Viatris Inc

Previous wording

This discussion and analysis should be read in conjunction with the Consolidated Financial Statements, the related Notes to Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in Viatris’ 2024 Form 10-K, the unaudited interim financial statements and related Notes included in Part I — Item 1 of this Form 10-Q and our other SEC filings and public disclosures. The interim results of operations and comprehensive earnings (loss) for the three and six months ended June 30, 2025, and cash flows for the six months ended June 30, 2025 are not necessarily indicative of the results to be expected for the full fiscal year or any other future period.

Current wording

This discussion and analysis should be read in conjunction with the Consolidated Financial Statements, the related Notes to Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in Viatris’ 2024 Form 10-K, the unaudited interim financial statements and related Notes included in Part I — Item 1 of this Form 10-Q and our other SEC filings and public disclosures. The interim results of operations and comprehensive (loss) earnings for the three and nine months ended September 30, 2025, and cash flows for the nine months ended September 30, 2025 are not necessarily indicative of the results to be expected for the full fiscal year or any other future period.

Previous wording

For more detailed information on the risks and uncertainties associated with Viatris, see the risks described in Part I, Item 1A in the 2024 Form 10-K, and our other filings with the SEC. You can access Viatris’ filings with the SEC through the SEC website at www.sec.gov or through our website, and Viatris strongly encourages you to do so. Viatris routinely posts information that may be important to investors on our website at investor.viatris.com, and we use this website address as a means of disclosing material information to the public in a broad, non-exclusionary manner for purposes of the SEC’s Regulation Fair Disclosure (Reg FD). The contents of our website are not incorporated by reference in this Form 10-Q and shall not be deemed “filed” under the Securities Exchange Act of 1934, as amended. Viatris undertakes no obligation to update any statements herein for revisions or changes after the filing date of this Form 10-Q other than as required by law.

Current wording

For more detailed information on the risks and uncertainties associated with Viatris, see the risks described in Part I, Item 1A in the 2024 Form 10-K, Part II, Item 1A of this Form 10-Q, and our other filings with the SEC. You can access Viatris’ filings with the SEC through the SEC website at www.sec.gov or through our website, and Viatris strongly encourages you to do so. Viatris routinely posts information that may be important to investors on our website at investor.viatris.com, and we use this website address as a means of disclosing material information to the public in a broad, non-exclusionary manner for purposes of the SEC’s Regulation Fair Disclosure (Reg FD). The contents of our website are not incorporated by reference in this Form 10-Q and shall not be deemed “filed” under the Securities Exchange Act of 1934, as amended. Viatris undertakes no obligation to update any statements herein for revisions or changes after the filing date of this Form 10-Q other than as required by law.

Previous wording

Viatris’ executive management team is focused on ensuring that the Company is optimally structured and efficiently resourced to deliver sustainable value to patients, shareholders, customers and other key stakeholders. The Company operates in more than 165 countries and territories with approximately 32,000 employees. The Company has 26 manufacturing and packaging sites worldwide, more than 1,400 approved molecules, and industry leading commercial, R&D, regulatory, manufacturing, legal and medical expertise. Viatris’ portfolio consists of generics (including complex products), globally recognized iconic brands, and an expanding portfolio of innovative medicines. Viatris is headquartered in the U.S., with global centers in Pittsburgh, Pennsylvania, Shanghai, China and Hyderabad, India.

Current wording

Viatris’ executive management team is focused on ensuring that the Company is optimally structured and efficiently resourced to deliver sustainable value to patients, shareholders, customers and other key stakeholders. The Company operates in more than 165 countries and territories with more than 30,000 employees. The Company has 26 manufacturing and packaging sites worldwide, more than 1,400 approved molecules, and industry leading commercial, R&D, regulatory, manufacturing, legal and medical expertise. Viatris’ portfolio consists of generics (including complex products), globally recognized iconic brands, and an expanding portfolio of innovative medicines. Viatris is headquartered in the U.S., with global centers in Pittsburgh, Pennsylvania, Shanghai, China and Hyderabad, India.

Previous wording

The process of obtaining regulatory approval to manufacture and market new branded and generic pharmaceutical products is rigorous, time consuming, costly, and inherently unpredictable. Complex products are more difficult, costly and time-consuming to receive regulatory approval for and bring to market. Any delay in regulatory approval could impact the commercial or financial success of a product. Regulatory approval, if and when obtained, may be limited in scope. Even if regulatory approvals for new products are obtained, the success of those products is dependent upon market acceptance.

Current wording

The process of obtaining regulatory approval to manufacture and market new branded and generic pharmaceutical products is rigorous, time consuming, costly, and inherently unpredictable. Complex generic products are often more difficult, costly and time-consuming to receive regulatory approval and bring to market compared with commodity generic pharmaceutical products. Any delay in regulatory approval could impact the commercial or financial success of a product. Regulatory approval, if and when obtained, may be limited in scope. Even if regulatory approvals for new products are obtained, the success of those products is dependent upon market acceptance.

Previous wording

For branded products, the majority of the product’s commercial value is usually realized during the period in which the product has market exclusivity. In the U.S. and some other countries, when market exclusivity expires and generic versions of a product are approved and marketed, there can often be very substantial and rapid declines in the branded product’s sales. For example, generic entry for Amitiza® 24 μg may occur in Japan in December 2025 upon expiration of certain patent exclusivity.

Current wording

For branded products, the majority of the product’s commercial value is usually realized during the period in which the product has market exclusivity. In the U.S. and some other countries, when market exclusivity expires and generic versions of a product are approved and marketed, there can often be very substantial and rapid declines in the branded product’s sales. For example, generic entry for Amitiza® 24 μg may occur in Japan in June 2026 depending on the outcome of regulatory reviews of generic applications and patent litigation.

Previous wording

Following the substance of FDA’s original inspection observations, the Company immediately implemented a comprehensive remediation plan at the site. The necessary corrective and preventive actions are well underway, including but not limited to related personnel actions. Additionally, we have engaged independent third-party subject matter experts to support the remediation plan.

Current wording

Following the substance of FDA’s original inspection observations, the Company immediately implemented a comprehensive remediation plan at the site. During 2025, we have made substantial progress on our initial remediation activities at the facility, including but not limited to related personnel actions. Additionally, we have engaged independent third-party subject matter experts to support the remediation plan.

Previous wording

We have been in regular communication with FDA during this process and will continue to work to ensure that the FDA is satisfied with the steps we have taken to resolve all the points raised. Our responses to the warning letter and import alert were submitted within the required time periods.

Current wording

We have been in regular communication with FDA during this process and will continue to work to ensure that the FDA is satisfied with the steps we have taken to resolve all the points raised. Our responses to the warning letter and import alert were submitted within the required time periods. The facility will be subject to a reinspection by the FDA. The timing of the reinspection will be determined by the FDA; however, we anticipate that the facility will be ready for reinspection in 2026.

Previous wording

While product continues to be shipped from the Indore facility to markets outside the U.S., as expected, we have also experienced a negative impact in other markets in the three and six months ended June 30, 2025, including the ARV business in Emerging Markets and select generic products in Europe.

Current wording

While product continues to be shipped from the Indore facility to markets outside the U.S., as expected, we have also experienced a negative impact in other markets during 2025, including the ARV business in Emerging Markets and select generic products in Europe.

Previous wording

We continue to anticipate negative impacts for the remainder of the year. The estimated negative impact to second quarter 2025 total revenues was approximately $160 million versus the second quarter of 2024 and the estimated negative impact to total revenues for the six months ended June 30, 2025 versus the six months ended June 30, 2024 was approximately $300 million. We currently estimate the negative impact to 2025 total revenues to be approximately $500 million and to 2025 earnings from operations to be approximately $385 million.

Current wording

The estimated negative impact to third quarter 2025 total revenues versus the third quarter of 2024 was approximately $100 million and the estimated negative impact to total revenues for the nine months ended September 30, 2025 versus the nine months ended September 30, 2024 was approximately $400 million. We do not expect the negative impact to fourth quarter 2025 total revenues and earnings from operations versus the fourth quarter of 2024 to be material.

Previous wording

On February 28, 2022, the Company announced that its Board of Directors had authorized a share repurchase program for the repurchase of up to $1.0 billion of the Company’s shares of common stock. The Company subsequently announced that on February 26, 2024, its Board of Directors authorized a $1.0 billion increase to the Company’s previously announced $1.0 billion share repurchase program. As a result, the Company’s share repurchase program now authorizes the repurchase of up to $2.0 billion of the Company’s shares of common stock. Such repurchases may be made from time-to-time at the Company’s discretion and effected by any means, including but not limited to, open market repurchases, pursuant to plans in accordance with Rules 10b5-1 or 10b-18 under the Exchange Act, privately negotiated transactions (including accelerated stock repurchase programs) or any combination of such methods as the Company deems appropriate. The program does not have an expiration date. During the three months ended June 30, 2025, the Company repurchased approximately 20.2 million shares of common stock at a cost of approximately $175.0 million. During the six months ended June 30, 2025 and 2024, the Company repurchased approximately 38.9 million shares of common stock at a cost of approximately $350.4 million, and approximately 19.2 million shares of common stock at a cost of approximately $250 million, respectively, under the program. As of June 30, 2025, the Company had repurchased a total of approximately 79.3 million shares of common stock at a cost of approximately $850.4 million under the program. The share repurchase program does not obligate the Company to acquire any particular amount of common stock.

Current wording

On February 28, 2022, the Company announced that its Board of Directors had authorized a share repurchase program for the repurchase of up to $1.0 billion of the Company’s shares of common stock. The Company subsequently announced that on February 26, 2024, its Board of Directors authorized a $1.0 billion increase to the Company’s previously announced $1.0 billion share repurchase program. As a result, the Company’s share repurchase program now authorizes the repurchase of up to $2.0 billion of the Company’s shares of common stock. Such repurchases may be made from time-to-time at the Company’s discretion and effected by any means, including but not limited to, open market repurchases, pursuant to plans in accordance with Rules 10b5-1 or 10b-18 under the Exchange Act, privately negotiated transactions (including accelerated stock repurchase programs) or any combination of such methods as the Company deems appropriate. The program does not have an expiration date. The share repurchase program does not obligate the Company to acquire any particular amount of common stock.

Previous wording

The table below is a summary of the Company’s financial results for the three and six months ended June 30, 2025 compared to the prior year period:

Current wording

The table below is a summary of the Company’s financial results for the three and nine months ended September 30, 2025 compared to the prior year period:

Previous wording

(4)For the three months ended June 30, 2025, other revenues in Developed Markets, JANZ, and Emerging Markets were approximately $10.3 million, $1.0 million, and $1.8 million, respectively.

Current wording

(4)For the three months ended September 30, 2025, other revenues in Developed Markets, JANZ, and Emerging Markets were approximately $10.0 million, $1.0 million, and $1.4 million, respectively.

Previous wording

For the three months ended June 30, 2025, Viatris reported total revenues of $3.58 billion, compared to $3.80 billion for the comparable prior year period, representing a decrease of $214.5 million, or 6%. Total revenues include both net sales and other revenues from third parties. Net sales for the current quarter were $3.57 billion, compared to $3.79 billion for the comparable prior year period, representing a decrease of $216.9 million, or 6%. Other revenues for the current quarter were $13.1 million, compared to $10.7 million for the comparable prior year period.

Current wording

For the three months ended September 30, 2025, Viatris reported total revenues of $3.76 billion, compared to $3.75 billion for the comparable prior year period, representing an increase of $8.7 million, or essentially flat. Total revenues include both net sales and other revenues from third parties. Net sales for the current quarter were $3.75 billion, compared to $3.74 billion for the comparable prior year period, representing an increase of $9.5 million, or essentially flat. Other revenues for the current quarter were $12.4 million, compared to $13.2 million for the comparable prior year period.

Previous wording

Net sales decreased by approximately $212.2 million or 6% due to the inclusion of net sales in the prior year period related to divestitures that closed during 2024. The favorable impact of foreign currency translation was approximately $61.5 million, or 2%, primarily reflecting changes in the U.S. Dollar as compared to the currencies of subsidiaries in the EU. On a constant currency basis, net sales from the remaining business decreased by approximately $66.2 million, or 2%, for the three months ended June 30, 2025 compared to the prior year period. The decrease was the result of net base business erosion of approximately $145.6 million, of which approximately $160 million related to the Indore Impact. This decrease was partially offset by new product sales, primarily in Developed Markets, of approximately $79.4 million. New product sales include new products launched in 2025 and the carryover impact of new products, including business development, launched within the last twelve months.

Current wording

Net sales decreased by approximately $18.6 million, or less than 1%, due to the inclusion of net sales in the prior year period related to divestitures that closed during 2024. The favorable impact of foreign currency translation was approximately $76.4 million, or 2%, primarily reflecting changes in the U.S. Dollar as compared to the currencies of subsidiaries in the EU. On a constant currency basis, net sales from the remaining business decreased by approximately $48.3 million, or 1%, for the three months ended September 30, 2025 compared to the prior year period. The decrease was the result of net base business erosion of approximately $147.8 million, of which approximately $100 million related to the Indore Impact. This decrease was partially offset by new product sales, primarily in Developed Markets, of approximately $99.5 million. New product sales include new products launched in 2025 and the carryover impact of new products, including business development, launched within the last twelve months.

Previous wording

From time to time, a limited number of our products may represent a significant portion of our net sales, gross profit and net earnings. Generally, this is due to the timing of new product introductions, seasonality, and the amount, if any, of additional competition in the market. Our top ten products in terms of net sales, in the aggregate, represented approximately 37% and 33% for the six months ended June 30, 2025 and 2024, respectively.

Current wording

From time to time, a limited number of our products may represent a significant portion of our net sales, gross profit and net earnings. Generally, this is due to the timing of new product introductions, seasonality, and the amount, if any, of additional competition in the market. Our top ten products in terms of net sales, in the aggregate, represented approximately 38% and 36% for the three months ended September 30, 2025 and 2024, respectively.

Previous wording

Net sales from Developed Markets decreased by $199.9 million or 9% for the three months ended June 30, 2025 when compared to the prior year period. Net sales decreased by approximately $174.8 million or 8% due to the inclusion of net sales in the prior year period related to divestitures that closed during 2024. The favorable impact of foreign currency translation was approximately $60.8 million, or 3%. Constant currency net sales from the remaining business decreased by approximately $85.9 million or 4% when compared to the prior year period, driven primarily by lower net sales of certain existing products, including lenalidomide and everolimus in the U.S., as a result of the Indore Impact of approximately $110 million, partially offset by new product sales. Net sales within North America totaled approximately $870.1 million and net sales within Europe totaled approximately $1.25 billion.

Current wording

Net sales from Developed Markets decreased by $43.1 million, or 2%, for the three months ended September 30, 2025 when compared to the prior year period. Net sales decreased by approximately $11.1 million, or less than 1%, due to the inclusion of net sales in the prior year period related to divestitures that closed during 2024. The favorable impact of foreign currency translation was approximately $76.0 million, or 3%. Constant currency net sales from the remaining business decreased by approximately $108.0 million, or 5%, when compared to the prior year period, driven primarily by lower net sales of certain existing products, including lenalidomide and everolimus in the U.S., as a result of the Indore Impact of approximately $100 million, partially offset by new product sales. Net sales within North America totaled approximately $868.4 million and net sales within Europe totaled approximately $1.39 billion.

Previous wording

Net sales from Greater China increased by $49.9 million or 9% for the three months ended June 30, 2025 when compared to the prior year period. The favorable impact of foreign currency translation was approximately $0.3 million. Constant currency net sales increased by approximately $49.6 million or 9% when compared to the prior year period, primarily driven by strong growth across multiple channels, including e-commerce, retail, and private hospitals, as well as customer purchasing patterns. Divestitures did not have a significant impact on the net sales in either period.

Current wording

Net sales from Greater China increased by $53.4 million, or 10%, for the three months ended September 30, 2025 when compared to the prior year period. The favorable impact of foreign currency translation was approximately $2.3 million, or less than 1%. Constant currency net sales increased by approximately $51.1 million, or 9%, when compared to the prior year period, primarily driven by strong growth across multiple channels, including e-commerce, retail, and private hospitals, as well as benefits of timing of customer purchasing patterns. Divestitures did not have a significant impact on the net sales in either period and the Indore Impact for the three months ended September 30, 2025 was not significant.

Previous wording

Net sales from JANZ decreased by $43.9 million or 13% for the three months ended June 30, 2025 when compared to the prior year period. Net sales decreased by approximately $11.0 million, or 3%, due to the inclusion of net sales in the prior year period related to divestitures that closed during 2024. The favorable impact of foreign currency translation was approximately $4.7 million, or 1%. Constant currency net sales from the remaining business decreased by approximately $37.6 million, or 11%, when compared to the prior year period, driven primarily by lower volumes of existing products in Japan and Australia due to government price reductions and additional competition, and by the Indore Impact of approximately $3 million.

Current wording

Net sales from JANZ decreased by $38.0 million, or 11%, for the three months ended September 30, 2025 when compared to the prior year period. Net sales decreased by approximately $3.2 million, or 1%, due to the inclusion of net sales in the prior year period related to divestitures that closed during 2024. The unfavorable impact of foreign currency translation was approximately $4.3 million, or 1%. Constant currency net sales from the remaining business decreased by approximately $30.5 million, or 9%, when compared to the prior year period, driven primarily by lower net sales of existing products in Japan and Australia due to government price reductions and additional competition. The Indore Impact for the three months ended September 30, 2025 was not significant.

Previous wording

Net sales from Emerging Markets decreased by $23.0 million or 4% for the three months ended June 30, 2025 when compared to the prior year period. Net sales decreased by approximately $26.4 million, or 5%, due to the inclusion of net sales in the prior year period related to divestitures that closed during 2024. The decrease in net sales was also partially driven by the unfavorable impact of foreign currency translation of approximately $4.3 million, or 1%. Constant currency net sales from the remaining business increased by $7.7 million, or 1% when compared to the prior year period, primarily driven by higher volumes and pricing of existing products in certain Middle Eastern and Asian countries. These increases were partially offset by lower volumes in our ARV business, mainly as a result of the Indore Impact of approximately $45 million.

Current wording

Net sales from Emerging Markets increased by $37.2 million or 7% for the three months ended September 30, 2025 when compared to the prior year period. Net sales decreased by approximately $4.3 million, or 1%, due to the inclusion of net sales in the prior year period related to divestitures that closed during 2024. The favorable impact of foreign currency translation was approximately $2.4 million, or less than 1%. Constant currency net sales from the remaining business increased by $39.1 million, or 7%, when compared to the prior year period, primarily driven by higher volumes and pricing of existing products in certain Middle Eastern and Asian countries. The Indore Impact for the three months ended September 30, 2025 was not significant.

Previous wording

Cost of sales decreased from $4.51 billion for the six months ended June 30, 2024 to $4.34 billion for the six months ended June 30, 2025. The decrease in cost of sales was largely driven by the impact of the decrease in net sales, primarily as a result of the divestitures that closed during 2024 and the Indore Impact.

Current wording

Cost of sales increased from $2.29 billion for the three months ended September 30, 2024 to $2.39 billion for the three months ended September 30, 2025. The increase in cost of sales was largely driven by product mix as a result of the Indore Impact.

Previous wording

Gross profit for the three months ended June 30, 2025 was $1.33 billion and gross margins were 37%. For the three months ended June 30, 2024, gross profit was $1.45 billion and gross margins were 38%. The changes in gross profit and gross margins are primarily related to the impact of the divestitures and the Indore Impact. Adjusted gross margins were approximately 57% for the three months ended June 30, 2025, compared to approximately 58% for the three months ended June 30, 2024.

Current wording

Gross profit for the three months ended September 30, 2025 was $1.37 billion and gross margins were 36%. For the three months ended September 30, 2024, gross profit was $1.46 billion and gross margins were 39%. The changes in gross profit and gross margins are primarily related to the Indore Impact. Adjusted gross margins were approximately 56% for the three months ended September 30, 2025, compared to approximately 58% for the three months ended September 30, 2024.

Previous wording

R&D expense for the three months ended June 30, 2025 was $218.8 million, compared to $204.1 million for the comparable prior year period, an increase of $14.7 million. This increase was primarily the result of higher expenses for the selatogrel and cenerimod development programs.

Current wording

R&D expense for the three months ended September 30, 2025 was $250.4 million, compared to $198.4 million for the comparable prior year period, an increase of $52.0 million. This increase was primarily the result of higher expenses for the selatogrel and cenerimod development programs.

Previous wording

SG&A expense for the current quarter was $928.7 million, compared to $1.04 billion for the comparable prior year period, a decrease of $108.3 million. The decrease was primarily due to the impact of the divestitures, and lower acquisition and divestiture-related costs of approximately $60.2 million.

Current wording

SG&A expense for the current quarter was $886.6 million, compared to $1.00 billion for the comparable prior year period, a decrease of $116.8 million. The decrease was primarily due to lower acquisition and divestiture-related costs of approximately $67.3 million and lower restructuring costs of approximately $18.1 million.

Previous wording

The following table includes the (gains)/losses recognized in litigation settlements and other contingencies, net during the three months ended June 30, 2025 and 2024, respectively:

Current wording

The following table includes the losses recognized in litigation settlements and other contingencies, net during the three months ended September 30, 2025 and 2024, respectively:

Previous wording

Interest expense for the three months ended June 30, 2025 totaled $116.6 million, compared to $145.8 million for the three months ended June 30, 2024, a decrease of $29.2 million. The decrease was primarily due to the impact of 2024 debt repayments.

Current wording

Interest expense for the three months ended September 30, 2025 totaled $119.6 million, compared to $145.6 million for the three months ended September 30, 2024, a decrease of $26.0 million. The decrease was primarily due to the impact of 2024 debt repayments.

Previous wording

Other expense (income), net includes gains and losses from divestitures of businesses, changes in the fair value of equity securities, extinguishment of debt, foreign exchange, expense (income) related to post-employment benefit plans, TSA income, and interest and dividend income. Other expense, net for the three months ended June 30, 2025 totaled $333.5 million, compared to $6.1 million for the three months ended June 30, 2024.

Current wording

Other expense (income), net includes gains and losses from divestitures of businesses, changes in the fair value of equity securities, extinguishment of debt, foreign exchange, expense (income) related to post-employment benefit plans, TSA income, and interest and dividend income. Other expense, net for the three months ended September 30, 2025 totaled $67.1 million, compared to $10.2 million for the three months ended September 30, 2024.

Previous wording

The increase in other expense, net was primarily driven by a loss of $284.0 million recorded in the current year period as a result of changes in the fair value of the CCPS in Biocon Biologics, compared to a net gain in the prior year period of $248.7 million related to our non-marketable equity investments, including the CCPS in Biocon Biologics, and lower interest income of $11.1 million. This was partially offset by a decrease in loss on divestitures of $215.0 million compared to the prior year period. Refer to Note 11 Financial Instruments and Risk Management includedin Part I, Item 1 of this Form 10-Q for more information with respect to the change in the fair value of the CCPS in Biocon Biologics.

Current wording

The increase in other expense, net was primarily driven by a loss of $100.0 million recorded in the current year period as a result of changes in the fair value of the CCPS in Biocon Biologics, compared to a gain in the prior year period of $39.4 million, lower interest income of $25.9 million, and lower TSA income of $21.0 million. This was partially offset by a decrease in loss on divestitures of $108.9 million compared to the prior year period. Refer to Note 11 Financial Instruments and Risk Management included in Part I, Item 1 of this Form 10-Q for more information with respect to the change in the fair value of the CCPS in Biocon Biologics.

Previous wording

For the three months ended June 30, 2025, the Company recognized an income tax benefit of $212.5 million, compared to an income tax benefit of $65.4 million for the comparable prior year period, an increase of $147.1 million. The benefit in the current year period is primarily driven by the loss before income taxes. The current year and prior year provisions were also impacted by the levels of income and the changing mix at which it is earned in jurisdictions with differing tax rates.

Current wording

For the three months ended September 30, 2025, the Company recognized an income tax provision of $120.3 million, compared to an income tax benefit of $4.3 million for the comparable prior year period, a change of $124.6 million. The provision in the current year period is primarily driven by reduced tax benefits related to certain remediation costs as well as certain discrete tax items. The current quarter and prior quarter provisions were impacted by the levels of income and the changing mix at which it is earned in jurisdictions with differing tax rates.

Previous wording

(4)For the six months ended June 30, 2025, other revenues in Developed Markets, JANZ, and Emerging Markets were approximately $17.2 million, $2.0 million, and $5.0 million, respectively.

Current wording

(4)For the nine months ended September 30, 2025, other revenues in Developed Markets, JANZ, and Emerging Markets were approximately $27.2 million, $3.0 million, and $6.4 million, respectively.

Previous wording

For the six months ended June 30, 2025, Viatris reported total revenues of $6.84 billion, compared to $7.46 billion for the comparable prior year period, representing a decrease of $623.6 million, or 8%. Total revenues include both net sales and other revenues from third parties. Net sales for the six months ended June 30, 2025 were $6.81 billion, compared to $7.44 billion for the comparable prior year period, representing a decrease of $627.2 million, or 8%. Other revenues for the six months ended June 30, 2025 were $24.2 million, compared to $20.6 million for the comparable prior year period.

Current wording

For the nine months ended September 30, 2025, Viatris reported total revenues of $10.60 billion, compared to $11.21 billion for the comparable prior year period, representing a decrease of $614.9 million, or 5%. Total revenues include both net sales and other revenues from third parties. Net sales for the nine months ended September 30, 2025 were $10.56 billion, compared to $11.18 billion for the comparable prior year period, representing a decrease of $617.7 million, or 6%. Other revenues for the nine months ended September 30, 2025 were $36.6 million, compared to $33.8 million for the comparable prior year period.

Previous wording

Net sales decreased by approximately $449.6 million or 6% due to the inclusion of net sales in the prior year period related to divestitures that closed during 2024. The decrease in net sales was also partially driven by the unfavorable impact of foreign currency translation of approximately $23.6 million, or less than 1%, primarily reflecting changes in the U.S. Dollar as compared to the currencies of subsidiaries in Japan, China, and countries in Emerging Markets. On a constant currency basis, net sales from the remaining business decreased by approximately $154.0 million, or 2%, for the six months ended June 30, 2025 compared to the prior year period. The decrease was the result of net base business erosion of approximately $300.4 million, of which approximately $300 million related to the Indore Impact. This decrease was partially offset by new product sales, primarily in Developed Markets, of approximately $146.4 million. New product sales include new products launched in 2025 and the carryover impact of new products, including business development, launched within the last twelve months.

Current wording

Net sales decreased by approximately $468.3 million, or 4%, due to the inclusion of net sales in the prior year period related to divestitures that closed during 2024. The favorable impact of foreign currency translation was approximately $52.8 million, or less than 1%, primarily reflecting changes in the U.S. Dollar as compared to the currencies of subsidiaries in the EU. On a constant currency basis, net sales from the remaining business decreased by approximately $202.2 million, or 2%, for the nine months ended September 30, 2025 compared to the prior year period. The decrease was the result of net base business erosion of approximately $448.1 million, of which approximately $400 million related to the Indore Impact. This decrease was partially offset by new product sales, primarily in Developed Markets, of approximately $245.9 million. New product sales include new products launched in 2025 and the carryover impact of new products, including business development, launched within the last twelve months.

Previous wording

From time to time, a limited number of our products may represent a significant portion of our net sales, gross profit and net earnings. Generally, this is due to the timing of new product introductions, seasonality, and the amount, if any, of additional competition in the market. Our top ten products in terms of net sales, in the aggregate, represented approximately 37% and 33% for the three months ended June 30, 2025 and 2024, respectively.

Current wording

From time to time, a limited number of our products may represent a significant portion of our net sales, gross profit and net earnings. Generally, this is due to the timing of new product introductions, seasonality, and the amount, if any, of additional competition in the market. Our top ten products in terms of net sales, in the aggregate, represented approximately 37% and 33% for the nine months ended September 30, 2025 and 2024, respectively.

Previous wording

Net sales from Developed Markets decreased by $473.6 million or 11% for the six months ended June 30, 2025 when compared to the prior year period. Net sales decreased by approximately $354.5 million or 8% due to the inclusion of net sales in the prior year period related to divestitures that closed during 2024. The favorable impact of foreign currency translation was approximately $27.5 million, or 1%. Constant currency net sales from the remaining business decreased by approximately $146.6 million or 3% when compared to the prior year period, driven primarily by lower net sales of certain existing products, including lenalidomide and everolimus in the U.S., as a result of the Indore Impact of approximately $190 million, partially offset by new product sales. Net sales within North America totaled approximately $1.67 billion and net sales within Europe totaled approximately $2.34 billion.

Current wording

Net sales from Developed Markets decreased by $516.7 million, or 8%, for the nine months ended September 30, 2025 when compared to the prior year period. Net sales decreased by approximately $365.6 million, or 5%, due to the inclusion of net sales in the prior year period related to divestitures that closed during 2024. The favorable impact of foreign currency translation was approximately $103.6 million, or 2%. Constant currency net sales from the remaining business decreased by approximately $254.7 million, or 4%, when compared to the prior year period, driven primarily by lower net sales of certain existing products, including lenalidomide and everolimus in the U.S., as a result of the Indore Impact of approximately $295 million, partially offset by new product sales. Net sales within North America totaled approximately $2.54 billion and net sales within Europe totaled approximately $3.73 billion.

Previous wording

Net sales from Greater China increased by $61.5 million or 6% for the six months ended June 30, 2025 when compared to the prior year period. The unfavorable impact of foreign currency translation was approximately $11.6 million, or 1%. Constant currency net sales increased by approximately $73.6 million or 7% when compared to the prior year period, primarily driven by strong growth across multiple channels, including e-commerce, retail, and private hospitals, as well as customer purchasing patterns. Divestitures did not have a significant impact on the net sales in either period.

Current wording

Net sales from Greater China increased by $114.9 million, or 7%, for the nine months ended September 30, 2025 when compared to the prior year period. The unfavorable impact of foreign currency translation was approximately $9.4 million, or 1%. Constant currency net sales increased by approximately $124.8 million, or 8%, when compared to the prior year period, primarily driven by strong growth across multiple channels, including e-commerce, retail, and private hospitals, as well as benefits of timing of customer purchasing patterns. Divestitures did not have a significant impact on the net sales in either period and the Indore Impact for the nine months ended September 30, 2025 was not significant.

Previous wording

Net sales from JANZ decreased by $85.6 million or 13% for the six months ended June 30, 2025 when compared to the prior year period. Net sales decreased by approximately $20.8 million, or 3%, due to the inclusion of net sales in the prior year period related to divestitures that closed during 2024. This decrease was also partially driven by the unfavorable impact of foreign currency translation of approximately $7.5 million, or 1%. Constant currency net sales from the remaining business decreased by approximately $57.3 million, or 9%, when compared to the prior year period, driven primarily by lower net sales of existing products in Japan and Australia due to government price reductions and additional competition, and by the Indore Impact of approximately $6 million.

Current wording

Net sales from JANZ decreased by $123.6 million, or 12%, for the nine months ended September 30, 2025 when compared to the prior year period. Net sales decreased by approximately $24.0 million, or 2%, due to the inclusion of net sales in the prior year period related to divestitures that closed during 2024. This decrease was also partially driven by the unfavorable impact of foreign currency translation of approximately $11.8 million, or 1%. Constant currency net sales from the remaining business decreased by approximately $87.8 million, or 9%, when compared to the prior year period, driven primarily by lower net sales of existing products in Japan and Australia due to government price reductions and additional competition, and by the Indore Impact of approximately $8 million.

Previous wording

Net sales from Emerging Markets decreased by $129.5 million or 11% for the six months ended June 30, 2025 when compared to the prior year period. Net sales decreased by approximately $73.8 million, or 6%, due to the inclusion of net sales in the prior year period related to divestitures that closed during 2024. The decrease in net sales was also partially driven by the unfavorable impact of foreign currency translation of approximately $32.0 million, or 3%. Constant currency net sales from the remaining business decreased by $23.7 million, or 2% when compared to the prior year period, primarily driven by lower volumes in our ARV business, mainly as a result of the Indore Impact of approximately $103 million. These decreases were partially offset by new product sales in certain Latin American countries and higher volumes and pricing of existing products in certain Middle Eastern and Asian countries.

Current wording

Net sales from Emerging Markets decreased by $92.3 million, or 5%, for the nine months ended September 30, 2025 when compared to the prior year period. Net sales decreased by approximately $78.2 million, or 5%, due to the inclusion of net sales in the prior year period related to divestitures that closed during 2024. The decrease in net sales was also partially driven by the unfavorable impact of foreign currency translation of approximately $29.6 million, or 2%. Constant currency net sales from the remaining business increased by $15.5 million, or 1%, when compared to the prior year period, primarily driven by new product sales in certain Latin American countries and higher volumes and pricing of existing products in certain Middle Eastern and Asian countries. These increases were partially offset by lower volumes in our ARV business, mainly as a result of the Indore Impact of approximately $95 million.

Previous wording

Cost of sales decreased from $2.35 billion for the three months ended June 30, 2024 to $2.25 billion for the three months ended June 30, 2025. The decrease in cost of sales was largely driven by the impact of the decrease in net sales, primarily as a result of the divestitures that closed during 2024 and the Indore Impact.

Current wording

Cost of sales decreased from $6.80 billion for the nine months ended September 30, 2024 to $6.73 billion for the nine months ended September 30, 2025. The decrease in cost of sales was largely driven by the impact of the decrease in net sales, primarily as a result of the divestitures that closed during 2024 and the Indore Impact.

Previous wording

Gross profit for the six months ended June 30, 2025 was $2.49 billion and gross margins were 36%. For the six months ended June 30, 2024, gross profit was $2.95 billion and gross margins were 40%. The changes in gross profit and gross margins are primarily related to the impact of the divestitures and the Indore Impact. Adjusted gross margins were approximately 56% for the six months ended June 30, 2025, compared to approximately 58% for the six months ended June 30, 2024.

Current wording

Gross profit for the nine months ended September 30, 2025 was $3.87 billion and gross margins were 36%. For the nine months ended September 30, 2024, gross profit was $4.41 billion and gross margins were 39%. The changes in gross profit and gross margins are primarily related to the impact of the divestitures and the Indore Impact. Adjusted gross margins were approximately 56% for the nine months ended September 30, 2025, compared to approximately 58% for the nine months ended September 30, 2024.

Previous wording

A reconciliation between cost of sales, as reported under U.S. GAAP, and adjusted cost of sales and adjusted gross margin for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 is as follows:

Current wording

A reconciliation between cost of sales, as reported under U.S. GAAP, and adjusted cost of sales and adjusted gross margin for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 is as follows:

Previous wording

R&D expense for the six months ended June 30, 2025 was $440.8 million, compared to $403.8 million for the comparable prior year period, an increase of $37.0 million. This increase was primarily the result of higher expenses for the selatogrel and cenerimod development programs.

Current wording

R&D expense for the nine months ended September 30, 2025 was $691.2 million, compared to $602.2 million for the comparable prior year period, an increase of $89.0 million. This increase was primarily the result of higher expenses for the selatogrel and cenerimod development programs.