Viatris Inc.

My name is Travis and I will be your conference operator today. At this time, I would like to welcome everyone to the Vietris 2023 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 period. If you would like to ask a question at that time, please press star 1 on your telephone keypad. If you need to ask further questions, you may re-enter the queue. Lastly, if you should require operator assistance, please press star 0. I will now turn the call over to Bill Zabluski, Head of Global Capital Markets. Please go ahead.

Good evening, everyone. Welcome to our third quarter 2023 earnings call. With us today is our CEO, Scott Smith, President Rajiv Malik, and CFO, Sanjeev Narua. During today's call, we will be making forward-looking statements on a number of matters, including our financial guidance for 2023 and various strategic initiatives. These statements are subject to risk and uncertainties that could cause future results or events to differ materially from today's projections. Please refer to today's slide presentation and our SEC filings for a fuller explanation of those risks and uncertainties. We will also be referring to certain actual and projected non-GAAP financial measures to supplement investors' understanding and assessment of our financial performance. Reconciliations of those non-GAAP measures to the most directly comparable GAAP measures are available on our website and in the appendix of today's slide presentation. In addition, during today's discussion, we will be making certain comparisons of results on an operational basis, which excludes the impact of foreign currency rates versus the plan that supports our financial guidance, as well as year-over-year comparisons to prior period results. which also exclude the results from the divested biosimilars business. An archived copy of today's presentation and other earnings materials will be available on our website at investor.viatris.com following the conclusion of today's call. With that, I'll hand the call over to our CEO, Scott Smith.

Good afternoon. I'm pleased to report that Viatris had another outstanding quarter in Q3. We achieved our second consecutive quarter of year-over-year operational revenue growth and our 11th straight quarter of strong operating results and consistently improving metrics. All evidence that we continue to build momentum as we bring Phase 1 of our strategic plan to successful completion. In the third quarter, we delivered total revenues of $3.94 billion, representing approximately 1% year-over-year growth. and adjusted EBITDA of $1.36 billion and free cash flow of $738 million, both of which, as you will hear more about from Sanjeev later, were above our expectations. Based on our strong operational performance in the first nine months of the year, we are reaffirming our 2023 financial guidance ranges for adjusted EBITDA and free cash flow. Companies delivering strong operational revenues in line with our expectations However, the impact of foreign exchange headwinds requires that we make a modest adjustment to our 2023 total revenue guidance range due solely to these FX headwinds. In addition, at the end of the third quarter, we were pleased to announce that we entered into agreements on all our planned divestitures. Announcing these transactions marked the achievement of an important milestone in the execution of our Phase 1 strategic plans. We ran a strong and competitive process and were able to sign agreements to divest substantially all of our over-the-counter business, our health care business, our API business in India, and commercialization rights in certain non-core markets that were acquired as part of the Upjohn transaction, all within our previously announced timelines and valuation ranges. We anticipate closing all of these transactions by the end of the first half of 2024. As we look to 2024 and beyond, The momentum we see in the business gives us continued confidence that we are on track to meet our previously stated long-term goals. Specifically, we believe our existing business is well-positioned to deliver organic top-line growth over the long term given the breadth of our pipeline and the number of expected new launches. We are on track to deliver $450 to $550 million annually in new product launches from our existing pipeline. We continue to believe that adding new avenues for growth to the stable-based business will help ensure that we reach our goal of accelerating growth to the future. As we move into 2024, we remain confident that with the proceeds from our planned divestitures and our ability to generate at least $2.3 billion in free cash flow per year, excluding transaction costs and taxes, we have a clear line of sight to hitting our leverage target ratio of three times while also returning capital to shareholders through dividends and share buybacks and investing heavily in accelerating the growth of our business. We believe our focus on returning capital to shareholders and on investing in our business will be important levers to put the company on the path to achieve our long-term goals of revenue and earnings per share growth, two measures that we believe will be critical to valuing our company in the future. We plan to make investments both in our base business and in business development activities that give us the greatest potential for growth, patient impact, and shareholder value. From a business development perspective, I am optimistic that we will be able to execute high-quality agreements that will capitalize on the strengths of our global platform. We are focusing our efforts on M&A, strategic licensing, and partnerships. We are looking for innovative, high-growth assets focused on areas of unmet medical need that meet our vision of addressing global healthcare needs and bringing access to high-quality medicines to more patients worldwide. Before I turn the call over to Rajiv to provide you with an update on our operations and our pipeline, I want to acknowledge the recent announcement that Rajiv will be retiring as an executive of the company next April. It has been a privilege to get to know and to work with Rajiv during this past year. I could not have asked for a better partner during my onboarding at the company. I wish him nothing but the best in his eventual retirement. I look forward to working closely together in the months ahead as we complete our plan divestitures and prepare the organization for the future and through this continued partnership as a member of the Board of Directors. I'd now like to turn it over to Rajiv.