Slide 1: Strategic Update: Our Path to Return to Growth
Strategic Update: Our Path to Return to Growth November 7, 2022 This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2022 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains “forward-looking statements”. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may include, without limitation, 2022 financial guidance; our
Slide 3: Forward Looking Statements
Forward Looking Statements For more detailed information on the risks and uncertainties associated with Viatris, see the risks described in Part I, Item 1A in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, as amended, and our other filings with the SEC. You can access
Slide 4: Non-GAAP Financial Measures; Additional Information
Non-GAAP Financial Measures; Additional Information Certain Key Terms New product revenues refers to revenue from new products launched in a given period and the carryover impact of new products, including business development, launched within the last twelve months of su ch period. Non-GAAP Financi
Slide 5: Agenda
Agenda ‣ Strategic Update Robert Coury Executive Chairman ‣ Acquisition of Oyster Point and Famy Life Sciences Michael Goettler CEO ‣ Operational Performance and Business Outlook Rajiv Malik President ‣ Introduction to Oyster Point Jeff Nau, PhD President and CEO, Oyster Point ‣ Q3 2022 Earnings and
Slide 6: Strategic Update: Our Path to Return to Growth
Strategic Update: Our Path to Return to Growth Stability and Outlook Planned Our Future Capital for Our Current Base Divestitures Allocation Priorities Business Our Path to Return to Growth Confidence in Our Execution This document contains proprietary information of Viatris Inc. Unauthorized use, d
Slide 7: Famy Life Sciences
+ Famy Life Sciences This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2022 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris compan
Slide 8: Q3 2022 – Focused Execution & Results
Q3 2022 – Focused Execution & Results • Seventh quarter of strong operational performance Business • Total Revenues $4.08B Performance • Adjusted EBITDA $1.50B & Execution • Free Cash Flow $765M Delivering • New product revenues of ~$144M in Q3 2022 the Pipeline • Launched lenalidomide in the U.S. i
Slide 9: Operational Performance and Business Outlook
Operational Performance and Business Outlook This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2022 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Myla
Slide 10: Key Performance Highlights
Key Performance Highlights Q3 Operations vs Expectations ‣ Seventh consecutive quarter of strong performance ‣ Solid operational performance across all segments, including consistent performance from China ‣ Growth in Generics in Developed Markets, reflecting strong performance across broader North
Slide 11: Phase 1 - Business Execution Priorities On Track
Phase 1 - Business Execution Priorities On Track Integrate and Synergize On track to realize $1B+ of cost synergies by 2023 Stabilize the Business Seven consecutive quarters of strong performance Deliver the Pipeline Continued progress on key science programs Complete Planned On track to complete pl
Slide 12: Phase 2 Priorities – Return to Growth
Phase 2 Priorities – Return to Growth Continue to Maintain Total Base Business Erosion We Expect Our Existing Durable / Higher-margin Organic Pipeline to More Than Offset Base Business Erosion Maximize the Execution of Our Ophthalmology Strategy Identify and Add Inorganic Opportunities to Further Ac
Slide 13: Continue to Maintain Total Base Business Erosion
Continue to Maintain Total Base Business Erosion Modeled Phase 1 (2020 - 2023) (4%) to (5%) Base Brands Performance +150 bps +200bps Other Key Catalysts +50 bps Expected Phase 2 (2024 - 2028) (2%) to (3%) ~ +200bps Erosion Uplift Expected, Primarily led by Better-than-Expected Brands Business Perfor
Slide 14: Continue to Maintain Total Base Business Erosion
Continue to Maintain Total Base Business Erosion Better than Expected Brand Performance Brand Erosion Evolution (excluding China and LOEs) Brands Performance (Net Sales excluding China and LOEs) Modeled Phase 2 Time Historical Phase 1 Actuals Assumption Period (2017 - 2020) (2020 - 2023) Q1 ‘21 - Q3
Slide 15: Continue to Maintain Total Base Business Erosion
Continue to Maintain Total Base Business Erosion Other Key Contributors to Erosion Improvement and Stabilization of the Core ‣ No additional significant LOEs ‣ Generics portfolio repositioned towards complex products ‣ Less dependent on commoditized U.S. generics markets ‣ Divesting certain non-core
Slide 16: Existing Organic Pipeline to More Than Offset Base Business Erosion
We Expect Our Existing Durable / Higher-margin Organic Pipeline to More Than Offset Base Business Erosion Our Our Complex Injectables Novel and 505(b)(2) Franchise Product Franchise Our Our Our Pipeline for Rest Pipeline for China Europe Pipeline of World Markets $450M - $550M of Annual New Product
Slide 17: Complex Injectables Franchise – A Key Driver for Durable Launches
Complex Injectables Franchise – A Key Driver for Durable Launches Potential >$1B Annual Peak Net Sales Opportunity in 2027 Strong Foundation Sustainable Opportunity ‣ Proven science track record ‣ Rich pipeline of ~40 products ‣ Multiple technology platforms ‣ ~$33B growing to ~$60B of cumulative (1
Slide 18: Complex Injectables – Significant Milestones Achieved
Complex Injectables – Significant Milestones Achieved Analytical Pivotal PK / Under Regulatory First to Market Product Indication Pre-Clinical Characterization Clinical Review Opportunity GlucagonTM Hypoglycemic Disorder Venofer® Iron Deficiency Anemia Invega Sustenna® Schizophrenia Victoza® Type 2
Slide 19: Select Novel & Complex Products - Another Growth Catalyst
Select Novel & Complex Products - Another Growth Catalyst Potential >$1B Annual Peak Net Sales Opportunity in 2028 from Select Assets Pre- Regulatory Anticipated Product Indication Phase I Phase II Phase III Status Clinical Approval Launch Year Treatment of U.S. Submission Glatiramer relapsing forms
Slide 20: Maximize the Execution of Our Ophthalmology Strategy
Maximize the Execution of Our Ophthalmology Strategy This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2022 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks
Slide 21: Maximize the Execution of Our Ophthalmology Strategy
Maximize the Execution of Our Ophthalmology Strategy Projected to Add >$1B Net Sales by 2028 Famy Life Sciences Portfolio ‣ Novel marketed dry eye ‣ Pipeline of Phase III ‣ Global commercial product in the U.S. ready products footprint ‣ Strong infrastructure in • Dry eye ‣ Strong R&D skills ophthal
Slide 22: Ophthalmology Portfolio & Pipeline
Ophthalmology Portfolio & Pipeline Projected to Add >$1B Net Sales by 2028 Regulatory Product Indication Pre-Clinical Phase I Phase II Phase III Status Approval Tyrvaya® Dry Eye Disease Launched 10/15/21 (Varenicline solution) MR-145 Neurotrophic Keratopathy (Stage 1) Phase II Ongoing (OC-01) MR-146
Slide 23: Phase 2 Priorities Summary – Return to Growth
Phase 2 Priorities Summary – Return to Growth We Expect Our Existing Durable / Higher-margin $450M - $550M Anticipated Organic Pipeline to More Than Offset Base Annual New Product Launches Business Erosion No More Than (2%) to (3%) Continue to Maintain Total Base Business Erosion of Total Revenues M
Slide 24: Oyster Point: First-in-Class Therapies to Treat Ophthalmic Disease
Oyster Point: First-in-Class Therapies to Treat Ophthalmic Disease First FDA Approved Product Mission • TYRVAYA® (varenicline solution) Advance truly breakthrough Nasal Spray 0.03 mg science to deliver therapies that patients and eye care • The first and only FDA approved professionals need nasal sp
Slide 25: Leadership Team - Unparalleled Passion & Expertise in Ophthalmology
Leadership Team - Unparalleled Passion & Expertise in Ophthalmology Jeffrey Nau, PhD Daniel Lochner Marian Macsai, MD Michael Campbell Eric Carlson, PhD President and CEO Chief Financial Officer & Chief Medical Officer Senior Vice President, Head of Chief Scientific Officer Chief Business Officer Co
Slide 26: TYRVAYA: The First and Only Nasal Spray Approved for Dry Eye Disease
TYRVAYA®: The First and Only Nasal Spray Approved for Dry Eye Disease Dry Eye Disease: A Chronic Condition Unique Selling Proposition: With High Unmet Need Natural Basal Tears ‣ Multi-factorial disease characterized Prevalent, by tear film instability and deficiency(1) ✓ Sufficient natural, basal te
Slide 27: Ophthalmology Portfolio & Pipeline
Ophthalmology Portfolio & Pipeline Projected to Add >$1B Net Sales by 2028 Regulatory Product Indication Pre-Clinical Phase I Phase II Phase III Status Approval Tyrvaya® Dry Eye Disease Launched 10/15/21 (Varenicline solution) MR-145 Neurotrophic Keratopathy (Stage 1) Phase II Ongoing (OC-01) MR-146
Slide 28: Q3 2022 Earnings and Financial Outlook
Q3 2022 Earnings and Financial Outlook This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2022 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc.
Slide 29: Q3 2022 Highlights and Outlook for Q4 / FY 2022
Q3 2022 Highlights and Outlook for Q4 / FY 2022 Q3 2022 Q4 2022 ‣ Solid operational revenues in line with expectations ‣ Expect operational momentum to continue ‣ Gross Margins driven by favorable segment and ‣ Gross Margin moderating due to impact of incremental product mix inflation and segment /
Slide 30: 7 Quarters of Strong Free Cash Flow Performance
7 Quarters of Strong Free Cash Flow Performance $1,074M $965M $799M $765M $719M $470M $326M Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 >$5.1B Free Cash Flow over last 7 quarters >$2.5B Free Cash Flow YTD in 2022 Note: For non-GAAP measures, see slide 4 This document contains proprietary
Slide 31: Financial Outlook
Financial Outlook This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2022 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatris company.
Slide 32: Sources and Uses of Divestiture Cash
Sources and Uses of Divestiture Cash Sources Uses Estimated Cash from Divestitures ($B) Estimated Cash Usage ($B) Biosimilars $3.335 Taxes on Divestiture Proceeds ~$2.0 Other Non-core Assets ~$5.0 - $6.0 OTC Transaction Costs ~$0.5 - $0.7 API Women’s Health Ophthalmology Acquisition ~$0.7 - $0.75 No
Slide 33: Acquisitions Details
Acquisitions Details ‣ Acquisition of Oyster Point for $11 per share in cash upfront ‣ $11 per share represents a 32% premium to November 4, 2022 closing price of $8.35 per share and Transaction a 43% premium to OYST’s 30-day volume weighted average price of $7.67 per share Terms and ‣ Total upfront
Slide 34: Capital Allocation Framework
Capital Allocation Framework Delivering on Commitments while increasing Capital Return and Business Development Phase 2 - Significant Capital Phase 1 + Available Net Divestiture Cash Return and Business Investment (2020 - 2023) (2024 - 2028) Committed to Investment Grade Rating Paydown of committed
Slide 35: Long-Term Financial Targets
Long-Term Financial Targets Financial Metrics(1)(2) 2024 - 2028 CAGR Key Target Assumptions (2024 - 2028) ‣ Effectively manage base business erosion Total Revenues ~3% (2%) to (3%) ‣ Execute the pipeline - $450M to $550M per year Adjusted EBITDA ~4% - 5% in new product revenues ‣ Growth from Ophthal
Slide 36: Summary & Key Takeaways
Summary & Key Takeaways FY 2022 Guidance and Financial Performance ‣ Reaffirming FY 2022 guidance ranges for Total Revenues, Adjusted EBITDA, and Free Cash Flow ‣ Strong performance of Free Cash Flow over last seven quarters totaling > $5.1B Phase 1 (2020 - 2023) ‣ Expect to achieve Phase 1 Commitme
Slide 37: GAAP/Non-GAAP Reconciliations
GAAP/Non-GAAP Reconciliations This document contains proprietary information of Viatris Inc. Unauthorized use, duplication, dissemination or disclosure to third parties is strictly prohibited. © 2022 Viatris Inc. All Rights Reserved. VIATRIS and the Viatris Logo are trademarks of Mylan Inc., a Viatr
Slide 38: Full-Year 2022 Guidance Items
Viatris Inc. and Subsidiaries Full-Year 2022 Guidance Items (Unaudited; in millions) GAAP Non-GAAP Total Revenues $16,200 - $16,700 N/A Adjusted EBITDA N/A $5,800 - $6,200 Net Cash provided by $3,100 - $3,300 N/A Operating Activities Free Cash Flow N/A $2,500 - $2,900 This document contains propriet
Slide 39: Reconciliation of Estimated 2022 Net Cash from Operating Activities to Free Cash Flow
Viatris Inc. and Subsidiaries Reconciliation of Estimated 2022 U.S. GAAP Net Cash Provided by Operating Activities to Free Cash Flow (Unaudited; in millions) Estimated U.S. GAAP Net Cash provided by Operating Activities $3,100 - $3,300 Less: Capital Expenditures ($425) - ($575) Free Cash Flow $2,500
Slide 40: Adjusted Net Earnings
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Adjusted Net Earnings Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 U.S. GAAP net earnings (loss).............................................................
Slide 41: Net Earnings (Loss) to Adjusted EBITDA
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Net Earnings (Loss) to Adjusted EBITDA Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 U.S. GAAP net earnings (loss)............................................
Slide 42: Free Cash Flow over the Last 7 Quarters
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Free Cash Flow over the Last 7 Quarters Free Cash Flow over Three Months Ended the last 7 quarters March 31, 2021 June 30, 2021 September 30, 2021 December 31, 2021 March 31, 2022 June 30, 2022 Sep
Slide 43: Gross Leverage - Debt to Adjusted EBITDA
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions, except ratio) Gross Leverage - Debt to Adjusted EBITDA Gross Leverage Ratio is the ratio of Viatris’ total debt at notional amounts at September 30, 2022 to the sum of Viatris’ adjusted EBITDA for
Slide 44: Net (Loss) Earnings to Adjusted EBITDA
Viatris Inc. and Subsidiaries | Reconciliation of Non-GAAP Financial Measures (Unaudited; in millions) Net (Loss) Earnings to Adjusted EBITDA Three Months Ended December 31, 2021 March 31, 2022 June 30, 2022 September 30, 2022 U.S. GAAP net (loss) earnings............................................