Viatris Inc Q2 2024 Earnings Call Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Ash Verma - UBS Equities - Analyst : Hey, good morning. Thanks for taking our question. Congrats on all the progress. So I wanted to talk about 2025 dynamics a little bit. So I think the $2.3 billion free cash flow guide that you provided previously, what does that translate into EBITDA? Like if you look at the run rate that you've had sort of in the difference between EBITDA and free cash flow, it would roughly translate to $4.5 billion to $4.6 billion. Is that something that you would be comfortable with? And then secondly, on the new product revenues, so yeah, that's good to see you're raising the guide there. Just what's driving that? Is that primarily the benefit that you saw by Breyna? Or are there more products that you think that you're benefiting from? Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 08, 2024 / 12:30PM, VTRS.OQ - Q2 2024 Viatris Inc Earnings Call

Question: David Amsellem - Piper Sandler Companies - Analyst : Hey, thanks. So just a couple for me, and I apologize if you addressed this since I joined late. Can you talk about overall your innovative brand strategy? I mean you did an important in-licensing earlier this year. I guess my question here is, how aggressive do you want to be regarding adding innovative brands in the US and developed markets broadly speaking? So that's number one. Then number two, can you just talk generally about complex generics and how we should think about contribution from complex products or new launches as we move through '25? I mean it might be a little bit early to think about that, but I wanted to get a sense of what key launches, on the complex front, that you're flagging or should flag? Thanks.

Question: Umer Raffat - EVERCORE ISI - Analyst : Hi, guys. Thanks for taking my question. I have a two-part question on just broad investments. First, perhaps on GLP-1. Scott, I'm curious, what are your GLP-1 aspirations? What's the capacity now? And what type of CapEx investments are you or are you not looking to make? Just thinking about that out loud. And also, part two was, the investment on cenerimod in lupus. I'm curious how you guys are thinking about that in light of some really groundbreaking data we're seeing with CD19 CAR-Ts and presumably with bispecifics as well? And how do you put that in perspective relative to what we know on cenerimod? That will be very helpful. And then finally, I think the prior question was on, what are your complex generics in '25? I don't think I -- maybe I misheard. What are the complex generics in '25 launches?

Question: Balaji Prasad - Barclays - Analyst : Thank you. Hi. Good morning and congratulations on the quarter. A couple of questions from me. Could you comment around the magnitude of the expected base business erosion from government price regulations in Japan and Austria -- Australia? I presume in Japan is the annual price cuts? Or are there any other dynamics at play? Second, could you comment around the split between the innovative pipeline and non-innovative pipeline currently? And with the improvement in cash metrics, how do you see the spend on innovative R&D progressing into the next couple of years? Or do you intend to keep it at a similar percentage? Thanks.

Question: Balaji Prasad - Barclays - Analyst : Okay. Thank you.

Question: Bhavin Patel - BofA Global Research - Analyst : Hey, guys. This is Bhavin Patel on for Jason Gerberry. My first question is, can you approximate the full year 2024 EBITDA contribution from divestitures that provided partial first half 2024 contribution? Just so that we can understand the RemainCo business profile and model it appropriately headed into 2025 and onwards. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 08, 2024 / 12:30PM, VTRS.OQ - Q2 2024 Viatris Inc Earnings Call And then my second question is, given all the changes in the portfolio relative to reported financial results in 2022 and 2023, do you see low 30% EBITDA margins similar to certain peers like Organon as a good long-run assumption, pending any breakthroughs on the pipeline side, of course? And with regards to your pipeline, is there a timeline update based on new enrollment strategies for the Phase 3 selatogrel SOS-AMI trial? Thank you.