Viatris Inc.

Good morning. My name is Leo, and I will be your conference operator today. At this time, I would like to welcome everyone to the VIATRIS 2021 Third Quarter Earnings Call and 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 telephone keypad. In the interest of time, we ask that you please limit yourself to one question. If you need to ask further questions, you may reenter the queue. Lastly, if you should require operator assistance, please press star zero. Thank you. I'll now turn the call over to Melissa Trombetta, Head of Global Investor Relations. Please go ahead.

Thank you, Operator. Good morning, everyone. Welcome to Vietris' third quarter 2021 earnings conference call. Joining me on this call are Vietris' Chief Executive Officer, Michael Gettler, President Rajiv Malik, Chief Financial Officer Sanjeev Narula, Chief Accounting Officer and Controller Paul Campbell, and Head of Capital Markets Bill Cebulski. 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 will 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 Regulations Fair Disclosure, Reg FD. 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 third 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 third quarter 2021 earnings release and supplemental earnings slides as well as in the investor section of our website. In addition, solely to supplement your understanding and assessment of our third quarter 2021 financial performance, We have provided in our earnings release and supplemental slides, and we'll discuss during today's call certain financial measures relating to the third 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 participant 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 thank you for joining us on our third quarter earnings call. I'm pleased to say that we have, again, reported another strong quarter, generating robust free cash flow, delivering on our financial commitments, and building a strong foundation for our future. Nearly one year ago today, we formed Beatrice with the vision to assemble best-in-class capabilities across commercial, manufacturing, R&D, and enabling function in pursuit of removing barriers and expanding access for patients we serve while also returning value to shareholders. Today's continued strong results are testament to that vision and to the execution of our colleagues around the world whose shared dedication to patients and shareholders drives our strong business results and we believe is putting Vietris on a path for an even stronger future. I could not be prouder of all that we have accomplished together. Now here are some highlights. In the third quarter, we reported total revenues of 4.54 billion U.S. dollars, Adjusted EBITDA of 1.7 billion US dollars and free cash flow of 965 million US dollars. Year to date, that is quarter one through quarter three combined, we have generated approximately 2.2 billion US dollars in free cash flow, already exceeding the lower end of our most recent guidance for the full year. Optimizing cash flow generation will continue to be our financial north star, and we anticipate cash flow to grow in the coming years as a result of our expected continued strong performance, a reduction in one-time cost, and continued improvements in cash flow conversion. In North America, we're preparing for the imminent launch of SEMGLI, which, as most of you know, received historic approval from the FDA for the industry's first ever interchangeable biosimilar designation in the U.S. in July. We expect that Semglee will be available in pharmacies before the end of the year, and we believe this is an important milestone to help increase access to insulin for those living with diabetes in the United States. Rajiv will later provide more details on the progress we're making in that regard. In addition, at the end of October, we filed a BLA for a biosimilar to ILEA with the FDA as planned. We believe this is the first biosimilar registration of this important medicine to treat age-related macular degeneration. And looking further into the future, we're excited about the potential to be first to market for a Botox biosimilar. Overall, we generated 158 million in new product revenue in the third quarter. $557 million year-to-date. We're therefore well on track for approximately $690 million in new product revenue for the full year. Importantly, our strong performance enables us to continue to execute on phase one of our strategic roadmap, which is expected to be completed by the end of 2023. During this time, we're focused on strengthening our balance sheet, returning capital to shareholders in form of a dividend, and building a strong foundation for the future. We're now one year into that three-year effort, and we continue to deliver on our financial commitments for debt repayment, dividend, and synergies. On the last quarter's earnings call, we said we would reevaluate our 2021 financial guidance at the end of the third quarter. Based on our strong performance to date, we are again raising our financial guidance across total revenue, adjusted EBITDA, and free cash flow, which Sanjit will discuss in more detail later. I'm also pleased to say that we're near completion of our rigorous bottom-up strategic planning effort. We look forward to sharing the results of these plans with the investment community at a virtual investor event now scheduled for the morning of January 7, 2022, And on that day, we provide additional details on our two-phase strategic roadmap, including for the rest of phase one, that is the years 2022 and 2023, we'll be providing specific financial guidance, targets, and metrics to complete this phase. We'll also be discussing the substantial free cash flow that we will be generating over this period to satisfy our phase one capital allocation priorities of returning capital to shareholders, and of repaying $6.5 billion of debt. With that said, we continue to remain confident that $6.2 billion of adjusted EBITDA is the true floor of our business. For phase two of our roadmap, that's 2024 and beyond, we will provide an overview of the catalyst that we expect will drive future growth including laying out our capital allocation priorities for the states in order to maximize and further unlock shareholder value during this period. We'll also be giving specific details of our own organic opportunities by discussing our own pipeline at length, and we will be providing the inorganic business development priorities that we'll be focusing on through our global healthcare gateway. Before I close, I'd be remiss to not call out that Viatris was recently recognized as a top five company on a prestigious Fortune Change the World list. This recognition is a testament to the hard work and dedication of our colleagues to stem the tide of HIV AIDS over the course of more than 10 years, and it's just one example of how corporate social responsibility is deeply embedded in our mission and our operating model. And in addition, we were recognized on the Forbes 2021 World's Best Employers list, underscoring our success in laying the foundation for the kind of company we want to be. And with that, I'll turn it over to Rajiv for more details. Rajiv?