Viatris Inc at UBS Global Healthcare Conference Summary

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

Question: Ashwani Verma - UBS Investment Bank - Analyst : <_ALACRA_META_ABSTRACT>Excellent. Thanks. Yes, thanks for joining us. I'm really excited for this session. A lot going on in the story. Just a couple of quick housekeeping things. So if for the audience that are either listening in or in the room, if you have any questions, please feel free to send them through the app, and we can take them towards the end. And with that, we can get started. So maybe like Doretta, I think it will be helpful. So you just recently announced the third quarter earnings, and we are starting to see more of a continued operational growth in the story, which has been very steady. Can you talk to us about just like where are we in the story? And what are you starting to think about like the three strategic pillars that you've outlined before?

Question: Ashwani Verma - UBS Investment Bank - Analyst : Great. Excellent. So maybe just like talking about the -- just the base business and where you're starting to see like the new product revenue coming in I know like this -- as you head towards like 2025, do you think this type of continued execution on the base business can be seen in 2025? And I think you've talked a lot about this like the new product contribution. So the -- like how much of a line of sight do you have in this $450 to $550 million in new product revenue. I think this year, you're doing a lot more than that. Just if you can talk about like the dynamics going into 2025, that would be great.

Question: Ashwani Verma - UBS Investment Bank - Analyst : Yes. Okay. Excellent. So can we maybe just like quickly spend a minute on just like some of the main products. So if you can give some high-level thoughts on like where we are on sandostatin LAR or liraglutide and then iron sucrose, and there was one more that I -- or like just the Copaxone depot right just quick update on that.

Question: Ashwani Verma - UBS Investment Bank - Analyst : Okay. So maybe just like switching gears a little bit. Just wanted to focus on the capital allocation. I know this has been a big focus for your story. And so the capital allocation framework that you've outlined sort of like the 50, 25, 25 split between doing BD and then share repo and dividend like -- what makes you believe that, that is the optimal balance. And I know we've talked about this before, like there can be different ways that you can look at it. But as you go into this phase of the company, why is this the right sort of bidding for what you're trying to do?

Question: Ashwani Verma - UBS Investment Bank - Analyst : Got it. Okay. So like for -- and yes, I think 2025 dynamic is pretty important. For the remainder of this year, I think like the quarterly update that you provided, I think you had done like 250 of the 500 authorized. Is that authorization just for this year? Or can that go into next year?

Question: Ashwani Verma - UBS Investment Bank - Analyst : So it's not necessarily like a year attached to it, it's more of like when you find the okay. All right. So let's talk about like business development. I mean like clearly, like with 50% of this, let's say, like, call it like $2.3 billion of many free cash flow that you've talked about that would equate to like $1.15 billion on an annual basis, which can be pretty significant. So I'm very curious to sort of dive into this, like how you're thinking about that? And it seems that there's quite a bit of focus on growth for you. Do you think that you could use this type of like consistent capital allocation to propel your growth rate forward.

Question: Ashwani Verma - UBS Investment Bank - Analyst : Great. Yes. I mean, I guess like with your background like just coming from like investment banking tenured banking profession. I think you -- I'm sure you have a very, very good perspective on this. And I guess I would say that in the past, like some of the deals that we have seen, right, like -- so let's say, if you talk about like Famy or Oyster Point, some of those type of deals haven't really resulted in that level of like growth, what investors initially expected. Like what makes you believe that now the approach that you're taking is going to result in a different outcome? Like have you sort of like analysed what were you doing before versus what would be the focus now or try to do deals in a different way. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 12, 2024 / 4:45PM, VTRS.OQ - Viatris Inc at UBS Global Healthcare Conference

Question: Ashwani Verma - UBS Investment Bank - Analyst : Got it, okay. And then in terms of like, if you think about like the -- across like the spec pharma space, like some companies have tried to do a little bit like more bigger tangible transaction like you see like Organon going after one of the vans. And then I think whereas like some of the other companies have like tried to focus on more sort of like small scale or in-licensing type opportunity, which seems to be a little bit like your approach. Like for you, like as you think about it, like is there a certain approach here, certain size that appeals more to you than the other? Or would it be sort of like all opportunity driven?

Question: Ashwani Verma - UBS Investment Bank - Analyst : Got it. Okay. And then in terms of like therapy area or is there any particular focus or even like from a geographical standpoint, I guess the main thing for on these type of things is that like where do you think like investors will value the transactions that you do REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 12, 2024 / 4:45PM, VTRS.OQ - Viatris Inc at UBS Global Healthcare Conference like is it like more sort of like growth opportunities, differentiated products, but wherein this mix of the type of the asset from either way, like would be the best utilization of BD dollars.

Question: Ashwani Verma - UBS Investment Bank - Analyst : Yes. I guess just related to that, for the implications of this on a P&L standpoint, right, and you're starting to think more of, let's say, near commercial assets and trying to bring them in the mix -- like in the long run, like there is Viatris margin profile going to look like as you sort of execute on this strategy?

Question: Ashwani Verma - UBS Investment Bank - Analyst : Got it. Okay. So that was going to be my next question, actually. So I wanted to talk about the Idorsia assets. So starting to get more and more questions on this from investors. Yes, I guess just maybe go over these one by one, just on -- so lupus market is pretty massive, like I think you've outlined in this -- one of the workbooks that you put out with this quarter that it can be between like 220,000 to 240,000 patients in the US. I think where you're studying it is more in like the interferon on high patients. Just as you think about this, right, like what is the -- like the core TAM of the market that you're going after and what gives you excitement about this opportunity? When do you think you can get in the market like all those sort of things would be helpful. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 12, 2024 / 4:45PM, VTRS.OQ - Viatris Inc at UBS Global Healthcare Conference

Question: Ashwani Verma - UBS Investment Bank - Analyst : Right. Great. And anything that you would just like to call out on the time line, like for clinical development or just like when you think you could be in the market by.

Question: Ashwani Verma - UBS Investment Bank - Analyst : Got it. Okay. And then just on selatogrel. So this is kind of the acute heart attack market. It is a very interesting opportunity. I have to say like I have not seen this type of a focus from other companies. I think like -- so here, when you look at sort of like people have called this sort of like the EpiPen for heart attack, right? So as you think about that, I mean, this market can be massive. But where you are trying to focus on, is it more of like the recurrent MI patients that have had like a first incident and then they want to like try to use this type of drug device combination? Or could it also be just like the incident population that where these patients are getting first time heart-attack?

Question: Ashwani Verma - UBS Investment Bank - Analyst : Got it. Okay. And both these are like after just like the global market, just to confirm for the audience?

Question: Ashwani Verma - UBS Investment Bank - Analyst : So I mean like for selatogrel, I've always thought about this that someone who has a patient like actively having a heart attack episode, right? Like how do you get comfortable to put device in their hand that they would be in an emergency situation, either them or their caregiver would be accurately able to identify that this is the symptoms that I'm having. And then like self-administer without like a health care provider being available. Just would love to get your thoughts on that, like how do you foresee that working out? And what type of steps would you require to sort of educate the market patients, physicians to achieve that.

Question: Ashwani Verma - UBS Investment Bank - Analyst : Yes. Great. Awesome. And then like for this trial, like when do you expect like the data to start the commodity is like event driven, if I remember correctly or.

Question: Ashwani Verma - UBS Investment Bank - Analyst : Got it. Okay. So lots of these pipeline opportunities starting to coming before the end of the decade. So you have. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 12, 2024 / 4:45PM, VTRS.OQ - Viatris Inc at UBS Global Healthcare Conference

Question: Ashwani Verma - UBS Investment Bank - Analyst : Yes. That's true. All right. That's great. So I had a couple of questions just come in here through the iPad, so maybe very quickly. I think this might be a little bit addressed, but yes, like I'll just read it out. Like can you elaborate on the therapeutic areas of focus for future innovative product acquisition and/or development.

Question: Ashwani Verma - UBS Investment Bank - Analyst : Perfect. All right. So just in the couple of minutes that we have, I would just like to ask if there's any audience in the room that has any questions, and I have a couple of follow-ups that we can come back to. So maybe just I wanted to actually like for the different geographies that you have, right, if you can just quickly talk about like the pushes and pulls in the next few minutes that we have remaining really. Just what would you call out like for either for developed markets, China, emerging or emerging markets and then if we can sort of wrap up after that.

Question: Ashwani Verma - UBS Investment Bank - Analyst : Yes. Great. Excellent. Thank you so much for this. Do I really appreciate you coming in and participating at the UBS Healthcare Conference. Good luck with all these different initiatives that you have in your business, and yes, looking forward to staying in touch on this.