Viatris (VTRS) Evercore ISI 8th Annual HealthCONx Conference summary

Business structure and strategy

• Operates as three distinct businesses: global generics, established brands, and a growing innovative segment.

• Overcame internal and external challenges, including policy changes and tariffs, to strengthen commercial execution.

• Completed 51 business development deals, notably expanding in Japan with the Aculys transaction.

• Undertaking an enterprise-wide strategic review to optimize structure and costs for future growth.

• Focused on sustainable revenue and earnings growth beyond 2026, with internal expectations exceeding market estimates.

Financial outlook and capital allocation

• Targets $200 million in sustainable annual base business growth, with additional upside from innovative assets.

• Aims for operating leverage and margin improvement over time, with benefits from cost cuts accruing over three years.

• Cost savings from the enterprise review will be partially reinvested in new product launches, but net P&L benefit is expected.

• Sees a credible path to increase EBITDA from $4 billion to $4.5 billion in the next three to five years.

• Deploys $2 billion annual free cash flow evenly between shareholder returns and growth assets.

Pipeline and product development

• Advanced pipeline with five of six positive phase 3 readouts; key launches expected in late next year.

• Fast-acting meloxicam for acute pain shows strong efficacy, rapid onset, and potential for opioid-sparing claims.

• Launch of fast-acting meloxicam anticipated toward the end of next year, pending FDA review.

• Japanese business strengthened with CNS assets and robust pipeline, aiming to reverse revenue decline.

• Focused on acquiring high-margin, U.S.-focused assets and further expansion in Japan.