Viatris Inc Q1 FY2026 earnings call

• Strong start to the year with total revenues of $3.5 billion, up 3% y/y, adjusted EBITDA of $1 billion, and adjusted EPS of 59 cents/share. - Commercial execution strong, with Greater China a significant contributor and Japan showing momentum with Effexor launch. - Pipeline progress: Regulatory approval for Effexor in Japan, on track for remaining five regulatory decisions in H2 2026, including weekly contraceptive patch and fast-acting MLOC scan. - Capital allocation: Disciplined approach, deploying capital balanced, returning to shareholders and investing in business. - Organization: Making progress on cost structure optimization, resource allocation, and operational efficiency.

Developed markets: Net sales increased 1% y/y. North America grew 3% driven by estradiol, BRAINA, and complex generic launches. Europe declined ~1% due to softer market conditions, competitive pressure on DiMista, and supply constraints but had strong fundamentals. Emerging markets: Net sales flat y/y, below expectations, supported by established brands but offset by supply constraints in lower margin ARV portfolio. JANs: Net sales decreased ~2% y/y but above expectations, driven by competition in Australia and government price regulations in Japan, partially offset by key brands. Greater China: Grew 18% y/y, driven by aging population, increasing demand for cardiovascular products, strategic selling and marketing investments, and e-commerce growth where sales more than doubled.

• Reaffirming guidance ranges. - Expect stronger growth in Greater China mid to high single digits and delayed competition for Ameteza in Japan, partially offset by supply constraints and competitive pressure. - If current foreign currency rates hold, incremental 1% tailwind on total revenues and adjusted EBITDA. - Total revenues, adjusted EBITDA, and adjusted EPS still weighted to second half. - Confident in meeting or exceeding expectations for the remainder of the year.

• Policy risk in China being dynamic and unpredictable. - Supply constraints in lower margin ARV portfolio. - Competitive pressure in certain markets like Australia and Japan.

Q: Glenn Santangelo asked about stability of China growth, commercial efforts, and pipeline opportunities.

A: Scott and Philippe discussed strong China performance due to market and team, policy risk monitoring, and key pipeline opportunities like estrogen patch, fast-acting meloxicam, Cenarimod, etc.

Q: Umar Rafat asked about free cash flow and salatagrel trial endpoint.

A: Paul talked about cash flow drivers, Philippe explained salatagrel trial endpoint as ranking severity of MRI.

Q: Matt Delatore asked about meloxicam priority review, label, and cost savings.

A: Philippe discussed meloxicam regulatory timeline and label expectations, Paul talked about cost savings progress.

Q: Les Salewski asked about new product revenue, BD, and CFO transition.

A: Scott discussed new product revenue, BD focus on in-market accretive assets, and CFO transition with Paul.

Q: Jason Gerberry asked about fast-acting meloxicam Salesforce strategy.

A: Karine discussed specialty Salesforce strategy.

Q: David Amselen asked about innovative business in US and in-licensings.

A: Scott discussed leveraging therapeutic verticals and in-licensing approach.

Q: Ethan asked about generic semaglutide and ARV business supply constraints.

A: Philippe discussed GLP-1 strategy and ARV supply constraint mitigation.

Q: Ash Verma asked about 4% growth goal.

A: Scott discussed 4% growth goal by 2030 and progress towards it