Q4 2025 Viatris Inc Earnings Call

Bill Szablewski: Good morning, everyone. Welcome to our Q4 2025 Earnings Call. With us today is our CEO, Scott Smith, CFO, Doretta Mistras, Chief R&D Officer, Philippe Martin, and Chief Commercial Officer, Corinne Le Goff. During today's call, we will be making forward-looking statements on a number of matters, including our financial guidance for 2026 and various strategic initiatives. Those statements are subject to risks and uncertainties. We will also be referring to certain actual and projected non-GAAP financial measures. Please refer to today's slide presentation and our SEC filings for more information, including reconciliations for those non-GAAP measures to the most directly comparable GAAP measures.

Bill Szablewski: When discussing 2025 actual or reported results, we will be making certain comparisons to 2024 actual or reported results on a divestiture-adjusted operational basis, which excludes the impact of foreign currency rates and also excludes the proportionate results from the divestitures that closed in 2024 from the 2024 period. We may refer to those as changes on an operational basis. When comparing our 2025 actual or reported results to our expectations, we are making comparisons to our 2025 financial guidance. When discussing our expectations for 2026, we will be making certain comparisons to 2025 actual or reported results on an operational basis, which excludes the impact of foreign currency rates. With that, I'll hand the call over to our CEO, Scott Smith.

Scott A. Smith: Good morning, everyone. 2025 was a strong year for Viatris, and I'm very proud of what we were able to accomplish across all our strategic priorities. The result of all that great work is that we have positioned the company to enter a period of long-term sustainable growth beginning in 2026. Specifically, for 2025, we drove strong commercial performance across our global portfolio, continued to stabilize and strengthen our base business, and delivered solid results, including $14.3 billion in total revenues, representing approximately 2% growth versus 2024, excluding the Indore pack, and adjusted EBITDA of $4.2 billion. We advanced our pipeline, including 5 positive Phase 3 readouts, and made significant regulatory progress on multiple assets. Importantly, we also advanced both cenerimod and selatogrel in their Phase 3 trials, with full enrollment for both programs expected in 2026.

2025 was a strong year for veterans and I'm very proud of what we are able to accomplish across all our strategic priorities.

The result of all that great work is that we have positioned the company to enter a period of long-term sustainable growth beginning in 2026.

Specifically for 2025, we drove strong commercial performance, across our Global portfolio, continued to stabilize and strengthen our base business and delivered solid results. Including 14.3 billion in total revenues representing approximately 2% growth versus 24. Excluding the indoor pack

And adjusted ibida of 4.2 billion.

We advanced our pipeline, including five positive phase studies, three readouts, and made significant regulatory progress on multiple assets.

Scott A. Smith: We prioritized capital return with more than $1 billion in capital return to shareholders through dividends and share repurchases. We targeted accretive regional business development, completing 60 regional transactions, including our acquisition of Aculus Pharma in Japan. For our Indore facility, we met with the FDA in November to review our progress and discuss potential timing for reinspection. That timing remains at the agency's discretion, but we'll be ready for reinspection this year. In the meantime, we've built operational redundancies and alternative supply sources. Finally, we've just completed our enterprise-wide strategic review. As a result, we've identified opportunities from across our company to optimize our cost structure, improve our resource allocation, and strengthen our operational efficiency. We are expecting to deliver approximately $650 million in gross cost savings over a three-year period.

Importantly, we also Advanced both scenarios and Salata on their phase 3 trials with full enrollment for both programs expected in 2026.

We prioritize Capital return with more than 1 billion dollars in capital return to shareholders through dividends and share repurchases. We targeted a creative Regional Business Development completing, 60 Regional transactions, including our acquisition of achool bar in Japan.

For our indoor facility, we met with the FDA in November to review our progress and discuss potential timing for reinspection. That timing remains at the agency's discretion, but we'll be ready for reinspection this year. In the meantime, we built operational redundancies and alternative supply sources.

Finally, we've just completed our enterprise and wide strategic review. As a result, we've identified opportunities from across our company to optimize our cost structure, improve our resource allocation, and strengthen our operational efficiency.

Scott A. Smith: We plan to reinvest up to $250 million during that same period. We are creating this reinvestment capacity to invest in areas that enhance the growth profile and long-term competitiveness of the company, such as sharpening our commercial execution and go-to-market effectiveness, advancing our R&D and innovative assets, and continuing to build the capabilities we need to enable sustained success. In addition, we've identified three strategic imperatives that will shape our future. We will drive our base business by executing successful launches, focusing on supply chain continuity, evolving our generics portfolio over time towards more profitable, higher-margin products, and strengthening our established brand portfolio.

We are expecting to deliver approximately $650 million in gross cost savings over a 3-year period. We plan to reinvest up to $250 million during that same period.

We are creating this reinvestment capacity to invest in areas that enhance the growth profile and long-term competitiveness of the company. Such as sharpening, our commercial execution, and go to market. Effectiveness advancing, our R&D and Innovative assets and continuing to build the capabilities. We need to enable sustained success

Scott A. Smith: We will fuel our innovative portfolio by advancing a pipeline of late-stage and in-market growth assets, sourced both internally and externally. We will modernize for sustainable growth by strengthening our technology, data, and talent capabilities to enable sustained success in a rapidly evolving healthcare environment. Together, we expect these actions will accelerate the transformation of Viatris into a more focused, efficient, and future-ready organization, and position the company to enter a period of sustained revenue and earnings growth beginning in 2026. There's been a lot of work over the last year, and really over the last few years, to get us to this point. A sincere thank you to the more than 30,000 employees of Viatris for your thoughtful and focused execution. Your contributions make a real difference for our company and for the approximately 1 billion patients we serve around the world every year.

In addition, we've identified three strategic imperatives that will shape our future. We will drive our base business by executing successful launches, focusing on supply chain continuity, and evolving our generic portfolio over time towards more profitable, higher-margin products and strengthening our established brand portfolio.

We will fuel our Innovative portfolio by advancing a pipeline of late stage and in market growth assets sourced, both internally and externally. And we will modernize for sustainable growth by strengthening our technology data and talent capabilities to enable sustained success in a rapidly evolving Healthcare environment.

Revenue and earnings growth beginning in 2026.

There's been a lot of work over the last year and really over the last few years to get us to this point.

A sincere. Thank you to the more than 30,000 employees of each risk for your thoughtful and focused execution. Your contributions make a real difference for our company. And for the approximately 1 billion patients, we serve around the world every year.

Scott A. Smith: As we look to 2026, we expect another year of strong execution. Specifically, we will be very focused on delivering strong financial performance and driving commercial execution across our businesses, including the anticipated launches of our Low-Dose Estrogen Weekly Patch in the US and Effexor for generalized anxiety disorder in Japan, while preparing for launch of Fast-Acting Meloxicam. From a pipeline perspective, we are hoping for regulatory decisions for 6 product candidates, including Effexor and pitolisant in Japan, Fast-Acting Meloxicam, Low-Dose Estrogen Weekly Patch, and Ryzumvi for presbyopia in the US. In addition, we are expecting regulatory decisions for Inpefa in Australia and Canada. We are also expecting a number of meaningful phase 3 data readouts this year, and to reach full enrollment in several priority phase 3 programs.

As we look to 2026, we expect another year of strong—excuse me.

The Civic League, we will be very focused on delivering strong financial performance and driving commercial execution across our businesses, including the anticipated launches of our low dose estrogen weekly patch in the US and Afezel for generalized anxiety disorder in Japan, while preparing for launch of a fast-acting Moxgane.

From a pipeline perspective, we are hoping for regulatory decisions for six products, including effects are in prose, and in Japan, fast-acting meloxicam.

Dose estrogen weekly patch and resume V for presbyopia in the US. In addition, we are expecting regulatory decisions for empathy in Australia and Canada.

Scott A. Smith: From a capital perspective, we expect to generate robust cash flow in 2026, which will give us significant financial flexibility to continue with our balanced capital allocation approach. We have also reiterated our commitment to our dividend in 2026. At the same time, we are focused on building a portfolio of growth assets through business development and continued execution of our internal pipeline. From a business development perspective, we are targeting accretive, high-growth in-market assets. Finally, with the completion of our enterprise-wide strategic review, we'll focus on evolving and modernizing our organization to strengthen our operating model and ensure sustained growth. We look forward to sharing more details at our investor event on 19 March, including our long-term outlook for revenue and earnings growth and our portfolio strategy across generics, established, and innovative brands.

We are also expecting a number of meaningful phase 3 data, readouts this year, and to reach full enrollment in several priority phase 3 programs.

From a capital perspective. We expect to generate robust cash flow in 2026 which will give us significant financial flexibility to continue with our balance Capital allocation approach. We have also reiterated our commitment to our dividend in 2026. At the same time, we are focused on building a portfolio of growth assets through Business Development and continued execution of our internal pipeline.

From a business development perspective, we are targeting a creative high growth in Market assets.

Finally, with the completion of our Enterprise wide strategic review, we'll focus on evolving and modernizing our organization to strengthen. Our operating model and ensure sustained growth.

Scott A. Smith: We'll also provide a deep look at our R&D capabilities and key pipeline programs, as well as our commercial strategy and how we are building the capabilities needed to execute upcoming launches. To summarize, we believe 2026 is shaping up to be a pivotal year for Viatris, one where strong execution, disciplined capital allocation, and the benefits of our strategic review will begin translating into sustained, profitable growth and long-term value creation. Now, I'll turn it over to Philippe.

We look forward to sharing more details at our investor events on March 19th. Including our long-term outlook for revenue and earnings growth and our portfolio strategy across generics established and Innovative brands.

We also provide a deep look at our R&D capabilities to keep pipeline programs, as well as our commercial strategy and how we are building the capabilities needed to execute upcoming launches.

To summarize, we believe 2026 is shaping up to be a pivotal year for Viatris, where strong execution discipline, capital allocation, and the benefits of our strategic review will begin translating into sustained, profitable growth and long-term value creation.

Now, I'll turn it over to Philip.

Philippe Martin: Thank you, Scott Smith. 2025 was an outstanding year from a research and development perspective. We achieved 5 positive Phase 3 readouts, advanced trial enrollment, and delivered numerous regulatory milestones across multiple therapeutic areas, technologies, and regions. The strong momentum sets the foundation for what we aim to achieve this year. Our 2026 R&D priorities are to secure 8 regulatory approval for 6 product candidates to progress our innovative portfolio, advance 6 Phase 3 development programs, and continue to drive our generic pipeline and established brands portfolio, which together accounts for more than 100 new product approvals expected globally in 2026. At our upcoming investor event, we will share a comprehensive update on our pipeline. Today, I'll focus on high-level updates, beginning with regulatory submissions. In Japan, we expect a regulatory decision for Effexor for the treatment of generalized anxiety disorder in March 2026.

Thank you, Scott.

2025 was an outstanding Year from a research and development perspective.

We achieved 5 positive phase 3 readouts, Advanced trial, enrollment and delivered numerous regulatory Milestone across multiple diabetic areas Technologies and regions.

The strong momentum sets the foundation for what we aim to achieve this year.

Our 2026 R&D priorities, that was Secure 8, regulator approval for 6 product candidates to progress our Innovative portfolio.

Advanced 6 phase 3 development programs.

And continue to drive our generic pipeline in established brand portfolio, which together account for more than 100%.

At our coming investor event, we will share a comprehensive update on our pipeline.

Today, I'll focus on High level updates, beginning with regulatory, submissions.

Philippe Martin: If approved, this will be the first and only treatment for generalized anxiety disorder in Japan, which would represent an important medical milestone for approximately 8 million Japanese patients estimated to be affected by this condition. The Japanese health authority, PMDA, is also reviewing the 2 JNDAs for pitolisant that we submitted last year, one for excessive daytime sleepiness associated with obstructive sleep apnea and the other associated with narcolepsy type one and two. We anticipate regulatory decisions for both indications in the second half of 2026. Pitolisant has the potential to be a first-line, non-controlled treatment option for these indications in Japan. In the US, FDA recently accepted our SNDA for phentolamine ophthalmic solution for the treatment of presbyopia, and assign a PDUFA goal date of 17 October 2026.

In Japan, we expect a regulatory decision for affect, sir, for the treatment of generalized anxiety disorder in March this year.

If approved, this will be the first and only treatment for generalized anxiety disorder in Japan.

Which would represent an important medical milestone for approximately 8 million Japanese patients estimated to be affected by this condition.

The Japanese health authority. EPN de is also reviewing the 2J. Andda for PTO that we submitted last year.

1, Forex received data. I'm sleepiness associated with obstructive, sleep, apnea, and the other associated with narcolepsy, type 1 and 2.

We anticipate regulatory decisions for both indications in the second half of 2026.

The to set as the potential to be a first line, non-controlled treatment option for these indications in Japan.

In the US.

FDA recently accepted rnda for phentolamine of tamic solution, but the treatment of price biopsia.

Philippe Martin: Phentolamine offers a physiological approach to treating presbyopia that relaxes the iris dilator muscle to improve near vision without engaging the ciliary muscle, which helps preserve distance vision. Data from our VEGA-3 pivotal trial will be presented at the American Society of Cataract and Refractive Surgery conference in April and at the Association for Research in Vision and Ophthalmology conference in May. Regarding our low-dose estrogen weekly patch for contraception, the FDA accepted our NDA for review late last year, assigning a PDUFA goal date of 30 July 2026. This patch addresses an important need for women seeking a reversible transdermal birth control option with lower estrogen exposure and potential best-in-class adhesion. Results from our phase 3 study will be presented at the American College of Obstetricians and Gynecologists conference in May.

And assigned a pedophile gold date of October 172022.

Ethiopia that relaxes the Irish dilator muscle to improve near Vision. Without engaging, the ciliary muscle which helps Reserve distance vision.

Data from our Vega 3, People Will Travel, will be presented at the American Society of Cataract and Refractive Surgery conference in April.

and at the Association for Research in Vision and Ophthalmology conference in May,

Regarding our ludos estrogen weekly patch for contraception. The FDA accepted R&D for review late last year, signing a pufa gold day of July 30th 2026.

Dispatch address is an important need for women. Seeking a reversible.

Transdermal birth control option with lower estrogen exposure, and potential, best-in-class adhesions.

Philippe Martin: We remain excited about our fast-acting meloxicam for the treatment of moderate to severe acute pain, including postoperative pain, which has demonstrated in clinical trial, a reduced need for opioid analgesics. We recently had a positive pre-NDA meeting with the FDA. Based on the outcome of this meeting, we anticipate submitting our NDA by the end of this month. With regards to sotagliflozin, we successfully submitted multiple filings last year and anticipate regulatory decision from Australia and Canada later this year. Sotagliflozin is emerging as a best-in-class SGLT inhibitor, which we believe uniquely provides early benefit in reducing heart failure-related outcomes. Consistent with its dual SGLT1 and SGLT2 inhibition, sotagliflozin is the first SGLT inhibitor to demonstrate a significant reduction in MI and stroke. Turning to brief updates on our Phase 3 development programs, beginning with cenerimod in SLE.

Results. From our phase 3 study will be presented at the American College of obstetrician and gynecologist conference in May we remain excited about our fast acting mailbox. Again for the treatment of moderate to severe acute pain including post-operative pain, which has demonstrated in clinical trial, A reduced need for a period and algiz.

We recently had a positive pre-nda meeting with the MDA.

Based on the outcome of this meeting, we anticipate submitting our NDA by the end of this month.

With regards to soggy faozan who successfully submitted multiple filing last year and anticipated regulatory decision from Australia and Canada later this year.

Is emerging as a best-in-class sglt inhibitor, which we believe uniquely provides early benefit in reducing heart failure, related outcomes.

Consistent with the Dual sd1 and 2 inhibition.

So that is the first sglt inhibitor to demonstrate a significant reduction in me and stroke.

Philippe Martin: The OPUS-2 study was fully enrolled last year. I'm pleased to share that we recently closed enrollment for the OPuS One study. This marks a significant milestone, reflecting the Viatris team's ability to execute on an ambitious recruitment strategy. Importantly, we enroll a high proportion of patients with high Type I interferon signature. Recall that in our phase 2 CARE study, this population demonstrated the greatest treatment effect. If successful, cenerimod has the potential to offer a differentiated oral treatment option for patients with SLE by targeting the S1P1 pathway, with the goal of improving disease control while maintaining a favorable safety profile when given in combination with standard of care treatment. We are also advancing our cenerimod phase 3 study in lupus nephritis and are actively randomizing patients into the study.

Turning to brief updates on our phase 3 development programs. Beginning with scenario modeling, the SLE, the Opus, 2 study was fully enrolled last year and I'm pleased to share that we recently closed enrollment for the US 1 study.

This marks a significant Milestone reflecting the beatrich team's ability to execute on an ambitious recruitment strategy.

Importantly, we enroll the high proportion of patients with high interference on 1 signature.

Recall that in our Phase 2 care, study this population, demonstrated the greatest treatment effect.

Successful scenario mode as the potential to refer a differentiated oral treatment option for patients with SLE.

By targeting the S1 P1 pathway. With the goal of improving the control while maintaining a favorable safety profile when given in combination with standard of care treatment.

We are also advancing our scenario on face to study in lupus nephritis.

Philippe Martin: For selatogrel, a potential life-saving, self-administered medicine for patients with a history of acute myocardial infarction or heart attack, our enrollment rate in our Phase 3 trial has accelerated to approximately 1,200 patients per month. We expect full enrollment by the end of this year. Phase 3 enrollment for our norelgestromin-only weekly patch is ongoing and is expected to be completed in the first half of this year. This product candidate complements our US portfolio and pipeline. It is a progestin-only contraceptive transdermal system designed for women with medical comorbidities, including those with a BMI of 30 or higher, and for those who prefer to avoid estrogen exposure with known safety risks. Moving to our Phase 3 study of Nefecon for the treatment of IgA nephropathy in Japan. We expect a top-line readout in the first half of this year.

In our activity, randomizing patients into the study.

Oscillograph a potential life-saving self. Administered medicine for patient with a history of acute, myocardial infection or heart attack our enrollment rate. In our phase 3 trial has accelerated to approximately 12200 patients per month.

And we expect full enrollment by the end of this year.

Is 3, enrollments.

For our knowledge gesture. I mean only weekly patch is ongoing and is expected to be completed in the first half of this year.

This product candidate complements our U.S. portfolio and pipeline. It is a progesterone-only contraceptive, Trust Normal System, designed for women with medical comorbidities.

Including those with a BMI of 30 or higher. And for those who prefer to avoid estrogen exposure with known safety risks.

Philippe Martin: If successful, Nefecon has the potential to become a first-line disease-modifying therapy in Japan for IgA nephropathy. It is the first targeted release formulation designed to reduce the production of galactose-deficient IgA one at its source in the gut. IgA nephropathy remains a significant unmet medical need, particularly in Japan, where disease prevalence is high. Finally, we are advancing our Influvac High Dose Phase 3 program, which will present a strategic life cycle extension of our current Influvac vaccine in Europe. Influvac High Dose has the potential to offer patients, particularly those aged 60 and older, an enhanced immune response compared to the standard dose. The consistent execution of our pipeline over the past year demonstrates the rigor we are bringing to our development programs.

Moving to a phase 3 study of nikan for the treatment of property. In Japan, we expect the Topline readout in the first half of this year.

Successful nikan has the potential to become a first line disease, modifying therapy in Japan for IGN and property.

It is the first targeted release formulation designed to reduce the production of galacto deficient iga1 at its source in the gut.

At&f property remains a significant, and many medical needs, but particularly in Japan. But this is for balance is high.

and finally, we are advancing our insul high dose phase 3 Program, which represents a strategic life, cycle extension of our current influx vaccine in Europe,

through like high dose as the potential to offer patients, particularly those aged, 60 and older and enhance immune response compared to the standard dose.

Philippe Martin: I look forward to sharing more on 19 March about our R&D strategy and how we plan to accelerate innovation and increase the value we deliver to the business and to patients worldwide. Now I'll turn it over to Doretta.

The consistent execution of our pipeline over the past year demonstrates the rigor we are bringing to our development programs.

I look forward to sharing more on March, 19th about our R&D strategy, and how we plan to accelerate Innovation and increase the value we deliver to the business and to patients worldwide.

Doretta Mistras: Thank you, Philippe. Good morning, everyone. My remarks today will focus on the key highlights from our Q4 and full year 2025 results, and our growth outlook for 2026, which we believe will be powered by continued commercial momentum and the anticipated benefits from our strategic review. Building on Scott's comments, we are proud of our team's strong performance in 2025. Our Q4 and full year results reflect disciplined execution across our diversified global business and, importantly, strong momentum as we exited the year. We reported total revenues for the Q4 of $3.7 billion, up 1% versus the prior year, excluding the Indore impact. This result was driven by strong commercial performance across key regions. In Greater China, growth was supported by demand in our cardiovascular portfolio.

Now, I'll turn it over to Dora.

And good morning, everyone.

My remarks today will focus on the key highlights from our fourth quarter and full year 2025 results, and our growth outlook for 2026, which we believe will be powered by continued commercial momentum. And the anticipated benefits from our strategic review.

building on Scott's comments, we are proud of our team's strong performance in 2025

Our fourth quarter and full year results, reflect disciplined execution of our Diversified Global business and importantly strong momentum as we exited the year.

We reported total revenues for the fourth quarter of $3.7 billion, up 1% versus the prior year, excluding the indoor impact.

This result was driven by strong commercial performance, across key regions.

Doretta Mistras: In Europe and emerging markets, growth was driven by the breadth and competitive strength-... portfolio. Moving to full year 2025 results, we delivered total revenues of $14.3 billion, in line with our expectations and up 2% versus the prior year, excluding the Indore impact. Adjusted EBITDA of $4.2 billion, reflecting solid operating performance, adjusted EPS of $2.35 per share, and free cash flow, excluding transaction-related costs of $2.2 billion. Importantly, we prioritized capital return, with over $1 billion returned to shareholders, including share buybacks and dividends. Turning now to our outlook for 2026. We expect to build on our positive momentum exiting 2025 and establish a clear baseline for sustainable growth. We are guiding to approximately 2% total revenue and adjusted EBITDA growth versus 2025.

In Greater China. Growth was supported by demand in our cardiovascular portfolio and in Europe and Emerging. Markets growth was driven by the breadth and competitive strengths of our portfolio.

Moving to full year 2025 results, we delivered total revenues of 14.3 billion in line with our expectations and up 2% versus the prior year, excluding the indoor impact.

Adjusted ibeka. A 4.2 billion reflecting solid operating performance.

Adjusted EPS of $2.35 per share and free cash flow. Excluding transaction related costs of 2.2 billion.

importantly, we prioritized Capital return with over, 1 billion return to shareholders, including share BuyBacks and dividends

Turning now to our outlook for 2026.

We expect to build on our positive momentum. Exiting 2025 and establish a clear Baseline for sustainable growth.

Doretta Mistras: A key enabler of this growth is the company's strategic review, which is expected to deliver approximately $650 million of gross cost savings or $400 million of net savings after reinvestment. These cost savings are expected to be evenly balanced between SG&A efficiencies and COGS optimization, and phased over a 3-year period, with full run rate benefits realized in 2029. Importantly, we plan to reinvest up to $250 million of these cost savings into areas we anticipate will drive our future growth. This includes strengthening our commercial execution for near-term launches, advancing our innovative assets, and building the capabilities required for success. We believe these efforts will not only strengthen our competitiveness, but also support sustainable growth over the long term. Now, here is what we expect to accomplish in 2026.

We are guiding to approximately 2% total revenue and adjusted ebit. Dog growth versus 2025.

A key enabler of this growth is the company's strategic review, which is expected to deliver approximately $650 million of growth cost savings.

Or 400 million of net savings after reinvestment.

These cost savings are expected to be evenly balanced between sgna efficiencies and cogs optimizations and phased over a 3 year period with full run rate benefits realized in 2029.

Importantly, we plan to reinvest up to 250 million of these cost savings into areas. We anticipate will drive our future growth.

This includes strengthening our commercial execution for near-term, launches.

Advancing our Innovative assets and building the capabilities required for success.

We believe these efforts will not only strengthen our competitiveness, but also support sustainable growth over the long term.

Now, here is what we expect to accomplish in 2027.

Doretta Mistras: We are very excited about the anticipated launches of Effexor, low-dose estrogen weekly patch, and sotagliflozin. These are important strategic launches for us. While they are not expected to be material top-line drivers in 2026, we do anticipate them to be significant financial contributors over the longer term. Let me now walk you through the building blocks for our 2026 total revenues outlook. We are anticipating new product revenues of $450 to $550 million, which are expected to contribute to strong segment performance. We expect net sales in developed markets to grow 2% versus 2025. In Europe, we expect growth of 4% year-over-year, benefiting from several tailwinds. First, we expect increased contributions from new product revenues, led by apixaban and Paliperidone.

We are very excited about the anticipated, launches of effector low dose estrogen weekly patch and soda glylo.

These are important strategic launches for us.

And while they are not expected to be material topline drivers in 2026, we do anticipate them to be significant financial contributors over the longer term.

Let me now walk you through the building blocks for our 2026 total revenues Outlook.

We are anticipating new product, revenues of 450 to 550 million which are expected to contribute to strong segment performance.

We expect net sales and develop markets to grow 2% versus 2025.

In Europe, we expect growth of 4% year-over-year benefiting from several Tailwind.

Doretta Mistras: In addition, we anticipate continued growth in key markets such as France and Italy, including some supply recovery from Indore. Finally, we expect strong continued performance in some of our key brands, like Creon and Brufen. North America is expected to be flat year-over-year, as new product revenues, primarily from complex products and ongoing strength from existing products such as Brina, Estradiol TDS, and Xulane, are expected to offset certain competitive impacts, including the Isosulfan Blue LOE. Turning to emerging markets, we expect to grow 6% year-over-year. This is primarily driven by expansion in key growth markets, including Turkey, Mexico, India, and Brazil, new product revenue contributions, and some supply recovery in our ARV business. These benefits are expected to more than offset pricing headwinds in certain Asian markets. As it relates to JANZ, we remain focused on returning the segment to growth.

First, we expect increased contributions from new product revenues, led by a Pixel Band and Pi Paradigm,

In addition, we anticipate continued growth in key markets, such as France and Italy including some Supply recovery from indoor.

And finally, we expect strong continued performance in some of our key Brands, like crayon and Bruins

North America is expected to be flat year-over-year as new product revenues, primarily from complex products.

Competitive impacts including the iso self in blue Eloise.

Turning to Emerging Markets, we expect to grow 6% year-over-year.

Is primarily driven by expansion in key growth markets, including turkey, Mexico, India and Brazil.

New product, revenue contributions, and some supply recovery in our ARV business.

These benefits are expected to more than offset pricing headwinds in certain Asian markets.

Doretta Mistras: Our outlook for this year reflects the expected impacts from government-driven price regulations in Japan and Australia, as well as the anticipated impact from the mid-year Amitiza LOE in Japan. At the same time, we expect to launch important strategic products in 2026, including Effexor and pitolisant, to begin supporting future performance for this region. Lastly, in Greater China, we expect to deliver 3% year-over-year growth, driven primarily by our cardiovascular products that are sensitive to proactive patient choice. Our confidence in Greater China is the result of our ability to continue to maximize our well-established commercial presence across multiple channels. These include retail, private hospitals, and e-commerce, where we have invested strategically over the past few years and are seeing continued growth, in particular for certain retail-oriented products.

As it relates to Jans, we remain focused on returning the segment to growth.

Our outlook for this year, reflects the expected impacts from government-driven Price regulations in Japan and Australia, as well as the anticipated impact from the mid-year Amitiza LOE in Japan.

At the same time, we expect to launch important, strategic products in 2026 including effects, are and Patois to begin supporting future performance for this region.

And lastly, in Greater China, we expect to deliver 3% year-over-year growth, driven primarily by our cardiovascular products that are sensitive to proactive patient choice.

Our confidence in Greater China is the result of our ability to continue to maximize our well-established commercial presence across multiple channels.

Doretta Mistras: Last, as mentioned in our press release, in mid-February, a fire occurred in a service area at our oral solid dose manufacturing facility in Nashik, India. Manufacturing at the facility has been temporarily suspended. We expect to resume operations beginning in April. We've considered the potential impact of this incident and the facility shutdown in formulating our 2026 financial guidance. Moving to the drivers of adjusted gross margins, Adjusted EBITDA, and adjusted EPS. We expect gross margins to be modestly lower year-over-year, primarily due to anticipated losses of exclusivity and mix shift as supply recovers in our lower-margin ARV business. These headwinds are partially offset by favorable segment mix and higher-margin new product launches. Over time, however, we expect gross margins to benefit from the realization of cost savings and the scaling of our higher-margin products.

These include retail, private hospitals, and e-commerce, where we have invested strategically over the past few years and are seeing continued growth, in particular for certain retail-oriented products.

Last as mentioned in our press release in mid-February, a fire occurred in a service area at our oral solid dose. Manufacturing facility in nashik India.

Manufacturing at the facility has been temporarily suspended, and we expect to resume operations beginning in April.

We've considered the potential impact of this incident and the facility shut down in formulating our 2026 Financial guidance.

Moving to the drivers of adjusted gross margins adjusted, Eva de and adjusted eps.

We expect gross margins to be modestly. Lower year-over-year, primarily due to anticipated losses of exclusivity and mixed shift as Supply recovers in our lower margin ARB business.

These headwinds are partially offset by favorable segment, mix and higher margin, new product launches.

Doretta Mistras: Adjusted SG&A is expected to decline year-over-year as a percentage of sales, reflecting the net benefits from our strategic review. Adjusted R&D is expected to be flat versus the prior year as we continue to advance our innovative programs while maintaining disciplined cost management. Finally, in 2025, we benefited from approximately $40 million in TSA income related to divestitures, which will not recur in 2026. Moving to free cash flow, we continue to expect significant and durable cash generation in 2026. Our cash flow this year will be impacted by transaction-related and restructuring costs from our strategic review, but the underlying cash-generating profile of the business remains robust. We expect to be in a strong financial position in 2026, with over two and a half billion dollars of cash available for deployment.

Over time. However, we expect gross margins to benefit from the realization of cost-savings and the scaling of our higher margin products.

Adjusted sgna is expected to decline year-over-year as a percentage of sales reflecting the net benefits from our strategic review.

Adjusted R&D is expected to be flat versus the prior year as we continue to advance our innovative programs while maintaining disciplined cost management.

And finally, in 2025, we benefited from approximately $40 million in TSA income related to the vests, which will not recur in 2026.

Moving to free cash flow. We continue to expect significant and durable, cash generation in 2026.

Our cash flow, this year will be impacted by transaction related, and restructuring costs, from our strategic review, but the underlying cash generating profile of the business remains robust.

Doretta Mistras: That includes our excess cash on hand and the net proceeds received to date from the Biocon monetization. This position provides flexibility to deliver on our balanced capital allocation framework. Our priorities for 2026 include targeting in-market accretive business development while remaining committed to shareholder returns. Our plans this year also include paying down a portion of our debt maturities to further strengthen our balance sheet and investment-grade financial profile, while reducing leverage back to our 2.8 to 3.2x growth leverage range. Now, a few comments regarding the pushes and pulls of our 2026 guidance. Total revenues are expected to be higher in the second half of the year, driven by normal product seasonality and the timing of anticipated new product launches.

We expect to be in a strong financial position in 2026 with over 2 and a half billion of cash available for deployment. That includes our excess cash on hand and the net proceeds received to date from the biocon monetization.

This position provides flexibility to deliver on our balanced Capital allocation framework.

Our priorities for 2026 include targeting in-market accretive Business Development while remaining committed to shareholder returns.

Our plans this year also include paying down a portion of our debt maturities to further, strengthen our balance sheet and investment grade Financial profile. While, reducing, leverage back to our 2.8 to 3.2 times growth, leverage range.

Now, a few comments regarding the pushes and pulls of our 2026 guidance.

Watches.

Doretta Mistras: Operating expenses are expected to be more evenly phased between the first and second half of the year, reflecting the implementation of our strategic review and timing of investments. As a result, we expect Adjusted EBITDA and adjusted EPS to be more heavily weighted towards the second half of the year. Finally, free cash flow is expected to be lower in the first half of the year. The Q1 is expected to be the lowest quarter for total revenues and adjusted gross margin, driven by product seasonality and mix. Free cash flow is also anticipated to be the lowest in Q1, primarily due to the timing of working capital and one-time operating cash costs, as well as transaction-related, restructuring costs, and taxes.

Operating expenses are expected to be more evenly phased between the first and second half of the Year, reflecting the implementation of our strategic review and timing of Investments.

As a result, we expect adjusted Eva and adjusted EPS to be more heavily weighted towards the second half of the year.

Finally free cash flow is expected to be lower in the first half of the year.

Also, the first quarter is expected to be the lowest quarter for total revenues and adjusted gross margins driven by product, seasonality and mix.

Doretta Mistras: In summary, our 2026 outlook reflects continued momentum in the business, disciplined financial execution, and a strengthened cost structure that supports both reinvestment and shareholder return. We are entering the year with a growing base, clear priorities, and the financial flexibility to execute. We look forward to hosting our investor event in New York City next month, where we plan to provide an update on the company's future outlook for growth. With that, I'll hand it back to the operator to begin the Q&A.

Free cash flow is also anticipated to be the lowest in the first quarter primarily due to the timing of working capital and 1 time. Operating cash costs as well as transaction related and restructuring costs and taxes.

In summary, our 2026 Outlook, reflects continued, momentum in the business.

Disciplined Financial execution, and a strengthened cost structure that supports both reinvestment and shareholder returns.

We are entering the year with the growing base, clear priorities and the financial flexibility to execute.

We look forward to hosting our investor event in New York City next month, where we plan to provide an update on the company's future outlook for growth.

And with that, I'll hand it back to the operator, to begin the Q&A.

Operator: Thank you. We will now begin the question-and-answer session. As a reminder, to ask a question, you may press Star, then One on your touchtone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. If your question has been addressed and you would like to withdraw it, please press Star then Two. At this time, we will pause momentarily to assemble our roster. Today's first question will come from Glenn Santangelo with Barclays. Please proceed.

Thank you. We will now begin the question and answer session as a reminder to ask a question, you may press star then 1 on your touchtone phone. If you're using a speaker-phone, please pick up your handset before pressing the keys. If your question has been addressed and you would like to withdraw it, please press star. Then to

At this time, we will pause momentarily to assemble our roster.

And today's first question will come from Glenn santangelo with Barclays. Please proceed.

Glenn Santangelo: Yeah, thanks, and good morning, and thanks for taking my question. Yeah, just two quick ones for me. You know, Scott Smith, at a conference last month, you seemed to mention a path to mid-single-digit revenue growth, and I fully understand that's not where we are today, but maybe I was just hoping you could give us a little bit more color on those six potential approvals this year, your confidence level in those, which may be most meaningful, and then maybe how that was layered into the guidance, if at all. Then I'll just ask my follow-up upfront. You know, Doretta Mistras, I did want to talk about the strategic review. You did mention the release, $650 million of savings with $250 million of reinvestment.

Glenn Santangelo: If we call it net $400 million of savings over the next three years, maybe for modeling purposes, if you could just sort of help us, you know, think about the timing of those savings across the three years. Thanks.

Oh yeah. Thanks and good morning, and thanks for taking my question. Yeah, just 2. Quick ones for me. Uh, you know, Scott at a conference last month. You you seem to mention a path to mids single digit Revenue growth and I fully understand that's not where we are today, but maybe I was just hoping you could, give us a little bit more color on those 6 potential approvals this year, your your confidence level in those which may be most meaningful and and then maybe how that was layered into the guidance, uh, if at all. And then I'll I'll just ask my follow-up up front. You know, doretta, I did want to talk about uh, the Strategic review you did mention in the release 650 million of savings with 250 uh million of of reinvestments. So if we call it net 400 million of savings over the

Next 3 years, maybe for modeling purposes. If you could just sort of help us, you know think about the timing of those savings across the 3 years. Thanks.

Scott A. Smith: Thank you, Glenn. Good morning. Thank you for the question. Doretta is going to address the enterprise-wide strategic review, cadence and timing, things like that. I just want to say that we're very pleased with the work that's done and very confident in our ability to deliver the results from the enterprise-wide strategic review. Relative to the mid-mid single digits path, which is a longer-term path that we have over the next few years. You know, the way that I think we get there when I think about it, this is the way that I look at it in my mind. We've got a base business, and Doretta pointed it out in her comments, is growing at 3% this year, grew last year. We've got a growing base business.

Scott A. Smith: On top of that, you layer in the launches that are coming in 2026. Those will be Effexor, Xulane LO, and Spydia in Japan, although we launched Spydia at the very end of last year. I consider it a launch product for Japan. Japan is a very important market for us. Three very important launches in the CNS space there for us that can really help build on what we have there. In the US, we're hoping to launch Xulane LO, our low-dose estrogen weekly patch, Ryzumvi and presbyopia, and potentially even meloxicam, fast-acting meloxicam, which, as Celine alluded to, we should be filing tomorrow. Depending on the cadence of that review, we may be launching that.

Uh thank you for the question. So data is going to address the uh the Enterprise wide strategic review, Cadence and timing, things like that. But I just want to say that. We're very pleased with the work that's done. I'm very confident in our ability to deliver the results from the Enterprise wide strategic review. Uh, relative to the mid mid single digits half, which is a longer term path that we have over the next few years. Uh you know the way that I think we get there when I when I think about it this is the way that I I look at it in my mind we've got a base business in data pointed it out. Uh and her comments is growing at 3%. This year uh, grew last year. We've got a growing base business on top of that. You you you layer in the launches that are coming in 26 and those would be effects or uh it's all a sense and and and spied you in Japan although we launched Spidey at the at the very end of last year, I considered it a launch product for Japan. Japan's. A very important market for us. So 3 very important launches in the CNS space there for us that that can really help build on what we have there in the US.

Scott A. Smith: On top of that, we've got a number of data readouts in 2026 that are gonna be launching in 2027 and beyond. We've got seladelogib and cenerimod readouts, which, you know, we think are gonna be early 2027, but we could get one or two of those readouts in 2026. seladelogib is an event-driven study, we'll see how that goes. you know, those are relatively near-term launches, which can provide a lot of growth, you know, as we get into the 2028, 2029, 2030 time frame. On top of all that, we've got capital to deploy to bring in accretive growth assets into the portfolio and pipeline. All those things together give me a lot of confidence that we can get to that mid-single digits in the coming years.

Mid single digits in the coming years.

Doretta Mistras: Glenn, with respect to your question around the $400 million of savings, we do expect them to be phased over 3 years. The way to think about it is we anticipate roughly 30% in 2026, an additional 30% in 2027, and the remaining approximately 40% in 2028. The sequencing really reflects the timing of how we think about workforce actions and other efficiencies as we fill them into the organization. Importantly, as those savings are phased in, they're expected to support our EBITDA growth and margin expansion over time.

And Glenn with respect to your question around the 400 million of savings, we do expect them to be phased over 3 years.

The way to think about it is we anticipate roughly 30% 26, an additional 30% in 27. And then the remaining approximately 40% in 2028, the sequencing really reflects the timing of how we think about Workforce actions and other, uh, efficiencies as we fill them into the organization. Uh, but importantly, as those savings are phased in, they're expected to support our ebit. Dog growth and margin expansion over time.

Operator: The next question is from Umer Rafat with Evercore. Please go ahead.

Umer Rafat: Hi, guys. Thanks for taking my question. Maybe two here, if I may. First, on the cost cut announcement, the strategic review, could you break down for us the $650 million as it's broken down between COGS versus SG&A versus R&D? If there's any CapEx associated to get to these, which is not sort of reflected in the $400 versus $650. Then secondly, could you also remind us, what are you assuming for Indore bounce back in 2026? Is there any model in at all in the current EBITDA guidance or not? Because I know there was a $325 million headwind over the course of 2025.

The next question is from, Umar rafat with evercore, please go ahead.

Hi guys, thanks for taking my question. Um, maybe 2 here, if I met first. Um on the on the cost cut announcement, the Strategic review. Um could you break down for us? The 650 million as it's broken down between cogs versus sgna versus R&D. Um, and if there's any capex Associated to get to these, which is not sort of reflected in the 400 versus 650, um, and then, secondly, could you also remind us what are you assuming for indoor bounce back in? 2026? Is there any model in at all, in the current ibaa guidance or not? Because I know there was a 325 million headwind over the course of 25.

Scott A. Smith: Thank you. Good morning, Umer. Let me just make a couple of comments, and I'll pass it over to Doretta to give you some of the specifics. In terms of where the 650 comes from, about 50% of that's coming from headcount reductions at this point in time. The other 50% is coming from COGS, efficiencies, inventory management, support structures, not a lot from R&D. There was some medical affairs and some streamlining things, but that's not a major area of focus for us in terms of cost cutting, because we're moving forward to execute on a number of pipeline programs. That's an area I think that we're focused on, you know, bringing in more assets and growing.

Scott A. Smith: You know, there are some efficiencies there in the way we do it, but it's not an area of major cost savings. Again, 50% in headcount reductions and the rest in COGS efficiency, inventory, and support structures. I'll pass it over to Doretta to give some more detail.

Doretta Mistras: Right. I think you handled from a cost savings perspective. You mentioned roughly evenly split between operating efficiencies and SG&A. I would state the operating efficiencies and the COGS efficiencies are a little bit more back-end weighted as you think about the phasing, just given the timing of implementation, but that should give you a rough sense. Secondly, with respect to your Indore question, we assume a little less than 1% of Indore recovery baked into our top line. Just as a reminder, we had done a lot of work over the course of the year to remediate Indore, and there was a portion of Indore that was lenalidomide that was not expected to recur in 2026.

Thank you. Good morning, Emmer. Uh, let me just make a couple of comments and I'll pass it over to Dresta to give you some of the specifics in terms of where the $650 comes from. About 50% of that is coming from headcount reductions at this point in time. The other 50% is coming from COGS efficiencies, inventory management, support structures. Uh, not a lot from R&D there. There were some medical affairs and some streamlining things, but that's not a major area of focus for us in terms of cost cutting because we're moving forward to execute on a number of pipeline programs. And so that's an area I think that we're focused on, you know, bringing in more assets and growing. Uh, you know, there are some efficiencies there in the way we do it, but it's not an area of major cost savings. Again, 50% in headcount reductions and the rest in COGS efficiencies, inventory, and support structures. But I'll pass it over to Doretta to give some more detail.

Right? I I think you you handled uh from a cost savings perspective. We mentioned roughly evenly split between operating efficiencies and sgna. I would I would State the operating efficiencies and the cost of efficiencies are, are a little bit more back-end weighted. As you think about, uh, the, the, the phasing just given the timing of implementation, but that should give you a rough sense.

Secondly, with respect to your indoor question.

We would.

Doretta Mistras: When you take out lenalidomide and also all the work that we've done over the course of the year, kind of we've remediated and managed through the impact, so it wouldn't have a material impact on our 2026 guidance.

Scott A. Smith: Yeah. I think it's all baked in as we stand today. Again, we've requalified other plants, found alternate sources, and so, you know, I don't expect any bounce up of, you know, when the plant comes back online or bounce down if there's a delay in reinspection. We've tried to remediate the full effects of anything that happened at Indore and affected us last year.

We assume a little less than 1% of uh, indoor recovery baked into our, our Top Line. Just as a reminder, we had done a lot of work over the course of the year to remediate indoor. And there was a portion of of, uh, indoor. That was lolomi, that was not expected to recur in 2026. And so, when you take out, loly in, also all the work that we've done over the course of of the Year, kind of we've remediated and, and managed through, uh, the impact. So it wouldn't have a material impact on our 2026 guidance. Yeah. And I think, I think it's all baked in. As as we stand today. Again, we've, we've re-qualified other plants found alternate sources. And so, you know, I don't expect any bounce up of uh, you know, when the plant comes back online or bounced down. If, if, if there's a delay in reinspection, we've tried to remediate the full effects of anything that happened at indoor. And in fact, those last year

Operator: The next question comes from Ashwani Verma with UBS. Please proceed.

Ashwani Verma: Hi, thanks for taking our question, and congrats on all the progress. Just wanted to understand the level of these restructuring charges versus the net savings you're realizing. You're effectively spending $700 to $850 pretax charges for a $400 million net savings. Is this within typical benchmark range for such cost-saving initiatives in the industry? Secondly, on the fast action meloxicam. Yeah, this can have pretty broad set of physician universe that you can go after, from primary care all the way to surgery settings, pain specialists, et cetera. What do you consider to be your initial focus, and where can it go from there? Thanks.

In the next question comes from Ash Verma with UBS, please proceed.

Scott A. Smith: Yeah, thank you, Ash, for the question, and we'll have Doretta answer the first part, and Corinne will talk about fast-acting meloxicam segments.

Doretta Mistras: Yeah. Ash, let me break this up into 2 parts. The first piece are the one-time costs that are necessary to achieve the one-time savings. Our current estimate, you can think about a general bar cost of about over the lifetime of the program, about 1 times our gross savings in order to achieve them. We estimate that it'll be about $250 million this year, and that's what's baked into that $700 million number you quoted. There are 2 other components to that number that it would be helpful to break out.

Uh, uh, hi. Uh thanks. Uh, thanks for taking a question and congrats on all the progress. Uh, so just wanted to, um, understand the level of these 3 structuring charges versus the Net savings. You're realizing. So you're effectively spending 700 to 850 pre-tax charges for a 400 million net. Savings is just within, uh, typical Benchmark range for such cost saving initiatives in the industry, uh, and then secondly, um, on the uh, fast action mopsy cam. So, yeah, this can have pretty broad set of, uh, physician universe that you can go after from primary care all the way to surgery settings pain, specialists, uh, Etc. Uh, what do you consider to be your initial focus and, and where can I go from there? Thanks yes. Thank you for asking the question. And we'll have to write answer the first part and and kind I'll talk about fast acting and walk scamming segments. Yeah. And and

This up into 2 parts. So the first piece are the 1 time cost that uh that are necessary to achieve the 1 Time Savings, our current estimate. You can think about a general Barr Park of about

Doretta Mistras: Number one, we've talked about the fact that even though we realize that cash proceeds from both the divestitures as well as the Biocon proceeds as cash, when it comes to the taxes and other costs associated with those monetizations, they're reported as operational outflows. Those are the two numbers. From the Biocon perspective, we received the $400 million of cash. We've included the $110 million of taxes associated with that in that $700 million, and then we still have about $320 million of divestiture-related cash and costs and taxes that are included in that number. It's really the three components you have to think about.

over the the lifetime of the program about 1 times, our gross Savings in order to achieve achieve them. We estimate that it'll be about 250 million this year. And that's what's baked into that. 750, 700 million number you quoted. There are 2 other components to that. Number that, it would be helpful to break out. Uh, number 1, we've talked about the fact that even though we realize that cash proceeds from both the destitutes, as well as the bio biocon proceeds, says, cash when it comes to the taxes and other costs associated with those monetization uh, they're recorded as as operational outflows. And so those are the 2 numbers. And so from the biocon perspective, we received the 400 million of cash. We've included, the 110 million of taxes associated with that in that 700 million. And then we still

Scott A. Smith: Got you. Thank you.

Still have about 320 million of domestic related cash and uh costs and taxes that are included in that number. So it's really the 3 components you have to think about,

Corinne Le Goff: Ash, regarding your question on fast-acting meloxicam, yes, you're right. There is a broad opportunity for acute pain, moderate to severe acute pain, and we are very excited about the potential of meloxicam and the place that meloxicam will play in this market. Just to remind everyone about the size of the opportunity, we see every year in the US, 80 million cases of acute pain. Unfortunately, opioids, you know, are still prescribed broadly. Almost 50% of prescriptions are opioids. The way we look at how we're going to enter this market is for us to make sure that we can guarantee faster uptake for the asset, we will therefore focus on operative, post-operative, and operative acute pain management versus non-operative pain.

And uh, as regarding your question on the first checking, the locks you can. Yes, you're right. We are, there is a a broad opportunity in for. I could paint a moderate to severe. I could pay and we are very excited about the potential of my oxygen, uh, and the place that my oxygen will play in this market. Um, just to remind everyone about the size of of the opportunity. We see every year in the US 80 million uh cases of acute pain. Uh and

Corinne Le Goff: We will build a specialty sales force that will target those physicians in their offices, and, you know, like surgeons, orthopedic surgeons, dental surgeries, and podiatrists. I'm giving you, like, a range of the targets that we will focus on. Beyond those targets, because you are right, pain medication can be prescribed very broadly, including from PCP. Beyond those specialty targets, we will plan on looking for potential partnerships to extend our reach and as we progress with the launch of the product.

Fortunately opioids, you know, are still prescribed broadly about 50% of prescriptions are periods. So the way we look at how we're going to enter this Market is for us to be, uh, to make sure that we can guarantee fast of uptake for the asset will therefore will focus on operative postoperative and operatives, uh, uh, it could pain management, uh, versus uh, nonoperative pain. Um,

We will build a specialty sales force that will Target those physicians in the offices. Uh,

And, you know, like surgeons, uh, orthopedic surgeons, uh, Dental surgeries podiatrist I'm giving you like a range of the targets that we will focus on uh Beyond this Target because you're right. But pain medication can be prescribed very broadly including from PCP. So beyond those specialty targets we will plan on looking for potential Partnerships to extend our reach and and as we progress with the launch of the product,

Operator: Your next question will come from Les Clewsey with Truist. Please proceed.

And your next question will come from less solooki with truist, please proceed.

Les Clewsey: Thank you for taking my questions. Congrats on the progress. A couple from me. First, on Japan, can you quantify the regulatory pricing challenges you're seeing across the region? You noted the Japanese is coming to an inflection point. Do the Ocuphire assets and Effexor provide net growth over for the region or more of an offset from erosion due to the LOE facing there? On the cost savings side, can you quantify if the remaining costs are tied to discontinued operations or what percentage of the strategic review savings is essentially cleaning up the divestitures tail versus actual efficiency gain in the core business?

Les Clewsey: Essentially, as you realize the net savings, ultimately, you know, do you have a kind of a long-term gross margin or EBITDA margin target for the business? Thank you.

Uh, thank you for taking my questions and, uh, congrats on the progress a couple for me first on, on Japan. Um, can you quantify the regulatory pricing challenges? You're seeing in Cross the region and uh you noted the Japanese is coming to an inflection point, do the Oculus assets and ethics store provide uh net growth over for the reason or more of an offset um from erosion due to the uh, alloy facing there. And then on the cost-saving side, can you quantify um if the remaining costs are tied to discontinued operations or or what percentage of the Strategic review savings is essentially cleaning up the diversas tail versus actual official uh, efficiency gain in the core business. And and then essentially as you realize the net savings, ultimately

You know, do you have a kind of a long-term gross margin or ibida margin Target for the business. Thank you.

Scott A. Smith: Thanks for the question. Just a little bit on Japan. Japan is a very important market for us. Structurally, Japan is a difficult market, traditionally for where we've been over the last few years as a company. There's mandatory price decreases every year on the LOE products, that's, you know, a good part of our portfolio. We've seen downward pressure. There's a lack of ability to modify your structure from a personnel perspective in Japan. Labor laws and things make it very expensive to make changes. You know, our decision was we've got a well-functioning company, we've got good people there. We've just seen downward pressure on both revenue and EBITDA in Japan because of the structure of the Japanese market, the mandatory price decreases, et cetera.

Thanks.

Scott A. Smith: We decided to add assets in there, and I think those assets will turn us from revenue and EBITDA decline to growth as we get into 2028 and beyond. The long-term picture for Japan is much better with the internal development of Effexor GAD, the acquisition of Tolleson and Spydia and others. There's also some other pipeline developments which should come in the next couple of years. We're very pleased about where we are with Japan now. Very good group of people. We're putting assets into their hands, and we should turn that to growth as we get into 2028 and beyond. In terms of the enterprise-wide review?

Doretta Mistras: Yeah, I was just gonna add one more impact that's impacting our Japan business this year. We do anticipate the loss of Amitiza mid-year, in addition to the normal price decreases that we get in that region, that is another factor that's impacting, and you can see that in the trends. As Scott mentioned, longer term, we feel good about the trajectory of that business. With respect to the cost savings, we're not currently contemplating any significant divestitures or recuts of our business. As Scott mentioned, this is really about taking a look at our infrastructure, how we're organized, reevaluating the business makeup post the divestitures, and making sure that we're set up for success going forward. It is not a material change to how we do business today.

Revenue and EBA decline to growth as we get into 28 and Beyond. So the long-term picture for Japan is much better with uh, the internal development of uh, of effects or Gad the acquisition of twosense and spy and others which are coming into the. There's also some other pipeline developments, which should come in the next couple of years. So we're very, very pleased about where we are with Japan now. Very good group of people were putting assets into their hands and we should turn that to growth as we get into 28 and Beyond. Um, in terms of uh, the uh, the Enterprise wide review. Yeah. And I was just going to add 1 more, uh, impact that's impacting our Japan business. This year, we do anticipate the loss of Amitiza mid year. And so, in addition to the normal price, decreasing decreases that we get in that region that is another Factor that's impacting and you can see that in the trends but it's Scott mentioned longer term. We feel good about the trajectory of that.

Business with respect to the cost savings. We're not

Currently contemplating any significant dive for rec, cuts of of our business. As the Scott mentioned, this is really about taking a look at our

Infrastructure, how we're organized.

Scott A. Smith: You asked also about a little bit of cleanup that we're doing maybe around the divestitures. I, you know, I think people ask me, you know, why now? Why did you do this exercise now? I think it was really important to do this exercise now. A merger of two companies five years ago, very different companies, different business dynamics, and then four major divestitures, biosimilars, women's healthcare, OTC, API. You know, a lot of the people associated with those businesses went with the business, right, directly. There's a backend support structure in place to support those business, and we wanna make sure that those people are oriented best as possible as we move the business dynamic forward. It was really important for us to take a holistic look at the company.

Scott A. Smith: Do we have the right people in the right places to move forward? As Doretta alluded to, this isn't about divesting pieces of the company, this is about us getting more modern, leaner, and better able to execute on the base business today and the innovative portfolio as we move forward.

Re-evaluating the business makeup post the Devastators and making sure that we're, uh, we're set up for Success, uh, going going forward, and so it's not a, a material change to how we do business today. You asked also about a little bit of cleanup, uh, that we're doing maybe around the diversas. So I you know, I think people ask me, you know, why, why now, why did you do this exercise now? And I think it was really important to do this exercise. Now, a merger of 2 companies, 5 years ago, very different companies. This different business Dynamics, and then 4 major divers biosimilars Women's Healthcare OTC API. And, you know, a lot of the people associated with those businesses went, uh, with the business, right directly. But then there's a, there's a back-end support structure in place to support those business. And we want to make sure those people are oriented best as possible, as we move the business Dynamic forward. So it was really important for us to, to take a whole list of look at the company. Do we have the right?

People in the right places to move forward, uh, and as dread alluded to, this isn't about divesting pieces of the company. This is about us getting more modern, uh, leaner, uh, and better able to to execute on the base business today and the Innovative portfolio as we move forward.

Operator: The next question comes from Matt DeLatorre with Goldman Sachs. Please proceed.

And the next question comes from Matt dilator with Goldman Sachs, please proceed.

Matt DeLatorre: Hey, guys. Good morning, and thanks for the question. Maybe, maybe first on fast-acting meloxicam, could you share your latest expectations in terms of the label, in particular, how you expect opioid sparing to be reflected there? You know, for instance, will it be, you know, in section 14, kind of like clinical data, inclusion, or could we expect that to be up top in that kind of initial section? And then, and then also any feedback you've received from the FDA thus far ahead of the, kind of, pending submission. Maybe on BD, what are your latest thoughts in terms of bringing in, or in licensing, maybe a more substantial branded asset versus doing smaller deals?

Hey guys. Good morning and thanks for the question, maybe. Um, maybe first on on fast acting maloka cam. Could you share your latest expectations in terms of the label in particular? Uh, how you expect opioid sparing to be reflected their

Matt DeLatorre: What would be your comfort level in doing earlier stage, for example, maybe phase two, where less of the value is baked in, and then which verticals would that make the most sense in? Thank you.

Scott A. Smith: Yeah, let me maybe answer the second question first, and then I'll throw it over to Philippe to talk about fast-acting meloxicam. You know, we're not, you know, we're looking for in-market accretive growth assets. That's what we're really focusing on. We're not looking to acquire early pipeline. We wanna support the business today. We've built an internal pipeline that's gonna be producing over the next few years. Our focus is finding assets that can help us drive growth, you know, in the short term, and in now, the next three, four years. We're not focused on pipeline assets. Happy to do bigger things as long as they fit, as long as we're, you know, good owners of them, and that we can swallow them.

You know, for instance, will it be, you know, in section 14 kind of like clinical data, uh, inclusion or will it be? Can we expect that to be up top in that kind of initial, um, initial section and then, um, and then also any feedback you've received from the FDA thus far ahead of the, the kind of pending submission and then maybe on on BD, what are your latest thoughts? In terms of bringing in, um, or in licensing. Maybe a more substantial branded asset versus doing smaller deals and what would be your comfort level in doing earlier stage? For example, maybe a base 2 or less of a value is, is baked in, um, and then which verticals would that make the most sense, and thank you.

Let Me Maybe answer the second question first, and then I'll throw it over to Philip to talk about Fastback in my walks scam. Um, you know, we're not, you know, our our we're looking for in-market a creative growth assets. That's what we're really focusing on. We're not looking to uh, acquire early pipeline. We want to support the business today. We built an internal pipeline that's going to be producing over the next few years. Our focus is finding assets.

That can help us drive growth, you know, in the short term and now in the next three, four years. So we're not focused on pipeline assets.

Scott A. Smith: We did 60 regional deals last year, including the Aculus, to support the base business. Certainly, I'd like to bring in some assets that can have an effect and have some real, add some real growth and more high-margin revenue, particularly to the US, but also globally. We're not focused on pipeline, we're focused on things which can move the needle for us today. Philippe, relative to fast-acting meloxicam?

Philippe Martin: Yes, just to reiterate that, we've had a pre-NDA meeting with the agency in January. We just received the minutes. We were waiting for those in order to be able to file. We will be filing tomorrow. The meeting was extremely positive. We were able to align on all points of discussion we had with the agency. That's why we're filing tomorrow. In terms of the label implications, I think this will remain a discussion with the agency. However, if you recall, we have very strong data when it comes to opioid sparing. We anticipate that we'll have that language included in the label.

January, we just received a minutes and we were waiting for those in order to be able to file um the meeting was and so we will be filing tomorrow. Um

Philippe Martin: Whether it is in the indication section or as part of the clinical section of the label, I think it is premature for me to tell you that, but I don't think it really matters at the end of the day, as long as it's captured in the label.

The meeting was, uh, extremely positive. Um, we were able to align on All Points of discussion. We had with the agency. Um, and that's why we're filing, uh, tomorrow. Um, in terms of the label implications, I think this will remain a discussion with the agency. However, if you recall, we have very strong data when it comes to, uh, opioid sparing and we anticipate that will have that language, uh, included in the label, whether it is in the uh, indication section or as part of the clinical section of the label, I think it is premature for me to to, uh,

to to tell you that but I don't think it really matters at the end of the day as long as it's captured, um, in the label

Operator: Your next question comes from Chris Schott with J.P. Morgan. Please go ahead.

Chris Schott: Great. Thanks so much for the questions. I just wanted to come back maybe first to the longer-term growth algorithm. I guess when I look at the 3% top line growth this year, or I guess maybe 2%, adjusting for Indore recovery, is that a good proxy to think about for underlying growth before we consider some of these bigger pipeline readouts in BD? I'm just trying to get a sense of like when you think about building up to that mid-singles, is that just kind of like a business that can do two or three as stands, and then we can kind of enhance that as these readouts come through?

And your next question comes from Chris shot with JP Morgan. Please go ahead.

All right. Great, uh, thanks so much for the questions. I just wanted to come back. Maybe first to the the longer term growth algorithm. I guess when I look at the 3%, Top Line growth this year, or I guess, maybe 2%, adjusting for for indoor recovery. Is that a good proxy to think about for underlying growth. Um, before we consider some of these bigger pipeline readouts in BD, I'm sure you guys have, like, when you think about building up to that mid singles, is that just kind of like a business that can do 2 or 3?

Chris Schott: My second question, which is maybe elaborating a bit on the BD side, sounds like from the comments you just made, a US-branded asset could be a focus here. Can you just talk a little bit about the landscape for those? Like, how big of an opportunity set is there? Are you seeing assets that are interesting in the market, or is that more just kind of conceptual? I just want to get a sense of, like, how broad of an opportunity set do you see for those? Thanks.

Kind of as as stands and then we can kind of enhance that as these these readouts come through. And then my second question uh was just maybe elaborating a bit on the BD side. Sounds like from the the comments you just made a US branded asset. Could be a focus here. Could you just talk a little bit about the landscape for those like how big of an opportunity set is there are you seeing as that are interesting in the market or is that everyone just kind of conceptual? I just want to get a sense of like how

How broad of an opportunity set do you see for those? Thanks.

Scott A. Smith: Thanks, Chris. Good morning. Let me again maybe do it a little bit backwards. The landscape of business development, I think there's lots of assets out there. A lot of interesting things. We're looking at lots of things. It's a matter of making sure that it's the right price, the right asset that fits us. You know, there's lots out there. It seems like 12 months ago, there wasn't much happening from a BD M&A perspective. The pharma world seems to be heating up a little bit. There seems to be more activity and more action. It feels like a good time to start to really build the pipeline. You know, BD is not something that you can ever predict to get done at a certain time.

Thanks Chris in the morning. Um, so uh, first question, uh, let me again, let me maybe do it a little bit backwards, the landscape of a business development, I think there's lots of assets out there. Um, a lot of interesting things. We're looking at lots of things. It's a matter of making sure that it's the right price and the right asset that that fits us. Um, you know, but there's there's lots out there. It seems like, uh, 12 months ago, there wasn't much happening from a BD m&a perspective in the farmer world. Seems to be heating up a little bit. There seems to be more activity and more action. So feels like a good time to start to to Really build the pipeline.

Scott A. Smith: It depends on the flow of things, depends on price, depends on availability of assets. This seems to be a time, from my perspective, where there is a significant number of assets out there that are interesting, that I believe we could be good owners of. In terms of the growth algorithm, you know, the way that I look at the base business right now is it's low single digits growth that we see right now. We have had, so excluding the impact, one-time impact of Indore, you know, we've seen seven, eight, nine consecutive quarters of growth. Sometimes it's 1%, 2%. This is a little bit higher this year at 3%.

Scott A. Smith: You know, I see them at 1, 2% growth. What we're trying to do is continue to invest in the space, sustain the space, do the things we need to keep the base healthy, and then add onto it things which can be higher growth, higher margin. That's our path to getting sustainable, higher margin, higher level, mid-single-digit growth in the longer term. We'll get into all of this at the Investor Day as we get into March and give more specifics around it. I don't want to get ahead of ourselves because we're gonna be talking to everybody in a couple of weeks, but that's sort of the algorithm on how we can potentially get there.

You know, biddies, not something that you can ever, uh, project to get done at a certain time. It depends on the flow of things, depends on price, depends on availability of assets, but this seems to be a time for my perspective, where there is a, a significant number of assets out there that are interesting. That I believe we could be um, good owners of in terms of the growth algorithm. Um, you know, the way that I look at the base business right now is its low single digits growth that we see right now. We have had so excluding the impact 1 time impact of indoor, you know, we've seen 789 consecutive quarters of growth, sometimes it's 1% 2%. This is a little bit higher this year at 3%. You know, I I I see them at 1 2% growth and what we're trying to do is continue to invest in the space. Sustaining the space, do the things we need to keep the base healthy and that add on to it things which can be higher growth, higher margin. And that's our path to to getting sustainable higher margin, higher level, mid single digit growth in the longer term. We'll get into all of this at the investor day.

As we get into March and give more specifics around it, I don't want to get ahead of ourselves because we're we're going to be talking to everybody in a couple weeks. But uh that's that's sort of the the the algorithm on how we can potentially get there.

Operator: The next question is from David Amsellem with Piper Sandler. Please go ahead.

And the next question is from David Anselm with Piper Sandler.

Please go ahead.

David Amsellem: Hey, thanks. I know you're gonna be talking about R&D in a couple of weeks. Though, I did want to get some more detailed thoughts on how you feel about your internal R&D capabilities. You say you don't want to acquire pipeline assets. You're looking more at commercial stage assets. Just talk generally about your innovative capabilities internally and where you feel you're at, particularly as it relates to novel assets. That's number one. Number two is, can you just remind us where you are in your exclusivity runway or potential exclusivity runway for the meloxicam product? Third question is just on contribution from new revenues this year.

David Amsellem: Is there any one product in particular that has an outsized impact of the $450 to $550 million, or is it spread around pretty evenly? Thanks.

Uh around, um, uh, pretty um uh, pretty evenly. Thanks.

Scott A. Smith: Internal research and development capabilities, I feel very good at. From an innovative perspective, we've added some late development. Again, even though we're looking from a BD perspective, not necessarily to acquire pipeline right now, but in market assets, we're developing a number of things on our own, internally. I think we have a very strong, research and development. It's not really R&D. There's not much research development. We've got a very strong late-stage development group led by Philippe, and maybe you want to talk a little bit about those capabilities.

Philippe Martin: You know, I think we believe we have a strong group that can develop drugs from phase I and IND filing type drugs, like the MR-146 we have for our gene therapy in eye care, all the way down to life cycle strategy for assets like Effexor. We have the whole gamut of expertise from a development standpoint. We've shown that we know how to do it, and we'll show you as part of the Investor Day, more details about all this and who we are. We also have a very strong medical affairs structure that we are reorganizing as part of the enterprise-wide strategic review to focus more on the innovative portfolio than on the legacy portfolio.

Perspective, we've added some late development. Uh, and again, even though we're looking from a BD perspective, not necessarily to a fire pipeline right now. But in Market assets, we're developing a number of things on our own, uh, internally. And I think we have a very strong, uh, research and development. It's not really, it's not really R&D. There's not much research development. Uh, we've got a very strong late stage development, group, led by Philip and maybe you want to talk a little bit about those capabilities, you know? I mean,

Philippe Martin: I think all the required expertise is there for us from a development standpoint.

We we believe we have a strong group that uh can develop drugs from uh, Phase 1 and IMD, filing type um, drugs like the mr146, we have for a gene therapy in in. I care, um, all the way down to life, cycle strategy for assets, like effects are, so we have the whole gamut of expertise, um, from a development standpoint, we've shown that we know how to do it. Um, and we'll show you as as part of, um, the investor day more details about about all this and who we are. We also have a very strong medical Affair structure that we are reorganizing as part of the, uh, Enterprise wide strategic review to focus more on the Innovative portfolio than on the Legacy portfolio. Um, but I think all the all the, uh, the the

Scott A. Smith: Relative to meloxicam exclusivity, we'll get more into this as we get into the 19th and talk more specifically about meloxicam. It's being filed under 505(b)(2) route. There's exclusivity, which comes with that. In addition, there's some uniqueness in the data, which we think we can add significant other, more intellectual property protection around that asset. The way that I look at it is I consider it to be a contributor into the 2030s from an exclusivity perspective in the market. But we'll get more into that as we go and get more. It becomes more granular, right, as we start to file some of this intellectual property and other things. But we have a very strong strategy to extend that exclusivity as long as we can.

Scott A. Smith: Again, I think of it as a contributor into the early 2030s.

Doretta Mistras: Just to answer your question around new product revenue, the $450 to 550 is really diversified, both in terms of products and geographies. I would call out some of the contributors that we're excited about include Octreotide, Ferric Carboxymaltose, iron sucrose. In Europe, we've talked about apixaban and Paliperidone. I would also call out, it is also relatively balanced between products that we have already approved, like Octreotide and iron sucrose, and products that we expect approval for this year.

The required expertise is there for us from a development standpoint, relative to MOX scam exclusivity um we'll get more into this as we get into the 19th and talk more specifically about mocks scam. It's being filed under 505 B2 route. There's there's exclusivity which comes with that. In addition, there's some uniqueness in the data which we think we can add significant other, uh, more, uh, intellectual property protection around that asset, the way that I look at it. Is I consider it to be a contributor into the 2030s from an exclusivity in the market. Uh, but we'll get more into that as we go and get, get more. It becomes more, um, granular, right? As we start to file some of this intellectual property and other things, but we have a very strong strategy to to extend that exclusivity as long as we can. And again, I think of it as a contributor into the early 2030s.

Corinne Le Goff: Maybe to add that we are very excited also about the launch of our branded new products. We mentioned them already in Japan, Effexor GA, pitolisant at the very end of the year for Japan. In the US, low-dose estrogen weekly contraceptive patch. Even though those products will be in their launch year and will not contribute greatly in 2026, they are important growth contributors in the following years.

Just to answer your question around new product Revenue the 450 to 550 is really Diversified both in terms of products and geographies. I would call out some of the contributors that were excited about include appropriate tide uh iron feric iron sucrose in Europe. We've talked about a pixel band and Pi peridone but I would also call out uh the it it it is also relatively balanced between products that we have already approved like a Korea, tide in Iron sucrose and products that we expect approval for this year.

And maybe to add that we are very excited. Also about the launch of our branded uh, new products. We mentioned them already in Japan if extra Gad a bit recent, at the, at the very end of the year for Japan and in the US, Lodo's estrogen weekly Contra dispatch even though those products will be in their launch year, uh, and will not contribute greatly in 26. They are important. Both contributors in the following years,

Operator: Your next question is from Jason Gerberry with Bank of America. Please go ahead.

Jason Gerberry: Hey, guys. Thanks for taking my question. One for Doretta. I'm struggling a little bit with the 2026 guidance relative to 2025, right? Your EBITDA goes up about $150 million or so. It looks like that's largely on the cost restructuring dynamics, but you have plus $400 million in revenue versus prior year. It seems like none of that is dropping to the bottom line, but your gross margin degradation is only, like, 30 basis points. I was just wondering what I'm missing there. On the enterprise review, it looks like about half is on the cost of goods side, if I understand that. Maybe if you can unpack that a little bit, is that mainly, like, better procurement, reduced facility footprint type of cost?

Thank you. Next question. Is from Jason Gerber with Bank of America. Please go ahead.

Hey guys, thanks for taking my question. Um, one for Data. Um, I'm struggling a little bit with the '26 guidance relative to '25, right? So your EBITDA goes up about—

Jason Gerberry: Just wondering what you guys are gonna be doing differently versus, say, prior years to drive that cost of goods improvement. Thanks.

Uh, $150 million or so—it looks like that's largely on the cost for Structure and Dynamics. But you have plus $400 million in revenue versus prior year. It seems like none of that is dropping to the bottom line, but your gross margin degradation is only, like, 30 bips, so I was just wondering what I'm missing there. And then on the Enterprise review: so it looks like about half is on the cost of goods side, if I understand that. And so maybe if you can, uh, unpack that a little bit—is that mainly, like, better procurement, reduced facility footprint type of cost? And just wondering what you guys are going to be doing differently versus, say, prior years to drive that cost of goods improvement. Thanks.

Doretta Mistras: With respect to your question, Chris, on EBITDA, we've always talked about EBITDA stability. We feel good about the momentum and the inflection point that our business has gone. This year we're really proud of where we are. Just to give you a flavor of some of the components, we did see a marginal decline in our gross margins. We've talked about the drivers of that, just given the mix, some of these LOEs and some of the recovery coming from our lower margin ARB product. Also call out the $40 million of TSA income that we don't expect to recover this year on the back of that.

so with respect to your your question uh Chris on IBA, we we've always talked about IBA

Doretta Mistras: I would characterize '26 really as a stabilization year, supported by the savings realization, with structural expansion really coming more visible as the savings, pop in and some of our new products, come into account.

Scott A. Smith: Good. Jason, on the enterprise-wide strategic review, 50% is coming from head cost reduction, not from COGS efficiency. A much more minor piece is coming from COGS efficiency. I think he asked the question the other way around. It's 50% from head count reduction across the board and only a much smaller piece on in terms of COGS efficiency.

Drivers of that uh just given the the mix some of these lows and some of the recovery coming from our lower margin ARB uh product. Also call out the 40 million of TSA income that we don't expect to recover this year on the back of that. So I would characterize 26 really is a stabilization year supported by the savings realization with structural expansion. Really coming more visible as the savings uh pop in and some of our new products uh, come into account.

Good. And, and, and Jason on the Enterprise wide strategic review. Uh, no 50% is coming from head cost reduction, not from cogs efficiency or much more minor pieces coming from cogs deficiency. I think you asked a question the other way around, uh, but it's 50% from head reduction across the board, and only a much smaller piece on in terms of cogs efficiency.

Operator: The next question comes from Dennis Ding with Jefferies. Please proceed.

And the next question comes from, Dennis ding with Jeffrey. Can you please proceed?

Dennis Ding: Hi, good morning. Thanks for taking my questions. I had one on the enterprise review, the $400 million net savings. I'm just wondering if there could be additional savings upside as you execute on this over the next 1 to 3 years. Basically, how realistic and/or conservative is the $400 million net savings? Number 2, specifically on meloxicam, what is your base case in terms of launching activity in the US on net revenue? What does a good launch look like to you? If you internally view the Tyrvaya launch as a good proxy for meloxicam. Thank you.

Hi, good morning, thanks for taking my questions. Um,

I I had 1 on the Enterprise review, the 400 million net savings. I'm just wondering if there could be additional savings upside as you execute on this. Over the next 1 to 3 years, basically how realistic and conservative is uh, the 400 million, uh, net savings. And then number 2, specifically on the loss of Camp, what is your base case, in terms of launching your account, uh, in the US on net revenue, uh, what is a good launch look like to you and if you internally view that your NX launches a good proxy for mocs Camp, thank you.

Scott A. Smith: Just a couple comments, and then I'll ask Corinne to talk a little bit about the comparative launches in the acute pain space. Yeah, $400 million is a number we feel good about. We took our time in doing this and wanted to make sure that we can cement that within the organization. Could there be additional opportunities as time goes over the next few years? Sure. That's not something we're saying is going to happen. The other thing is, when we talk about the $250 million in reinvestments, up to $250 million, you know, depending on the progress of how things go, so we could spend less than that.

So, just a couple comments.

And then I'll ask.

Scott A. Smith: There could be more net savings than 400. 400, I think, is the right number for you to think about and that we're very, very confident that we can deliver. In terms of meloxicam, very important product for us. We want to be able to show very strong launch. I believe in the team we're putting together to be able to launch it. We're looking at partner strategies. We're making sure that it's resourced properly to do well. It's important for us. In terms of launch metrics and what does a good launch look like in the US, it's a little hard these days with access concerns and other things. We'll roll that out and talk more about that on the 19th for sure. If, Corinne, you'd like to make any general comments.

The comparative launches in the in the in the in the acute pain space. But uh yeah 400, uh million is is uh a number. We feel good about we took our time and doing this and wanted to make sure that we could cement that within the organization. Could there be additional opportunities as time goes over the next few years? Sure, uh, that's not something where we're saying is going to happen. The other thing is, when we talk about the 250 million in, in, in reinvestments, up to 250 million, you know, depending on the progress of how things go. So we could spend less than that. There could be more net savings than 400. But 400 I think is the right number for you to think about. And that we're very, very confident that we can deliver. Um, in terms of Meloxicam, uh, very important product for us. We want to be able to show very strong launch. I believe in the team, we're putting together to be able to launch it. We're looking at partner strategies, we're making sure.

Jason Gerberry: Yes, thank you very much. Yes, you mentioned one of the competitors in the field. What I'd like to say is that we are going to launch meloxicam where we think we can have the greatest impact and fastest effect. Part of this is linked to our pricing strategy, the other part is linked to how we are going to focus on target physicians that have the most patients in terms of acute pain management. While Vertex has been launching, I think, have a different timeframe in mind. We have a different strategy. Again, our focus is on quick access, and we'll put resources behind this product that we can be successful with the launch.

Sure that it's resource properly to do. Well it's important for us in terms of launch metrics and what does a good launch look like in the US. It's a little it's a little hard these days with access concerns and other things. We'll roll that out and talk more about that on the 19th, for sure. But if if a Korean you'd like to make any general comments? Yes. Thank you very much. Yes, and you mentioned, uh, 1 of uh, the competitors in the field. What I'd like to say is that we are going to launch Moxy cam uh where we think we can have the greatest impact and festive and take. And part of this is linked to our pricing strategy. The part is linked to how we are going to focus on, uh, targets decisions that have the most patience. And, uh, in terms of I can pay management, uh, well vertex, uh, has been launching. I think I have a different time frame in mind. We have a different strategy. So again our focus is on on quick access and we'll put resources Behind these products that we can be successful with a lot.

Operator: At this time, this concludes today's question and answer session. I would now like to turn the conference back over to Mr. Scott Smith, CEO, for any closing remarks.

Scott A. Smith: Thank you very much. Just let me close with this. I think 2025 is a very important, or 2026, excuse me. 2025 is a great year. 2026 is a very important, pivotal year for us. Our base business is not only stable, but it's growing. We continue to generate strong cash flow, which gives us financial flexibility, and we're expecting multiple launches and pipeline milestones this year. With our strategic review complete, we are building a more focused, efficient, future-ready company, and we are confident that we are at the beginning of a period of sustained revenue and earnings growth for the company. Thank you very much for your attention.

And at this time, this concludes today's question and answer session, I would now like to turn the conference back over to you Mr. Scott Smith CEO for any closing remarks.

Thank you very much and just let me close with this. I think 25 is a very, very important or 26. Excuse me. 25 is a great year. 26 is a very important pivotal and pivotal year for us. Our base business is not only stable but it's growing. We continue to generate strong cash flow which gives us Financial flexibility. And we're expecting multiple launches and pipeline. Milestones this year with our strategic review complete. We're building a more focused efficient Future, Ready, Ready company. And we are confident that we are in the beginning of a period of sustained revenue and earnings growth for the company.

Thank you very much for your attention.

Operator: This does conclude today's conference. Thank you for attending today's presentation, you may now disconnect.

And this does conclude today is a conference. Thank you for attending today's presentation. And you may now disconnect