Full Year 2023 Viatris Inc Earnings Call

Operator: Good morning and welcome to the Viatris Q4 and full year 2023 earnings 2024 guidance call. All participants will be in a listen-only mode.

Operator: Good morning, and welcome to the Viatris Q4 and full-year 2023 earnings and 2024 guidance call.

2024 guidance call.

All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

Operator: Should you need assistance, please say no to a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star and then one on your touch-screen telephones. To submit your questions, you may press star and two.

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Operator: Also, note today's event is being recorded. This time, I'd like to turn the floor over to Bill Szablewski, Head of Capital Markets Market. Please go ahead. Good morning, everyone.

Also note, today's event is being recorded.

At this time, I'd like to turn the floor over to Bill Szablewsky, Head of Capital Markets. Please go ahead.

Bill Slutsky: Good morning, everyone. Welcome to our Q4 2023 earnings call. With us today is our CEO Scott Smith. Isn't it Rajiv Malik. So sanjay if at all. And CFO elect to read on me stress.

William Szablewski: Welcome to our Q4 2023 earnings call. With us today is our CEO, Scott Smith. Schott, President Rajiv Malik, and DFO, Sanjeev Narula.

Bill Slutsky: Welcome to our Q4 2023 earnings call.

Bill Slutsky: With us today is our CEO Scott Smith. Isn't it Rajiv Malik. So sanjay if at all. And CFO elect to read on me stress.

Bill Slutsky: Isn't it Rajiv Malik. So sanjay if at all. And CFO elect to read on me stress.

So sanjay if at all. And CFO elect to read on me stress.

Scott Andrew Smith: CFO-Elect Doretta Mistra. During today's call, we will be making four talking statements on a number of matters. [inaudible] We will also be referring to certain actual and projected non-GAAP financial measures. Please refer to today's slide presentation and our SCC filings for more information, including reconciliations of those non-GAAP measures to the most directly comparable GAAP measure when discussing 2023 actual results. We will be making certain comparisons to 2022 results on a divestiture-adjusted operational basis and proportionate results from the divestitures that closed in 2023 from the 2022 period when discussing our expectations for 2024. We will be making certain comparisons to 2023 results on a divestiture-adjusted operational basis, which excludes the impact of foreign currency rates and also excludes the results of the divestitures that closed in 2023 from the 2023 period. With that, I'll hand the call over to our CEO, Scott. Good morning, everyone.

Bill Slutsky: And CFO elect to read on me stress.

Bill Slutsky: During today's call, we will be making forward looking statements on a number of matters.

Bill Slutsky: Putting our financial guidance for 2024 and various strategic initiatives.

Bill Slutsky: Statements are subject to risks and uncertainties.

Well also be referring to certain actual and projected non-GAAP financial measures.

Bill Slutsky: Please refer to todays slide presentation, and our SEC filings for more information, including reconciliations of those non-GAAP measures to the most directly comparable GAAP measures.

Bill Slutsky: When discussing 2023 actual results.

Bill Slutsky: We'll be making certain comparisons to 2022 results on a divestiture adjusted operational basis.

Bill Slutsky: Which excludes the impact of foreign currency rates and also excludes the results from the divested Biosimilars business.

Bill Slutsky: And proportionate results from the divestitures that closed in 2023 from the 2022 period when.

Bill Slutsky: When discussing our expectations for 2024.

Bill Slutsky: We will be making certain comparisons to 2023 results on a divestiture adjusted operational basis, which excludes the impact of foreign currency rates and also excludes the results of the divestitures that closed and 23 from the 2023 period.

Bill Slutsky: With that I'll hand, the call over to our CEO Scott Smith.

Scott Andrew Smith: Good morning, everyone.

Scott Andrew Smith: 2023 was an outstanding year for Viatris, in which we delivered strong operational results and streamlined the company. We're finishing the year with a third consecutive quarter of growth. I am pleased to say that as we begin 2024, I could not be more excited about the future ahead.

Scott Andrew Smith: 2023 was an outstanding year for being interested in which we delivered strong operational results streamline the company and finished the year with a third consecutive quarter of operational revenue growth.

Scott Andrew Smith: I am pleased to say that as we begin 2024 I could not be more excited about the future ahead, we are already executing on our vision for our next chapter we continued to generate strong free cash flows. This provides us with the flexibility to balance returning capital to shareholders through share repurchases and dividends with continuing.

Scott Andrew Smith: We are already executing on our vision for our next chapter and continuing to generate strong free cash. This provides us with the flexibility to balance returning capital to shareholders through share repurchases and dividends while continuing to fuel our base business and make strategic investments in the future. As I've said, in addition to continuing to develop the three core therapeutic areas that we previously identified, [inaudible] Today's announcement that we have entered into a global research and development collaboration with IDORSIA is a great example of this approach in action. We are bringing in two late-stage potential blockbuster assets with long-dated patent protection, and we are connecting IDORSI's proven, highly productive drug development team and innovation engine with our own strong existing infrastructure. We believe that together we will be able to execute on the potential of these global assets and any future assets as we work to deliver on our goal of building a more durable, predictable portfolio on the foundation of our strong, We believe that Salada Grill I'll talk more about the deal in a moment, but first, 2020.

Scott Andrew Smith: To fuel our base business and make strategic investments in future growth.

Scott Andrew Smith: As I've said in addition to continuing to develop the three core therapeutic areas that we've previously identified.

Scott Andrew Smith: Ophthalmology dermatology and GI we are also going to be opportunistic in seeking out assets that fit our company well and have the potential to contribute significantly to our future revenue growth.

Scott Andrew Smith: Today's announcement that we've entered into a global research and development collaboration with my doors, yet is a great example of this approach and ACH.

Scott Andrew Smith: We are bringing in to late stage potential blockbuster assets with long dated patent protection and we are connecting endorse he has proven highly productive drug development team, an innovation engine with our own strong existing infrastructure and experience.

Scott Andrew Smith: We believe that together, we will be able to execute on the potential of these global assets and any future asset as we work to deliver on our goal of building a more durable predictable portfolio on the foundation of our strong base business.

Scott Andrew Smith: We believe there's a lot of grill and cinemark can become meaningful components of the interest of this business over the long term.

Scott Andrew Smith: I'll talk more about the deal in a moment, but first 2023.

Scott Andrew Smith: We finish the year strong with full-year results in-line operationally with our 2023 Jesta Guide. Importantly, a fourth quarter of results represents a third consecutive quarter of operational revenue, giving us good momentum going into the new year.

Scott Andrew Smith: We finished the year strong with full year results in line operationally with our 2023 adjusted guidance.

Scott Andrew Smith: Importantly, our fourth quarter results represent our third consecutive quarter of operational revenue growth.

Scott Andrew Smith: There's good momentum going into the year, we expect that momentum to continue into 'twenty 'twenty four and beyond.

Scott Andrew Smith: We expect that momentum to continue into 2024 and beyond. In 2023, we delivered total revenues of approximately $15.4 billion, Adjusted EBITDA of approximately $5.1 billion, and Free Cash Flow of approximately $2.4 billion.

Scott Andrew Smith: In 2023, we delivered total revenues of approximately $15 4 billion.

Scott Andrew Smith: And EBITDA of approximately $5 1 billion and free cash flow of approximately $2 $4 billion. We have already completed certain of our divestitures and are on track to complete all remaining divestitures by mid year subject to final regulatory approvals.

Scott Andrew Smith: We have already completed certain of our divestitures and are on track to complete all remaining divestitures by midyear, subject to final regulatory approval. Turning to 2024, today we are sharing our whole-year guidance for Total Revenue, Adjusted Evita, Free Cash Flow, and Adjusted Earnings per Share. Suggested EPS will increasingly become an important metric to reflect earnings growth and balance capital allocation for us in 2024 and beyond. From a capital allocation perspective, we continue to pay down debt and expect to reach our long-term gross leverage target this year. We are maintaining our dividend for 2024. We completed $250 million in share repurposing earlier this year.

Scott Andrew Smith: Turning to 2024 today, we are sharing our full year guidance ranges for total revenue adjusted EBITDA free cash flow and adjusted earnings per share.

Scott Andrew Smith: Adjusted EPS will increasingly become an important metric to reflect earnings growth and balanced capital allocation for us in 'twenty four and beyond.

Scott Andrew Smith: From a capital allocation perspective, we continued to pay down debt and expect to reach our long term gross leverage target this year we.

Scott Andrew Smith: We are maintaining our dividend for 'twenty 'twenty four we completed 250 million in share repurchases earlier this year.

Scott Andrew Smith: Our Board of Directors has provided us with an additional $1 billion share repurpose authorization to use at the appropriate time, bringing our total authorization to $2 billion, of which we have already used. And earlier today, we announced a significant global research and development collaboration. Siding further into our Adorcia announcement, we are very excited about this new partnership. The agreement combines Viatris' financial strength and worldwide operational infrastructure with a portfolio of novel assets that we believe will provide the foundation for accelerated top-line growth. Viatris will receive exclusive global development and commercialization rights to two assets, Vatagrowth, a potential life-saving, self-administered medicine for patients at risk of recurring heart attacks, and Sonarimod, a novel immunology asset that has the potential to be a first-in-class oral therapy for the treatment of SLA, with potential broad application across multiple other autoimmune diseases.

Scott Andrew Smith: Our board of directors has provided us with an additional 1 billion share repurchase authorization you use at the appropriate time, bringing our total authorization to $2 billion.

Scott Andrew Smith: Of which we have used.

Scott Andrew Smith: $500 million and have $1 5 billion authorization remaining.

Scott Andrew Smith: Earlier today, we announced a significant global research and development collaboration.

Scott Andrew Smith: Diving further into our doors, yet announced we are very excited about this new partnership.

Scott Andrew Smith: The agreement combines to be interesting financial strength, what operational infrastructure with a portfolio of novel assets that we believe will provide the foundation for accelerated top line growth.

Scott Andrew Smith: The interest will receive exclusive global development and commercialization rights to two assets a lot of growth potential lifesaving self administered medicine for patients at risk and recurring heart attack and scenario.

Scott Andrew Smith: Normal immunology assets has the potential to be a first in class oral therapy for the treatment of that salary with potential broad application across multiple other autoimmune diseases.

Scott Andrew Smith: The Global Collaboration also includes future optionality to expand the collaboration with additional pipeline assets in a transaction that minimizes near-term P&L impact and provides significant upside following Phase III review and regulatory approval. The addition of Saladagrow builds on Viatris' existing global cardiovascular franchise and deep knowledge and expertise in self-administered medicine for acute, life-threatening conditions. JNARMOD has the potential to be a cornerstone asset in Viatris' immunology platform, an area in which I, personally, and our Chief R&D Officer, Philippe Martin, and others at Viatris have deep experience in commercializing. The agreement also highlights the issuers' capability to identify, vet, and secure high-growth assets in areas unmet, and do it in a way that reinforces our disciplined approach to capital We will be hosting an R&D event on March 27th in New York City to discuss the collaboration with Idorsia and other elements of the company's pipeline.

Scott Andrew Smith: The global collaboration also includes future optionality to expand the collaboration with additional pipeline assets in a transaction that minimize the near term P&L impact.

Scott Andrew Smith: Significant upside following phase III, readouts and regulatory approvals.

Scott Andrew Smith: The addition of slaughter grow builds on <unk> existing global cardiovascular franchise, and a deep knowledge and expertise in self administered medicine for acute life threatening conditions.

Scott Andrew Smith: <unk> has the potential to be a cornerstone asset and Beatrice immunology platform, an area, which I personally and our.

Scott Andrew Smith: Keep R&D officer, Felipe Martin and others would be interest had deep development and commercialization expertise.

Scott Andrew Smith: The agreement also highlights future capabilities to identify and secure high growth assets in areas of unmet medical need and do it in a way that reinforces our disciplined approach to capital allocation.

Scott Andrew Smith: We will be hosting an R&D event March 27th in New York City to discuss the collaboration with <unk> and other elements of the company's pipeline of more debt.

Scott Andrew Smith: Before I move on, I want to take this opportunity to welcome Doretta Mistras, who will become our new Chief Financial Officer in March. Theodora joined us in January as CFO-elect. She has been spending valuable time getting to know the company even better than she already did as a former employee. I'm pleased to have Doretta coming on board for what I expect to be an extremely successful next phase review. She'll share a few comments later.

Scott Andrew Smith: Before I move on I want to take this opportunity to welcome Mr. <unk>, who will become our new Chief Financial Officer on March 1st three other joined US in January as CFO. He has been spending valuable time getting to know the company even better than I already did as a former company bus.

Scott Andrew Smith: I am pleased to have Dorado coming on board for what I expect to be an extremely successful next phase will be addressed.

Scott Andrew Smith: She will share a few comments later on the call.

Rajiv Malik: But now, let me turn the call over to Rajiv as we continue our discussion of our strong fourth quarter and full year 2023 results and our expectations for 2024. (Inaudible) Thanks, Scott, and good morning, everyone. As we close phase one of our strategy, I'm incredibly proud of all that we have accomplished. We simplified but, more importantly, stabilized the base business. We continue to deliver on our strong pipeline and are in the final stages of reshaping the company, with remaining divestitures being on track. We believe that the stability of our core business and our deep pipeline positions the company very well for continued growth into 24 and beyond. Let me talk to you a bit more about what we believe makes our core business stable. It is driven by the consistent and steady performance of our brand business. The sustainability of our generics portfolio and our ability to continue to bring to market our organic pipeline consisting of high-margin, durable, and complex products. Let me further expand this into three elements.

Scott Andrew Smith: But now let me turn the call over to Rajiv we continue our discussion of our strong fourth quarter and full year 2023 results and our expectations for 2024.

Scott Andrew Smith: Rajiv.

Rajiv: Thanks, Scott and good morning, everyone.

Rajiv: As we close peers one of our strategy.

Rajiv: Incredibly proud of all that we have accomplished.

Rajiv: We simplified but more importantly, stabilize our base business.

Rajiv: We continued to deliver on our strong pipeline and are in the final stages of fee shaping the company with remaining divestitures being on track.

Rajiv: We believe that the stability of our core business and our deep pipeline positions. The company very well for continued growth into 'twenty four and beyond.

Rajiv: Let me talk to you a bit more about what we believe makes our core business stable.

Rajiv: It is driven by the consistent and steady performance.

<unk> business.

Rajiv: The sustainability of our genetics portfolio and our ability to continue to bring to market, our organic pipeline consisting of high margin durable and complex births.

Rajiv: Let me further expand this into three elements.

Rajiv Malik: First, our branded business, which makes up about two-thirds of our portfolio, grew 1% in 2023, supported by brands like Hupellerie and FXR. We expect our branded portfolio to continue to build upon the success of 2023 and show moderate growth. Next is our sceneric space, which now also includes our complex generics and makes up the remaining one-third of our revenue. This business was flat in 2023 and is expected to show slight growth in 2024. The geographic and portfolio diversity, which includes a number of high-value complex products such as Vexala, Brenna, and Zulane, renders this portfolio possess inherent stability.

Rajiv: Our band business, which makes up about two thirds of our portfolio grew 1% in 'twenty tea supported by brands like <unk> and <unk>.

Rajiv: We expect our branded portfolio to continue to build upon the success of 2023 and show a moderate growth.

Rajiv: Next is our genetics business, which now also includes our complex genetics and makes up that meaning one third of our revenue.

Rajiv: This business was flat and pretty green tree and is expected to show a slight growth in particularly for.

Rajiv: That geography and portfolio diversity, which includes a number of high value complex products, such as spectacular brenna, and Julian and lender this portfolio inherent stability.

Rajiv Malik: The third driver of our stable base is our ability to execute on our pipeline. This is the third consecutive year that Viatris has delivered at least $450 million in new product launches. In 2023, we made significant progress across our complex injectables, Select Novel and Complex Products, and iCare Pipeline. We launched Brenna, the first generic SIMP card, and this dexamphetamine and several others. FDA accepted our NDA filing application for glutamate acetate depot injection. We received FDA approval of Rezumvi nitrates for the treatment of pharmacologically induced mitreosis.

Rajiv: The third driver of our stable base is our ability to execute on our pipeline.

Rajiv: This is the third consecutive year that <unk>.

Rajiv: At least $450 million and new product launches.

In 2023, we made significant progress across our complex Injectables select novel and complex products and I cant pipeline.

Rajiv: We launched the <unk> genetics can be caught.

Rajiv: And list in.

Rajiv: In fact, I mean and several others.

Rajiv: FDA accepted our NDA filing application for letterman acetate depot injection.

Rajiv: We received FDA approval of their assembly 90 drops for the treatment of pharmacologically induce my dad.

Rajiv: And we received positive top line results for our phase III trials of you're probably in China.

Rajiv Malik: And we received positive top-line results for our phase 3 trials of Upelleri in China. We also received positive top-end results for our phase 3 trial of Tobiah in China and subsequent NMPA acceptance of our NDA. For 2024, we are excited to continue to deliver on our deep pipeline and execute on several key launches that will expand access to patients. For example, from our complex injectables portfolio, we expect to be an early entrant with our Sandostatin LAR product, Liraglotetide, a generic for Victoza, as well as Iron Sucrose, a generic for Venofor. From our iCare Pipeline, we expect to launch Resume Week. And from our novel and 505B2 pipeline, we are excited to bring to market our once-monthly glutamate acetate deeper for patients with multiple sclerosis.

Rajiv: We also received positive top line results for our phase III trial of <unk> in China.

Rajiv: Subsequent and then <unk> acceptance of our NDA.

Rajiv: For 2024, we are excited to continue to deliver on our deep pipeline and execute on several key launches that will expand access to patients.

Rajiv: For example from a complex injectables portfolio, we expect to be an early intent with our central start in and out for us.

Rajiv: Liraglutide genetic part of it goes up as well as iron sucrose, a genetic form <unk>.

Rajiv: From our eye care pipeline, we expect to launch the zombie.

Rajiv: And for our novel and five of five two pipeline, we are excited to bring to market our once monthly.

Rajiv: Ted depot patients with multiple sclerosis, and we are pleased to present, our latest data. This week at Actavis at key Medical conference.

Rajiv Malik: And we are pleased to present our latest data this week at Actarmis, a key medical conference. We also continue to be laser focused on progressing our other pipeline assets, many of which are in phase 3 stages, such as Zulin Low Dose, Meloxicam, and Efraxor GAD. We are especially excited about advancing our eye care pipeline, which has several programs in phase 3 aimed at addressing vision-related disorders such as breast biopia, night vision disturbances, and blepharitis.

Rajiv: We also continue to be laser focused on progressing our other pipeline assets many of which are in phase III studies, such as <unk> and low dose meloxicam and FX at AAD.

Rajiv: We are especially excited about advancing our eye care pipeline that had several programs in our phase III aimed at addressing vision related disorders, such as best Myopia Night night vision disturbances and blepharitis.

Rajiv Malik: Let me now turn to the commercial segments and our expectations for 2024. In 24, we expect total revenues to grow approximately 2%, which includes approximately 450 to 550 million in new product revenue. Starting with developed markets. In 23, world markets declined by 1%.

Speaker Change: Let me now turn to the commercial segment and our expectations for 2024.

Rajiv: In 'twenty four.

Rajiv: We expect total revenues to grow approximately 2%, which includes approximately $450 million to $550 million in new product revenue.

Rajiv: Starting with developed markets.

Rajiv: In 23 different markets declined by 1%.

Rajiv Malik: Our European business demonstrated operational net sales growth for the third consecutive year, led by Italy and Spain, as well as contributions from new product launches. This helped us offset the decline in North America due to the expected impact of increased generic entrants on performance and higher competitive pressures on certain complex products, including Vaxella and Zulane, in the first half of the year. For 2024, we expect this segment to grow, with both Europe and North America expected to grow 3%. Europe's growth is expected to be led by our strong brand portfolio, including Brufen, IPPEN, and products from our Thrombosis portfolio. In addition, we anticipate further growth in key markets, including Italy and France, and strong generic performance aided by new protocol. North America is expected to grow by 3%, driven by the exciting new launches of GADepot, Liragrotite, and Sandostatin LAR.

Rajiv: Our European business for the third consecutive year demonstrated operational net sales growth led by Italy, and Spain as well as contributions from new product launches.

Rajiv: This helped us offset the decline in North America due to the expected impact of increased generic and train two per pharmacist and higher competitive pressures on certain complex products, including <unk> <unk> in the first half of the year.

Rajiv: But particularly for <unk>.

Rajiv: Expect this segment to grow with both Europe, and North America are expected to grow T parsing.

Rajiv: Europe's growth is expected to be led by our strong brand portfolio, including Brooklyn, IP pen and products from our <unk> portfolio.

Rajiv: In addition, we anticipate further growth in key markets, including Italy, and France, and strong genetic performance aided by new product launches.

Rajiv: North America is expected to grow by 3% driven by the exciting new launches of ghd pool, Liraglutide and tenders that didn't have laid out.

Rajiv Malik: In addition, we expect to further strengthen our position in respiratory products like Vaxella and Brenna. Upellry is expected to continue its growth trajectory and grow by double digits. For the iCare portfolio, we expect further gains in 2024, resulting from the continued prescription growth in Trivaya as we expand access through patient fulfillment. [inaudible] The Triad TTC campaign, launched in October, has shown early indications of both increased patient responsiveness and performance, as fourth-quarter non-bridge prescriptions were up 18% quarter over quarter. Emerging markets had another strong year, delivering 7% year-over-year operational growth in 2023.

Rajiv: In addition, we expect to further strengthen our position of respiratory products like <unk> and brenna.

Rajiv: <unk> is expected to continue its growth trajectory and grow by double digits.

Rajiv: Well the Ikea portfolio, we expect further gains in 2024, resulting from the continued prescription growth in <unk> as we expand access through.

Rajiv: Patient fulfillment.

Rajiv: Coupled with the launch of new zombie.

Rajiv: The <unk> DTC campaign launched in October.

Rajiv: Has shown early indications are bought increase patient responsiveness and performance.

Rajiv: Quarter, four non based prescriptions were up 18% quarter over quarter.

Rajiv: Emerging markets had another strong year, delivering 7% year over year operational growth in 'twenty three.

Rajiv Malik: These better-than-expected results benefited from strength across our broader generic portfolio and stronger-than-expected performance from brands like Daimista and Viagra, led by markets such as Turkey, South Korea, and Southeast Asia. Going into 2024, we are projecting this segment to grow by 6% year over year, primarily driven by our branded, Moving to Jan. Full year 23 came in below our expectations due to the continued impacts from the government-driven price regulations in this region, which we expect to continue into 2024. We anticipate that we will partially offset the pricing dynamics with the ongoing strong volume growth from our three brands, including Amethysa, Creon, and Effraxar, as well as optimizing our generic space. This segment is expected to decline by 8% in 2024.

Rajiv: These better than expected results benefited from strength across our broader generics portfolio and stronger than expected performance from brands like Dymista and Biograph net by markets, such as Turkey, South Korea and Southeast Asia.

Rajiv: Going into 2024, we are projecting this segment to grow by 6% year over year, primarily driven by our branded business.

Speaker Change: Moving to jazz.

Speaker Change: Full year 23 came in below our expectations due to the continued impact from the government driven price regulations in this region, which we expect to continue into two due to the floor.

Speaker Change: We anticipate to partially offset the pricing dynamics with the ongoing strong volume growth from our key brands, including Amitiza Creon and affects our advertise optimizing our genetics business.

Speaker Change: This segment is expected to decline by 8% in 2024.

Okay.

Rajiv Malik: Greater China performed ahead of our expectations for the full year 2023, delivering 2% growth, driven by the strong performance of a retained channel in China. This is a result of our ability to adapt our business model to the evolving market dynamics. Going forward, we will leverage our investments to further expand the self-pay patient market and our brand equity in this channel, which we expect will help to absorb some of the impacts from government-implemented healthcare policy regulations. With these dynamics in mind, we have modeled a 2% year-over-year decline for 2024.

Speaker Change: Greater China performed ahead of our expectations for the full year 2023, delivering 2% growth driven by strong performance of our retail channel in China.

Speaker Change: This is a result of our ability to adapt our business model to the evolving market dynamics.

Speaker Change: Going forward, we will leverage our investments to further expand our self pay patient market and our brand equity in this channel, which we expect will help to absorb some of the impacts from the government implemented health care policy regulations.

Speaker Change: With these dynamics in mind, we are more of a 2% year over year decline for 2024.

Rajiv Malik: Before I conclude, I want to take the opportunity to thank the management team for their partnership over the years and all our employees who have helped us build a strong global platform. I'm very pleased with where we are today on Viatris' journey and the strength as well as stability of our core business, which is now nicely set up for continued growth from here onwards. With that, I'll hand the call over to Sanjeev.

Speaker Change: Before I conclude I want to take the opportunity to Tanked amendment team for their partnership over the years and all our employees, who have helped us build a strong global platform.

Speaker Change: I'm very pleased with where we are today, and where our tech journey and ascent as less stability of our core business.

Speaker Change: He is now nicely set up for continued growth from here onwards, with that I'll hand, the call over to Sandeep.

Sanjeev Narula: Thank you, Rajiv, and good morning, everyone. 2023 was another strong year across total revenue, adjusted EBITDA, and free cash. Our results were in line with or better than our expectations. We believe that the foundation we built sets the company up to deliver on its strategy and future growth. Our guidance as updated in November included a full year contribution from the divested business. As a result of certain transactions that closed in 2023, we're adjusting our guidance on total revenue and adjusted EBITDA by $35 million and $20 million, respectively. Adjusted beta included 105 million of acquired IPRND, primarily related to upfront licensing payments. Please note, we do not include acquired IPRND in guidance for future periods as it cannot be reasonably foreclosed. Pre-cash flow was impacted by approximately $235 million associated with the divestitures, including transaction costs and taxes. D'Souza

Thank you Rajiv and good morning, everyone.

Sandeep: 23 was another strong year across total revenue adjusted EBITDA and free cash flow.

Our results were in line or better than our expectations. We believe that the foundation, we built sets the company up to deliver on our strategy and future growth outlook.

Sandeep: Our guidance is updated in November, including a full year contribution from the divested businesses.

Sandeep: As a result of certain transaction that closed in 2023, we're adjusting our guidance on total revenue and adjusted EBITDA by $35 million and $20 million respectively.

Sandeep: Adjusted EBITDA included under than $5 million of acquired IP, R&D, primarily related to upfront licensing payments.

Sandeep: Please note we do not include acquired IP R&D guidance for future periods as it cannot be reasonably forecast it.

Sandeep: Free cash flow was impacted by approximately $235 million associated with the divestitures, including transaction costs and taxes.

Sanjeev Narula: Excluding this impact, free cash flow would have been $2.64 billion on a full year basis. This was the third consecutive quarter of operating revenue. And we continue to see solid performance across developed markets, emerging markets, and Greater China. Excluding the impact of divestiture, revenue grew over 1%. During the last earnings call, we noted that adjusted gross margin would moderate in Q4 due to the timing of segment and product launches. On a full year basis, adjusted gross margin came in at the high end of our expectation at 59.1%, driven by strong brand performance.

Sandeep: Excluding this impact free cash flow would have been 264 billion on a full year basis.

Sandeep: This was the third consecutive quarter of operational revenue growth and we continue to see solid performance across developed markets emerging markets in our greater China segment.

Sandeep: Excluding the impact of divestiture revenue grew over 1%.

Sandeep: During the last earnings call. We noted that our adjusted gross margin would moderate in Q4 due to the timing of segment and product mix.

Sandeep: On a full year basis adjusted gross margin came in at the high end up our expectation at 59, 1% driven by strong brand performance.

Sanjeev Narula: Adjusted SG&A and R&D included certain investments we made in Q4 to support future revenue. We had another strong year of free cash flow generation reflecting our underlying operational performance and continued priority on cash optimization. Pre-cash flow in the fourth quarter was impacted by transaction costs and taxes related to the divestiture, and excluding these items, it would have been $454 million.

Sandeep: Adjusted SG&A and R&D included certain investment we made in Q4 to support future revenue growth.

Sandeep: We had another strong year of free cash flow generation, reflecting our underlying operational performance and continued priority on cash optimization initiative.

Sandeep: Free cash flow in the fourth quarter was impacted by transaction costs and taxes related to the divestiture and excluding these items would have been $454 million.

Sanjeev Narula: It is important to reiterate that gross proceeds from the divestiture benefit cash flow from investing activities while the related taxes and transaction costs are included in cash flow from operating activities. The strong free cash flow generation over the last three years exceeded $7.5 billion and has enabled us to deliver on our financial goals. This includes debt pay-down of greater than $6.6 billion and return of approximately $1.8 billion of capital to shareholders. These positive actions taken by the company reinforce our continuing commitment to an investment-grade rating and an expectation of increasing the return of capital to our shareholders. For 2024, our guidance includes the estimated full results from the devastation that have not yet closed. The expected timing of the closing of divestitures will impact reported results for the next few quarters.

Sandeep: It is important to reiterate that gross proceeds from the divestitures benefit cash flow from investing activities, while the related taxes and transaction costs are included in cash flow from operating activities.

Sandeep: The strong free cash flow generation over the last three years exceeded $7 5 billion and has enabled us to deliver on our financial commitments. This included debt paydown of greater than $6 6 billion and return of approximately $1 8 billion of capital to shareholders.

Sandeep: These positive action taken by the company reinforce our continuing commitment to an investment grade rating and an expectation of increasing the return of capital to our shareholders.

Sandeep: For 2024, our guidance includes the estimated full year results from the divestitures that have not yet closed.

Sandeep: The expected timing of closing of divestitures will impact reported results for the next few quarters, we will provide future adjustment to guidance as remaining divestitures close.

Sanjeev Narula: We will provide future adjustments to guidance as remaining divestitures close. The anticipated drivers for 2024 total revenue guidance include growth of approximately 2% operationally versus 2023 and expected new product revenue of approximately $450 million to $550 million and growth from our IKW. As a reminder, guidance currently includes approximately $1.1 billion of total revenue on a full year basis from the remaining double.

Sandeep: The anticipated drivers for 2024 total revenue guidance include <unk>.

Sandeep: Lots of approximately 2% operationally versus 2043 and expected new product revenue of approximately $450 million to $550 million and our growth from our <unk> Division.

Sandeep: As a reminder guidance currently includes approximately $1 1 billion of total revenue on full year basis from the remaining divestitures.

Sanjeev Narula: The driver for adjusted beta includes contributions from new product launches and revenue growth; moderation in gross margin relative to 23 levels due to anticipated product and segment mix, and increased R&D primarily related to Adorcia Collaborative. The estimated adjusted EBITDA from the remaining divestiture is approximately $320 million on a full year basis.

Sandeep: The driver for adjusted EBITDA include contribution from new product launches and revenue growth.

Sandeep: Moderation in gross margin relative to 'twenty three levels due to anticipated product and segment mix and increased R&D, primarily related to I do see a collaboration.

Sandeep: The estimated adjusted EBITDA from the remaining divestiture is approximately $320 million on a full year basis.

Sanjeev Narula: We expect to generate approximately $2.5 billion in free cash flow in 2024 before any divestiture costs and taxes. Lastly, we're providing adjusted EPS guidance as a measure of our expected earnings growth moving forward. Assumed share outstanding includes the benefit of the share buyback executed earlier.

Sandeep: We expect to generate approximately $2 5 billion in free cash flow in 2024 before any divestiture cost indexes.

Sandeep: Lastly, we are providing adjusted EPS guidance is measure of thought expected O&M growth moving forward.

Sandeep: Estimated shares outstanding include the benefit of share buyback executed earlier this month.

Sanjeev Narula: Now, a few comments about the anticipated phasing in. Total revenue is expected to be higher in the second half due to the launch of new products and normal product seasonality. Taking into account the phasing of revenue, margins, and investment, we expect adjusted EBITDA and free cash flow to be evenly phased between the first half and the second half, and, in general, free cash flow tends to be lower in Q2 and Q4 due to the timing of semiannual interest payments. In the Revenue Guidance Walk, the 2023 adjusted number of $15.2 billion excludes the result of the divestiture that closed in 2023 and includes anticipated foreign exchange headings.

Sandeep: Now a few comments about anticipated phasing in this year.

Sandeep: Total revenue is expected to be higher in the second half due to launch of new products and normal product seasonality sticking.

Sandeep: Taking into account the phasing of revenue margins and investment we expect adjusted EBITDA and free cash flow to be evenly phased between first half and second half and in general.

Sandeep: Cash flow tend to be lower in quarter two in quarter four due to the timing of semiannual interest payments.

Sandeep: In the revenue guidance walk the 2023 adjusted number of $15 2 billion excludes the result of a divestiture that closed in 2023 and includes anticipated foreign exchange headwinds.

Sanjeev Narula: We expect reported adjusted EBITDA to be impacted by the benefit of approximately 2% of old operational revenue growth, the estimated impact of foreign exchange, Devastation that closed in 2023, and Adoce R&D investment and the impact of IP R&D. Taking these items into consideration, we expect adjusted EBITDA for the base business to be stable this year.

Sandeep: We expect the reported adjusted EBITDA will be impacted by the benefit of approximately 2% total operational revenue growth.

Sandeep: Submitted the impact of foreign exchange.

Sandeep: Debit to chip that closed in 2023, and I don't see R&D investment and impact of IP R&D.

Sandeep: Taking these items into consideration, we expect adjusted EBITDA for the base business to be stable this year.

Sandeep: Yeah.

Sanjeev Narula: We have pivoted to a more balanced capital allocation. This concludes the focus on capital return and business development. The Adocia R&D collaboration represents a disciplined approach with a modest upfront payment of approximately $350,000. The license structure serves to minimize and share the future development expenses for the programs while providing potentially significant upside. The board has maintained the annual dividend policy of $0.48 per share for 2021.

Sandeep: We have pivoted to a more balanced capital allocation approach. This includes a focus on capital return and business development.

Sandeep: I do see our R&D collaboration represents a disciplined approach with a modest upfront payment of approximately $350 million.

Sandeep: License structure subs to minimize and shared the future development expenses for the programs, while providing potentially significant upside economics.

Sandeep: The board has maintained the annual dividend policy of <unk> 48 per share in 2024.

Sanjeev Narula: Earlier this month, the company repurchased approximately $250 million in shares of Common. The Board of Directors has increased our existing share purchase authorization by an additional $1 billion. We anticipate excess cash will be used opportunistically for additional buyback. Lastly, we expect to continue to strengthen our balance sheet with debt paydown of approximately $3.5 billion this year to reach our long-term gross leverage targets. Before I close, I want to take this opportunity to thank all of our colleagues around the world and give a special call out to my finance team for their extraordinary work over the last four years. I'm extremely proud of what we've accomplished together.

Sandeep: Earlier this month the company has repurchased approximately $250 million in shares of common stock.

Sandeep: The board of directors.

Sandeep: Increased our existing share repurchase authorization by an additional $1 billion.

Sandeep: We anticipate excess cash will be used opportunistically for additional buyback in future.

Sandeep: Lastly, we expect to continue to strengthen our balance sheet with debt Paydown of approximately $3 5 billion. This year to reach our long term gross leverage target.

Sandeep: Before I close I want to take this opportunity to turn all of our colleagues around the world in a special call out to my finance team for their extraordinary work over the last 40 years I am extremely proud of what we've accomplished together.

Theodora Mistras: I would be remiss if I did not acknowledge our management team and the Board of Directors for the opportunity to serve as the Chief Financial Officer of Viatris. Viatris is in its strongest financial position yet. The foundation is solid and will ensure its ability to make a real difference in patients' lives for many years. Now I'd like to turn it over to Dorada.

Speaker Change: I would be remiss, if I did not acknowledge that management team and the board of directors for the opportunity to serve as the Chief financial Officer of Beatrice.

Speaker Change: The interest in its strongest financial position here. The foundation is solid and will ensure its ability to make a real difference in patients' lives for many years to come now I'd like to turn it over to dredging.

Operator: Thank you, Sanjeev. It's an honor to be here, and I look forward to working with Scott and the rest of the management team to execute on the company's growth strategy and capital allocation priorities. Prior to joining Viatris, I had the benefit of working with the team as an advisor. I've helped companies across the healthcare industry drive shareholder returns for the past 20 years. This gives me a strong appreciation for the unique position that Viatris is in today to create significant value for our shareholders, given the diversity of the business and the stability of the cash flow. With our growth leverage target in sight, I believe the company is striking the right balance with respect to business investment and capital return.

Dredging: Thank you Sandeep, it's an honor to be here and I look forward to working with Scott and the rest of the management team to execute on the Companys growth strategy and capital allocation priorities.

Dredging: Prior to joining <unk> I had the benefit of working with the team as an adviser.

Dredging: Companies across the healthcare industry drive shareholder returns for the past 20 years.

Dredging: This gives me a strong appreciation for the unique position that would be interested in today to create significant value for our shareholders given the diversity of the business and the stability of the cash flow.

Dredging: With our gross leverage target in sight I believe the company is striking the right balance with respect to business investment and capital return.

Operator: I expect that with the strong foundation we have, coupled with thoughtful capital allocation, we will be a strong adjusted EPS growth story in the future. As Scott mentioned, the IDORSIA collaboration is a great example of the kinds of deals we'll continue to evaluate. This collaboration has the potential to enhance our growth profile by delivering a strong portfolio of branded, patent-protected assets targeting significant unmet patient needs while leveraging our capabilities in therapeutic areas where we have differentiated insights. Additionally, the transaction was structured in a way that deploys capital judiciously and creates the potential for asymmetric returns for our shareholders relative to the quantum of capital deployed. Now I'd like to turn it back over to the operator for Q&A. Ladies and gentlemen, at this time, we'll begin that question and answer session. To ask a question, you may press star and then one on your touch-tone telephone. If you are using a speakerphone, we do ask that you please pick up your handset prior to pressing the keys to ensure the best sound quality.

Dredging: I expect that with the strong foundation, we have coupled with thoughtful capital allocation, we will be a strong adjusted EPS growth story in the future.

Dredging: Scott mentioned the <unk> collaboration is a great example of the kinds of deals well continue to evaluate.

Dredging: This collaboration has the potential to enhance our growth profile by delivering a strong portfolio of branded patent protected assets targeting significant unmet patient needs, while leveraging our capabilities and therapeutic areas, where we have differentiated insights.

Additionally, the transaction was structured in a way that deploys capital judiciously and creates the potential for E symmetric returns for our shareholders relative to the quantum of capital deployed.

Dredging: Now I'd like to turn it back over to the operator for Q&A.

Dredging: Ladies and gentlemen at this time, we'll begin our question and answer session.

Dredging: To ask a question you May press Star and then one on your Touchtone telephone.

Dredging: You are using a speaker phone, we do ask that you. Please pick up your handset prior to pressing the keys to ensure the best sound quality.

Christopher Thomas Schott: To withdraw your questions, you may press Standard, and again that is Star and then one to join the question queue. We'll pause momentarily to assemble the roster. Our first question today comes from Christopher Schott from J.P. Morgan. Please go ahead with your question. Great. Thanks so much.

Dredging: To withdraw your question you May press Star two.

Dredging: Again that is star one to join the question queue, we will pause momentarily to assemble the roster.

Dredging: Our first question today comes from Christopher Schott from Jpmorgan. Please go ahead with your question.

Christopher Thomas Schott: Oh, great. Thanks, So much just had a question on business development just building on some of the comments from the prepared remarks, just so you think about business development opportunities. How do you think about balancing I guess kind of R&D deals that maybe come with a bit more risk like we saw today it could be a nice opportunity upside, but have some risk with them versus maybe more.

Scott Andrew Smith: I just had a question on business development, just building on some of the comments from the prepared remarks. Just as you think about business development opportunities, how do you think about balancing, I guess, kind of R&D deals that maybe come with a bit more risk, like we saw today? It could be a nice upside opportunity but comes with some risk with them versus maybe more in-market transactions or in-licensing of already approved drugs that maybe have potentially lower returns but a bit more certainty. Is there a bias one way or the other, or are you seeing more opportunities in one bucket versus the other? Thanks so much.

Speaker Change: In market transactions or in licensing of already approved drugs that maybe have potentially lower returns, but a bit more certainty I was trying to say is there a bias one way or the other or are you seeing more opportunities in one bucket versus the other thanks so much.

Scott Andrew Smith: Thank you, Chris. Thank you for the question, and I think we're going to look at all manner of opportunities in order to build a portfolio. I think licensing, partnering, and M&A for in-market assets is something that we're looking at. I also think we are looking at broader licensing agreements. In this case, we're looking at, you know, two phase three assets that are relatively de-risked and that have real blockbuster potential. I think Doretta said asymmetric, the potential for an asymmetric return, which I believe is the case here.

Speaker Change: Thank you Chris. Thank you for the question and I think we're going to look at all manner of opportunities in order to build the portfolio I think licensing partnering M&A for in market assets is something that we're looking at I also think we're looking at a broader licensing agreements in this case, we're looking at two phase III assets I E.

Speaker Change: Believe that are relatively de risked that have real blockbuster blockbuster potential I think.

Speaker Change: <unk> said asymmetrical to the potential for asymmetric return, which I believe is the case here in terms of phase III assets. We also have an ability to affect the development in the registration strategy and of course, the commercial strategy going forward. So.

Scott Andrew Smith: You know, in terms of phase three assets, we also have the ability to affect the development and the registration strategy and, of course, the commercial strategy going forward. So there are some benefits, I think, to doing things at this stage. But, you know, certainly, we're going to look at all manner of opportunities in order to build a portfolio in the right way in the future. You know, just one comment: I think the solid base of the company that we built through 21, 22, 23 into 24 really provides us with that opportunity to look for, you know, appropriate business development opportunities to build off that base and grow in the future. Thank you.

Speaker Change: There are some benefits I think to doing things at this stage, but certainly we're going to look at all manner of opportunities enabled to build a portfolio in the right way in the future.

One comment is I think the solid base of the company that we built through 'twenty. One 'twenty two 'twenty three 'twenty four really provides us that opportunity to look for.

Speaker Change: Appropriate business development opportunities to build off that base and grow in the future.

Speaker Change: Yeah.

Speaker Change: Thank you.

Glen Joseph Santangelo: Our next question comes from Glen Santangelo from Jeffries. Please go ahead with your question. Yeah, good morning.

Speaker Change: Our next question comes from Glenn Saint Angelo from Jefferies. Please go ahead with your question yes.

Speaker Change: Yeah. Good morning, Thanks for taking my questions just maybe to build on Scott's question.

Scott Andrew Smith: Thanks for taking my questions. You know, just maybe to build on Scott's question, you know, Scott, what should we expect at this upcoming R&D day? I mean, you know, you've been pretty clear that the hope was always to use half the available free cash flow, you know, towards business development. And do you still expect that to be the case? Or, you know, based on your time in the seat, do you see more opportunities, maybe than you originally thought?

Speaker Change: Yes, Scott what should we expect that this upcoming R&D day, I mean, it seems you've been pretty clear that the hope was always use half the available free cash flow towards business development or do you still expect that to be the case or based on your time and the C. Do you see more opportunities maybe.

Scott Andrew Smith: Than what you originally thought or because now it seems like you laid out your preferred therapeutic areas and we're buying outside of that I'm, just kind of curious to get your take on the market for these assets and what you're planning at a high level the discussed at R&D day.

Scott Andrew Smith: Or, you know, because now it seems like, you know, you laid out your preferred therapeutic areas and, you know, we're buying outside of that. I'm just kind of curious to get your take on the market for these assets and what you're planning, you know, at a high level, to discuss at R&D day. So I think that, first of all, Umer, thank you for the question, Glenn, and good morning. Our capital allocation plan is not changing.

Speaker Change: So I'll go first of all thank you for the question Glenn and good morning, our capital allocation plan is not changing going forward, we plan to deliver return to shareholders through share buybacks, which we've initiated in 'twenty, four and $250 million of.

Scott Andrew Smith: You know, going forward, we plan to deliver return to shareholders through share buybacks, which we've initiated in 24 and paid $250 million in dividends, and then also looking for business development opportunities. As I've said many times before, we're going to look at the core therapeutic areas, dermatology, GI, ophthalmology, but we're also going to be opportunistic outside of those areas to find assets that fit what And in terms of these two assets, you know, I think they fit what we do very, very well. We have $2.5 billion in cardiovascular revenue globally, and so, when you take a look at that, I think Solatigrel fits very well into the pre-existing expertise and the franchise that we have. And Sonarimod is an immunomodulatory drug that can play across multiple different therapeutic areas, including dermatology, GI, neurology, and rheumatology.

Speaker Change: Dividends and then also looking for business development opportunities.

Speaker Change: As I've said many times before we're going to look at the core therapeutic areas dermatology Gi ophthalmology, but we're also going to be opportunistic outside of those areas to find assets that fit what we do best and in terms of these two assets I think they fit what we do very very well, we have $2 $5 billion in cardiovascular revenue glow.

Speaker Change: <unk>.

Speaker Change: So.

Speaker Change: We take a look at that I think a lot of growth fits very well into the pre existing expertise and franchise that we have and <unk> is an immuno module Terry drug.

Speaker Change: Play across multiple different therapeutic areas, including dermatology Gi neurology rheumatology and so I think these two assets fit our portfolio very very well and again, we're going to we're going to look at our three core areas, but we're also going to try and be opportunistic to look for opportunities outside of them.

Scott Andrew Smith: And so, you know, I think these two assets fit our portfolio very, very well. And again, we're going to look at our three core areas, but we're also going to try and be opportunistic to look for opportunities outside of that. In terms of what we're going to cover on the R&D day, we're going to do a deep dive into the two assets that we're talking about here, Solatigrel and Sonarimod. We're also going to talk about other opportunities in the pipeline that we have that we're developing, eye care, as well as some other things in the pipeline. So it'll be a full pipeline review, but the main focus will be on Solatigrel and Sonarimod, including some KOL thoughts and expertise. All right.

Speaker Change: In terms of what we're going to cover in the R&D day, we're going to do we're going to cover the.

Speaker Change: We're going to do a deep dive into the two assets that we're talking about here, so algorithms and scenarios, where and also talk about other opportunities in the pipeline that we have that we're developing eyecare.

Speaker Change: As well as some other things in the pipeline. So we'll it'll be a full pipeline review, but our main focus will be on <unk> and <unk>, including <unk>.

Speaker Change: Having some kols thoughts and expertise.

Sanjeev Narula: Thanks for all that detail. Maybe I just ask, Sanjeev, a quick follow-up on the guidance. You know, in your slides, it seems, and I think you sort of commented on this a little bit, that we should expect REVs to be higher in the second half of the year versus the first half of the year. Now, I'm assuming that excludes the impact of divestitures, so I just wanted to confirm that. But you also suggested that EBITDA and cash flow would be evenly phased, sort of, first half versus second half. I was wondering if you could just sort of comment a little bit on the cadence of how we should expect this year to play out.

Speaker Change: Alright, thanks for all that detail, maybe I can just ask Sanjay have a quick follow up on the guidance.

Sanjay: In your slides it seems and I think you've sort of commented on this a little bit that we should expect revs to be higher in the second half of the year versus the first half of the year now I'm, assuming that excludes the impact of divestitures. So I just wanted to confirm that but you also suggested that EBITDA and cash flow would be evenly phased sort of first half versus second half I was.

Sanjay: Wondering if you could just sort of comment a little bit on the cadence of how we should expect this year to play out.

Sanjeev Narula: Right. Thank you, Glenn, for the question. So you're right.

Speaker Change: Thank you Glen for the question so you're right.

Sanjeev Narula: So revenue for the businesses, so first of all, this guidance includes the businesses that have not been divested as yet, and I've given the fuller impact of that in my prepared remarks. So you can actually see and get to kind of like a performance number, what that would look like for 2025, if you're looking at modeling. So during this year, on the total business, before any divestment, the second half is going to be higher in revenue. And that's just a function of how the business is. New product revenue that Rajiv talked about 450 to 550, a lot of those new launches are happening in the second half of the year, right? That's one.

Speaker Change: So the revenue for the businesses. So first of all this guidance includes the businesses that has not been divested or we are in that given the clear impact of that in my prepared remarks. So you can actually see and get to kind of like a pro forma number what that would look like for 2025, if youre looking at modeling subdued this year.

On the total business before any divestment the second half is going to be higher level. That's just a function of how the businesses new product revenue <unk> talked about $4 50 to $5 50.

Speaker Change: All of that new launches that are happening.

Speaker Change: Second half of the year right. That's one second is the productivity and obviously some of that that we have in Europe.

Sanjeev Narula: Second is product seasonality; some of that that we have in Europe, that happens in the second half of the year. So that's just a function of some of that happening. In terms of gross margin, you will expect a little bit of a moderation in the second half. Again, that's again a segment in the product mix; a lot of the pricing impact happens in the later part of the year, that will impact gross margin from there. And then typically, the expenses pick up in the second half of the year. And that kind of impact, when you put all those things together, you're going to pretend cash flow is going to be evenly phased. The other thing to keep in mind, Glenn, is that if you're looking at cash flow on a quarter to quarter basis, quarter two and quarter four tend to be lower for us because of our semi-annual interest payments that we have. And that kind of drives that. And that's why you will see quarter four this year and quarter two last year were both lower than quarter one and quarter three.

Speaker Change: That happens in the second half of the year. So that's that's just a.

Speaker Change: Function of some of that happening.

Speaker Change: In terms of gross margin you will expect a little bit of a moderation in the second half again Thats again.

Speaker Change: Segment of the product mix a lot of the.

Speaker Change: Pricing impact happens.

Speaker Change: Later part of the year that will impact the gross margin from there.

Speaker Change: Typically the expenses pickup into the second half of the year.

Speaker Change: That kind of that impact when you put all those things together, but that gasoline is going to be even increased the other thing to keep in mind. Glenn is if we're looking at cash flow on a quarter to quarter basis quarter to quarter forward tend to be lower for us because of.

Speaker Change: Semi annual.

Speaker Change: <unk> payments that we have.

Speaker Change: And that kind of drive for that and Thats why youll see quarter four of this year in quarter two.

Last year, both were lower than quarter, one and quarter three so that's the that's the overall kind of trending on the <unk>.

Sanjeev Narula: So that's the overall kind of trending on the cash flow. The other point that I would talk about is, as and when these devices just close, and we've given kind of in our slides, women's health and the API business will close kind of in the first half of the year, and the OTC business, probably in the middle of the year. We will provide the guidance update as and when those close, so that you can have a sense of what the impact of that will be. And then we will provide the revised guidance so that you have transparency. Okay, thanks.

Speaker Change: The cash flow the other point that I would talk about it is as and when these divestitures close and we've given kind of the slide.

Speaker Change: Slides.

<unk> and <unk>.

Speaker Change: The API business will close kind of in the first half of the year.

Speaker Change: And.

Speaker Change: <unk>.

Speaker Change: The OTC business, probably in the middle of the year, we will provide the guidance update as a member was closed so that you kind of have a sense on what the impact of that.

Speaker Change: And then we will approach the revised guidance domestically have transparency.

Speaker Change: Okay. Thanks, Thank you.

Balaji V. Prasad: Thank you. Our next question comes from Balaji Prasad from Barclays; please go ahead with your question. All right, good morning, and thanks for the questions. So while I don't want to front-run your R&D day, I clearly want to understand the deal announced today. Firstly, with both salatogrel and Sanremod, I'd love to understand the differentiation.

Speaker Change: Okay.

Speaker Change: Our next question comes from <unk> Prasad from Barclays. Please go ahead with your question.

Prasad: Hi, good morning, and thanks for the questions.

Prasad: So I don't want to front run your R&D day, clearly want to understand the deal today announced J.

Balaji V. Prasad: Firstly with both.

Slatted grille in Santa Mara allowed to understand the differentiation when I look at the acute <unk> landscape couple of approved drugs, including <unk>.

Scott Andrew Smith: While I look at the acute MI landscape, a couple of approved drugs, including Activase, so help us understand the gap in the current treatment and how much more rapid or short-acting salatogrel is versus current treatment. Also, same question on Sanremod too. Just following up on this, I see that Erosia will contribute around $200 million in the next three years. Is it fair to assume that Viatris will also be contributing an equal amount? Thanks.

Balaji V. Prasad: So.

Balaji V. Prasad: Help us understand the gap in the current treatment and how much more rapid or short acting salado grandma's versus current treatment.

Balaji V. Prasad: Also the same question on tenant amount to.

Speaker Change: Just following up on this.

See that industrial will contribute around $200 million in the next three years is it fair to assume that we entrants will also be contributing an equal amount. Thanks.

Scott Andrew Smith: Yeah, thank you very much for the question, Balaji. We'll be contributing, just to start at the back, you know; we'll be contributing as well. You know, I'm not saying it's equal, but the two companies will be contributing, and Adorcio will be contributing up to $200 million in development programs going forward. In terms of product differentiation, I'd like to turn it over to Philippe Martin, our head of R&D, just to talk a little bit about some of the differentiation he sees at a very high level. And these are the type of things that we're really going to dig into when we get to the R&D day later in March and, you know, take a very deep dive talking about the asset differentiation, where we think they're going to play therapeutically, etc.

Speaker Change: Yes. Thank you very much for the question Bob will be contributing just to start at the back.

Speaker Change: We will be contributing as well.

Speaker Change: I'm, not saying, it's equal, but the two companies will be contributing and.

Speaker Change: She will be contributing up to $200 million in development programs going forward in terms of our product differentiation I'd like to turn it over to Felipe Martin.

Felipe Martin: Our head of R&D.

Felipe Martin: Talk a little bit about some of the differentiation. He sees at a very high level and these are the type of things that we're really going to dig into to the R&D day later in March.

Felipe Martin: Taking a very strong deep dive talking about being assets differentiation, where we think they're going to play therapeutically et cetera, but just to give a couple of initial thoughts on that I'll hand, it over to Felipe.

Scott Andrew Smith: But just to give a couple of initial thoughts on that, then I'll hand it over to Philippe. Thank you so much, Scott. Yeah, so just to target the lateral grail, I think at a high level, the lateral grail targets the crucial time between the onset of symptoms and the first medical attention. That's the time where, currently, there is really no treatment for these patients, and that's the critical time when the heart muscle can be impacted.

Felipe Martin: Thank you so much Scott, yes, so just to targets a lot of ground.

Felipe Martin: I think at a high level salado growth targets.

Felipe Martin: The crucial time between the symptom onset and first medical attention that's the time, where.

Felipe Martin: Currently there is really no treatment for these patients and Thats a critical time when.

Felipe Martin: The heart muscle can can be impacted so that's clearly a different positioning in the treatment paradigm for C&I underground.

Philippe Martin: So that's clearly a different position in the treatment paradigm for the lateral grail. I think for, you didn't really ask for ScenarioMod really, but I think ScenarioMod, in terms of differentiation, clearly, we've seen very strong Phase II data that supports a Differentiated and Highly Competitive Benefit-Risk Profile. We have fast-track designation for this asset, and together with Celadogrel, I would say that the strength of regulatory interactions bodes well for the future of these two assets. We have a spot in place for Celadogrel, and that gives you a good view of the agency support for the critical elements of our PIVO protocol design, so really a benefit-risk differentiation that comes through for these two assets, and we really think they have the potential to shift the treatment paradigm in these two areas of high-unmet medical need.

Felipe Martin: <unk>.

Felipe Martin: I think for you didn't ask for scenario really but.

Felipe Martin: I think scenario.

Felipe Martin: In terms of differentiation.

Felipe Martin: Clearly we've seen a very strong phase two data that supports.

Felipe Martin: Differentiated and highly competitive benefit risk profile.

Felipe Martin: We have fast track designation for this asset and together with the latter ground I would say that the strength of the regulatory interactions.

Felipe Martin: Bodes well for the for the future of these two assets, we have a spike in place towards the latter grill.

Felipe Martin: And that gives you a good view on that.

Felipe Martin: Agency support.

Felipe Martin: For the critical elements of our people who protocol design, so really a benefit there is differentiation that comes through for these two assets and we really think.

Felipe Martin: They have the potential to shift the treatment paradigm.

Felipe Martin: And these two area of high unmet medical need so just to add onto what Felipe said quickly before we go to the next question and part of the excitement around scenario modest Phillipe and I have both been involved in the development registration and commercialization of <unk> molecules in the past.

Philippe Martin: So just to add to what Philippe said quickly before we go to the next question, and part of the excitement around Sonarimod is that Philippe and I have both been involved in the development, registration, and commercialization of S1P molecules in the past, and it's a broad immunomodulatory drug that we can take in a lot of different places. The initial indication is SLE, but, you know, as you know, there's proof of concept for S1P molecules and things from multiple sclerosis, IBD, and certainly in skin, you know, dermatological conditions, including psoriasis.

Felipe Martin: So it's a broad immuno module towards drug that we can take a lot of different places the initial indication is SLE.

Felipe Martin: As you know there's proof of concept of <unk> molecules and things from multiple sclerosis, IBD certainly in skin.

Felipe Martin: Jeremy dermatological conditions, including psoriasis so.

Scott Andrew Smith: So, you know, it could really be ripe for real indication expansion once we get through the first indication. I think it could work in a lot of different therapeutic areas, so we're excited about it as well. Our next question comes from Nathan Rich from Goldman Sachs. You can go ahead with your questions.

Felipe Martin: Can really be.

Felipe Martin: It could be ripe for a real indication expansion once we get through the first indication I think you can play in a lot of different therapeutic areas. So we're excited about it as well.

Felipe Martin: Our next question comes from Nathan Rich from Goldman Sachs.

Nathan Rich: Please go ahead with your question.

Nathan Rich: Okay.

Nathan Rich: Okay.

Nathan Rich: One moment.

Nathan Rich: Yeah.

Nathan Rich: Okay.

Operator: Once again, the next question comes from Nathan Rich. Mr. Rich, are you able to hear us? Mr. Rich, are you able to hear us? Hi, can you hear me now?

Nathan Rich: Once again the next question comes from Nathan Rich, Mr. Ritchie, you able to hear us.

Nathan Rich: Next question.

Nathan Rich: Mr. Rich are you able to hear us.

Nathan Rich: Hi can you hear me now.

Operator: I can hear you now, yes. Please proceed. Oh, perfect. Okay. Hi. This is Sarah Conrad. I'm on behalf of Nate.

Nathan Rich: I can hear you now yes, perfect. Okay, Hi, this is Sarah Colorado on for Nate.

Unknown Speaker: I just had a quick question on the iCare franchise. So, ahead of your second iCare launch, Rizambi, in the first half, how are you approaching the commercial launch, and can you give us any details on plans to drive uptake? And then, when we're modeling this, how should we model the product ramp compared to Tervaia and the timing of the associated expenses? So, thank you for the question. Let me hand it over to Rajiv to talk specifically about the eye care division in Tirvai, and I'll comment afterwards. Yeah, thanks.

Sarah Colorado: A quick question on the eye care franchise. So ahead of your second Eyecare lunch a Sunday in the first half how are you approaching the commercial launch and can you give us any details on plans to drive uptake and then one more modeling. This how should we model the product ramp compared to turbine and the timing of the associated expenses.

Sarah Colorado: So thank you for the question, let me hand, it over to Rajiv to talk specifically about the Eyecare division into your buy and I will comment afterwards.

Sarah Colorado: Thanks.

Rajiv: I think we.

Rajiv Malik: I think we started with the DTC, as we informed you in the last Q3 earnings, we started with the DTC program in October. In Q4, in the quarter 4, you know, non-BRICS prescriptions saw about an 18% increase. So earlier indications are, you know, very, very solid, and we are seeing that expansion of the excess, and we continue to be very optimistic, and we are even more so now with the follow-on launch of Resume earlier this year. Again, we will see a little bit more momentum behind that, and more importantly, all the pipeline programs which we acquired along with this, they continue to progress well, as we have indicated earlier. In terms of Sarah, the ramp for Tier Viya, so clearly the expenses we are incurring, so you'll see an evenly-phased expenses because DTC is happening as we speak, or the year, and revenue, as these scripts pick up, will obviously, each quarter is gonna be better than the previous quarter for modeling purposes. It's a comment for me on the iCare division. We're in the very early days here, right?

Rajiv: We started with the DTC as we informed you know either.

Rajiv: <unk> Q3 earnings we started with the BBC programming to cover Q4 in the quarter four.

Rajiv: Non brakes prescriptions saw about 18% piece so all the other indications.

Rajiv: Very very solid and we are seeing that expansion of the excess and we continue to be very optimistic and we are more optimistic now that the follow on launch of resumed.

Rajiv: Earlier this year again, we would see a little bit more momentum behind that and more importantly, all the pipeline.

Rajiv: Programs, which we acquired along with the continued to also progressed well as we have indicated earlier.

Rajiv: In terms of a setup.

Rajiv: The DRAM side.

Rajiv: <unk>, so clearly the expenses, we're incurring so youll see it evenly phased.

Rajiv: Expenses, because DTC is happening as we speak.

Rajiv: For the year.

Rajiv: And revenue as the scripts pick up we'll obviously some each quarter is going to be better than previous quarter for modeling purposes.

Speaker Change: Just a comment from me on the eye care Division, we're very early days here right. We're in the launch phase of <unk>. The first product, we're going to be launching.

Scott Andrew Smith: We're in the launch phase of Tier Viya, the first product. We're gonna be launching the second product very, very quickly here, and there's a whole pipeline of assets, five or six further assets in development that we can bring forward. So we're very hopeful and aspirational that the iCare division is gonna be a very important part of our business as we go forward. We're looking forward, as Rajiv said, to see more data, see the effect of DTC, and see a further ramp up in the business, but we're excited about the business. And our next question comes from Ash Verma from UBS. Please go ahead with your questions. Yeah, thank you. Thank you so much.

Speaker Change: The second product very very quickly here and there is a a full pipeline of assets five or six further assets in development that we can bring forward. So we're very hopeful and aspirational to the eye care division is going to be a very important part of our business. As we go forward, we're looking for and as Rajeev said, we're looking forward to see.

Speaker Change: More data will be effective DC, DTC and see a further ramp in the business, but we're excited about the business overall.

Speaker Change: And our next question comes from Ash Birla from UBS.

Balaji V. Prasad: Please go ahead with your question.

Balaji V. Prasad: Yes. Thank you. Thank you so much.

Ashwani Verma: Congratulations on all the progress. I had two questions. One on the pipeline.

Balaji V. Prasad: That's on all the progress I had two questions one on the pipeline so for that to go.

Scott Andrew Smith: So for Salah Tugrell, for the phase three readout, do you think this is a big binary risk type of program? And also, as a commercial opportunity, how do you expect patients to accurately identify their heart attack symptoms and self-inject under an emergency situation? And then, second one, I wanted to get your thoughts on the FTC examination going into PBMs and wholesaler business practices pertaining to putting undue pressure on genetics. What do you expect to come out of this process? And do you believe genetic pricing could become favorable as a result? Thanks. Thanks, Ash.

Balaji V. Prasad: Uh huh.

Balaji V. Prasad: The phase III read out do you think this is a big binary risk type of program and also as a commercial opportunity. How do you expect patients to accurately identify the harder like symptoms and self inject under an emergency situation.

Balaji V. Prasad: And then second one.

Balaji V. Prasad: I wanted to get their thoughts on the FTC examination going into Pbms and wholesaler business practices pertaining to putting undue pressure on genetics.

Balaji V. Prasad: Do you expect to come out of this process and do you believe generic pricing could get capable and as a result of this thanks.

Rajiv Malik: You know, so in terms of Solatigrel, I believe there are approximately 6,000 patients already enrolled in the Phase 3 program. You know, when we take a look at it from the Phase 2 data and what's going on in Phase 3, we think it's relatively de-risked as an asset. In terms of, you know, the detailed questions you asked about patient self-diagnosis and self-injection and identification of patient subsets, that's the kind of thing that we're going to get into again at R&D Day on March 27th. We'll do a deep dive not only on the development programs, the regulatory strategies, but also sort of our commercial strategies as well. And Ash, to your follow-on question on the FTC inquiry, I think we have already seen some stabilization as far as pricing is concerned. Obviously, when such an investigation is on, there's a little bit of additional oversight.

Speaker Change: Thanks, Josh.

Balaji V. Prasad: So in terms of how to grow I believe there's approximately 6000 patients already enrolled in the phase III program.

Balaji V. Prasad: When we take a look at it from the phase two data and what's going on in Phase III. We think it's relatively de risked as an asset in terms of.

Balaji V. Prasad: The detailed question you asked on patient self diagnosis and self injection and identification of patients subsets. That's kind of thing that we're going to get into again, an R&D day in March 27th we will do a deep dive not only on the development programs the registered regulatory strategies, but also sort of our commercial strategies as well.

Balaji V. Prasad: Oh.

Balaji V. Prasad: And as to your follow up question on the FTC inquiry I think we have already seen some stabilization ended up after the pricing is concerned obviously when such investigation is on.

Balaji V. Prasad: There is a little bit of decent lower site.

Rajiv Malik: And I believe our customers already appreciate, you know, our industry has almost hit rock bottom. And that's why you're seeing, you know, drug shortages and all those things. And everybody's paying attention to that.

Balaji V. Prasad: I believe our customers already appreciate our.

Balaji V. Prasad: Our industry has almost hit rock bottom and that's why you're seeing it or drug shortages and all of those things and everybody is taking attention of that and our dialogue with our customers have changed from the up always a cost plus price price price to availability.

Rajiv Malik: And our dialogue with our customers has changed from the, you know, always the cost, cost, price, price, price, to availability, the, you know, uninterrupted supply, quality supply, as well as new products. So I believe this is going to be good for the overall health of the industry, the genetics industry. And our next question comes from David Amsellem on behalf of Piper Sandler. Please go ahead with your question. Hey, thanks. So just a couple.

Balaji V. Prasad:

Balaji V. Prasad: Uninterrupted supply the quality supply as well as new product. So I believe this is going to be good for our in depth of overall the health of the industry the genetics industry.

Balaji V. Prasad: Okay.

Balaji V. Prasad: Okay.

Balaji V. Prasad: And our next question comes from David <unk> from Piper Sandler. Please go ahead with your question.

David: Hey, Thanks, So just a couple first.

David A. Amsellem: First, I just wanted to pick your brain a little more on how you're thinking philosophically about business development. Oyster Point was an outright acquisition. This is more of a risk-sharing type of arrangement. So I guess the question is, this transaction you announced today, is that more of a harbinger of things to come in terms of what you're looking for in terms of a smaller type of upfront payment with milestones and royalties? How philosophically are you thinking about that, or are you really just truly casting a wide net? And then, secondly, just following up on the base generics business and all solids, you talked about stabilization. [inaudible] Thank you, David, for the question there.

David: Just wanted to pick your brain a little more on how you're thinking philosophically about business development Oyster point was.

David: Outright acquisition.

David: As more of a risk sharing type of arrangement. So I guess the question is.

David: This transaction you announced today is that more of a harbinger of things to come in terms of what Youre looking for in terms of.

David: A smaller type of upfront payment with.

David: With milestones and royalties.

Balaji V. Prasad: Philosophically are you thinking about that or are you really just really casting a wide net.

Balaji V. Prasad: And then secondly, just following up on the base generics business in oral solid you've talked about stabilization can you just talk about how you're managing the commercial portfolio and the extent to which youre looking for to call lower margin assets and how we should think about the mix between them.

Scott Andrew Smith: So when I look back at the deals that I've been involved with over my career, probably well over 100 deals that I've worked on and been involved with, I would say the majority of them were partnerships or licensing of some sort. We have an extraordinarily strong base and global reach from a commercial perspective in this company. So, you know, I think the idea of in-licensing and partnering assets is one that works very well for us. But we're going to throw a wide net.

Balaji V. Prasad: Oral solids and other dosage forms in the coming years. Thank you.

Speaker Change: Thank you David for a further question there so when I when I look back at the deals that I've been involved with over my career, probably well over 100 deals of the work done and been involved with I would say the majority of them were partnering licensing of some sort we have an extraordinarily strong base and global reach from.

Speaker Change: From a commercial perspective in this in this company. So I think the idea of in licensing partnering assets is one that works very well for us, but we're going to we're going to throw a wide and that we're going to look at all manners to build the portfolio use our capital correctly, we will look at M&A, but we'll also look at licensing and partnerships at the end of the day will probably be a little bit more of the latter.

Scott Andrew Smith: We're going to look at all manner of ways to build a portfolio, and use our capital correctly. We'll look at M&A, but, you know, we'll also look at licensing and partnerships. At the end of the day, they'll probably be a little bit more of the latter, you know, given that they're a little bit less initially capital-intensive and also, you know, sort of risk-sharing to some extent.

Speaker Change: Given that there are a little bit less less initially capital intensive and also sort of risk sharing to some extent, but again, what we're looking to do we've got we've got a very strong global commercial network out there and we're looking to utilize that the best we can bring in assets that fit what we do best and we will do a combination of partnering licensing.

Scott Andrew Smith: But, again, what we're looking to do, we've got a very strong global commercial network out there, and we're looking to utilize that the best we can, bring in assets that fit what we do best, and we'll do a combination of partnering, licensing, acquisition, all the things that we need to do to build the portfolio. And to your second question, I think your more important question is about the U.S. or generics But I'll answer it, you know, comprehensively in the sense that globally we have two-thirds of the brands, you know, established brands, iconic brands. Every market has different needs.

Speaker Change: Acquisition when.

Speaker Change: All the things that we need to do to build the portfolio.

Balaji V. Prasad: And.

Balaji V. Prasad: Now to your second question I think you have more question is about the U S. Our genetics portfolio, but I'll answer it well.

Balaji V. Prasad: Comprehensively in the sense that globally, we have two thirds of the brand established brands iconic brands every market has a different needs. We continue to look into the markets best needs of the market and what do they know and needed from the next 2345 years, but overall, we take a we over the last three four years from the U S. One.

Rajiv Malik: We continue to look into the market-specific needs of those markets and what they need in the next two, three, four, five years. But overall, you know, we take a – over the last three, four years from the U.S. point of view and from a generics point of view, we took a hard look at our portfolio. The focus was our excess. How can we continue to provide excess to affordable and quality products? And wherever we saw that the cost was not up, you know, price was not the only reason.

Balaji V. Prasad: Genetics point of view, we took a hard look into.

Balaji V. Prasad: While our portfolio focus was our excess how can we continue to provide access to affordable quality products and we saw that the cost was not up in the price is not the only reason, but if we see more than 10 15 players out there, yes, we've rationalized the number of products with more than 300 400.

Rajiv Malik: But if we see more than 10, 15 players out there, yes, we rationalize a number of products. We rationalize more than 300, 400, you know, products just to take some volume off and focus on more complex, more hard-to-make products where, again, you know, somebody needs to take a lead and bring excess to those products like Vixella, you know, Brennan, complex injectables. So we continue to be focusing on where we can make a difference. Excess is always at the center.

Balaji V. Prasad: Products, just do take some volume off and focus on more complex more hot to make where again somebody needs to take a lead and bring access to those.

Balaji V. Prasad: It looks like <unk>.

Balaji V. Prasad: Brent complex Injectables. So we are continuing to be focusing on where we can make a difference SaaS is always at the center and of course at a point in time, if we believe that something is not something is not making sense economically as well as there are from the supply point of view there are a number of.

Rajiv Malik: And of course, at a point in time, if we believe that something is not making sense economically as well as there is from the supply point of view, there are a number of players out there. We do take certain products off. And that's when I think every company, every other company has also followed the same thing. And ladies and gentlemen, our final question today comes from Jason Gerberry from Bank of America. Please go ahead with your question.

Balaji V. Prasad: Players out there we do take off certain products often that's one I think every company every other company has also followed the same thing.

Speaker Change: Hello, Ladies and gentlemen, our final question today comes from Jason <unk> from Bank of America. Please go ahead with your question.

Jason Matthew Gerberry: Hey guys, thanks for taking my question. Just wanted to follow up on the BD strategy and, you know, mindful that you have presence in sort of cardiology, say, OUS. I guess what investors would see is that most of the value in innovative brands tend to occur in the U.S. market, so is the thinking here like you'd be in potentially four or five therapeutic areas and that's going to entail sort of an investment both in more deals and scale up to be competitive in those categories, as we look at like a category like rheumatology, we see companies in the INI space having to generate a lot of investment to be competitive in those areas and I'm sure you could appreciate that from your time at Celgene, so just trying to think through what this will look like from a P&L investment standpoint and further BD to be competitive in these therapeutic areas. So I think first of all, you know, from my perspective, the most difficult thing in this business is to find impactful assets that you can develop that can become blockbusters that are patented with long-term revenue streams. That's what's hard.

Jason: Hey, guys. Thanks for taking my question just wanted to follow up on the.

Jason: The BD <unk>.

Jason: Strategy and mindful that you have a presence in sort of cardiology say O U S.

Jason: I guess like when investors would see is that most of the value and innovative brands tends to occur in the U S market.

Jason: So is the thinking here like you'd be in potentially four or five therapeutic areas and that's going to.

Jason: Entail sort of.

Jason: In investment both in more deals and scale up to be competitive in those categories. As we look at like a category like rheumatology, we see companies you know in the ini space, having to generate a lot of investment to be competitive in those areas and I'm sure. You can appreciate that from your time at Celgene. So just trying to think through.

Jason: What this will look like from a P&L investment standpoint, and further BD to be competitive in the therapeutic areas.

Jason: So I think first of all you know from my perspective.

Jason: The most difficult thing in this business as defined impactful assets that you can develop to become blog can become blockbusters that are patented with long term revenue streams. That's what's hard I think building the commercial structure around that is relatively easy. If you have an asset that can really play and be impactful. We're gonna be opportunistic we're going to look at our core therapeutic area.

Scott Andrew Smith: I think building the commercial structure around that is relatively easy if you have an asset that can really play and be impactful. We're going to be opportunistic. We're going to look at our core therapeutic areas, and we're going to look outside.

Jason: We're going to look outside we're going to find things that fit we're going to find things that fit with the with the appropriate investment that we can make as a company.

Scott Andrew Smith: We're going to find things that fit. We're going to find things that fit with the appropriate investment that we can make as a company. And so, you know, we're dedicated to, again, finding the kind of assets that can really, really drive business. Certainly, we've got a very solid base business that, you know, we see, is growing at a couple percent a year as we move forward. And looking for things that can provide durable, sticky, long-term revenue streams for us is what we're really after here, and we're going to do it in a smart and disciplined way. And we're going to find areas that we can be competitive in and leverage off the existing infrastructure as much as we can.

Jason: And so we're dedicated to again, finding the kind of assets that can really really drive business certainly we've got a very solid base business.

Jason: We see growing in a couple of percent a year as we as we move forward and looking for things that can provide durable sticky long term revenue streams.

Jason: For us as what we're really after here and we're going to do it in a smart and disciplined way and we're going to find areas that we can be competitive and leverage off the existing infrastructure as much as we can.

Jason: Okay.

Scott Andrew Smith: Ladies and gentlemen, that will conclude today's question and answer session. I'd like to turn the floor back over to Scott Smith for any closing remarks. Thank you very much.

Jason: Ladies and gentlemen that will conclude today's question and answer session I would like to turn the floor back over to Scott Smith for any closing remarks.

Scott Andrew Smith: Thank you very much in closing 2023 was an outstanding year for <unk> that have continued our momentum as we enter the next phase of our strategic plan I expect 2024 will be a transformational year for our company as we continued to deliver on our base business, while building on our current strengths and adding new capabilities that will enable us to deliver on our future.

Scott Andrew Smith: In closing, 2023 was an outstanding year for Viatris that has continued our momentum as we enter the next phase of our strategic plan. I expect 2024 to be a transformational year for our company, as we continue to deliver on our base business while building on our current strengths and adding new capabilities that will enable us to deliver on our future. With our ability, beginning in 2024, to use our substantial free cash flow to both return capital to shareholders and to make strategic investments to grow our business, we are truly evolving into the strong and unique company that we have. Before we close the call, I want to take one final moment to personally thank both Rajiv and Sanjeev, for whom today is their last earnings call with Viatris. Rajiv has been with the company since 2007 and has been integral in building the company that we have today. He will remain as a member of the Board of Directors. Sanjeev has helped the company successfully execute its phase one strategy since 2020.

Jason: With our ability beginning in 2024 to use our substantial free cash flow to both return capital to shareholders and to make strategic investments to grow our business. We are truly evolving into the strong and unique company that we envisioned.

Speaker Change: Before we close the call I want to take one final moment to personally thank both Rajiv and Sanjeev for whom today as their last earnings call with Readdress Rajiv has been with the company since 2007 and has been.

Speaker Change: Been integral in building the company that we have today he will remain as a member of the board of directors.

Speaker Change: <unk> has helped the company successfully executed our phase one strategy since 2020. Thank you both for your tremendous leadership and dedication and service to our company. Thank you.

Scott Andrew Smith: Thank you both for your tremendous leadership and dedication and service to our company. Thank you. Ladies and gentlemen, with that, we'll conclude today's conference call and presentation. We thank you for joining us. You may now disconnect your line.

Speaker Change: Sure.

Speaker Change: Ladies and gentlemen, with that we'll conclude today's conference call and presentation. We thank you for joining you.

Speaker Change: You may now disconnect your lines.

Speaker Change: Okay.