Viatris Inc at JPMorgan Healthcare Conference Transcript

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

Question: Chris Schott - JPMorgan - Analyst : Maybe first question, Scott, just you're about two years in the seat as Viatris' CEO. Just as you think about the business that you joined versus the business today, I guess, what have been the biggest takeaways positive and negative (inaudible) of the company?

Question: Chris Schott - JPMorgan - Analyst : Great. Divestitures, I know we're a big focus over the last couple of years, but that's now largely out of the way, what's the team's biggest areas of focus right now?

Question: Chris Schott - JPMorgan - Analyst : Right. Maybe one last bigger picture one. Just -- I know, you're not giving formal guidance for 2025. But just headwinds and tailwinds, what are the things we should watch for as we go for this year?

Question: Chris Schott - JPMorgan - Analyst : I know the specific products aren't disclosed and you're still working on it. Just any -- just to quantify just how big is this facility from a revenue perspective?

Question: Chris Schott - JPMorgan - Analyst : Okay. Great. Maybe pivoting over to capital allocation. I know you've talked about share repo or capital allocation skewing more towards repo and '25, which I know has been a topic of conversation we've had over last a little bit here. Can you just maybe first talk about the capacity you have for capital return in 2025? And how heavily weighted should we think about that capital returns as we think about share repo versus BD as an example?

Question: Chris Schott - JPMorgan - Analyst : But in terms of '25, your focus seems like it's skewing more towards share repurchase.

Question: Chris Schott - JPMorgan - Analyst : I guess the question is on de-leveraging end of 3Q, I think you said you were down to about 3 times by year-end. How should we think about where leverage goes from here? So I was thinking about potential BD would you everything to bring that leverage back up? Conversely, is there a view that 2 times is the right number? I'm just trying to get a sense like where directionally you think the right place for Viatris is?

Question: Chris Schott - JPMorgan - Analyst : And as you think about the type of deals, I think you mentioned, it seems like near term, contributing to growth is a priority. Is that fair to say?

Question: Chris Schott - JPMorgan - Analyst : Great. And then maybe just talk a little bit about therapeutic verticals in terms of areas of focus. I think you've talked about eye, derm, GI being areas. Are those still really the categories to think about, or should we think without broadening out over time?

Question: Chris Schott - JPMorgan - Analyst : Great. And then just talk about the landscape for BD right now? How competitive is it? Are you seeing interesting assets out there? Just give some flavor of the --

Question: Chris Schott - JPMorgan - Analyst : Great. Maybe just pivoting to the fundamental business. Just in terms of, I guess, new launches for 2025. What's on the horizon there? What should we be focused on?

Question: Chris Schott - JPMorgan - Analyst : And question up on those generic launches, just line of sight in terms of your confidence that those are kind of achievable this year?

Question: Chris Schott - JPMorgan - Analyst : Great. Other one is just on Idorsia and some of the assets there. Can you just get an update in terms of latest thinking in terms of maybe timelines around the Phase 3 readouts and just how you're thinking about the commercial opportunities for those products?

Question: Chris Schott - JPMorgan - Analyst : And talk a little bit about the market development of that once we have the data. How do you think about that -- the size of the opportunity and how quickly it can evolve?

Question: Chris Schott - JPMorgan - Analyst : Great. One of the, I guess, on the maybe more generic side or kind of brand generic side, GLP-1s, I think there's been a kind of discussion of what role a company like Viatris could play in that market. So can you just talk about -- as we think about some of these products starting to come off patent over time, like how are you thinking about that opportunity? How are you investing around that?

Question: Chris Schott - JPMorgan - Analyst : Can I just ask about the device component of that? That seems to be one of the particular bottleneck. Just your confidence about -- is there an opportunity just to go with needle vial in some of these spaces, or do you think you need an auto-injector?

Question: Chris Schott - JPMorgan - Analyst : Great. Maybe just a bigger picture question on the generic market as a whole. I would love to just get your views on how you're thinking about that market, stability of the market, maybe particularly US? Any observations you'd share there, I guess?

Question: Chris Schott - JPMorgan - Analyst : Perfect. Maybe just one specific generic product. Generic Revlimid, how big of a tailwind has that been for you? And do we have to think about that as a headwind at some point as we look out to 2026 and beyond? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 14, 2025 / 4:15PM, VTRS.OQ - Viatris Inc at JPMorgan Healthcare Conference

Question: Chris Schott - JPMorgan - Analyst : I guess with China, just latest thoughts on what you're seeing in the market therein. There's obviously been some economic weakness. I'm just wondering, is that having impact on any parts of your business? And just how do you think about the growth outlook for that segment of the portfolio.

Question: Chris Schott - JPMorgan - Analyst : Excellent. Maybe just a couple of financial questions over the last few minutes here. Just maybe first -- first of all, 2024, just any comments you'd make in terms of how years wrapping up anything you'd highlight to investors to think about?

Question: Chris Schott - JPMorgan - Analyst : Okay, great. And then just any initial color on expectations for EBITDA as we go into this year. I know there's obviously been some divestitures you have to annualize, but just any other moving pieces we should kind of think about for EBITDA?

Question: Chris Schott - JPMorgan - Analyst : And just anything with that guidance now that we're past the divestitures, what should we think about for Viatris in terms of the way you're going to approach guidance. Like will we be getting longer-term targets, will just be a one-year outlook? How do you think about guidance framework for the company going forward?

Question: Chris Schott - JPMorgan - Analyst : Excellent. Well, I think we're just out of time. Thank you so much for the comments today, and thanks for joining.