Viatris Inc

Strong Q2 2026 results; raised outlook across the board - Reported $3.8B total revenues (+3.5% operational YoY), adj. EBITDA $1.2B, and adj. EPS $0.69. - Management said performance exceeded expectations and showed improving operating leverage. - Raised full-year 2026 guidance midpoint across key metrics: - Expected operational growth at midpoint vs. 2025: ~+2% revenues, +5% adj. EBITDA, +7% adj. EPS. - Company expects second half is ~51% of full-year revenues, while adj. EBITDA and adj. EPS are slightly lower in H2; free cash flow weighted more to H2.

China and “value-added” branded/complex portfolio are key growth drivers - Greater China net sales +16% YoY (again ahead of expectations), driven by strong demand for established brands and channel expansion. - Channel detail disclosed: e-commerce is ~10–15% of total China business; company expects hospital channel growth to slow in H2 due to procurement policy changes, but overall China trajectory should remain similar to H1 (muted growth vs. policy shock). - Portfolio/product mix helped: adj. gross margin 57.5% (nearly +1% YoY), attributed to China outperformance and favorable mix in North America generics (complex/transdermal).

Pipeline catalysts: multiple late-stage readouts and approvals; major upcoming launches - Gwyn Lo: received FDA approval (ahead of PDUFA) for a once-weekly transdermal hormonal contraceptive patch; label includes no BMI limitation for BMI 25–<30; next development program for BMI ≥30 progestin-only patch Phase III enrollment completed; top-line results H1 2027 expected. - Fast-acting meloxicam (FAM): NDA review progressing; FDA engaged at mid-cycle; approval expected by end of year / PDUFA timeframe; launch preparations ongoing. - Management expects it to be a meaningful, high-margin branded U.S. contributor (including opioid-sparing positioning), with potential peak sales up to ~$500M cited (based on patents/market dynamics). - Innovative global Phase III milestones: - Nefecon (Japan IgA nephropathy): positive Phase III top-line; Japan NDA targeted by end of 2026. - Pitolisant: regulatory review near final stages; decisions expected H2 2026 for OSA and narcolepsy-related excessive daytime sleepiness. - Selatogrel (Phase III SOS-AMI): readout expected H1 2027; enrollment strong. - Study sized for ~20% risk reduction; “minimal bar” commercially viewed as lower (management said 10–15% reduction could be acceptable). - Cenerimod and other Phase III generics: cenerimod results H1 2027; selatogrel enrollment expected to complete around year-end.