Viatris Inc at Bank of America Global Healthcare Conference (Virtual) Transcript

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

Question: Jason Gerberry - BofA Global Research - Analyst : Yes. So, maybe if you could just level set the expectations into the end of the year when you're going to be providing some additional metrics on how you guys think about the business on a more, I guess, medium to longer-term basis. And can you share at all any of the details what metrics you guys want to be providing more visibility into? I know there is kind of three core financial metrics that you guys really just focus on in general. So, I assume that there's going to be some framing around how the business looks on those parameters. And from a timing perspective, I assume that this would be sort of a post 3Q event. But just say -- just offer a little clarity there, that would be great. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 15, 2021 / 5:25PM, VTRS.OQ - Viatris Inc at Bank of America Global Healthcare Conference (Virtual)

Question: Jason Gerberry - BofA Global Research - Analyst : Okay. So, curious -- when you guys initially came into formation with the combination of Mylan and Upjohn, and it was decided that a dividend would be implemented. Some of the feedback we got from some investors would be given may be the difficulty from getting visibility on the business, the challenges that the legacy team had sort of forecasting the business. Does it make sense to implement a dividend because once you start with a dividend you really can't go back to some degree? And you do get a lot of questions, how you guys will approach dividend beyond this year. In the last call it six months, you guys have gotten probably a close peer in Organon who set their dividend at a floating rate or a certain set rate of cash flow. And I'm curious -- it can flex up and down with performance of the business. So, it's difficult to have visibility in the business, at least investors can understand this is the nature of our business. I'm just wondering, does something like that -- is it sensible? Is it an option on the table for the board? Or perhaps it seems may be difficult for you to comment on that specifically, but sort of curious if you can provide any color there. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 15, 2021 / 5:25PM, VTRS.OQ - Viatris Inc at Bank of America Global Healthcare Conference (Virtual)

Question: Jason Gerberry - BofA Global Research - Analyst : Got it, okay. Can you help frame -- I know that this comes up a lot in this space is legal liabilities and there's certainly a perception that Viatris is a cleaner company in terms of not having exposure -- meaningful exposure. I don't think you're a named litigant in any of the major opioid litigation trials. So, that's a positive. The generic drug price fixing -- there was a subpoena over five years ago. At some point I wonder if the statute of limitations runs out for actions to be brought against you that maybe have been brought against others in the space from the Department of Justice. So, can you just maybe help frame what are the Company's points of legal exposure to the extent that they exist at this point?

Question: Jason Gerberry - BofA Global Research - Analyst : Okay. Well, hopefully the -- looking forward to just sort of how the Qs and Ks evolve over the next year just from a risk factor perspective and just getting that absolute peace of mind. But maybe if we can just switch gears to the market developments within -- in China and the -- this is I guess an important variable. As you guys were thinking about the second half of your year, there's other variable, I think in the past it's been framed as epinephrine. I'm curious, you guys have framed a floor for EBITDA. And if you guys outperformed this year on things like phasing of China URP, epinephrine, are the key variables one timers in nature such that the trough -- we should still be thinking about the trial for next year. And you are just sort of delaying the painful impact on those parts of the business? Or are there variables in the guidance that you can say, hey, maybe we can get more bullish about the business in 2022 plus? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 15, 2021 / 5:25PM, VTRS.OQ - Viatris Inc at Bank of America Global Healthcare Conference (Virtual)

Question: Jason Gerberry - BofA Global Research - Analyst : Okay.

Question: Jason Gerberry - BofA Global Research - Analyst : The developments that are occurring in China on the retail side, is this business it sounds like maybe performing ahead of expectation? And given the momentum that you see in China retail, is this a trend that you see having some legs to it that this can carry forward into the next few years? Just sort of curious how you see the brand equity of the Upjohn brands potentially extending beyond the near term.

Question: Jason Gerberry - BofA Global Research - Analyst : So, extending on that point about the gateway and the potential for business development, mindful that your debt paydown is a focus at the moment. But I believe that you guys still have flexibility to do some deals and do some deals that probably are lower on upfronts and maybe success-weighted milestones, things of that nature. I'm curious, has there just not been enough time since the consummation of these two businesses that we haven't seen any deals announced? I'm just curious how aggressively is the Company looking at BD transactions? And do you think that it's just a matter of time and you would expect that there will be CLM announcements coming in maybe the next one or two years?

Question: Jason Gerberry - BofA Global Research - Analyst : Yes, okay. Can you talk about the business development team that you have in place to evaluate deals? Because I believe that in the past it's been framed as looking at biotech assets to bring into the markets, like in China for example. I know there are companies out there like Everest who have teams of 100 people with clinical and regulatory experience, right, to help young biotech partners navigate the process, the regulatory gauntlet, bringing products to market. You clearly have the commercial acumen that Upjohn has proven over the years of marketing in China. I'm just curious what the Company has done to bolster its business development team and sort of if you can elaborate or share with us what sort of team you have in place that's evaluating deals.

Question: Jason Gerberry - BofA Global Research - Analyst : Okay. Before we jump into any specific program-related questions, just curious -- biosimilars and how biosimilars fit into the longer-term plans of the Company. And prior Mylan management used to talk about taking more of a measured approach, i.e. cost-sharing partnership arrangements where the full P&L burden wasn't borne onto Mylan. Based on what you've seen now in terms of some of the key geographies and how biosimilars have evolved, does it make sense to take on full ownership of biosimilar programs to -- or does the partnership approach still make sense for you guys?

Question: Jason Gerberry - BofA Global Research - Analyst : Okay. So, I got a question from the field and I think it probably makes sense to ask it now before I go further. It has to do with your long-term guidance and bottom-up analysis that will be conducted. And the question is if all of Viatris' subsidiaries in geographies are using the same ERP system, or if the systems are fragmented such that there may need to be manual integration needed. So I guess I'll let you field that.

Question: Jason Gerberry - BofA Global Research - Analyst : Okay, great. Now maybe shifting to some more detail-oriented questions. Your new product guidance for the year is more frontloaded than backloaded and I'm curious, is that just a function of phasing off Semglee in the second half as you plan for a more concerted launch of your interchangeable product in the beginning of next year? Just some of the factors that kind of play into the frontloaded contribution from new products first-half or second half?

Question: Jason Gerberry - BofA Global Research - Analyst : So, sticking with Semglee, maybe can you talk a little bit about your payer-level interactions since Semglee has secured interchangeability? It sounds like from a Viatris perspective, it's being framed more as a marketing benefit rather than something that could make the markets -- could be a huge shift in terms of the market. But I'm curious if you have a sense of what proportion of plans might have a preference for interchangeable product. And Semglee or I should say insulins is a volume in a scale game. So, are you investing the requisite capital to be able to match the needed scale to be a meaningful market share player in insulin?

Question: Jason Gerberry - BofA Global Research - Analyst : Is it at least fair to say that a substantial capital -- level of capital expenditure is necessary to be competitive in this marketplace? I mean, I recall there was a pretty substantial level of investment to be able to supply dry powder inhalers that the Company underwent. I'm curious if the ability to be competitive in this marketplace would require pretty substantial investment or do you feel like the investment in manufacturing is something that's not going to move the needle for you guys?

Question: Jason Gerberry - BofA Global Research - Analyst : Okay. And can we talk a little bit about the US generics market, which is a significantly smaller proportion now of the combined entity than it was for previous Mylan? The observations I think one can take in the last maybe year to year and half is that the purchaser consolidation and the impact that's had on generic drug pricing has reached a plateau or some sort of stabilization if you will. Curious if you can provide your read on the situation, you are more intimately involved in what's going on there. Is it fair to say that the consolidation that these different payer entities have a basically harmonized their books of business and there's just not much more to squeeze out of the orange, so to speak? Just curious your perspective on where we are with the purchaser consolidation trend.

Question: Jason Gerberry - BofA Global Research - Analyst : Okay. Now your complex generics and biosimilar segment, I think I echo what I've heard from a number of individuals in terms of appreciating the increased disclosure with that segment. It's largely a developed markets segment for you. So, I'm curious how that looks in time conceptually, without asking you for guidance. Does that remain largely a developed market segment? When would you envision the less developed markets sort of hitting an inflection point? Maybe the pricing dynamics are such that complex generics and biosimilars aren't inherently going to be as valuable in an emerging market. And then you have some chunky products I imagine in your complex generics like I had (inaudible) glatiramer acetate. So, do you see that as a stable segment within developed markets? It's sort of a two-part question.

Question: Jason Gerberry - BofA Global Research - Analyst : Okay. So, I've got a COVID question and it's not so much the impact on revenue. IN a lot of other industries we're hearing a lot of reports, cost of metal surging, cost of parts surging. And there was concern at the beginning of the pandemic about API supply. But I think there was ultimately a lot of companies had six-month backup supply. And so, I think companies have navigated it pretty well. What I wonder about is as we get further along and there's Delta variant surge, are things okay on the API supply front and thinking about the impact on cost of goods ultimately as we sort of look at your business and the ability to kind of execute and do things at a margin that we're accustomed to seeing from you guys?

Question: Jason Gerberry - BofA Global Research - Analyst : Yes, okay. And you reported not that long ago, I think probably a month, month and a half ago, the commentary around the impact of COVID from a topline perspective. I imagine we hear a lot of headlines. But has anything materially changed in your view regarding the business?

Question: Jason Gerberry - BofA Global Research - Analyst : Okay. Maybe in the last five minutes, just talking about the status of some of your more interesting pipeline programs that I think have long been viewed as highly challenging to get to market I believe. I've rank-ordered them: BOTOX, Eylea and Venofer, which maybe is a smaller commercial opportunity at this stage. I think even Premarin has been thrown around as an opportunity. Each of those I think has been viewed as lower probability of success because of the challenges in characterizing those in the US market specifically. Where are you at with Eylea? I believe that there is still some potential legal impediments out there and your confidence that this could be something that you be able to get to market within an investable time horizon.

Question: Jason Gerberry - BofA Global Research - Analyst : Got it. And with Eylea, would this be with a prefilled syringe presentation of the product? I'm not sure if you can comment on that.

Question: Jason Gerberry - BofA Global Research - Analyst : Got it, okay. Avastin is another one. I believe the FDA inspection was scheduled for September. Has that been completed? Any color you can provide on the status there?

Question: Jason Gerberry - BofA Global Research - Analyst : Got it, okay. And I think a few others -- it would be SYMBICORT, I believe that you are in a good spot from a regulatory perspective. But I guess the only outstanding questions would just be legal pathway to market? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 15, 2021 / 5:25PM, VTRS.OQ - Viatris Inc at Bank of America Global Healthcare Conference (Virtual)

Question: Jason Gerberry - BofA Global Research - Analyst : Okay. Maybe just shifting gears to Europe, if you can talk a little bit about -- I think you said high-single-digit growth is the outlook in the European market. And I'm curious that the -- it seems like a pretty impressive rate of growth. I assume that that's maybe benefiting a bit from FX, maybe four or five percentage points from FX. So, maybe a mid-single-digit growth profile there. Can you talk about the components of growth in Europe that legacy Mylan through the acquisitions of Meda and Abbott APD have been driving pretty solid constant currency growth in those markets? So just curious if you can elaborate on what's going on there.

Question: Jason Gerberry - BofA Global Research - Analyst : Got it. Well, we're up against our time. But, Sanjeev, it's always a pleasure. I appreciate you coming to for participating in the conference and sharing your insights on the latest developments.