Viatris (VTRS) Jefferies London Healthcare Conference 2024 summary

Leadership and strategic progress

• Achieved six consecutive quarters of operational revenue growth, reflecting a solid base business and successful restructuring.

• Paid down over $10 billion in debt since inception, with $4 billion repaid in the current year alone.

• Completed key divestitures, streamlining operations and strengthening the balance sheet.

• Added new management talent and growth assets, positioning for future expansion.

• Entering phase II in 2025, with a focus on capital allocation and growth.

Capital allocation and business development

• Plans to allocate at least $2.3 billion in annual free cash flow, split between shareholder returns and business development.

• Emphasis on disciplined business development, targeting in-market or near-market assets to drive revenue from 2025 onward.

• Recent deals include in-licensing selatogrel, cenerimod, and sotagliflozin, serving as a blueprint for future pipeline additions.

• Early focus on share buybacks due to current valuation, with ongoing investment in pipeline assets.

Growth drivers and pipeline sustainability

• Consistently delivers $450–$550 million in new product revenue annually, with 2023 expected to reach $600 million.

• Pipeline includes launches of liraglutide, octreotide, iron sucrose, and glucagon in 2025, plus GLP-1s, oligonucleotides, and respiratory assets.

• Files 130–140 new drug submissions annually, supporting sustained growth.

• Aims to shift organic growth from 1–3% to 5–8% over the next few years by layering pipeline on a stable base.