Viatris : VTRS Q1 2026 Earnings Presentation - FINAL

Published: 2026-05-07 07:26:24 ET VTRS

Published on 05/07/2026 at 07:26 am EDT

Q1 2026

Earnings

May 7, 2026

Key References and Non-GAAP Measures

New product sales, new product launches or new product revenues: Refers to third-party net sales from new products launched in a calendar year and the carryover impact of new products, including business development, launched within the previous 12 months.

Operational change: Refers to constant currency percentage changes and is derived by translating amounts for the current period at prior year comparative period exchange rates and in doing so shows the percentage change from current period constant currency net sales, total revenues, adjusted EBITDA, and adjusted EPS to the corresponding amount in the prior year.

Transaction costs or transaction-related costs: Refers to the impact of any acquisition and divestiture-related transaction costs, including taxes.

Restructuring costs or restructuring-related costs: Refers to the impact of any cash costs associated with the restructuring activities of the enterprise-wide strategic review, which are expected to be primarily related to severance and employee benefits expense, as well as other costs, including those related to contract terminations, vendor consolidations, product transfer costs and network related simplification and modernization costs.

Revenue and Earnings: Refers to Total Revenues, Adjusted EBITDA and Adjusted EPS.

Non-GAAP Financial Measures

This presentation includes the presentation and discussion of certain financial information that differs from what is reported under accounting principles generally accepted in the United States ("U.S. GAAP"). These non-GAAP financial measures, including, but not limited to, adjusted EBITDA, free cash flow, free cash flow excluding transaction-related and restructuring-related costs, adjusted EPS, adjusted gross margin, adjusted gross profit, adjusted SG&A and as a percentage of total revenues, adjusted R&D and as a percentage of total revenues, adjusted net earnings, adjusted effective tax rate, adjusted earnings from operations, adjusted interest expense, adjusted other income, net, constant currency total revenues, constant currency net sales, notional debt, gross leverage ratio and long-term gross leverage ratio target, are presented in order to supplement investors' and other readers' understanding and assessment of the financial performance of Viatris. Free cash flow refers to U.S. GAAP net cash provided by operating activities less capital expenditures. Free cash flow excluding transaction-related costs or restructuring-related costs refers to free cash flow, further adjusted to exclude transaction-related or restructuring-related costs, as applicable. Adjusted EBITDA refers to as U.S. GAAP net earnings (loss) adjusted for income tax provision (benefit), interest expense and depreciation and amortization (to calculate EBITDA) and further adjusted for share-based compensation expense, litigation settlements and other contingencies, net, loss on divestitures of businesses, impairment of goodwill and restructuring, acquisition and divestiture related and other special items. Adjusted EBITDA margins refers to adjusted EBITDA divided by total revenues. Adjusted EPS refers to adjusted net earnings divided by the weighted average number of diluted shares of common stock outstanding. Notional gross debt is the sum of the Company's long-term debt, including current portion, and short-term borrowings and other current obligations, adjusted for net premiums or discounts on various debt issuances and deferred financing fees. Viatris has provided reconciliations of such non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures. Investors and other readers are encouraged to review the related U.S. GAAP financial measures and the reconciliations of the non-GAAP measures to their most directly comparable U.S. GAAP measures set forth in this presentation or on our website at https://investor.viatris.com/financial-information/non-gaap-reconciliations, and investors and other readers should consider non-GAAP measures only as supplements to, not as substitutes for or as superior measures to, the measures of financial performance prepared in accordance with U.S. GAAP.

2026 Guidance

The Company is not providing forward-looking guidance for U.S. GAAP net earnings (loss) or U.S. GAAP diluted earnings (loss) per share ("EPS") or a quantitative reconciliation of its 2026 adjusted EBITDA or adjusted EPS guidance to the most directly comparable U.S. GAAP measures, U.S. GAAP net earnings (loss) or U.S. GAAP diluted EPS, respectively, because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items, including integration, acquisition and divestiture-related expenses, restructuring expenses, asset impairments, litigation settlements, future share repurchases, and other contingencies, such as changes to contingent consideration, acquired IPR&D and certain other gains or losses, including for the fair value accounting impact for equity investments, as well as related income tax accounting, because certain of these items have not occurred, are out of the Company's control, and/or cannot be reasonably predicted without unreasonable effort.

These items are uncertain, depend on various factors, and could have a material impact on U.S. GAAP reported results for the guidance period. 2026 financial guidance as initially provided on February 26, 2026 and reaffirmed on May 7, 2026 excludes the impact any acquired IPR&D for unsigned deals to be incurred in any future period as it cannot be reasonably forecasted.

Long-Term Financial Targets

The Company is not providing forward-looking information for U.S. GAAP net earnings (loss), or EPS or a quantitative reconciliation of its long-term target adjusted EBITDA, adjusted EPS and free cash flow targets or expectations to their most directly comparable U.S. GAAP measures, U.S. GAAP net earnings (loss), EPS and U.S. GAAP net cash provided by operating activities, respectively, because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items, including integration, acquisition and divestiture-related expenses, restructuring expenses, asset impairments, litigation settlements, future share repurchases, and other contingencies, such as changes to contingent consideration, acquired IPR&D and certain other gains or losses, including for the fair value accounting impact for equity investments, as well as related income tax accounting because certain of these items have not occurred, are out of the Company's control and/or cannot be reasonably predicted without unreasonable effort. These items are uncertain, depend on various factors, and could have a material impact on U.S. GAAP reported results for the relevant periods.

Key Exchange Rates

Our 2026 financial guidance and long-term financial targets are based on the following budgeted exchange rates: Euro ($/EUR) 0.87, China Renminbi ($/CNY) 7.19, Japanese Yen ($/JPY) 144.35, and Indian Rupee ($/INR) 85.80.

Strategic Update

Scott A. Smith

Chief Executive Officer

2026 and Beyond: Creating our Future

Our Strategic Imperatives:

Drive our Base Business

Fuel our Innovative Portfolio

Modernize for Sustainable Growth

We are building a more focused, efficient and future-ready organization positioned to enter a period of sustained revenue and earnings growth beginning in 2026

For key references and non-GAAP measures, see slide 3

Q1 2026

Financial Highlights

Total Revenues

Adjusted EBITDA

$1.0B

$3.5B

Free Cash Flow(1)

Ex Transaction and Restructuring Costs

$459M

Adjusted EPS

$0.59

For key references and non-GAAP measures, see slide 3

Q1 2026 Free Cash Flow was $348M. Excluding the impact of transaction-related and restructuring-related costs of $111M, Q1 2026 Free Cash Flow was $459M.

Delivering on our 2026 Strategic Priorities

2026 Strategic Priorities

Execution

Drive commercial execution, including launches

Deliver strong financial performance

Q1 performance ahead of our expectations, with 3% total revenue growth, 10% adjusted EBITDA growth, and 14% adjusted EPS growth operationally

Advance our pipeline, including regulatory decisions for six product candidates

Strong commercial execution across our global portfolio, led by Greater China and North America

Execute disciplined and balanced capital allocation

Received approval and launched Effexor® for generalized anxiety disorder in Japan

Cenerimod SLE Phase 3 studies fully enrolled; Selatogrel Phase 3 enrollment on track

Target accretive in-market business development

Returned $140M of capital to shareholders through dividends paid

Evolve our organization and modernize for future

growth

On track to deliver identified cost savings, while reinvesting in the business to support future growth

For key references and non-GAAP measures, see slide 3 7

R&D Update

Philippe Martin Chief R&D Officer

Value-Added Medicines Pipeline

Asset Region Targeted Indication Phase 3 Regulatory Review Status Anticipated Milestone

EFFEXOR®

Japan

Generalized Anxiety Disorder (GAD)

Approved and launched in Japan

Fast-Acting Meloxicam (MR-107A-02)

U.S.

Acute Pain

NDA accepted for review by FDA

Anticipate regulatory decision in H2 2026

Norelgestromin and Low Ethinyl Estradiol Weekly Patch

U.S.

Contraception

NDA accepted for review by FDA

Anticipate regulatory decision in H2 2026

Norelgestromin Weekly Patch (MR-130A-01)

U.S.

Contraception

Enrollment complete

Targeting Phase 3 readout in H1 2027

Phentolamine Ophthalmic Solution (MR-141)

U.S.

Presbyopia

sNDA accepted for review by FDA

Anticipate regulatory decision in H2 2026

Phentolamine Ophthalmic Solution (MR-142)

U.S.

Visual Disturbances in Low Light Conditions following Keratorefractive Surgery

Positive first Phase 3 study

Targeting second Phase 3 enrollment in H2 2026

Influvac® High Dose

Europe

Influenza

Enrollment complete

Targeting Phase 3 readout in

H2 2026

Creon® High Dose

(for non-CF indications)

Europe, Ex-U.S.

Exocrine Pancreatic Insufficiency

Positive interim Phase 3 results

Targeting type 2 variation submission in H2 2026

Spydia®

Asia-Pacific (1)

Status Epilepticus

Launched in Japan

Assessing opportunities in other Asia-Pacific markets

(1) Acquired exclusive rights in Japan and certain markets in the Asia-Pacific region, including Australia, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, New Zealand, Philippines, South Korea, Thailand and Vietnam.

Innovative Medicines Pipeline

Asset Region Targeted Indication Phase 3 Regulatory Review Status Anticipated Milestone

Selatogrel

Global

Acute Myocardial Infarction (AMI)

Enrollment ongoing

Targeting Phase 3 enrollment completion in 2026

Cenerimod

Global

Systemic Lupus Erythematosus (SLE)

Enrollment complete

Targeting Phase 3 readout in H1 2027

Cenerimod

Global

Lupus Nephritis

Enrollment ongoing

Targeting Phase 3 enrollment

completion in H1 2028

Nefecon® (VR-205)

Japan

IgA Nephropathy

Enrollment complete

Targeting Phase 3 readout in H1 2026

Pitolisant

Japan

Excessive Daytime Sleepiness associated with Narcolepsy and Obstructive Sleep Apnea Syndrome

J-NDAs filed in Japan

Anticipate regulatory decisions in H2 2026

Inpefa® (Sotagliflozin)

Ex-U.S.,

Ex-Europe

Heart Failure

Launched in UAE and filed regulatory submissions in Saudi Arabia, Canada, Australia, New Zealand, Mexico, and Singapore

Anticipate regulatory decisions in Australia and Canada and regulatory submissions in other markets in 2026

Financial Update

Paul Campbell

Interim Chief Financial Officer Effective May 8, 2026

Framework to Accelerate Shareholder Value

Sustainable Revenue Growth

Continue to deliver on base business growth

Drive new product revenues and execute near-term launches

Advance pipeline to enhance long-term durable growth

Accelerate Earnings Growth

Expect to deliver net cost savings of ~$400M by the end of 2028

Disciplined reinvestment into higher-margin portfolio

Share count reduction

Cash Flow Firepower

Significant cash flow generation

Working capital

improvements

Balanced Capital Allocation

Return of capital to shareholders through dividend and share repurchases

Target accretive

in-market business development opportunities

For key references and non-GAAP measures, see slide 3

Q1 2026 Financial Results

($M, except percentages and Adjusted EPS)

Total Revenues

Q1 2026

$3,517

Q1 2025

$3,254

Change

Op Change

Adjusted EBITDA

$1,049

$923

14%

10%

Adjusted EPS

$0.59

$0.50

18%

14%

Free Cash Flow

$348

$493

(29%)

Free Cash Flow (1)

Ex Transaction and Restructuring Costs

$459 $535 (14%)

For key references and non-GAAP measures, see slide 3

(1) Q1 2026 Free Cash Flow was $348M. Excluding the impact of transaction-related and restructuring-related costs of $111M, Q1 2026 Free Cash Flow was $459M. Q1 2025 Free Cash Flow was $493M. Excluding the impact of transaction-related costs of $43M, Q1 2025 Free Cash Flow was $535M.

($M) Q1 2026 Q1 2025 Change Op Change

Net Sales

$3,510

$3,243

Brands

2,332

2,117

10%

Generics

1,177

1,126

Total Net Sales

For key references and non-GAAP measures, see slide 3

OPERATIONAL HIGHLIGHTS

Brands: Accelerated growth in Greater China and continued strength in Emerging Markets

Generics: Contributions from new product launches, in addition to growth in certain products (North America), partially offset by supply constraints in our ARV business within Emerging Markets

Developed Markets

($M)

Q1 2026

Q1 2025

Change

Op Change

Net Sales

$2,021

$1,892

Brands

1,069

1,020

(3%)

Generics

952

872

OPERATIONAL HIGHLIGHTS

Europe: ~$1.2B; (1%) op change

North America: ~$0.8B; +3% op change

Brands: Expected competitive impacts on certain brands, including EpiPen® (U.S.), Synthroid® (Canada), and Dymista® (EU), partially offset by strong performance in key brands such as Yupelri® and Creon®

Generics: Strong growth in North America driven by Breyna®, Estradiol, and contributions from new product launches, including Iron Sucrose and Octreotide, coupled with solid performance in key European Markets such as Italy

For key references and non-GAAP measures, see slide 3 15

Emerging Markets

($M) Q1 2026 Q1 2025 Change Op Change

Net Sales

$535

$520

Brands

447

403

11%

Generics 88 117 (25%) (27%)

For key references and non-GAAP measures, see slide 3

OPERATIONAL HIGHLIGHTS

Brands: Strength in MENA, Eurasia, and Emerging Asia regions, as well as growth in key brands such as Lyrica® and Zoloft®

Generics: Negative impact in our ARV business due to supply constraints

JANZ

($M)

Q1 2026

Q1 2025

Change

Op Change

Net Sales

$273

$276

(1%)

(2%)

Brands

139

142

(2%)

(3%)

Generics

134

(2%)

OPERATIONAL HIGHLIGHTS

Brands: Expected competition on certain products in Australia and negative impact from government price regulations in Japan, partially offset by solid performance in key brands

Generics: Anticipated negative impact from government price regulations

For key references and non-GAAP measures, see slide 3 17

Greater China

($M)

Q1 2026

Q1 2025

Change

Op Change

Net Sales

$680

$555

22%

18%

Brands

677

553

23%

18%

Generics

For key references and non-GAAP measures, see slide 3

OPERATIONAL HIGHLIGHTS

Overall performance primarily reflects strong growth in China across multiple channels, including e-commerce, retail, and private hospitals

Increased demand across our cardiovascular portfolio

Reaffirmed 2026 Financial Guidance

($M, except percentages and Adjusted EPS)

Financial Guidance (1)

Estimated Ranges

Midpoint

Key Metrics (1)

Estimated Ranges

Total Revenues

$14,450 - $14,950

$14,700

Adjusted Gross Margin

55.5% - 56.5%

Adjusted EBITDA

$4,150 - $4,450

$4,300

Adjusted SG&A % of Total Revenues

22.0% - 23.0%

Adjusted EPS

$2.33 - $2.47

$2.40

Adjusted R&D % of Total Revenues

6.2% - 6.6%

Free Cash Flow

Ex Transaction & Restructuring Costs

$1,950 - $2,350

$2,150

Adjusted Effective Tax Rate 17.5% - 18.5%

Shares Outstanding ~1,180M

For key references and non-GAAP measures, see slide 3

(1) 2026 financial guidance and key metrics as initially provided on February 26, 2026 and reaffirmed on May 7, 2026 exclude the estimated impact of transaction-related and restructuring-related costs of ~$700M. Also exclude any acquired IPR&D for unsigned deals to be incurred in any future period as it cannot be reasonably forecasted.

2026 Key Modeling and Phasing Considerations

Key Assumptions

Expect Total Revenues to grow ~2% operationally, including operational growth across Developed Markets, Emerging Markets, and Greater China

FX assumption unchanged, reflecting full-year tailwind of ~0.5%(1)

Shares Outstanding does not include the benefit of potential share repurchases in 2026

Excludes any acquired IPR&D for unsigned deals to be incurred in any future period as it cannot be reasonably forecasted

Phasing

Total Revenues, Adjusted EBITDA, and Adjusted EPS expected to be higher in the second half vs the first

half of 2026 (~52% vs ~48% of our full year outlook)

Normal product seasonality and the timing of anticipated new product launches

Expect total operating expenses to be higher in the second half

Free Cash Flow expected to be more heavily weighted towards the second half vs the first half of 2026 driven by timing of working capital and one-time operating cash costs

For key references and non-GAAP measures, see slide 3

(1) Key exchange rates used for 2026 financial guidance: Euro ($/EUR) 0.87, China Renminbi ($/CNY) 7.19, Japanese Yen ($/JPY) 144.35, and Indian Rupee ($/INR) 85.80.

2026 Capital Allocation Framework

Capital Return

Business Development

Debt / Leverage

Annual dividend policy of $0.48 per share

Continued share repurchases

Pursue accretive in-market business development to accelerate growth

Pursue licensing and partnership opportunities to leverage our regional capabilities and infrastructure

Expect to repay a portion of ~$1.9B upcoming maturities

Long-term gross leverage ratio

target of 2.8x-3.2x

For key references and non-GAAP measures, see slide 3

Expect >$2.5B cash available for deployment in 2026, including ~$800M excess cash on hand at December 31, 2025, 2026 free cash flow generation of $1,250M-$1,650M, and Biocon cash proceeds of ~$400M.

Long-Term Financial Targets Through 2030

Base Case Long-Term Targets(1)(2)

Potential Additional Drivers(1)(2)

Combined Long-Term Targets(1)

Provided at Investor Event on March 19, 2026

3%-4%

Total Revenues CAGR (3)

4%-5%

Adj EBITDA CAGR (3)

6%-7%

Adj EPS CAGR (3)

+1%

Total Revenues

+0%

Adj EBITDA

5%-6%

Total Revenues CAGR (3)

7%-8%

Adj EBITDA CAGR (3)

9%-10%

Adj EPS CAGR (3)

and Adj EPS

>$2.7B

Free Cash Flow in 2030

+1%

Total Revenues

+3%

Adj EBITDA

and Adj EPS

Free Cash Flow in 2030

For key references and non-GAAP measures, see slide 3

Targets and potential additional drivers do not represent the Company's financial guidance. They are subject to numerous assumptions, risks and uncertainties, including many that are outside of the Company's control, and actual results may differ materially. All constitute forward-looking statements, and you should not place undue reliance on the discussion of them. See "Forward-Looking Statements" on slide 2.

Refer to key assumptions on slide 23.

Five-year CAGR long-term targets comparing 2025 to 2030E are based on budgeted exchange rates. See "Key Exchange Rates" on slide 3 for more information.

Key Assumptions for Long-Term Financial Targets

Provided at Investor Event on March 19, 2026

Base Case Long-Term Targets(1)

Potential Additional Drivers(1)

Selatogrel and Cenerimod

Expect $450M-$550M of new product revenues annually

Includes upcoming potential launches of low-dose estrogen patch (U.S.), fast-acting meloxicam (U.S.), progestin-only patch (U.S.), Ryzumvi® for presbyopia and dim light disturbances (U.S.), Effexor® for GAD (Japan), pitolisant (Japan), Nefecon® (Japan), and sotagliflozin (various markets)

Adjusted gross margins expected to be stable through 2030, with higher-margin launches and anticipated net cost savings offset by inherent erosion and COGS inflation

Expect to deliver ~$650M total cost savings and ~$400M net cost savings after reinvestment by the end of 2028

Share count reduction driven by expected share repurchases, partially offset by vesting of annual equity awards

Expect stable free cash flow conversion of ~50% and disciplined capital expenditures

Expected revenue contribution from potential launches through 2030

Expected commercial investments for potential

launches

Accretive Business Development

Target to deliver incremental $1.0B-$1.5B total revenues and ~$500M adjusted EBITDA over five years, with focus on durable, high-margin, branded medicines

For key references and non-GAAP measures, see slide 3

(1) Targets and potential additional drivers do not represent the Company's financial guidance. They are subject to numerous assumptions, risks and uncertainties, including many that are outside of the Company's control, and actual results may differ materially. All constitute forward-looking statements, and you should not place undue reliance on the discussion of them. See "Forward-Looking Statements" on slide 2.

GAAP / Non-GAAP

Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except Adjusted EPS)

Full Year 2026 Financial Guidance Items as of May 7, 2026

GAAP

Non-GAAP (1)

Total Revenues

$14,450 - $14,950

N/A

Adjusted EBITDA

N/A

$4,150 - $4,450

Net Cash Provided by Operating Activities

$1,700 - $2,000

N/A

Free Cash Flow

Ex Transaction and Restructuring Costs

N/A

$1,950 - $2,350

Adjusted EPS

N/A

$2.33 - $2.47

For key references and non-GAAP measures, see slide 3

Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions)

Reconciliation of Estimated 2026 U.S. GAAP Net Cash Provided by Operating Activities to Free Cash Flow as of May 7, 2026

Estimated U.S. GAAP Net Cash Provided by Operating Activities

$1,700 - $2,000

Less: Capital Expenditures

($350) - ($450)

Free Cash Flow

$1,250 - $1,650

Add: Estimated Transaction and Restructuring Costs

~$700

Free Cash Flow Excluding Transaction and Restructuring Costs

$1,950 - $2,350

For key references and non-GAAP measures, see slide 3

Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except Adjusted EPS)

Full Year 2026 Financial Guidance Items as of February 26, 2026

GAAP

Non-GAAP (1)

Total Revenues

$14,450 - $14,950

N/A

Adjusted EBITDA

N/A

$4,150 - $4,450

Net Cash Provided by Operating Activities

$1,700 - $2,000

N/A

Free Cash Flow

Ex Transaction and Restructuring Costs

N/A

$1,950 - $2,350

Adjusted EPS

N/A

$2.33 - $2.47

For key references and non-GAAP measures, see slide 3

(1) 2026 financial guidance and key metrics as provided as of February 26, 2026, excluded the estimated impact of transaction-related and restructuring-related costs of ~$700M. Also excluded any acquired IPR&D for unsigned deals to be incurred in any future period as it could not be reasonably forecasted.

Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions)

Reconciliation of Estimated 2026 U.S. GAAP Net Cash Provided by Operating Activities to Free Cash Flow as of February 26, 2026

Estimated U.S. GAAP Net Cash Provided by Operating Activities

$1,700 - $2,000

Less: Capital Expenditures

($350) - ($450)

Free Cash Flow

$1,250 - $1,650

Add: Estimated Transaction and Restructuring Costs

~$700

Free Cash Flow Excluding Transaction and Restructuring Costs

$1,950 - $2,350

For key references and non-GAAP measures, see slide 3

Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except per share amounts)

Three Months Ended

March 31,

2026 2025

U.S. GAAP Net Earnings (Loss) to Adjusted Net Earnings and U.S. GAAP Diluted Earnings (Loss) Per Share to Adjusted EPS

U.S. GAAP net earnings (loss) and U.S. GAAP diluted earnings (loss) per share..............................

$ 176.4

$ 0.15

$ (3,042.0) $

(2.55)

Purchase accounting amortization (primarily included in cost of sales) .........................................

591.5

583.5

Impairment of goodwill ...............................................................................................................

2,936.8

Litigation settlements and other contingencies, net.....................................................................

53.5

(73.5)

Interest expense (primarily amortization of premiums and discounts on long term debt)............

(10.1)

(9.2)

Loss on divestitures of businesses (included in other expense, net) ............................................

13.9

36.9

Acquisition and divestiture-related costs (primarily included in cost of sales and SG&A) (a)...........

62.3

40.7

Restructuring costs (b).................................................................................................................

92.5

92.9

Share-based compensation expense............................................................................................

Other special items included in:

48.2

55.2

Cost of sales (c).........................................................................................................................

142.4

41.6

Research and development expense........................................................................................

2.8

0.7

Selling, general and administrative expense..............................................................................

35.4

17.6

Other expense, net (d)..............................................................................................................

61.3

101.4

Tax effect of the above items and other income tax related items (e)..........................................

(576.0)

(182.3)

Adjusted net earnings and adjusted EPS....................................................................................... $ 694.1 $

0.59

$ 600.3 $

0.50

Weighted average diluted shares outstanding.............................................................................. 1,175.3

1,203.0

Acquisition and divestiture-related costs consist primarily of contractual obligations related to divestitures, transaction costs including legal and consulting fees and integration activities.

For the three months ended March 31, 2026, charges include approximately $49.8 million in cost of sales, approximately $0.6 million in R&D, and approximately $42.0 million in SG&A, primarily relating to the 2026 restructuring program.

For the three months ended March 31, 2026, includes certain asset impairments, contractual termination costs, and incremental manufacturing variances and certain remediation costs at plants slated for sale or closure or undergoing remediation activities of approximately $130.7 million, including $71.9 million related to the write off inventory and fixed assets damaged in the fire at the Nashik manufacturing facility and incremental manufacturing variances.

For the three months ended March 31, 2026, charges include a loss of approximately $64.9 million as a result of changes in the fair value of the Biocon equity shares.

Adjusted for changes for uncertain tax positions.

Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions)

Restructuring, acquisition and divestiture-related and other special items (c)....... 385.0 284.9

Adjusted EBITDA................................................................................................................ $ 1,049.5 $ 923.5

Three Months Ended

March 31,

2026 2025

U.S. GAAP Net Earnings (Loss) to EBITDA and Adjusted EBITDA

U.S. GAAP net earnings (loss)...........................................................................................

$ 176.4

$ (3,042.0)

Add / (deduct) adjustments:

Income tax benefit.........................................................................................................

(423.7)

(55.0)

Interest expense (a).......................................................................................................

120.1

115.5

Depreciation and amortization (b)............................................................................... 676.1 664.7

EBITDA................................................................................................................................

$ 548.9

$ (2,316.8)

Add / (deduct) adjustments:

Share-based compensation expense

48.2

55.2

Litigation settlements and other contingencies, net..................................................

53.5

(73.5)

Loss on divestitures of businesses..............................................................................

13.9

36.9

Impairment of goodwill................................................................................................

2,936.8

Includes amortization of premiums and discounts on long-term debt.

Includes purchase accounting related amortization.

See items detailed in the Reconciliation of U.S. GAAP Net Earnings (Loss) to Adjusted Net Earnings.

Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s)

Net sales

Constant Currency %

Change (b)

2026 Constant

2026 Currency Currency Impact (a) Revenues

% Change

2025

2026

Three Months Ended

March 31,

Summary of Total Revenues by Segment - Q1 2026

Developed Markets ........................

$ 2,020.8

$ 1,891.7

7 %

$ (117.7) $

1,903.1

1 %

Greater China.................................

680.1

555.5

22 %

(25.6)

654.5

18 %

JANZ...............................................

273.4

276.1

(1)%

(3.9)

269.5

(2)%

Emerging Markets .......................... 535.4 519.9

3 %

(14.6) 520.8

- %

Total net sales........................ $ 3,509.7 $ 3,243.2

8 %

$ (161.8) $ 3,347.9

3 %

Other revenues (c).......................... 7.3 11.1

(0.2) 7.1

Consolidated total revenues (d).......... $ 3,517.0 $ 3,254.3

8 %

$ (162.0) $ 3,355.0

3 %

Currency impact is shown as unfavorable (favorable).

The constant currency percentage change is derived by translating net sales or revenues for the current period at prior year comparative period exchange rates, and in doing so shows the percentage change from 2026 constant currency net sales or revenues to the corresponding amount in the prior year.

For the three months ended March 31, 2026, other revenues in Developed Markets, JANZ, and Emerging Markets were approximately $5.2 million, $0.1 million, and $2.0 million, respectively.

Amounts exclude intersegment revenue which eliminates on a consolidated basis.

Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions)

Key Product Net Sales, on a Consolidated Basis

Lipitor ®

$ 462.0

$ 388.0

Norvasc ®

210.0

172.3

Lyrica ®

120.6

112.6

EpiPen ® Auto-Injectors

101.1

96.7

Creon ®

97.4

82.4

Viagra ®

95.0

98.5

Zoloft ®

72.6

60.2

Celebrex ®

67.1

63.4

Effexor ®

62.0

59.3

Xalabrands

39.2

37.1

Yupelri ®

$ 62.5

$ 58.3

Dymista ®

37.3

42.8

Xanax ®

34.8

32.3

Amitiza ®

34.0

33.3

The Company does not disclose net sales for any products considered competitively sensitive.

Select Key Segment Products

Select Key Global Products

Three Months Ended

March 31,

2026 2025

Products disclosed may change in future periods, including as a result of seasonality, competition or new product launches.

Amounts include the impact of foreign currency fluctuations compared to the prior year period.

Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s)

Cost of Sales

Three Months Ended

U.S. GAAP cost of sales $

Deduct:

2,359.8 $

2,093.1

Purchase accounting amortization and other related items......... (591.5) (583.5) Acquisition and divestiture-related costs........................................ (28.4) (12.2)

Restructuring costs............................................................................ (49.8) (19.8)

Share-based compensation expense.............................................. (1.0) (1.3) Other special items, including restructuring related costs........... (142.4) (41.6) Adjusted cost of sales........................................................................... $ 1,546.7 $ 1,434.7

Adjusted gross profit (a)....................................................................... $ 1,970.3 $ 1,819.6

Adjusted gross margin (a)..................................................................... 56% 56%

U.S. GAAP gross profit is calculated as total revenues less U.S. GAAP cost of sales. U.S. GAAP gross margin is calculated as U.S. GAAP gross profit divided by total revenues. Adjusted gross profit is calculated as total revenues less adjusted cost of sales. Adjusted gross margin is calculated as adjusted gross profit divided by total revenues.

Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s)

Adjusted SG&A as % of total revenues................................................ 22% 24%

Other special items and reclassifications....................................... (35.4) (17.6)

Adjusted SG&A...................................................................................... $ 774.9 $ 778.7

Three Months Ended

SG&A

U.S. GAAP SG&A ...................................................................................

$ 928.8

$ 948.1

Deduct:

Acquisition and divestiture-related costs........................................

(32.0)

(27.8)

Restructuring costs............................................................................

(42.0)

(72.3)

Share-based compensation expense..............................................

(44.5)

(51.7)

Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s)

Adjusted R&D as % of total revenues.................................................. 7% 7%

Other special items........................................................................... (2.8) (0.7)

Adjusted R&D........................................................................................ $ 240.5 $ 217.5

Three Months Ended

R&D

U.S. GAAP R&D......................................................................................

$ 248.6

$ 222.0

Deduct:

Acquisition and divestiture-related costs........................................

(2.0)

(0.7)

Restructuring costs............................................................................

(0.6)

(0.8)

Share-based compensation expense..............................................

(2.7)

(2.3)

Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions)

Adjusted earnings from operations (a)............................................... $ 948.9 $ 813.4

Impairment of goodwill adjustments.............................................. - (2,936.8)

Adjusted total operating expenses...................................................... $ 1,021.4 $ 1,006.2

Three Months Ended

Total Operating Expenses

U.S. GAAP total operating expenses....................................................

$ 1,236.9

$ 4,043.4

Add / (Deduct):

Litigation settlements and other contingencies, net......................

(53.5)

73.5

R&D adjustments..............................................................................

(8.1)

(4.5)

SG&A adjustments ...........................................................................

(153.9)

(169.4)

(a) U.S. GAAP earnings from operations is calculated as U.S. GAAP gross profit less U.S. GAAP total operating expenses. Adjusted earnings from operations is calculated as adjusted gross profit less adjusted total operating expenses.

Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions)

Interest Expense

Three Months Ended

U.S. GAAP interest expense $

Add / (Deduct):

Accretion of contingent consideration liability............................... Amortization of premiums and discounts on long-term debt......

120.1 $

115.5

(0.9)

11.8

(1.2)

11.0

Other special items........................................................................... (0.7) (0.6)

Adjusted interest expense.................................................................... $ 130.3 $ 124.7

Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions)

Other Expense, Net

Three Months Ended

U.S. GAAP other expense, net $

Add / (Deduct):

Fair value adjustments on non-marketable equity investments.. Fair value adjustments on marketable equity investments.......... Loss on divestitures of businesses..................................................

47.5 $

99.3

(64.9)

(13.9)

(115.8)

(36.9)

Other items........................................................................................ 3.7 14.4

Adjusted other income, net.................................................................. $ (27.6) $ (39.0)

Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except %s)

Loss Before Income Taxes and Income Tax Benefit

Three Months Ended

U.S. GAAP loss before income taxes $

(247.3) $

(3,097.0)

Total pre-tax non-GAAP adjustments.................................................. 1,093.7 3,824.7

Adjusted earnings before income taxes............................................. $ 846.4 $ 727.7

U.S. GAAP income tax benefit $

(423.7) $

(55.0)

Adjusted tax expense............................................................................ 576.0 182.3

Adjusted income tax provision............................................................ $ 152.3 $ 127.3

Adjusted effective tax rate.................................................................... 18.0% 17.5%

Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions)

Free Cash Flow and Free Cash Flow Excluding Transaction-related and Restructuring-related Costs

Three Months Ended

March 31,

U.S. GAAP net cash provided by operating activities $

Capital expenditures...................................................................................................

Free cash flow $

2026

388.3 $

(39.9)

348.4 $

2025

535.5

(42.6)

492.9

Transaction-related and restructuring-related costs................................................

Free cash flow excluding transaction-related and restructuring-related costs $

111.1

459.5 $

42.5

535.4

Disclaimer

Viatris Inc. published this content on May 07, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2026 at 11:22 UTC.