Earnings release
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Viatris Reports Third-Quarter 2026 Financial Results Delivers Total Revenues of $3.75 Billion, U.S. GAAP Net Loss of $325 Million and Adjusted EBITDA of $1.20 Billion Receives Regulatory Approval for RYZUMVI® for Presbyopia in the U.S. and WAKIX® in Japan Returns Approximately $717 Million of Capital to Shareholders Year to Date, Including Through Share Repurchases Advances Innovative Medicines Strategy with Planned Acquisition of Pacira BioSciences, Expected to Close by the End ofNovember Raises 2026 Financial Guidance Midpoints for All Metrics [1] PITTSBURGH, Nov. 5, 2026 /PRNewswire/ -- Viatris Inc. (Nasdaq: VTRS), a global healthcare company, today announced its third-quarter 2026 financial results. Executive Commentary "Our third-quarter results reflect strong execution and reinforce our confidence in thegrowth trajectory of our business," said Scott A. Smith, CEO, Viatris. "Momentumacross key areas of our base business, progress in our pipeline and the benefits of ourenterprise-wide strategic review continue to strengthen our company. With the recentU.S. launch of Gwyn Lo, approvals of RYZUMVI in the U.S. and WAKIX in Japan, thepotential upcoming approval and launch of fast-acting meloxicam and our recentlyannounced agreement to acquire Pacira BioSciences, we are taking important steps toposition Viatris for sustained revenue and earnings growth." "We are very pleased with the operational momentum across our higher-marginbusinesses and continued focus on cost discipline, which led to strong overall third-quarter results," said Paul Campbell, Interim CFO, Chief Accounting Officer &Corporate Controller, Viatris. "Based on this performance and our confidence in theoutlook for the rest of the year, we are once again raising the midpoints of our financialguidance ranges across all key metrics. Also, consistent with our disciplined andbalanced capital allocation strategy, we continued returning additional value toshareholders in the quarter and expect the Pacira transaction to have minimal impact on our gross leverage ratio upon expectedclosing by the end of November." [1] Viatris is not providing forward-looking guidance for U.S. GAAP net earnings (loss) or U.S. GAAP diluted EPS (loss) or aquantitative reconciliation of its 2026 adjusted EBITDA or adjusted EPS guidance. U.S. GAAP net cash provided by operatingactivities for 2026 is estimated to be between $2.025 billion and $2.1 billion, with a midpoint of approximately $2.0625 billion. 2026financial guidance ranges as provided on November 5, 2026, exclude the impact of any transaction-related and restructuring-relatedcosts (as defined below) and acquired IPR&D for unsigned deals as they cannot be reasonably forecasted. 2026 financial guidanceranges also exclude any contribution from the planned acquisition of Pacira BioSciences. Please see "2026 Financial Guidance" and"Non-GAAP Financial Measures" for additional information. Third-Quarter Results Three Months Ended September 30, (Unaudited; in millions, except %s and per share amounts)2026 2025 ReportedChange OperationalChangeTotal Revenues $ 3,749.5 $ 3,759.9 — % — %Total Net Sales $ 3,734.7 $ 3,747.5 — % — %Developed Markets 2,215.9 2,255.6 (2) % (1) %Emerging Markets 529.1 570.4 (7) % (6) %JANZ 287.1 306.3 (6) % (5) %Greater China 702.6 615.2 14 % 10 % Net Sales by Product Category Brands $ 2,461.4 $ 2,436.8 1 % 1 %Generics 1,273.3 1,310.7 (3) % (3) % (1) (2)
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U.S. GAAP Gross Profit $ 1,438.0 $ 1,371.5 5 % U.S. GAAP Gross Margin 38.4 % 36.5 % Adjusted Gross Profit $ 2,176.0 $ 2,104.4 3 % Adjusted Gross Margin 58.0 % 56.0 % U.S. GAAP Net Loss $ (325.3) $ (128.2) NM U.S. GAAP Loss Per Share $ (0.28) $ (0.11) NM Adjusted Net Earnings $ 821.4 $ 784.3 5 % Adjusted EPS $ 0.71 $ 0.67 6 % 3 % EBITDA $ 937.5 $ 800.2 17 % Adjusted EBITDA $ 1,195.7 $ 1,154.6 4 % 1 % U.S. GAAP Net Cash Provided by Operating Activities $ 899.4 $ 744.9 21 % Capital Expenditures 85.7 86.8 (1) % Free Cash Flow $ 813.7 $ 658.1 24 % ___________See "Certain Key Terms and Presentation Matters" in this release for more information.Non-GAAP financial measures. See "Non-GAAP Financial Measures" for additional information.Excluding the impact of transaction-related and restructuring-related costs of $81 million, free cash flow for the three monthsended September 30, 2026, was $895 million. Excluding the impact of transaction-related costs of $70 million, free cash flow forthe three months ended September 30, 2025, was $728 million. Nine Months Ended September 30, (Unaudited; in millions, except %s and per share amounts)2026 2025 ReportedChange OperationalChangeTotal Revenues $ 11,023.3 $ 10,596.3 4 % 2 %Total Net Sales $ 10,990.3 $ 10,559.7 4 % 2 %Developed Markets 6,430.4 6,266.6 3 % 1 %Emerging Markets 1,606.8 1,645.4 (2) % (3) %JANZ 856.6 888.1 (4) % (2) %Greater China 2,096.5 1,759.6 19 % 15 % Net Sales by Product Category Brands $ 7,212.3 $ 6,838.2 5 % 3 %Generics 3,778.0 3,721.5 2 % — % U.S. GAAP Gross Profit $ 4,051.7 $ 3,865.6 5 % U.S. GAAP Gross Margin 36.8 % 36.5 % Adjusted Gross Profit $ 6,305.2 $ 5,952.4 6 % Adjusted Gross Margin 57.2 % 56.2 % U.S. GAAP Net Loss $ (267.7) $ (3,174.8) NM U.S. GAAP Loss Per Share $ (0.23) $ (2.70) NM Adjusted Net Earnings $ 2,324.0 $ 2,110.6 10 % Adjusted EPS $ 1.99 $ 1.78 12 % 8 % EBITDA $ 2,215.4 $ (938.8) NM Adjusted EBITDA $ 3,433.5 $ 3,156.9 9 % 6 % U.S. GAAP Net Cash Provided by Operating Activities $ 1,669.5 $ 1,500.1 11 % Capital Expenditures 178.4 182.3 (2) % Free Cash Flow $ 1,491.1 $ 1,317.8 13 % ___________See "Certain Key Terms and Presentation Matters" in this release for more information.Non-GAAP financial measures. See "Non-GAAP Financial Measures" for additional information. (2) (2) (2) (2) (2) (2) (2)(3) (1) (2) (3) (1) (2) (2) (2) (3) (3) (2) (2) (2) (2) (2)(4) (1) (2) (3)
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For the nine months ended September 30, 2025, includes the previously disclosed goodwill impairment charge of $2.9 billion asa result of the interim goodwill impairment test performed as of March 31, 2025.Excluding the impact of transaction-related and restructuring-related costs of $312 million, free cash flow for the nine monthsended September 30, 2026, was $1.8 billion. Excluding the impact of transaction-related costs of $186 million, free cash flow forthe nine months ended September 30, 2025, was $1.5 billion. Financial Highlights for the Third Quarter of 2026 Total revenues were $3.75 billion, essentially flat on both a reported and operational basis compared to third-quarter 2025 results,as new product sales, primarily in Developed Markets, the strength of the North American business, and strong net sales inGreater China largely offset the impact of continued supply constraints in Europe and Emerging Markets and additionalcompetition on certain products. Brands net sales reflect continued strength in Greater China and Emerging Markets. Generics net sales reflect contributions from new product launches and growth in certain products in North America, more thanoffset by continued supply constraints in Europe and Emerging Markets. The Company generated approximately $115 million in new product revenues (approximately $287 million for the year) and nowexpects to deliver approximately $450 million in new product revenues in full-year 2026. U.S. GAAP net loss was $325 million compared to U.S. GAAP net loss of $128 million in the third quarter of 2025 and U.S. GAAPdiluted loss per share was $(0.28) compared to a loss of $(0.11) per share in the third quarter of 2025. The loss in the thirdquarter of 2026 was primarily driven by an increase in income tax provision due to losses in jurisdictions for which minimal benefitcan be realized. Adjusted EBITDA was $1.20 billion, up 4% on a reported basis and up 1% on an operational basis compared to the third quarterof 2025, and adjusted EPS was $0.71 per share, up 6% on a reported basis and up 3% on an operational basis compared to thethird quarter of 2025. The Company generated U.S. GAAP net cash provided by operating activities of $899 million ($1.67 billion for the year) and freecash flow, excluding the impact of transaction-related and restructuring-related costs, of $895 million ($1.80 billion for the year). Additional Highlights In October, the Company launched Gwyn Lo™ (norelgestromin and ethinyl estradiol transdermal system) in the U.S. Gwyn Lo isa combined hormonal contraceptive (CHC) patch indicated for the prevention of pregnancy in women with a BMI < 30 kg/m2.Approved by the U.S. Food and Drug Administration (FDA) in July, Gwyn Lo is designed to provide a low-dose estrogen, non-daily contraceptive option for appropriate patients. In October, the Company announced that the FDA approved RYZUMVI(phentolamine ophthalmic solution 0.75%) for thetreatment of presbyopia in adults. RYZUMVI was previously approved in the U.S. for the treatment of pharmacologically inducedmydriasis and is the only commercially available FDA-approved product for that use. This approval expands the product'sindications to include presbyopia. In October, the Company and Pacira BioSciences, Inc. (Nasdaq: PCRX), a leader in innovative non-opioid pain therapies,announced that they entered into a definitive agreement under which Viatris has agreed to acquire all of the outstanding sharesof common stock of Pacira for $36.50 per share in cash, representing an aggregate equity value of $1.65 billion. The transactionis expected to close by the end of November 2026. In September, the Company announced that Japan's Ministry of Health, Labour and Welfare granted approval for WAKIX®(pitolisant) for the treatment of excessive daytime sleepiness (EDS) associated with obstructive sleep apnea syndrome (OSAS) inpatients receiving treatment for airway obstruction, and approval for narcolepsy (type 1 and 2 – with and without cataplexy). In September, the Company received notice from the FDA that the inspection classification of Company's oral solid dosemanufacturing facility in Nashik, India was Official Action Indicated, following the issuance of 483 observations in May. In October,out of an abundance of caution, the Company voluntarily suspended manufacturing at the facility to focus on remediation (4) ®
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activities. The Company expects to resume production at the facility during the first quarter of 2027. The Company estimates thetotal revenue impact of supply constraints was approximately $100 million in the third quarter of 2026 and currently anticipates animpact of approximately $100 million to total revenues in the fourth quarter of 2026. Capital Allocation Through September 30, 2026, the Company has returned approximately $717 million of capital to shareholders, includingapproximately $300 million through share repurchases. The Company has approximately $700 million remaining under its existingboard-authorized share repurchase program, providing continued flexibility to return additional capital to shareholders. 2026 Financial Guidance Viatris is raising the midpoints of its 2026 financial guidance ranges, each as set forth below. 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 quantitativereconciliation 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 theultimate outcome of certain significant items, including integration, acquisition and divestiture-related expenses, restructuringexpenses, asset impairments, litigation settlements, future share repurchases, and other contingencies, such as changes tocontingent consideration, acquired IPR&D and certain other gains or losses as well as related income tax accounting, because certainof 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 theguidance period. With respect to the Estimated Ranges as provided on November 5, 2026, U.S. GAAP net cash provided by operatingactivities for 2026 is estimated to be between $2.025 billion and $2.1 billion, with a midpoint of approximately $2.0625 billion. Withrespect to the Estimated Ranges as provided on August 6, 2026, U.S. GAAP net cash provided by operating activities for 2026 wasestimated to be between $1.9 billion and $2.1 billion, with a midpoint of approximately $2.0 billion. View News Release Full Screen (In millions, except Adjusted EPS) Estimated Ranges August 6, 2026 Midpoint August 6,2026 Estimated Ranges November 5, 2026 MiNov Total Revenues $14,550 - $14,950 $14,750 $14,700 - $14,900 $Adjusted EBITDA $4,300 - $4,500 $4,400 $4,450 - $4,550 Adjusted EPS $2.45 - $2.59 $2.52 $2.56 - $2.63 Free Cash Flow Excluding Transaction-related and Restructuring-related Costs$2,050 - $2,350 $2,200 $2,225 - $2,375 Non-GAAP financial measures. See "Non-GAAP Financial Measures" for additional information.2026 Financial Guidance as provided on August 6, 2026, excluded any acquired IPR&D for unsigned deals to be incurred in anyfuture period as it could not be reasonably forecasted. 2026 Financial Guidance as provided on November 5, 2026, excludes any acquired IPR&D for unsigned deals to be incurred inany future period as it cannot be reasonably forecasted. Also excludes any contribution from the proposed acquisition of PaciraBioSciences. Conference Call and Earnings Materials As previously announced, Viatris will host a conference call and live webcast, today at 8:30 a.m. ET, to review the Company's third-quarter 2026 financial results and the planned acquisition of Pacira BioSciences. Investors and the general public are invited to listento a live webcast of the call at investor.viatris.com or by calling 844.308.3344 or 412.317.1896 for international callers. The "ViatrisQ3 2026 Earnings Presentation," which will be referenced during the call, can be found at investor.viatris.com. A replay of thewebcast also will be available on the website. About Viatris Viatris Inc. (Nasdaq: VTRS) is a global healthcare company whose mission is to empower people worldwide to live healthier at everystage of life. We meet the needs of patients around the world by acting decisively with ingenuity and resolve. Whether we'redeveloping new medicines, working to maintain a resilient supply of needed therapies, or pursuing bold innovation, we strive to deliversolutions that are effective at scale and built to endure. We're purpose-built to make an impact with a broad portfolio that spansgenerics, value-added medicines, established brands and innovative medicines that address areas of significant unmet need. We areheadquartered in the U.S., with global centers in Pittsburgh, Shanghai and Hyderabad, India. Learn more at viatris.com andinvestor.viatris.com, and connect with us on LinkedIn, Instagram, YouTube and X. (2) (2) (3) (1) (1) (1) (1) (2) (3)
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Non-GAAP Financial Measures This press release includes the presentation and discussion of certain financial information that differs from what is reported underaccounting principles generally accepted in the United States ("U.S. GAAP"). These non-GAAP financial measures, including, but notlimited to, adjusted gross profit, adjusted gross margins, adjusted net earnings, adjusted EPS, EBITDA, adjusted EBITDA, free cashflow, free cash flow excluding the impact of transaction-related and restructuring-related costs, adjusted R&D and as a % of totalrevenues, adjusted SG&A and as a % of total revenues, adjusted earnings from operations, adjusted interest expense, adjusted otherincome, net, adjusted effective tax rate, constant currency total revenues, constant currency net sales, constant currency adjustedEBITDA, constant currency adjusted EPS, notional debt, gross leverage ratio and long-term gross leverage ratio target, are presentedin order to supplement investors' and other readers' understanding and assessment of the financial performance of Viatris Inc.("Viatris" or the "Company"). Free cash flow refers to U.S. GAAP net cash provided by operating activities less capital expenditures.Management uses these measures internally for forecasting, budgeting, measuring its operating performance, and incentive-basedawards. Primarily due to acquisitions, divestitures and other significant events which may impact comparability of our periodicoperating results, Viatris believes that an evaluation of its ongoing operations (and comparisons of its current operations with historicaland future operations) would be difficult if the disclosure of its financial results was limited to financial measures prepared only inaccordance with U.S. GAAP. We believe that non-GAAP financial measures are useful supplemental information for our investors andwhen considered together with our U.S. GAAP financial measures and the reconciliation to the most directly comparable U.S. GAAPfinancial measure, provide a more complete understanding of the factors and trends affecting our operations. The financialperformance of the Company is measured by senior management, in part, using adjusted metrics included herein, along with otherperformance metrics. In addition, the Company believes that including EBITDA and supplemental adjustments applied in presentingadjusted EBITDA is appropriate to provide additional information to investors to demonstrate the Company's ability to comply withfinancial debt covenants and assess the Company's ability to incur additional indebtedness. The Company also believes that adjustedEBITDA better focuses management on the Company's underlying operational results and true business performance and is used, inpart, for management's incentive compensation. We also report sales performance using the non-GAAP financial measures of"constant currency", also referred to herein as "operational change", total revenues, net sales, adjusted EBITDA, and adjusted EPS.These measures provide information on the change in total revenues, net sales, adjusted EBITDA, and adjusted EPS assuming thatforeign currency exchange rates had not changed between the prior and current period. The comparisons presented at constantcurrency rates reflect comparative local currency sales at the prior year's foreign exchange rates. We routinely evaluate our net sales,total revenues, adjusted EBITDA, and adjusted EPS performance at constant currency so that sales results can be viewed without theimpact of foreign currency exchange rates, thereby facilitating a period-to-period comparison of our operational activities and believethat this presentation also provides useful information to investors for the same reason. The "Summary of Total Revenues bySegment" table below compares total revenues and net sales on an actual and constant currency basis for each reportable segmentfor the three and nine months ended September 30, 2026 and 2025. Also, set forth below, Viatris has provided reconciliations of suchnon-GAAP financial measures to the most directly comparable U.S. GAAP financial measures. Investors and other readers areencouraged to review the related U.S. GAAP financial measures and the reconciliations of the non-GAAP measures to their mostdirectly comparable U.S. GAAP measures set forth below, and investors and other readers should consider non-GAAP measures onlyas supplements to, not as substitutes for or as superior measures to, the measures of financial performance prepared in accordancewith U.S. GAAP. For additional information regarding the components and uses of non-GAAP financial measures refer toManagement's Discussion and Analysis of Financial Condition and Results of Operations--Use of Non-GAAP Financial Measuressection of Viatris' Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2026. With respect to the guidance ranges as provided on August 6, 2026, at that time the Company did not provide forward-lookingguidance for U.S. GAAP net earnings (loss) or U.S. GAAP diluted EPS or a quantitative reconciliation of its 2026 adjusted EBITDA oradjusted EPS guidance to the most directly comparable U.S. GAAP measures, U.S. GAAP net earnings (loss) or U.S. GAAP dilutedEPS, respectively, because it was 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 othergains or losses, as well as related income tax accounting, because certain of these items had not occurred, were out of theCompany's control, and/or could not be reasonably predicted without unreasonable effort. These items were uncertain, depended onvarious factors, and could have had a material impact on U.S. GAAP reported results for the guidance period. As previously disclosed,such guidance ranges excluded the impact of transaction-related and restructuring-related costs as well as any acquired IPR&D forunsigned deals to be incurred in any future period as it could not be reasonably forecasted. With respect to the Estimated Ranges asprovided on August 6, 2026, U.S. GAAP net cash provided by operating activities for 2026 was estimated to be between $1.9 billionand $2.1 billion, with a midpoint of approximately $2.0 billion. Certain Key Terms and Presentation Matters New product sales, new product launches or new product revenues: Refers to revenue from new products launched in 2026 and thecarryover impact of new products, including business development, launched within the last 12 months. Operational change: Refers to constant currency percentage changes and is derived by translating amounts for the current period atprior year comparative period exchange rates and in doing so shows the percentage change from 2026 constant currency net sales,total revenues, adjusted EBITDA, and adjusted EPS to the corresponding amount in the prior year. Transaction-related costs: Refers to the impact of any acquisition and divestiture-related transaction costs, including taxes.
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Restructuring-related costs: Refers to the impact of any cash costs associated with the restructuring activities of the enterprise-widestrategic 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 andmodernization costs. Revenue and Earnings: Refers to Total Revenues, Adjusted EBITDA and Adjusted EPS. Forward-Looking Statements This press release contains "forward-looking statements". These statements are made pursuant to the safe harbor provisions of thePrivate Securities Litigation Reform Act of 1995. Such forward-looking statements may include, without limitation, statements aboutour 2026 financial guidance; advances innovative medicines strategy with planned acquisition of Pacira BioSciences, expected toclose by the end of November; our third-quarter results reflect strong execution and reinforce our confidence in the growth trajectory ofour business' momentum across key areas of our base business, progress in our pipeline and the benefits of our enterprise-widestrategic review continue to strengthen our company; with the recent U.S. launch of Gwyn Lo, approvals of RYZUMVI in the U.S. andWAKIX in Japan, the potential upcoming approval and launch of fast-acting meloxicam and our recently announced agreement toacquire Pacira BioSciences, we are taking important steps to position Viatris for sustained revenue and earnings growth; we are verypleased with the operational momentum across our higher-margin businesses and continued focus on cost discipline, which led tostrong overall third-quarter results; based on this performance and our confidence in the outlook for the rest of the year, we are onceagain raising the midpoints of our financial guidance ranges across all key metrics; consistent with our disciplined and balanced capitalallocation strategy, we continued returning additional value to shareholders in the quarter and expect the Pacira transaction to haveminimal impact on our gross leverage ratio upon expected closing by the end of November; now expects to deliver approximately$450 million in new product revenues in full-year 2026; the Company expects to resume production at the facility during the firstquarter of 2027; the Company estimates the total revenue impact of supply constraints was approximately $100 million in the thirdquarter of 2026 and currently anticipates an impact of approximately $100 million to total revenues in the fourth quarter of 2026; theCompany has approximately $700 million remaining under its existing board-authorized share repurchase program, providingcontinued flexibility to return additional capital to shareholders; the goals or outlooks with respect to the Company's strategic initiativesand priorities, including but not limited to divestitures, acquisitions, strategic alliances, collaborations, or other potential transactions;the anticipated benefits of such strategic initiatives or priorities or restructuring activities; future opportunities for the Company and itsproducts; the outcomes of clinical trials and research studies; R&D and new product development; and any other statements regardingthe Company's future operations, financial or operating results, capital allocation, dividend policy and payments, share repurchases,debt ratio and covenants, anticipated business levels, future earnings, planned activities, anticipated growth, market opportunities,strategies, imperatives, competitions, commitments, confidence in future results, efforts to create, enhance or otherwise unlock value,and other expectations and targets for future periods. Forward-looking statements may often be identified by the use of words such as"will", "may", "could", "should", "would", "project", "believe", "anticipate", "expect", "plan", "estimate", "forecast", "potential", "pipeline","intend", "continue", "target", "seek" and variations of these words or comparable words. Because forward-looking statementsinherently involve risks and uncertainties, actual future results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: the possibility that theCompany may not realize the intended benefits of, or achieve the intended goals or outlooks with respect to, its strategic initiativesand priorities; the possibility that the Company may be unable to achieve the intended or expected benefits of its enterprise-widestrategic review and related cost-saving and restructuring activities within the expected timeframe or at all; the possibility that theCompany may be unable to achieve intended or expected benefits in connection with divestitures, acquisitions, strategic alliances,collaborations, or other transactions, or restructuring programs, within the expected timeframes or at all; the possibility that theCompany may not complete the proposed acquisition of Pacira within the timeframe it anticipates or at all and, if completed, thepossibility that the Company may not realize the anticipated benefits, synergies and operating efficiencies of the proposed acquisition;goodwill or impairment charges or other losses; success of clinical trials and the Company's or its partners' ability to execute on newproduct opportunities and develop, manufacture and commercialize products; any changes in or difficulties with the Company'smanufacturing facilities, including with respect to short- or long-term shutdowns, inspections, remediation and restructuring activities,supply chain continuity, inventory management, or the ability to meet anticipated demand; the Company's failure to achieve expectedor targeted future financial and operating performance and results; the potential impact of natural or man-made disasters, public healthoutbreaks, fires, accidents, weather, unrest or other emergencies in regions where we or our partners or suppliers operate; actionsand decisions of healthcare and pharmaceutical regulators; changes in relevant laws, regulations and policies and/or the application orimplementation thereof, including but not limited to tax, healthcare and pharmaceutical laws, regulations and policies globally; theability to attract, motivate and retain key personnel; the Company's liquidity, capital resources and ability to obtain financing; anyregulatory, legal or other impediments to the Company's ability to bring new products to market; products in development that receiveregulatory approval may not achieve expected levels of market acceptance, efficacy or safety; longer review, response and approvaltimes as a result of evolving regulatory priorities and reductions in personnel at health agencies; the scope, timing and outcome of anyongoing legal proceedings, including government inquiries or investigations, and the impact of any such proceedings on the Company;any significant breach of data security or data privacy or disruptions to our IT systems; risks associated with having significantoperations globally; the ability to protect intellectual property and preserve intellectual property rights; changes in third-partyrelationships; the effect of any changes in the Company's or its partners' customer and supplier relationships and customer purchasingpatterns, including customer loss and business disruption being greater than expected following an adverse regulatory action,acquisition or divestiture; the impacts of competition, including decreases in sales or revenues as a result of the loss of marketexclusivity for certain products; changes in the economic and financial conditions of the Company or its partners; uncertainties
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regarding future demand, pricing and reimbursement for the Company's products; uncertainties and matters beyond the control ofmanagement, including but not limited to general political and economic conditions, wars or other conflicts, potential for adverseimpacts from future tariffs and trade restrictions, inflation rates and global exchange rates; and inherent uncertainties involved in theestimates and judgments used in the preparation of financial statements, and the providing of estimates of financial measures, inaccordance with U.S. GAAP and related standards or on an adjusted basis. For more detailed information on the risks anduncertainties associated with Viatris, see the risks described in Part I, Item 1A of the Company's Annual Report on Form 10-K for theyear ended December 31, 2025, Part II, Item 1A of the Company's Quarterly Report on Form 10-Q for the three months endedSeptember 30, 2026, and our other filings with the SEC. You can access Viatris' filings with the SEC through the SEC website atwww.sec.gov or through our website, and Viatris strongly encourages you to do so. Viatris routinely posts information that may beimportant to investors on our website at investor.viatris.com, and we use this website address as a means of disclosing materialinformation to the public in a broad, non-exclusionary manner for purposes of the SEC's Regulation Fair Disclosure (Reg FD). Thecontents of our website are not incorporated into this press release or our filings with the SEC. Viatris undertakes no obligation toupdate any statements herein for revisions or changes after the date of this press release other than as required by law. Viatris Inc. and SubsidiariesCondensed Consolidated Statements of Operations(Unaudited) Three Months Ended Nine Months Ended September 30, September 30,(In millions, except per share amounts)2026 2025 2026 2025Revenues: Net sales $ 3,734.7 $ 3,747.5 $ 10,990.3 $ 10,559.7Other revenues 14.8 12.4 33.0 36.6Total revenues 3,749.5 3,759.9 11,023.3 10,596.3Cost of sales 2,311.5 2,388.4 6,971.6 6,730.7Gross profit 1,438.0 1,371.5 4,051.7 3,865.6Operating expenses: Research and development 231.7 250.4 728.6 691.2Acquired IPR&D 5.0 — 5.2 10.0Selling, general and administrative950.8 886.6 3,014.1 2,763.4Impairment of goodwill — — — 2,936.8Litigation settlements and other contingencies, net(11.0) 55.7 115.7 (65.4)Total operating expenses 1,176.5 1,192.7 3,863.6 6,336.0Earnings (loss) from operations261.5 178.8 188.1 (2,470.4)Interest expense 112.4 119.6 353.2 351.7Other expense, net 21.2 67.1 18.3 499.9Earnings (loss) before income taxes127.9 (7.9) (183.4) (3,322.0)Income tax provision (benefit) 453.2 120.3 84.3 (147.2)Net loss $ (325.3) $ (128.2) $ (267.7) $ (3,174.8)Loss per share attributable to Viatris Inc. shareholders Basic $ (0.28) $ (0.11) $ (0.23) $ (2.70) Diluted $ (0.28) $ (0.11) $ (0.23) $ (2.70)Weighted average shares outstanding: Basic 1,148.6 1,164.6 1,155.8 1,176.7 Diluted 1,148.6 1,164.6 1,155.8 1,176.7 Viatris Inc. and SubsidiariesCondensed Consolidated Balance Sheets(Unaudited) (In millions) September 30,2026 December 31,2025ASSETSAssets Current assets: Cash and cash equivalents $ 1,789.2 $ 1,322.4Accounts receivable, net 3,121.2 3,031.3
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Inventories 3,829.2 3,999.2Prepaid expenses and other current assets1,558.2 1,436.3Total current assets 10,297.8 9,789.2Intangible assets, net 13,079.5 15,102.1Goodwill 6,620.0 6,754.7Other non-current assets 4,685.3 5,547.1Total assets $ 34,682.6 $ 37,193.1 LIABILITIES AND EQUITYLiabilities Current portion of long-term debt and other long-term obligations$ 1,727.5 $ 1,933.3Other current liabilities 4,909.0 5,161.0Long-term debt 11,587.5 12,480.6Other non-current liabilities 2,773.1 2,906.9Total liabilities 20,997.1 22,481.8Shareholders' equity 13,685.5 14,711.3Total liabilities and equity $ 34,682.6 $ 37,193.1 Viatris Inc. and SubsidiariesKey Product Net Sales, on a Consolidated Basis(Unaudited) Three months ended September 30, Nine months ended September 30,(In millions) 2026 2025 2026 2025Select Key Global Products Lipitor ® $ 451.9 $ 396.1 $ 1,366.1 $ 1,172.0Norvasc ® 190.2 179.7 600.4 534.7EpiPen® Auto-Injectors 155.8 157.2 386.1 390.7Lyrica ® 114.2 126.5 355.4 367.2Creon ® 98.1 93.1 292.9 266.9Viagra ® 94.1 105.2 302.0 304.0Zoloft ® 78.8 66.8 222.8 188.1Celebrex ® 70.2 73.3 213.7 206.7Effexor ® 63.9 67.2 192.6 189.6Xalabrands 43.9 38.6 121.9 116.4 Select Key Segment Products Influvac ® $ 90.6 $ 125.4 $ 100.5 $ 130.8Yupelri ® 71.5 71.4 204.7 196.3Xanax ® 36.6 34.2 109.5 100.4Amitiza ® 36.4 40.8 109.8 115.7Dymista ® 35.4 33.8 112.5 125.0 ____________(a)The Company does not disclose net sales for any products considered competitively sensitive.(b)Products disclosed may change in future periods, including as a result of seasonality, competition or new product launches.(c)Amounts include the impact of foreign currency fluctuations compared to the prior year period. Viatris Inc. and SubsidiariesReconciliation of Non-GAAP Financial Measures(Unaudited) Reconciliation of U.S. GAAP Net Loss to Adjusted Net Earnings and U.S. GAAP Loss Per Share to Adjusted EPS Below is a reconciliation of U.S. GAAP net loss and diluted loss per share to adjusted net earnings and adjusted EPS for the threeand nine months ended September 30, 2026, compared to the prior year period:
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View News Release Full Screen Three Months Ended September 30, Nine Months Ended Sep(In millions, except per share amounts)2026 2025 2026 U.S. GAAP net loss and U.S. GAAP diluted lossper share $ (325.3) $ (0.28) $ (128.2) $ (0.11) $ (267.7) $ (0.23) $ (3Purchase accounting amortization (primarilyincluded in cost of sales) 613.7 605.8 1,791.6 1Impairment of goodwill — — — 2Litigation settlements and other contingencies,net (11.0) 55.7 115.7 Interest expense (primarily amortization ofpremiums and discounts on long term debt)(10.6) (9.9) (30.9) (Gain) / loss on divestitures of businesses(included in other expense, net)— (1.6) 13.9 Acquisition and divestiture-related costs(primarily included in cost of sales and SG&A) 44.5 40.0 158.2 Restructuring costs 66.2 17.2 206.5 Share-based compensation expense39.6 36.0 126.5 Other special items included in: Cost of sales 65.8 89.4 264.5 Research and development expense1.7 5.6 5.6 Selling, general and administrative expense 37.2 18.0 313.7 Other expense, net 26.8 102.4 52.3 Tax effect of the above items and other incometax related items 272.8 (46.1) (425.9) ( Adjusted net earnings and adjusted EPS$ 821.4 $ 0.71 $ 784.3 $ 0.67 $ 2,324.0 $ 1.99 $ 2 Weighted average diluted shares outstanding1,160.6 1,172.2 1,169.4 1 ____________Significant items include the following:(a)Acquisition and divestiture-related costs consist primarily of contractual obligations related to divestitures, transaction costsincluding legal and consulting fees, and integration activities.(b)For the three and nine months ended September 30, 2026, charges include approximately $19.1 million and $95.8 million,respectively, in cost of sales, approximately $0.8 million and $3.4 million, respectively, in R&D, and approximately $46.3 millionand $107.3 million, respectively, in SG&A, primarily relating to the 2026 restructuring program.(c)For the three and nine months ended September 30, 2026, includes certain asset impairments, contractual termination costs,and incremental manufacturing variances and certain remediation costs at plants slated for sale or closure or undergoingremediation activities of approximately $52.4 million and $227.3 million, respectively, including charges of $11.8 million and$98.6 million, respectively, primarily related to the write off of inventory and fixed assets damaged in the fire at the Nashikmanufacturing facility and incremental manufacturing variances.(d)For the three and nine months ended September 30, 2026, includes a (gain)/loss of $(0.8) million and $177.0 million,respectively, related to the sale of the product rights for Tyrvaya®.(e)For the three and nine months ended September 30, 2026, charges include a pre-tax loss of approximately $27.4 million and$36.0 million, respectively, as a result of changes in the fair value and subsequent sale of the Biocon Limited equity shares.(f)Adjusted for changes for uncertain tax positions. Reconciliation of U.S. GAAP Net Loss to EBITDA and Adjusted EBITDA Below is a reconciliation of U.S. GAAP net loss to EBITDA and adjusted EBITDA for the three and nine months ended September 30,2026, compared to the prior year period: Three Months Ended Nine Months Ended September 30, September 30,(In millions) 2026 2025 2026 2025U.S. GAAP net loss $ (325.3) $ (128.2) $ (267.7) $ (3,174.8)Add / (deduct) adjustments: (a) (b) (c) (d) (e) (f)
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Income tax provision (benefit) 453.2 120.3 84.3 (147.2)Interest expense 112.4 119.6 353.2 351.7Depreciation and amortization 697.2 688.5 2,045.6 2,031.5EBITDA $ 937.5 $ 800.2 $ 2,215.4 $ (938.8)Add / (deduct) adjustments: Share-based compensation expense39.6 36.0 126.5 128.3Litigation settlements and other contingencies, net(11.0) 55.7 115.7 (65.4)(Gain) / loss on divestitures of businesses— (1.6) 13.9 79.1Impairment of goodwill — — — 2,936.8Restructuring, acquisition and divestiture-related and other specialitems 229.6 264.3 962.0 1,016.9 Adjusted EBITDA $ 1,195.7 $ 1,154.6 $ 3,433.5 $ 3,156.9 ____________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 Loss to Adjusted Net Earnings. Summary of Total Revenues by Segment Three Months Ended September 30, (In millions, except %s)2026 2025 %Change 2026CurrencyImpact 2026ConstantCurrencyRevenues ConstantCurrency% ChangeNet sales Developed Markets$ 2,215.9 $ 2,255.6 (2) % $ 16.3 $ 2,232.2 (1) %Greater China 702.6 615.2 14 % (26.3) 676.3 10 %JANZ 287.1 306.3 (6) % 5.0 292.1 (5) %Emerging Markets529.1 570.4 (7) % 6.9 536.0 (6) %Total net sales $ 3,734.7 $ 3,747.5 — % $ 1.9 $ 3,736.6 — % Other revenues 14.8 12.4 NM 0.3 15.1 NMConsolidated total revenues$ 3,749.5 $ 3,759.9 — % $ 2.2 $ 3,751.7 — % Nine Months Ended September 30, (In millions, except %s)2026 2025 %Change 2026CurrencyImpact 2026ConstantCurrencyRevenues ConstantCurrency% ChangeNet sales Developed Markets$ 6,430.4 $ 6,266.6 3 % $ (132.3) $ 6,298.1 1 %Greater China 2,096.5 1,759.6 19 % (80.5) 2,016.0 15 %JANZ 856.6 888.1 (4) % 9.3 865.9 (2) %Emerging Markets1,606.8 1,645.4 (2) % (5.6) 1,601.2 (3) %Total net sales$ 10,990.3 $ 10,559.7 4 % $ (209.1) $ 10,781.2 2 % Other revenues 33.0 36.6 NM 0.1 33.1 NMConsolidated total revenues $ 11,023.3 $ 10,596.3 4 % $ (209.0) $ 10,814.3 2 % ____________(1)Currency impact is shown as unfavorable (favorable).(2)The constant currency percentage change is derived by translating net sales or revenues for the current period at prior yearcomparative period exchange rates, and in doing so shows the percentage change from 2026 constant currency net sales orrevenues to the corresponding amount in the prior year.(3)For the three months ended September 30, 2026, other revenues in Developed Markets, JANZ, and Emerging Markets wereapproximately $8.9 million, $3.9 million, and $2.0 million, respectively. For the nine months ended September 30, 2026, other (a) (b) (c) (a) (b) (c) (1) (2) (3) (4) (1) (2) (3) (4)
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revenues in Developed Markets, JANZ, and Emerging Markets were approximately $23.4 million, $4.1 million, and $5.5 million,respectively.(4)Amounts exclude intersegment revenue which is eliminated on a consolidated basis. Reconciliation of Statements of Operations Line Items (Unaudited) Three Months Ended Nine Months Ended September 30, September 30,(In millions, except %s) 2026 2025 2026 2025U.S. GAAP cost of sales $ 2,311.5 $ 2,388.4 $ 6,971.6 $ 6,730.7Deduct: Purchase accounting amortization and other related items(613.7) (605.8) (1,791.6) (1,787.1)Acquisition and divestiture-related costs(38.8) (23.6) (99.2) (62.2)Restructuring costs (19.1) (13.4) (95.8) (44.5)Share-based compensation expense(0.6) (0.7) (2.4) (2.9)Other special items, including restructuring related costs(65.8) (89.4) (264.5) (190.1)Adjusted cost of sales $ 1,573.5 $ 1,655.5 $ 4,718.1 $ 4,643.9 Adjusted gross profit $ 2,176.0 $ 2,104.4 $ 6,305.2 $ 5,952.4 Adjusted gross margin 58 % 56 % 57 % 56 % Three Months Ended Nine Months Ended September 30, September 30,(In millions, except %s)2026 2025 2026 2025U.S. GAAP R&D $ 231.7 $ 250.4 $ 728.6 $ 691.2Deduct: Acquisition and divestiture-related costs(1.3) (5.7) (4.4) (9.0)Restructuring costs (0.8) — (3.4) (2.2)Share-based compensation expense(2.2) (1.4) (7.0) (5.9)Other special items (1.7) (5.6) (5.6) (7.7)Adjusted R&D $ 225.7 $ 237.7 $ 708.2 $ 666.4 Adjusted R&D as % of total revenues6 % 6 % 6 % 6 % Three Months Ended Nine Months Ended September 30, September 30,(In millions, except %s)2026 2025 2026 2025U.S. GAAP SG&A $ 950.8 $ 886.6 $ 3,014.1 $ 2,763.4Deduct: Acquisition and divestiture-related costs(4.7) (10.6) (54.8) (63.1)Restructuring costs (46.3) (3.7) (107.3) (90.0)Share-based compensation expense(36.8) (33.8) (117.1) (119.4)Other special items and reclassifications(37.2) (18.0) (313.7) (65.7) Adjusted SG&A $ 825.8 $ 820.5 $ 2,421.2 $ 2,425.2 Adjusted SG&A as % of total revenues22 % 22 % 22 % 23 % Three Months Ended Nine Months Ended (a) (a)
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September 30, September 30,(In millions) 2026 2025 2026 2025U.S. GAAP total operating expenses$ 1,176.5 $ 1,192.7 $ 3,863.6 $ 6,336.0Add / (Deduct): Litigation settlements and other contingencies, net11.0 (55.7) (115.7) 65.4R&D adjustments (6.0) (12.7) (20.4) (24.8)SG&A adjustments (125.0) (66.1) (592.9) (338.2)Impairment of goodwill adjustments— — — (2,936.8) Adjusted total operating expenses$ 1,056.5 $ 1,058.2 $ 3,134.6 $ 3,101.6 Adjusted earnings from operations $ 1,119.5 $ 1,046.2 $ 3,170.6 $ 2,850.8 Three Months Ended Nine Months Ended September 30, September 30,(In millions) 2026 2025 2026 2025U.S. GAAP interest expense $ 112.4 $ 119.6 $ 353.2 $ 351.7Add / (Deduct): Accretion of contingent consideration liability(0.8) (1.1) (2.6) (3.5)Amortization of premiums and discounts on long-term debt11.7 11.7 35.2 34.1Other special items (0.2) (0.7) (1.6) (2.0) Adjusted interest expense $ 123.1 $ 129.5 $ 384.2 $ 380.3 Three Months Ended Nine Months Ended September 30, September 30,(In millions) 2026 2025 2026 2025U.S. GAAP other expense, net $ 21.2 $ 67.1 $ 18.3 $ 499.9Add / (Deduct): Fair value adjustments on non-marketable equity investments— (100.0) — (499.8)Fair value adjustments on marketable equity investments(27.4) — (36.0) —Gain (loss) on divestitures of businesses— 1.6 (13.9) (79.1)Other items 0.9 (2.6) (16.1) (8.7) Adjusted other income, net $ (5.3) $ (33.9) $ (47.7) $ (87.7) Three Months Ended Nine Months Ended September 30, September 30,(In millions, except %s) 2026 2025 2026 2025U.S. GAAP earnings (loss) before income taxes$ 127.9 $ (7.9) $ (183.4) $ (3,322.0)Total pre-tax non-GAAP adjustments 873.8 958.5 3,017.5 5,880.3Adjusted earnings before income taxes$ 1,001.7 $ 950.6 $ 2,834.1 $ 2,558.3 U.S. GAAP income tax provision (benefit)$ 453.2 $ 120.3 $ 84.3 $ (147.2)Adjusted tax (benefit) expense(272.9) 46.1 425.8 594.9 Adjusted income tax provision$ 180.3 $ 166.4 $ 510.1 $ 447.7 Adjusted effective tax rate 18.0 % 17.5 % 18.0 % 17.5 % ___________(a)U.S. GAAP gross profit is calculated as total revenues less U.S. GAAP cost of sales. U.S. GAAP gross margin is calculated asU.S. GAAP gross profit divided by total revenues. Adjusted gross profit is calculated as total revenues less adjusted cost ofsales. Adjusted gross margin is calculated as adjusted gross profit divided by total revenues. (b)
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(b)U.S. GAAP earnings from operations is calculated as U.S. GAAP gross profit less U.S. GAAP total operating expenses. Adjustedearnings from operations is calculated as adjusted gross profit less adjusted total operating expenses. Reconciliation of Estimated 2026 U.S. GAAP Net Cash Provided by Operating Activities to Free Cash Flow as ofNovember 5, 2026 (Unaudited) A reconciliation of the estimated 2026 U.S. GAAP Net Cash provided by Operating Activities to Free Cash Flow is presented below: (In millions) Estimated U.S. GAAP Net Cash provided by Operating Activities $2,025 - $2,100 Less: Capital Expenditures $(325) - $(400) Free Cash Flow $1,625 - $1,775 Add: Estimated Transaction-related and Restructuring-related Costs~$600 Free Cash Flow Excluding Transaction-related and Restructuring-related Costs$2,225 - $2,375 Reconciliation of Estimated 2026 U.S. GAAP Net Cash Provided by Operating Activities to Free Cash Flow as of August 6,2026 (Unaudited) A reconciliation of the estimated 2026 U.S. GAAP Net Cash provided by Operating Activities to Free Cash Flow is presented below: (In millions) Estimated U.S. GAAP Net Cash provided by Operating Activities $1,900 - $2,100 Less: Capital Expenditures $(350) - $(450) Free Cash Flow $1,450 - $1,750 Add: Estimated Transaction-related and Restructuring-related Costs~$600 Free Cash Flow Excluding Transaction-related and Restructuring-related Costs$2,050 - $2,350 Gross Leverage Ratio Gross Leverage Ratio is the ratio of Viatris' total debt at notional amounts at September 30, 2026 to the sum of Viatris' adjustedEBITDA for the quarters ended December 31, 2025, March 31, 2026, June 30, 2026 and September 30, 2026. Three Months Ended TwelveMonthsEnded (In millions, except ratio)December31, 2025 March 31,2026 June 30, 2026 September30, 2026 September30, 2026Adjusted EBITDA $ 1,003.1 $ 1,049.5 $ 1,188.3 $ 1,195.7 $ 4,436.6 Reported debt balances: Long-term debt, including current portion 13,312.3Short-term borrowings and other current obligations —Total 13,312.3Add / (deduct):
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Net premiums on various debt issuances (411.9)Deferred financing fees 23.6Total debt at notional amounts $ 12,924.0 Gross debt to adjusted EBITDA 2.9 x Long-term Gross Leverage Target The stated forward-looking non-GAAP financial measure of long-term gross leverage target range of 2.8x – 3.2x, is based on the ratioof (i) targeted notional gross debt and (ii) targeted Adjusted EBITDA. However, the Company has not quantified future amounts todevelop this target but has stated its goal to manage notional gross debt and Adjusted EBITDA over time in order to generally maintainor reach the target. This target does not reflect Company guidance. Reconciliation of U.S. GAAP Net Loss to EBITDA and Adjusted EBITDA – Last Twelve Months Three Months Ended December 31,2025 March 31, 2026 June 30, 2026 September 30,2026U.S. GAAP net (loss) earnings $ (340.1) $ 176.4 $ (118.8) $ (325.3)Add / (deduct) adjustments: Income tax (benefit) provision (2.9) (423.7) 54.8 453.2Interest expense 119.6 120.1 120.7 112.4Depreciation and amortization 766.8 676.1 672.3 697.2EBITDA $ 543.4 $ 548.9 $ 729.0 $ 937.5Add / (deduct) adjustments: Share-based compensation expense49.4 48.2 38.7 39.6Litigation settlements and other contingencies, net(3.1) 53.5 73.2 (11.0)Loss on divestitures of businesses21.9 13.9 — —Restructuring, acquisition and divestiture-related andother special items 391.5 385.0 347.4 229.6Adjusted EBITDA $ 1,003.1 $ 1,049.5 $ 1,188.3 $ 1,195.7 ____________Includes amortization of premiums and discounts on long-term debt.Includes purchase accounting related amortization. SOURCE Viatris Inc. (a) (b) (a) (b)