategic much and this of as where of the had that Viatris' to -- need is a as of you today? a I the to some the to is look this see is in guess, much assets valuation-driven how versus is a that, about are. of I'm of more was of Or about a decision just this So how of focus bit kind little of

XXXX. goes move time promised our through the is Chris, in look bottom-up, our looked Okay. do think comprehensive we to and you, do we want is took a to with we've -- portfolio to that as of all -- that. done, review we Thank have. business, Where I We for very at of strategic to and what today clear. we Look, all

continue We business. broad-based be a to

We have generics.

generics. complex have We

want We some innovative have add engine it. We growth to off-patent brands. to

the us at we value a unlocking we value. what cash immediately giving of this the in we very It's front. business, right, $X looked business, biosimilar getting. immediately recognizes we're think attractive up it attractiveness the the of Now deal is that as It's think because created, billion valuation I have

going with see be We comes stake being going, We a XX.X%, and in positioned the We move, continue to vertically other and we at being better this. to to And it's champion integrated. of upside created be want in a this. having the able Biologics, said they capital I that's we market the durable in to for value that's give least vertically the of integrated to success strategic much company, by are higher as to addition Biocon different additional way companies comments. just in there where XX.X% biosimilar invest benefits, involved with element the XXX(b)(X)s, divestitures maybe Rajiv where which and areas including the are business to And broad-based unlocking the the that the well as use then by potential that multiple more in the future that margin, NCEs and have. ask portfolio is here, already the other

would anything characterize of we the would Yes. going the direction had Chris, a the say, up said I had vision back I it, chain. because value we it's have we or continuation No, long

back, some products. of a took putting number on continuing that sense? let's path, on the look make start We sense? hard you Number a like look, So make two, hard a look it's take hard together, took our a on one. several products inorganically you bring when assets. What say couple years in you assets What don't organically, Now businesses. products when we

businesses. the We a are look hard taking on

better other the We value with we than can what what strategy are put somebody's a more the are fit -- in maybe as evaluating has along, go had. else player are to must-haves long-term some much and focus more that. They a

we go? you're into for set we So I our this, business And each aspect is we this okay, to how look up the every needs reshape and it where going value? company into and and how that time unlock to think can the look said, to of it can took how future

add, position keep a talked about We're other strength. that from If I of can actually coming in the Chris, just Michael. performance. mind, you thing you

in performed, and X even we of initiatives, flow of in reshaping years. you about on free over track with Phase today, these our that cash terms we've results earlier And If think X billion of are we I $X generating the quarters talked solid of including about commitments how we performance. announced without

to a just talked next Rajiv and position coming Michael actually where in stage naturally of about is journey. it's our and evolving So from strength the

the the your And Right. was second assets. question part additional on Chris, of

same cetera. us the motivation is business of question at that behind by we're not, help the we it risk disclosing and for complexity it. either obviously, reduce for are it for point, forward? of So That's assets the disclose execution that a well. what competitive business come for they driven going We'll et of integrity unlocking It's of the closer does But again, of future our this It's reasons, process, we reasons, to value. motivation. as those simplify noncore core business the to main And have. the as and it's and

So with next take I question. that, think we'll the

you, Chris, for question. Thank Yes. the

next to Our Balaji from go question, Barclays. We're operator. going to

me. A couple of questions for

Firstly, seems higher the as on as look the XXXX end $X.X call? Rajiv, the that the remember guidance, guidance, last we be billion called the of I had you floor range out in to at now. And

that and delta have to changed XXXX. what's this includes the this of part So business believe as biosimilars

X give therapeutic build EBITDA a targeted for you therapeutic by what the X therapeutic current the can at for consider areas look XXXX these you these you revenue of growth, as and out Second, areas? that would And successful today? you've size areas

Okay.

do, after done But again, of any not have any vision do is land Sanjeev the like comes all whether all of share for end the a maybe the any me pieces does that the of the going start or moving moment we a can would did of the moving year we're repurchase question give year XXXX, we what with not Let try to on it we're giving out the include targets in at the the make we're not that the think, with potential that. because giving EBITDA. R&D you BD, of of where with we're for sense I what play. laid look the to pieces, changes, any middle wouldn't business one lot so that. XXXX. we of And and really, out, of RemainCo

But then growth. and laid cash to really, what That's be flow, for build to cetera, continue future of to in are we onwards to So $X et future Viatris the our of executing against about committed us, I debt we that going on forward. it's initiatives Phase 'XX, growth, All XXXX and business that think to about. Viatris billion to we its now that return that. should gave continuing just really paydown, eyes it's of synergies, 'XX a in out committed objectives years, absolutely have about being baseline really for of that this business XXXX 'XX right? dividend And execution

On how deliberate the very X picked we we some have therapeutic business areas, look, existing very, were we And them. in on those. yes,

so a can But future business, what Sometimes what do and if what generic the they we go they have you it's really even we business pick are fit reasonable we it's these build in because the we of sometimes look from common, They upon. want -- in branded that from to a right? -- at where areas them, size.

projected have assets, pharma, that They are III you but $XX So not have which and grow by digits, majority X%, you GI, to billion. $XX to They are small-cap X%, market pharma. in of II mid- sizes assets Phase developed and in by look X%. multiple mid-single at Phase from and the large-cap late-stage billion ophthalmology are developed between

us, to Gateway. the Global potentially through Healthcare accessible So

look at You specialist -- very they're driven.

you don't force large sales to them. So primary need very a care reach

probability have high, You of They're but some They driven. They technical low outcome moderate of force studies. cases, already, these -- success, reach success. we doctors. can have easily smaller need high in not and probability not build, can not sales specialty that

think want these have. it the set going the we're to we through competitive we the you all characteristics So you Do that have add that they make well platform go common fit and very anything? to list, to that have

we space. your with it's -- Yes, GI, Europe and good it's a and say, to in, GI. have, we question, think other they that pretty have franchises markets, Japan, example, the those I in much the for some how all for not not like in would just Japan fits presence I Amitiza that. about have just And with Australia size And

the well of And Xalatan knowledge same with very from the is think we pointed Michael that's of case ophthalmology as I So the been out. one considerations, got Upjohn.

understanding pretty think have a space I we good that commercially. of

areas. some picking these these taken consideration have we of are So while up into the factors, which

deal first we just announced. that the And

Yes.

Yes.

EBITDA? the take I Should

Yes, please.

Right.

XX. So the on Balaji, EBITDA, I tried explain Chart that to on

are the There what's that So are factors to Viatris, going unique on? but not X that's industry-wide. important

First is obviously exchange. foreign

Our business. business is XX% international

know, that year you As euro as last yen. we of seen half and dollar second has year, and Key have this strengthened. is beginning of currency

EBITDA So headwind is showed about causing and our million. at $XXX about X% on that the in that's chart, that a all I

that's So factor. one

the procured all input cost, in all again is the factor about chart. solvents, second third-party an the an that million. causing the and That's $XXX whether The clarify on which tried that the is it's third-party industry-wide, This the inflation on the increase -- to distribution APIs, is cost. on the cost, I supply, is

these billion. midpoint So have at again, in you causing of considered see been is factors, put is -- coming where the the together, out $X the guidance,

you. Thank

going to question, Elliot. go we're Next to

question point clarification. of Sanjeev, a first for, a Just

the think that sort years? XXXX XXXX? market, confirm, of biosimilars terms that little perspective have costs to for that the is of roughly, restructuring certainly, talked understanding may NCE, can your think in mean, increasingly XXX(b)(X)-based And the a sort XXXX the some sort I your I like. next business from in But the billion legal going how maybe these the core of guess, difficult okay, just about. I an all need strategy, and the I give you more about Biocon guess is us the part why guess costs what difficult necessarily to of And be help while XXXX about and company what categories Obviously, the appreciated. did. to fully we that you evolution of endorse and integration to you evolution couple for the then there's which contribution year wondering want in and than onetime think beyond, bit not of to over anything progress if like, therapeutic of strategy there, chose grow year and a the which grow? how in I can step all down And new more you of about divestitures included full how terms expected would We've the company to would of and settlements try got $X.X company just of terms to us EBITDA fact, of that, is in sort think what to about from? in kind number in in you So in for of can say that think, of I these is those begins beyond of the baseline guidance. think, sort sort think, is, the clarify to just but I for it's out now all just moving of asset of from to the fact, And of wanted I parts EBITDA. the figure these potential revenue Michael. to is lastly and then Just of

Sanjeev, you start? to want

Yes, sure.

the out that So we out, in And end part. the Elliot, biosimilar we is pointed for clarification, gave yes, guidance so as then fourth in quarter towards expected Rajiv pointed to EBITDA first, and revenues the the included the close transaction today. out,

in change today. is the guidance numbers included a not but in So that we're we this big came the that expecting year, out

on on point guidance. so see reduction XXXX that a you cost onetime the issued the in we talked The the second costs, we about onetime do you as in --

Elliot, the So and restructuring cost with in I at to now guidance about, think cost think in on. we're is One the that all X way is to achieve the integration going is looking actually buckets. work onetime

as down we guidance. will will So -- down cost of that's down, is out in that and these in come coming initiatives. has and come 'XX close the cost go 'XX part down That actually

is the the see which cost, the like probably costs. remain, what the of you because will of And down, little profit business, part course year. upon what other of settlement, situation XXXX. of cost of Those a litigation higher that's those move depending cost kind is in shares, is The bit than up reflected call the normal the settlements, we it and in legal

So continue restructuring achieve, we finish has 'XX, down the part, come initiative. as cost come big that the will in to down the to

to other are to would business, is guidance. level in which the -- which the all year's cost, this other have The costs, our required that probably we run stabilize the

Yes. right, to And going we're return chain. intent value outlook, the I of want think, what you here. on That's right? the to move growth, the do try to right? longer-term to of We And the mean, look, ways on clearly, one we caught Elliot, I it that's

try like, to pro you we're would presentation, laid all I can initiatives. after that and strategic to are do R&D, of you now have with done on. to areas. that, priorities right? the going leadership type X going think can't we of in through a these we offline, areas -- we what a is we why look I of give we're but the these gradually only allocation R&D. that X walked if best we to have maybe give us our can the we ones therapeutic forma them, you of yet path it proforma go that walk And is to are particularly X in. the where passive out a either the right going in development Sanjeev not want our all clear. What to we add go think them, think leadership It's to of Probably through the It's capital what to to ramp it's going more are that go up we business the And

Elliot, part going initiatives that repurchases. benchmarks. and And missing, comes significant That to share then the want repurchases, evolving. we're it do going financial the now the Good one that years is 'XX the to that also is, see news of will against -- what target, don't 'XX, through. bench and forget, and see right? important We execution, clearly I going we're where of also you you're to is are flexibility the have to So is share to deliver is

it would after factor the know, expect for It's As done has authorized we're billion our $X.X element share we that to repurchase make a EPS us, important to share $X I program, in I'm going forward. Board strategy move be already reduction, with sense significant with the billion you going share billion would having going forward. an because us then model, right, repurchase repurchase And the not $X.X an debt program. sure, such

Jason to go from we could question, BOA? next Our

on Just coming divestitures. back the

multiples get some would like multiples. I of current So sounds well it the at low-margin above company blended lower-quality, be plan rid that to think of businesses are the the that

the confirm along like just gotten And these in multiples line to you terms wanted with these out presumably, process valuation are have truly It like to slide deck I where sounds sight divestitures? in So pretty attainable. order to that. are a are you of far put guys some that this, of at

these to perceives the And last I second. if you get numbers a could these based multiples? beat then sense to on have guys you EBITDA, the in trying and for that Street back year. if just I on come conviction Just as a guiding to guess

cost pull opportunity up, costs And get of conservatism perhaps had yes, sense because, trying but to went to so a you the forward just synergies.

AG Restasis the got to one against. compete going You've

some you've benefits as seemly So well. got

there. curious takes if the to puts upside you the and of some So can to just speak

process of Maybe you Okay. realistic end. But a Jason, and take we you the We where all view upsides more through? on we're divestitures more downside. guidance, balanced always, about of think little little kind talk do a puts Rajiv, and the bit EBITDA give give, can as to But want the talk about bit to Sanjeev and the we a takes. went to going we

your heading. Yes. is of as I line these what's assets. focus businesses No, is these And what's core, you went once core, And assumption our some some the these company in I we point, the to, -- not bottom-up in them of not assets, margins and the high-quality would margin with a told, segment. not we the that that process look, was where much of those on about are pretty are company, call

the our pretty much value. some are not focusing on have are done work player, once work, in -- you're are we focus, -- that identified, hands in different we fairly only the they they of we who's did if say, you put value are if right, I'll a So we we And have to over and there. there's that,

our end should are much by is, And we way. all 'XX. we this done with be So on goal pretty the of

advisers And include to add, also the we some added numbers. help just external validate we us of -- to

Yes.

realistic got we sure multiples. make And

That's right. very important,

EBITDA, that's And add, Jason, about except talked FX, not much think those the I inflation that X on industry-wide. I and there's to factors,

keep with EBITDA with be mind and the think and balanced to in is our our the to Michael we meeting guidance view EBITDA -- exceeding the I Jason, thing, -- very in the guidance, that. other said is is that point

other that I commitment is which said factor the flow. the to Star. saying highlight North think the the is I been the I want cash dependent Phase We all flow, we've cash along, on is

the to will sufficient to still about without for dividend meet -- which us are the commitment We our any business track and the which paydown on base and debt divestments that, generate billion growth. planning these at over still of levels, you for talked be EBITDA $X is on dividend

to Next question is Bernstein. Ronny be going from

on things. to want I or So X X touch

all, your shuffle a your you're a the typically business result First that. stable more thinking a has business rate, the I its international kind aware was erosion here, strategy term X% a was under a then lot time? existing was. but than should kind long international just over about of is doing on kind facing of XXXX? to of I Is us business of we giving products big business. a generic X% you're I'm the And that the that Or X% impression as just think off-brand that baseline kind your that projection of for second, erosion

the would global false them using to of on following you probably And from that you're [indiscernible] and you up one therapeutic-agnostic not and that you about talk pick. have We're areas, you're your that license to put our be it We the area picking. launch products kind basis which that Is just And take strategy, to strategy. to simply not X going is be now strategy products, that, we focus picking simply will companies viable? why on presence. the seem shifting this Can begin and globally specific products of this infrastructure? on

are with -- like much follow in larger us otherwise, you're you little Can areas. with hypercompetitive tell companies who going areas bigger much compete us for R&D where those because more big just you just to competing pharma, budgets. you're just those Just bit look granularity why a

don't the first baseline of you on the question why take the Rajiv, erosion?

can that put blended blended of that's have that I because hold a And talking. Yes. X% to X%, surprised X%, how -- I'm X are and this excuse. around the businesses the that X%, And tell Ronny, LOEs right, you level. have the you, we is I'm an are say you're at saying the as you component of I by where generics That's if much been to I'll maybe mean And -- X%. X% at exactly and have if X%, not year, all together, erosion looking we able pleasantly it. the not

out this be all think way and are normalized a to year our when get to I a out there going people is be when we can that. in going

these have is has some is one, into there over you where look X%, that. been at a and the say a roughly, one about there. significant price would Japan But X%. one key should movements I on brands the So brands X%, erosion we

that, out markets of and that not all much. So Japan if and you go to come emerging the it's

that, out piece. we, once So I one that's bottom think,

the one And that will... second you

Gateway Healthcare Yes, the second Global question. was the

Before I Ronny, away go from not any to business. moving even think, Gateway, we're I

whether going Symbicort, XX, launching the products then generic look our XX, we're Revlimid see I over launching nice it's honing on it's if and up, still year injectables. there you R&D, space. XXs, have -- into -- next year, we think lined the XX, this the my slides the at on some whether and let's complex

move the anxiety patient Low We a EFFEXOR XXX(b)(X)s, disorder. like just are good on a So on our the a started on help our products on study study We Xulane base. a then Copaxone Yupelri, on study example, We PIFR which investments general into started expand Dose. up generics, the complex more started us the a from R&D once monthly. GAD, to is going study, like but is

are these picking are And I products. think our So spots. we the

diligent. are they when areas, That's into therapeutic judicious, that, in. you over NCEs then the there. look into I when and And think We all come where you come X areas can't be being very therapeutic-agnostic these looking X in,

Michael, So want may you to...

mean, No, said. do I generics, just if more that, what right? right? you we're And complex a not we're space, a I have brands. away And echo anything of that's end, durable be company a -- here. off-patent what we're Ronny, balanced, in focused at an generics, walking if add, There's it an now into that's from innovative is going you has to portfolio. absolutely do That That's go you innovative, into this to you that higher-margin, balance way.

therapeutic You leadership therapeutic cannot different areas. having in -- by area build being X

for from That's the But as scientific customers, R&D we're get also to development the EFFEXOR as still of here. in we on with, regional we community, Rajiv the expertise. opportunity trial anxieties, have connection our Japan, slides, said, strengthening for saw our You portfolio, doing cetera. deals, fly for you having example, et side with benefits generalized the trying build in commonality were

mix So forward deals, that that smaller and adding regions that have and still complementary what But that exists. still exists, after distribution future the that the in XX portfolio for we're going opportunity opportunity years. products is to the we the deals, higher-margin licensing balancing and today even the the or opportunity long the for term, focus many towards for

the Thanks, Ronny, for -- for question. the next

is Next from to Evercore. be going Eric

speaking. Eric is This

one on know my previously, this for EBITDA. time? be After first transaction then question. you floor. flat a lot. EBITDA the growing this or guys But I $X.X second we're Just over a talking just billion that And RemainCo, will about mentioned EBITDA

equity about biologics a Serum least to for which Institute. Biocon stake, stake valuation billion from like a You valuation Biologics. compared mentioned the $X.X That's -- $X.X to sold implies million XX.X% at

it's to of renegotiate least that at So does since mean XX.X%, size stake? that room the there's

Okay.

comment the question, question. Rajiv Let I'll me on and XX.X% start Eric, with the devaluation EBITDA to ask

other you And what again, not at the RemainCo business we deals on long-term of On we're guidance. all the you because moment look moving development would giving we're absent the may giving gave 'XX any moves guidance guidance -- of pieces. making. like, or be EBITDA, look, we that not We're

table put what that's we now. on think I So the

growth company move where this Our think to point, it's at you this And portfolio. in this comes to intent returned comment Rajiv, That's the it. I XXXX, is later, to make comment higher-margin have and growth can durable too XX.X%. Whether early shifting beyond or on. future, maybe 'XX on we're the to

everybody are biosimilar me start has flattered let which just business by by or has the Yes. know of different Eric, are the assigned by our this on into actually, value We this put deal, by deal our partner walking we our and a saying or business. which third-party been outside. have been what value, -- has we know business. We Every we it.

of -- right for all, first the what's with let's business. start We are

success so we're equity time up We this company company. a that can are integrated upside, for in be make consideration can triple ride holder company as them. value be of at long that and to cash with setting And we in for vertically going a and to our our we nearly immediate them approximately multiples, with then successful ride of X/X accretive proceeds. current It's that them stand-alone

frees like up. we free we now I go we can up go deployment and to We It So going need can and on, deploy on. where now capital where go priorities. -- invest frees and I are it are R&D to on. can our

perspective, all So immediate from business share capital buybacks in we to that. need again, availability again, cash if and back or the invest the

the So I deal really feel step. a right and up right We a that a company way. it's it's I us, great logical in know had you, the have we space. I've space. -- in tell for now set XXXX, there started the learnings since the take we in and successful be several ever journey been with what we last it this would know to would

part the I this part am to that and I I I'm journey, this this this happy was very a and call, think team of make right So is of call.

Thanks, Eric, for the question.

at going we're go to Go Nate. ahead, Goldman. Nate one, Next to

products. a growth new to -- guess, I outlook just I biosimilars. is $XXX million around year, ask that guess, I I said from million the guess, wanted $XXX this was you of

are launches space. key year also of in biosimilar some think this the I the

change of forward, think new we new like as think the $XXX growth So previously I the that about NCE as kind going well given cadence we How how think of strategy as I the guess, you do you yesterday products? that about biosimilar to million from $XXX targeted algorithm had forward, divestiture forward. does kind moving revenue announced the of going million.

Rajiv?

$XXX-plus we R&D, doing biosimilar So slide, in slides, based we mentioned It do and doesn't excluding the Nate, the last -- investing pipeline take R&D, more the you into be, cadence the development million, R&D investing to into said add on one in those into in today. consideration of this us my the flexibility up have is deals. what more sort should of having us the ramping the business and cadence more

see should that. So that's how you

Nate, for the you, Thank question.

to Next question, going to we're ahead. go Amsellem. Please David go

Okay.

So to some wanted more R&D. regarding on get thought process granularity I your

I XXXX. think target X% is the by

then evolved assets, can about they're target, of are you how your or thought a talk that I do in sort about here? what have the you leaning process assets, NMEs of do with going mind our bring how XXXX? terms with that other focus target the capabilities how brands, words, these or you're you revenue therapeutic assumptions about how guess of say, XXXX or the into I brand verticals that? And XXX(b)(X) piece think So guess, whether can some In to forward, here? you focusing in mean? this And And this you bear much the of terms the focus, do brand product mix is portion in then internal mix, R&D think on? And mix, of by I last

BD, get know talk answer can and the I you execute about we're as X-year what take what want then, strategy need clear maybe comfortable see we take the financial portfolio, much a and today, forward, roughly we money, you we you focused, being how on a We X% R&D next did move, can think today of step the think significant have don't maybe years. Rajiv, going have comment BD And I about that's X%? you'll that, X creating and we which to announcing David, -- it's going do to we step to a we we to that to capital but way a question, in the go the that? is portion out I'll the where as execute whether to look, area how against very runway to We first we'll forward, we R&D and as we're have But area and over mind much value, in we're and So rebalance right? along. allocation share necessarily if in want unlocking repurchases, as today, along or fixed R&D that we realize every Rajiv, second that why communicating the flexibility, going laying

for And say have we million products launching have $XXX been million. been $XXX I -- investing will step million, Look, I every million, Yes. year, take back. $XXX years. $XXX would the a we on R&D circa worth last few

pretty if doubling as So And productive from I we that. see, means R&D start the you have it's a it to R&D. X%, machine, are

billion, 'XX. million to are about $X.X $XXX We towards going from $XXX $X.X about to billion million

We capabilities. opportunities. are as a see have clinical we we doubling should dosage the R&D. house, you capabilities, on And many XXX(b)(X) form regulatory capabilities, And all executing the where are development already

on Yupelri, an IV how We that we have execute Phase partner not studies know try been where we to to highlight with capabilities part So Theravance II, have of. clinical that's that, Phase III, many and that's that the we issue. Phase and

bring the late-stage set Michael products. is as laid and as I Phase Phase us asset, direction out, with go the R&D, in this and help, value, higher machine very margin, help as II, the that now III feel assets execute to take we higher towards the science confident up step and higher So future we up us gross

So in that's R&D. transition how I see will this

the for question. Thanks

we're Fraser, Truist. question, Next to to Greg going go

that just asset come Chinese you would On do the time? how or And follow-up to sales of on considering, of driven by likely that be over in mentioned you a sales multinationals the X competition And retail? a larger that or additional China helpful. retail the companies? color intensifying account you're are is being retail that Is the Any And business, X or sales the business channel. other what expect China percentage to of deals channel for series then in deals? those on smaller much

question. So second again, I'll the China can question. Rajiv, you cover start with the

You go the to first? second

Yes.

spending hospitals. can that and going about or this we so of public Then a You that's are we There the That's fed. going XX% where X want face for on us. a then you impact offset That's Greg, rest investing, expanding see XX% go hospital where a segments. about are we be where that's going retail, XX%, in China, what policy the a to health we to to, of And that's should second where care be so it to hospitals. for time. to there's segment. is we are to you private sort are public is -- there want -- footprint That's is the some basically of

are how levers see has you -- should focus from And yes, should you on as care China anticipate, health retail, and the consumerism. been can that's So perspective. you -- X these as

and we Chinese that's of a brand both for the appreciation well We competition. of still bit local those where multinational with up companies. are a is much there as a global quality. distinguish And But local stepping companies many we have seeing ourselves as the -- quite

are single the the running Yes. There want with But tell assets, mix. the a integrity deal, disclose and as complete I And that to out, tell again, one. talk Greg, a to more just process not we story. ready on it. We to don't at we It's is it's reasons. really them. as can the about several all come competitive I I like Biocon of of And for you saw preserve we're this mean, well you point, we'll are the

We're from going BMO. Yes, the thanks Gary go for question. to to

dynamic of I we that going case? Rajiv, any of I'm complex to there you First, biosimilars. not curious Is are And the then that that mature is play by the I the a does biosimilars, that you biosimilars phase. having same rest approaching combined in sort impact customers way the just out. surface the think for of roof? how were under portfolio terms offering thought mentioned generic divesting in by think scratching

the good to So thinking Restasis. How are you get markets? maybe you talk those ways. quickly unlocking able from line the then now? Is coverage cash about Semglee of how could the it about expectations commercial been ability with those and execute in business your you've penetrate value terms and of that to And the this Biocon in think be in areas? we you're going with to transaction, of a in as deploying bunch just execution of And

the dividend dividend growing part committed of are as how Just and that mix? the you overall to

continue Look, committed growing be dividend. the we to to

thing, bit this be in a to has to of look be the mean no structure. continue these opportunities it investing billion that $X We Board returning a if value to committed and continue really an trade-off appropriately. a very to just scientific like We committed committed creative risk option growing of company deal the I come upfront And and share right? already in, you is million case-by-case back the between And Pimecrolimus see as you to have shareholders. we it's we $XX The at all a announced, authorized program. at also the have repurchase end. and

to on value I So we're be delivering And expect creative us continue that be said, that. here questions, committed to always returning if comment the please? committed Phase and to and growing want Rajiv, obviously, our to other to commitment, you we dividend, as for to shareholders. the

Yes.

more portfolio, broad our divestment and deep that. pipeline. Greg, customer about, very reach biosimilar think a and was we would a deep a first are still pretty importantly, all I the portfolio, question impact

last to of meaningful. the yes, it, not more add like now, so X we partner And our have continue products a be we always, going a biosimilars from the So for to like we're but of will couple years customers. be part been to decades, that are

that So that is and that importance focus is aspect not of changing. that focus -- that not

As players landscape. about at towards far the the from one-off, gone even at over just where as with at market covered there. It's just market the market, Humira. ahead. looking competing how I'm years, the out comments formation, a where evolving as U.S. XX% Look journey, competitor biosimilars last how be looking XX X the but the at brand have there biosimilars maturity, are look XX%, can a maybe mature a a which moving And the you X, -- I'm tenders a have as not the And point phase, decade is into my Europe market, to erosion.

heading towards manage exactly looking This we vertically integration a we what similar maturity, decades, -- vertically it's managed That's And into call. are. is or I'm generics. years towards last was -- of So like and to taking saw. we And environment next where evolution, are phase said that next XX the when it's ahead, have the heading us the I all consideration. integrated, this right in helped we I this be and if right X need

we were stake excited vertically when that's at as being creating to XX.X% well the champion participate And and that least so with about on it able how in in staying involved and integrated IPO biosimilar the this upside happens.

a better setup business, So about in more thrilled participating the and a in different in we're way. optimized and

And was on a insulin and question Restasis. there

Yes.

Yes.

very much are year the track. We at that. on on about X% We ended

is, mid of the after from of about science to team we to XX%, goal pleased the view. That's there. again. with see from the more the at and mid- proud second, we first about We be very went much trajectory on in are Restasis, over were We much competition FDA. And all what surprise our we And bring -- are they're to teens. there. product decade XX% with -- slugfest we incident TRx, long year We XX%. will high yes, the a point -- between XX% somewhere the said cannot be I out this NRx -- Very where product one don't through

We have one there at competitor AG. over the

beat, have we out on of we make that most one. very on are of numbers as to meet our and track that long we'll as So it, much sort space,

question. Thanks for the

for think We'll question. Citi. more last one have I time Navann to we go from

$X.X and other the proceeds $X.X billion your this of the the involvement that buyback medium Could in for And question just the next, uses in term, you given second billion breakdown have Biocon maturities year of through use Could bond go due Rajiv. future? the you you and near the then and of and describe and $X proceeds? Viatris Biologics a in billion

Okay. the question that, Sanjeev, to if want take you yes? on

Yes.

So accelerates the accretive Biocon I our and deal commitment. is Phase immediately

our and the billion -- left So we cash to post we're $X expect fourth year. additional that cash going then to down year quarter, short-term of utilize We'll the to at pay in still end maturity. obviously next to the tax the have get

So case-by-case one all and or share then options potential development to business we other that would at the about for be situation would for or time evaluate available, or we'll way where earlier, both. Both talked that buyback. there, as be go

earliest or then flexibility what 'XX the QX come buybacks. So that's beginning, in terms or tuck-in that's the whether the the that deals QX BD overall. talked proceeds about which to we share more is going about adds again, when And 'XX to 'XX, from of be IPO,

-- accelerate of our share I $X BD. cash the Phase for and and additional but kind commitments to our add that's So or billion buyback immediately, provide will an

a And say, complementary deal. it's just let's very

a going perspective And the in help are 'XX, way it 'XX, huge capabilities how meaningful stakeholder when will doing have as them every new the a these us to in -- transfer years. my as you're come help next execute we into possible it that then next set up Nothing be in company. years. it, getting the responsibility integrate way, way. X to in these X resources, bring We're the success, be businesses We should for to expect for a seamless role and we seamlessly make long-term for can company help sure you'd for

everything in in to do help possible -- I'll way my So everything my that.

thank that now, Right for you Okay. question.

Viatris, of shareholders. an exciting day beginning an is it's I the very day at this said day today, our exciting As employees, for exciting an for for

clear I was targets think XXXX against we've going we laid really set. the delivered out very it. a we integrate for path you year the We forward.

to areas solid growth that of Healthcare innovative that you the forward. out synergized. on a going to companies which but path up to Global XXX(b)(X)s, now BD, to review, that brought out focus Gateway to on the that engine and NCEs reinvest, in path in going of we're to top lay core are tried billion we X that do to invest together, shareholders $X lay also have to laid add have complex unlocks to access to to the you. with We've We R&D. deliver and look time a our to out, you really thorough We we what proceeds We We strategic and future, we generics, clearly about value a generics excited forward to the updated used value can lay in you pretax keeping we brands. in provide Thank and We're patients. we're out business. to do use as and/or we off-patent to shareholders return