Viatris Inc.

Good morning. My name is Laurie and I will be your conference operator today. At this time, I would like to welcome everyone to the Vietris first quarter 2021 earnings call-in webcast. All participant lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question at that time, please press star 1 on your touchtone phone. In the interest of time, we ask that you please limit yourself to one question. If you need to ask further questions, you may re-enter the queue. Lastly, if you should need operator assistance, please press star zero. Thank you. I will now turn the call over to Melissa Trombetta, Head of Global Investor Relations. Please go ahead.

Thank you, Lori. Good morning, everyone. Welcome to Beatrice's first quarter 2021 earnings conference call. Joining me on this call are VHRC's Chief Executive Officer, Michael Gettler, President, Rajiv Malik, Chief Financial Officer, Sanjeev Narula, Chief Accounting Officer and Controller, Paul Campbell, and Bill Cebulski, Head of Capital Markets. While some of us are in remote locations, I would ask for your patience should we encounter any technical difficulties. During today's call, we'll be making forward-looking statements on a number of matters, including our financial guidance for 2021. These forward-looking statements are subject to risks and uncertainties that could cause future results or events to differ materially from today's projections. Please refer to the earnings release that we furnished to the SEC on Form 8K earlier today for a fuller explanation of those risks and uncertainties and the limits applicable to forward-looking statements. We also posted supplemental slides on our website at investor.veitris.com. Veitris routinely posts information that may be important to investors on this website, 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. We also will be referring to certain non-GAAP financial measures, including free cash flow and adjusted EBITDA. We will reference such measures in order to supplement your understanding and assessment of our first quarter 2021 financial results and financial guidance for 2021. Non-GAAP measures should not be considered a substitute for or superior to financial measures calculated in accordance with GAAP. The most directly comparable GAAP measures, as well as reconciliations of the non-GAAP measures to those GAAP measures, are available in our first quarter 2021 earnings release and supplemental earnings slides, as well as in the . In addition, solely to supplement your understanding and assessment of our first quarter 2021 financial performance We have provided in our earnings release and supplemental slides and will discuss during today's call certain financial measures relating to the first quarter of 2020, including combined results of Legacy Mylan and the Upjohn business with indicated adjustments which do not reflect pro forma results in accordance with ASC 805 or Article 11 of Regulation SX. Such measures do not reflect the effect of any purchase accounting adjustments. Let me also remind you that the information discussed during this call, except for the participants' questions, is the property of Beatrice and cannot be recorded or rebroadcast without Beatrice's express written permission. An archived copy of today's call will be available on our website and will remain available for a limited time. With that, I'd like to turn the call over to Michael.

Thank you, Melissa, and good morning. And thanks for joining us for our first quarterly earnings call as Beatrice. I'm pleased to say that we're off to a strong start with high quality first quarter results across the board. And this strong performance comes at a time when the COVID-19 global pandemic continues to evolve, taking different courses across the many geographies in which Viatris operates. We're grateful to our colleagues around the world who continue to put patients first, ensuring stable access to needed medicines, particularly in India and parts of Latin America, where significant resurgence has impacted our teams there. The health and safety of our colleagues and their families is our highest priority, and we're supporting the continually evolving situation around the globe with urgency, with care, and with compassion. And for our patients, we're working diligently to bring the medicines they need including ramping up the production of antiviral medicines remdesivir in India and closely partnering with the government there to ensure access to this critical medicine. Back when we launched Viatris in November 2020, our vision was to build a new kind of healthcare company differentiated by a global operating platform with significant scale and commercial capabilities and expertise across science, manufacturing, legal, and IP. a broad, diverse product portfolio that includes brands, complex generics and biosimilars, and generics, and is agnostic to therapeutic categories, dosage forms, and delivery mechanisms, and a strong R&D platform that is well-positioned to deliver a broad pipeline of complex and novel products, including late-stage biosimilar programs. Our strong first quarter results validate the success of a diversified and robust business that can absorb headwinds in any individual part of the business while seizing market opportunities where and when they present themselves. In the first quarter, we reported net sales of $4.4 billion, adjusted EBITDA of $1.6 billion, and free cash flow of $799 million, which were above our original expectations. These results reflect the strength of our business And we're also partially helped by favorable timing of some revenue and expenses and by favorable FX. Now, let me give you some key highlights for the quarter. The strength of our business was driven by solid performance across all four of our commercial segments, developed markets, greater China, emerging market, and JANs, which is Japan, Australia, and New Zealand. Excluding the effects of LOEs or loss of exclusivity, of Lyrica in Japan and Celebrex in Japan, this quarter we would have reported 3% growth on an actual exchange rate basis or 2% decline on a constant currency basis as compared to the combined LOE adjusted quarter one 2020 results. Lyrica Japan is our last major LOE and we see no further significant LOEs impacting our business in the coming years. This quarter, we generated $163 million in new product revenue to partially offset inherent product erosion and we're on track to achieve $690 million in new product revenue for the full year. We're continuing to shift to a more differentiated and sustainable portfolio with strong growth in complex generics and biosimilars and growth of our recently acquired Thrombosis franchise in Europe. Regarding our pipeline, This quarter we received notable approvals in Europe for Insulin Aspart and Bevacizumab, and we made significant progress on many key pipeline projects, which Rajiv will discuss later in more detail. With regard to the integration of our two legacy companies, we are pleased to say our plans are progressing smoothly. This quarter I also had the opportunity to meet remotely with hundreds of colleagues around the world, and I continue to be impressed with the talent, the passion, and the engagement that we have at Viatris. We are well on our way to forming as one team and making our performance-driven, highly engaging, and inclusive culture a reality. And for our shareholders, we're delivering on our commitments. The Viatris board has declared inaugural quarterly dividend of 11 cents a share consistent with 25% of the midpoint of the 2021 full-year free cash flow guidance. We are on track to achieve $500 million in synergies this year. We are on plan and continue to target $6.5 billion in debt repayment by 2023. And we're reporting our first quarter results with the enhanced disclosures and transparency that we previously committed to. We're also aware of the interest by our shareholders in the sustainability of our business and our commitment to corporate social responsibility. And sustainability is fundamental to our mission and embedded in everything we do. And I'm pleased to share that we published our inaugural sustainability report at Viatris. More details on that can be found on our website, including a deeper look at Viatris' role in the important fight against COVID-19. In closing, we're proud to report a very strong and high-quality first quarter. we're seeing underlying strength in our business. And we are reaffirming our full-year financial guidance for 2021, which incorporates the known potential headwinds and tailwinds for the remainder of the year. At the conclusion of the second quarter, we will be reassessing whether to update guidance for the full year. And while we're not giving long-term guidance at this time, we continue to feel strongly that 2021 is our trough year as defined by the midpoint of our guidance of $6.2 billion adjusted EBITDA. And we believe that that $6.2 billion is the true floor of our business, not just for this year, but also for future years. Now, with that, let me turn it over to Rajiv to give you more details about our segment results, pipeline progress, and restructuring and integration efforts. Rajiv?