Release Date: May 08, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Viatris Inc (VTRS, Financial) reported Q1 2025 operational performance in line with expectations, with significant pipeline progress including three positive Phase 3 data readouts.
• The company returned approximately $450 million in capital to shareholders, with $300 million through share repurchases.
• Viatris Inc (VTRS) announced positive data for Phase 3 studies of novel fast-acting meloxicam for moderate to severe acute pain, highlighting its potential as a non-opioid treatment option.
• The company received positive results for XULANE LO, a low-dose estrogen combination birth control patch, with plans to submit an NDA in the second half of the year.
• Viatris Inc (VTRS) is on track with its enterprise-wide strategic review, aiming to streamline costs and set the organization up for future growth.

Negative Points

• Total revenues for Q1 2025 were $3.3 billion, down 2% on a divestiture-adjusted operational basis, primarily due to the impact of the Indore facility.
• The North American business decreased 8% versus the prior year, impacted by the Indore facility and competition on select generic products.
• The company recorded a non-cash goodwill impairment charge of $2.9 billion due to a decline in share price and increased business risk.
• Viatris Inc (VTRS) faces potential financial impact from tariffs on pharmaceuticals, which could affect the ability to provide access to medications.
• The company is dealing with ongoing remediation efforts at its Indore facility, which has affected revenue and operational performance.

Q & A Highlights

Q: Can you discuss the peak sales opportunity for meloxicam and how much of your existing infrastructure can be leveraged for its launch? Also, how will tariffs impact your US sales? A: (Scott Smith, CEO) More than 50% of our US revenues come from US-based manufacturing. We are exploring mitigation strategies for tariffs, including increasing US production and adjusting inventory levels. (Corinne Le Goff, Chief Commercial Officer) Meloxicam has a large addressable market with over 70 million acute pain cases annually in the US. We believe it can be a strong alternative to opioids. (Philippe Martin, Chief R&D Officer) The data shows a superior profile versus opioids, with significantly lower opioid usage.

Q: Is there more appetite for share repurchases given the current stock price? Also, how fast-acting is MR-107, and can it get a fast-acting claim on the label? A: (Scott Smith, CEO) We are committed to our goal of $500 million to $650 million in share repurchases but may increase this depending on market conditions. (Philippe Martin, Chief R&D Officer) Fast-acting meloxicam showed a median time to meaningful pain relief of 95 minutes, significantly faster than placebo. We will discuss label claims with the FDA.

Q: Can you discuss the potential impact of the Indore facility issues on 2026 and your strategic priorities for business development? A: (Scott Smith, CEO) We expect significant rebound in Indore-related products by 2026. We are focusing on in-market or near-to-market assets for business development to build short-term revenue and EBITDA.

Q: Can you elaborate on the volume versus price drivers for key brands like Lipitor and the sustainability of the 2% core business growth? A: (Theodora Mistras, CFO) Brand growth was driven by strong performance in China and Europe. The generic portfolio was most impacted by Indore, but excluding this, it performed in line with expectations. We expect second-half revenue to be higher due to new product launches and seasonal trends.

Q: Can you provide details on your US manufacturing network and the potential risks of meloxicam in acute settings? A: (Scott Smith, CEO) We have eight US facilities, producing over 50% of our revenues domestically. (Philippe Martin, Chief R&D Officer) In clinical trials, fast-acting meloxicam showed no increased risk of bleeding in surgical settings. (Corinne Le Goff, Chief Commercial Officer) It can be used in both hospital and outpatient settings for acute pain management.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.