Viatris Inc | research notes

Introducing Viatris Inc.: A Global Healthcare Leader

History and Formation

Viatris Inc. is a multinational pharmaceutical company formed in November 2020 through the merger of Mylan N.V. and Upjohn, a business unit of Pfizer. The merger created a leading global healthcare company with a diverse portfolio of products and a presence in over 165 countries.

Portfolio of Products

Viatris's portfolio encompasses a wide range of therapeutic areas, including:

• Cardiovascular: Blood thinners, antihypertensives, and cholesterol-lowering agents
• Central Nervous System: Antidepressants, anticonvulsants, and pain relievers
• Respiratory: Inhalers, nebulizers, and nasal sprays for asthma and COPD
• Gastroenterology: Acid reflux medications, anti-nausea drugs, and laxatives
• Infectious Diseases: Antibiotics, antivirals, and antifungals
• Oncology: Cancer treatments, including chemotherapy and hormone therapy
• Eye Care: Glaucoma medications, anti-inflammatory drops, and other ophthalmic products

Manufacturing and Distribution

Viatris has a global network of manufacturing facilities and distribution centers. The company produces and distributes its products to pharmacies, hospitals, clinics, and governments around the world. Viatris also operates a robust R&D pipeline, investing heavily in developing new and innovative therapies.

Financial Performance

As of 2022, Viatris reported annual revenue of approximately $17 billion. The company has a strong financial position, with a stable cash flow and a commitment to maintaining a sustainable balance sheet.

Social Responsibility

Viatris is committed to corporate social responsibility. The company actively engages in community outreach programs, supports access to healthcare for underserved populations, and promotes environmental sustainability.

Mission and Values

Viatris's mission is to "empower people everywhere to live healthier lives." The company's core values include:

• Patient-centricity
• Innovation
• Collaboration
• Integrity
• Sustainability

Recent Developments

In recent years, Viatris has been involved in several strategic acquisitions and partnerships, including:

• Acquisition of Biocon Biologics in 2022, strengthening its position in biosimilars
• Partnership with BioXcel Therapeutics in 2023, focused on developing novel treatments for neuropsychiatric disorders

Conclusion

Viatris Inc. is a global healthcare leader with a broad portfolio of products, a strong financial position, and a commitment to patient care. The company is well-positioned for continued growth and innovation in the years to come.

Business Model of Viatris Inc.

Viatris Inc. is a global healthcare company focused on providing affordable, high-quality generic and branded medicines. Its business model encompasses the following key elements:

• Generic Pharmaceuticals: Viatris is a leading generic drug manufacturer, offering a wide range of off-patent medicines across various therapeutic areas. Generic drugs are similar to branded drugs in terms of safety, efficacy, and dosage, but are typically sold at lower prices.
• Branded Pharmaceuticals: Viatris also has a portfolio of branded specialty medicines, including treatments for cardiovascular disease, diabetes, and psoriasis. These medicines are protected by patents and offer higher profit margins than generics.
• Biosimilars: Viatris is expanding its presence in the biosimilars market, which involves developing similar versions of biologics (complex drugs derived from living organisms). Biosimilars offer cost-effective alternatives to expensive biologics.
• Global Reach: Viatris has a global footprint, with operations in over 150 countries. This allows the company to reach a wide patient population and leverage economies of scale.
• Research and Development: Viatris invests a significant portion of its revenue into research and development, primarily focused on developing new generic drugs and expanding its branded product portfolio.

Advantages over Competitors

Viatris benefits from several advantages over its competitors:

• Cost-effective Production: Viatris has efficient manufacturing facilities and a global supply chain, enabling it to produce generic drugs at low cost.
• Broad Product Portfolio: Viatris offers a comprehensive portfolio of generic and branded medicines, catering to a wide range of therapeutic areas.
• Strong Distribution Network: Viatris has established a robust distribution network that reaches pharmacies, hospitals, and other healthcare providers worldwide.
• Regulatory Expertise: Viatris has a team of experienced regulatory professionals who navigate complex regulatory processes, ensuring compliance and timely approvals for its products.
• Focus on Affordability: Viatris prioritizes providing affordable medications to patients, particularly in developing countries.
• Proprietary Technologies: Viatris has developed proprietary technologies, such as Depomed and Orion Labs, which offer innovative drug delivery systems and formulations.

Outlook of Viatris Inc.

Company Overview

Viatris Inc. (VTRS) is a global pharmaceutical company formed through the merger of Mylan and Upjohn in 2020. It has a diverse portfolio of branded, generic, and over-the-counter (OTC) medications, as well as biosimilars and complex generics. Viatris operates in over 160 countries and employs approximately 45,000 people worldwide.

Financial Performance

In recent years, Viatris has faced significant financial challenges due to factors such as generic competition, pricing pressure, and acquisition-related costs. However, the company has taken steps to improve its financial position, including reducing debt, divesting non-core assets, and focusing on higher-margin products.

Market Position

Viatris is a major player in the global pharmaceutical industry. It is the world's largest generic drug manufacturer by volume and the third-largest by revenue. The company has a strong market presence in both developed and emerging markets.

Pipeline and R&D

Viatris has a robust pipeline of new products, including biosimilars, complex generics, and branded medications. The company is investing heavily in research and development (R&D) to expand its portfolio and drive future growth.

Analyst Outlook

Analysts have a mixed outlook on Viatris. Some believe that the company has made significant progress in addressing its financial challenges and is well-positioned for future growth. Others are concerned about the competitive landscape and the company's ability to maintain its market share in generic drugs.

Risks and Challenges

Viatris faces a number of risks and challenges, including:

• Generic competition and pricing pressure
• Patent expiries and loss of exclusivity
• Regulatory changes and approval risks
• Litigation and legal liabilities
• Reliance on third-party manufacturers

Opportunities and Growth Drivers

Viatris also has a number of opportunities for growth, including:

• Expansion in emerging markets
• Introduction of new products and biosimilars
• Focus on higher-margin products
• Cost-cutting and efficiency measures
• Strategic partnerships and acquisitions

Valuation and Stock Performance

Viatris' stock price has been volatile in recent years. The company's market capitalization is approximately $12 billion as of December 2022.

Key Factors to Watch

Investors should monitor the following key factors to assess Viatris' outlook:

• Financial performance and cash flow
• Market share and competitive landscape
• Pipeline development and regulatory approvals
• Acquisition strategy and divestments
• Litigation and legal developments

Companies Similar to Viatris Inc that Customers May Also Like

1. Teva Pharmaceutical Industries Ltd. (https://www.tevapharm.com/)

• Why Customers Like It: Teva is the world's largest generic drug manufacturer, offering a wide range of affordable medications, including treatments for various conditions such as cardiovascular disease, respiratory illnesses, and central nervous system disorders.

2. Mylan N.V. (https://www.mylan.com/)

• Why Customers Like It: Mylan specializes in developing, manufacturing, and distributing both generic and branded drugs, including those used in pain management, respiratory health, and cardiovascular care. The company's focus on affordability and access to essential medications has earned it a loyal customer base.

3. Dr. Reddy's Laboratories Ltd. (https://www.drreddys.com/)

• Why Customers Like It: Dr. Reddy's is a leading Indian pharmaceutical company that offers a wide range of generic and branded drugs, including over-the-counter medications and treatments for chronic diseases like diabetes and hypertension. The company's strong R&D capabilities and focus on emerging markets have made it popular with customers.

4. Glenmark Pharmaceuticals Ltd. (https://www.glenmarkpharma.com/)

• Why Customers Like It: Glenmark is a global pharmaceutical company based in India. It offers a wide range of generic and branded drugs, including formulations for respiratory diseases, dermatology, and oncology. The company's strong pipeline and commitment to patient health have earned it a reputation for innovation.

5. Lupin Ltd. (https://www.lupin.com/)

• Why Customers Like It: Lupin is a leading multinational pharmaceutical company based in India. It offers a wide range of branded and generic drugs, including those used in cardiovascular care, diabetes management, and oncology. Lupin's focus on quality and affordability has made it a popular choice for customers worldwide.

Origins and Early History:

• 1974: Pharmacia AB, a Swedish pharmaceutical company, is founded.
• 1985: Pharmacia acquires AB Astra, a Swedish pharmaceutical and medical device company.
• 1995: Pharmacia & Upjohn, a new company, is formed through the merger of Pharmacia and The Upjohn Company of the United States.

Mylan Laboratories and Watson Pharmaceuticals:

• 1961: Mylan Pharmaceuticals is founded in Morgantown, West Virginia, USA.
• 1983: Watson Pharmaceuticals is founded in Corona, California, USA.
• 2015: Mylan acquires Watson Pharmaceuticals, creating one of the largest generic drug manufacturers in the world.

Pfizer's Upjohn Business:

• 1982: Pfizer acquires Warner-Lambert Company, which includes the Upjohn division.
• 2019: Pfizer announces plans to spin off its Upjohn business into a separate company.

Viatris Formation:

• 2020: Mylan and Pfizer's Upjohn business merge to form Viatris Inc.
• February 2020: Viatris becomes an independent, publicly traded company.

Post-Merger:

• 2021: Viatris acquires Oyster Point Pharma, a biopharmaceutical company specializing in eye care.
• 2022: Viatris licenses the rights to its biosimilar drug to treat cancer, Remsima, to Amgen.
• Present: Viatris continues to operate as a leading global healthcare company with a focus on generic and specialty pharmaceuticals.

Key Milestones:

• 1995: Merger of Pharmacia and Upjohn creates Pharmacia & Upjohn.
• 2015: Mylan acquires Watson Pharmaceuticals.
• 2019: Pfizer announces plans to spin off its Upjohn business.
• 2020: Merging of Mylan and Upjohn to form Viatris.

2023

• January:
  • Announces the acquisition of Oyster Point Pharma, a specialty pharmaceutical company focused on ophthalmology.
• March:
  • Completes the acquisition of Oyster Point Pharma.
• July:
  • Announces the sale of its dermatology business to LEO Pharma for $5.3 billion.
• August:
  • Completes the sale of its dermatology business.

2022

• January:
  • Completes the acquisition of Avet Pharmaceuticals, a generic drug manufacturer.
• March:
  • Announces the discontinuation of the Phase 3 clinical trial of brensocatib, an investigational treatment for moderate-to-severe alopecia areata.
• September:
  • Announces the acquisition of the biosimilar business of Biocon Biologics, a leading biosimilar manufacturer.
• December:
  • Completes the acquisition of the biosimilar business of Biocon Biologics.

2021

• January:
  • Completes the merger with Mylan N.V. to form Viatris Inc.
• March:
  • Announces the acquisition of Famy Life Sciences, a women's health company.
• July:
  • Announces the acquisition of Oyster Point Pharma, a specialty pharmaceutical company focused on ophthalmology.
• November:
  • Completes the acquisition of Oyster Point Pharma.

Viatris Inc.: A Healthcare Leader with a Commitment to Affordability and Innovation

As a satisfied healthcare professional, I am delighted to share my positive experience with Viatris Inc. This exceptional company has consistently demonstrated its unwavering commitment to delivering affordable and innovative healthcare solutions.

Exceptional Products and Value

Viatris's portfolio encompasses a comprehensive range of generic and branded medicines that address various unmet medical needs. Their commitment to affordability is evident in the competitive pricing of their products, ensuring that patients have access to essential therapies without breaking the bank. The quality of their medicines is unmatched, meeting rigorous regulatory standards and clinical efficacy.

A Patient-centric Approach

At the heart of Viatris's mission is a deep-seated belief in putting patients first. Their patient-focused programs provide support, education, and resources to individuals facing chronic diseases. From patient assistance programs to clinical trials, Viatris goes above and beyond to ensure that patients receive the optimal care and support.

Innovation that Makes a Difference

Viatris is not simply a generic drug manufacturer. They are also a leader in research and development, investing heavily in innovative solutions that address unmet medical needs. Their pipeline is filled with promising therapies that have the potential to revolutionize patient care.

Employee Experience

Viatris fosters a positive and inclusive work environment that values diversity and collaboration. Their employees are passionate and dedicated to making a meaningful difference in the healthcare industry. The company provides opportunities for professional growth, training, and mentorship, empowering employees to reach their full potential.

Corporate Responsibility

Viatris recognizes the importance of corporate social responsibility. They actively engage in programs that support community health, environmental sustainability, and access to healthcare for underserved populations. Their commitment to ethical and sustainable practices extends throughout their operations.

Conclusion

Viatris Inc. is a healthcare leader that truly makes a difference in the lives of patients and communities worldwide. Their unwavering commitment to affordability, innovation, patient care, and employee well-being sets them apart from the rest. I highly recommend Viatris as a partner in delivering accessible, high-quality healthcare solutions.

Unlock Healthcare Innovation with Viatris Inc.

www.viatris.com

Are you seeking cutting-edge healthcare solutions that empower you to live healthier lives? Look no further than Viatris Inc., a global leader in the pharmaceutical industry.

Trusted Expertise

With over 2,000 employees and a presence in more than 165 countries, Viatris has established itself as a trusted provider of high-quality medicines and healthcare products. Our team of experts brings decades of experience and a deep understanding of patient needs to every aspect of our work.

Comprehensive Portfolio

Viatris' portfolio encompasses a wide range of therapeutic areas, including:

• Cardiovascular health
• Gastroenterology
• Infectious diseases
• Oncology
• Respiratory medicine

Whether you're managing chronic conditions, recovering from illnesses, or simply looking to enhance your overall well-being, we have the solutions to meet your evolving healthcare needs.

Innovation and Value

At Viatris, innovation is at the heart of what we do. We are constantly researching and developing new treatments and therapies to address the unmet needs of patients. By partnering with industry leaders and leveraging our extensive resources, we deliver affordable, accessible, and effective healthcare solutions.

Personalized Approach

We believe that every patient deserves personalized care. Our website provides a wealth of resources and tools to help you make informed decisions about your health. From educational articles to interactive health trackers, we empower you to take an active role in your well-being.

Exceptional Customer Service

Our dedicated customer service team is available 24/7 to assist you with any questions or concerns. Whether you need technical support, advice on products, or simply someone to listen, we are here to provide personalized and compassionate care.

Join the Viatris Community

As a valued customer of Viatris, you will have access to exclusive benefits and rewards. Stay up-to-date on the latest healthcare trends, receive tailored recommendations, and connect with a vibrant community of individuals dedicated to improving their health and well-being.

Visit Our Website Today

Explore the world of Viatris Inc. at www.viatris.com. Discover our comprehensive portfolio, learn more about our innovative approach, and connect with our team of experts. Let Viatris be your partner in achieving a healthier, more fulfilling life.

Main Suppliers of Viatris Inc.

Viatris Inc. is a global healthcare company that develops, manufactures, and markets a range of pharmaceuticals, generics, and biosimilars. The company has a diverse supply chain that includes numerous suppliers of raw materials, active pharmaceutical ingredients (APIs), and finished dosage forms. Some of the company's key suppliers include:

• Lonza (https://www.lonza.com/): A Swiss multinational chemical and biotechnology company that supplies Viatris with APIs and other raw materials.
• Cipla (https://www.cipla.com/): An Indian multinational pharmaceutical company that supplies Viatris with finished dosage forms and generics.
• Dr. Reddy's Laboratories (https://www.drreddys.com/): An Indian multinational pharmaceutical company that supplies Viatris with generics and biosimilars.
• Hetero Labs (https://www.heterodrugs.com/): An Indian multinational pharmaceutical company that supplies Viatris with generics and APIs.
• Mylan (https://www.mylan.com/): A global pharmaceutical company that supplies Viatris with generics and APIs.
• Teva Pharmaceutical Industries (https://www.tevapharm.com/): An Israeli multinational pharmaceutical company that supplies Viatris with generics and APIs.

These are just a few of the many suppliers that Viatris Inc. relies on to manufacture and distribute its products. The company's supply chain is complex and geographically diverse, which helps to ensure a consistent supply of high-quality materials and finished products.

Viatris Inc. has a strong track record of working with its suppliers to ensure that they meet the company's high standards for quality and compliance. The company also works closely with its suppliers to develop new products and technologies that can meet the evolving needs of patients.

Main Customers (Downstream Companies) of Viatris Inc.

Name: CVS Health Website: https://www.cvshealth.com/

Description: CVS Health is a leading integrated healthcare company that provides a broad range of healthcare services, including retail pharmacy, primary care, specialty pharmacy, and insurance.

Role with Viatris: CVS Health is a major customer of Viatris, purchasing a wide range of branded and generic drugs for its retail pharmacies and specialty pharmacy business.

Name: Walgreens Boots Alliance Website: https://www.walgreensbootsalliance.com/

Description: Walgreens Boots Alliance is a global pharmacy-led health and beauty company that operates over 13,000 stores in 25 countries.

Role with Viatris: Walgreens Boots Alliance is another major customer of Viatris, purchasing a variety of drugs for its retail pharmacies and specialty pharmacy business.

Name: Pfizer Website: https://www.pfizer.com/

Description: Pfizer is a global biopharmaceutical company that develops, manufactures, and markets a wide range of medicines and vaccines.

Role with Viatris: Pfizer is a customer of Viatris for its branded and generic drugs, which are used in its global operations.

Name: Merck & Co. Website: https://www.merck.com/

Description: Merck & Co. is a global healthcare company that develops, manufactures, and markets a wide range of pharmaceuticals, vaccines, and healthcare products.

Role with Viatris: Merck & Co. is a customer of Viatris for its branded and generic drugs, which are used in its global operations.

Name: Novartis Website: https://www.novartis.com/

Description: Novartis is a global pharmaceutical company that develops, manufactures, and markets a wide range of pharmaceuticals, vaccines, and healthcare products.

Role with Viatris: Novartis is a customer of Viatris for its branded and generic drugs, which are used in its global operations.

These are just a few of the many main customers of Viatris Inc. The company's diverse customer base helps to ensure its revenue stability and growth potential.

Key Revenue Streams of Viatris Inc.

1. Branded Pharmaceuticals

• Estimated Annual Revenue: $7.2 billion

Branded pharmaceuticals include prescription drugs that are marketed under a specific brand name. Viatris has a portfolio of branded pharmaceuticals that focus on various therapeutic areas, including cardiovascular, gastrointestinal, dermatological, and infectious diseases. Some of the notable branded drugs in this segment include Lipitor, Celebrex, and Zoloft.

2. Generics

• Estimated Annual Revenue: $9.3 billion

Generics are pharmaceuticals that are similar to brand-name drugs in terms of their active ingredients, dosage, and safety but are typically sold at a lower price. Viatris is one of the leading generic drug manufacturers globally, with a broad portfolio of over 1,400 generics covering a wide range of therapeutic areas.

3. Biosimilars

• Estimated Annual Revenue: $2.7 billion

Biosimilars are similar to biologics, which are complex protein-based drugs, in terms of their safety and effectiveness, but are developed after the original biologic patent expires. Viatris has a growing biosimilars business, with products targeting major therapeutic areas such as oncology and immunology.

4. Over-the-Counter (OTC) Products

• Estimated Annual Revenue: $1.7 billion

OTC products are non-prescription drugs or other healthcare products that can be purchased directly by consumers without a healthcare professional's approval. Viatris has a diverse portfolio of OTC products, including pain relievers, cough and cold medications, and skincare.

5. Contract Development and Manufacturing

• Estimated Annual Revenue: $1.0 billion

Contract development and manufacturing (CDMO) involve providing services to other pharmaceutical companies in developing, manufacturing, and packaging their products. Viatris offers CDMO services through its subsidiary, Viatris Pharmaceuticals Inc., which has facilities in North America, Europe, and Asia.

Key Partners of Viatris Inc.

1. McKesson Corporation

• Website: https://www.mckesson.com/
• Description: A global healthcare services company that provides pharmaceuticals, medical supplies, and technology solutions. Viatris and McKesson have a long-term strategic partnership for the distribution of Viatris' products.

2. AmerisourceBergen Corporation

• Website: https://www.amerisourcebergen.com/
• Description: A global healthcare company that provides pharmaceutical distribution and other services. Viatris has a distribution agreement with AmerisourceBergen for its products in the United States.

3. Cardinal Health

• Website: https://www.cardinalhealth.com/
• Description: A global healthcare solutions company that provides medical supplies, pharmaceuticals, and technology. Viatris and Cardinal Health have a distribution partnership for Viatris' products in the United States.

4. Walgreens Boots Alliance

• Website: https://www.walgreensbootsalliance.com/
• Description: A global pharmacy-led health and wellbeing company. Viatris has a partnership with Walgreens Boots Alliance for the distribution of its products through Walgreens pharmacies.

5. CVS Health

• Website: https://www.cvshealth.com/
• Description: A healthcare company that provides pharmacy services, health insurance, and other healthcare products and services. Viatris has a partnership with CVS Health for the distribution of its products through CVS pharmacies.

6. Walmart

• Website: https://www.walmart.com/
• Description: A global retailer that operates a chain of discount stores. Viatris has a partnership with Walmart for the distribution of its products through Walmart pharmacies.

7. Kroger

• Website: https://www.kroger.com/
• Description: A grocery store chain that operates supermarkets and other retail formats. Viatris has a partnership with Kroger for the distribution of its products through Kroger pharmacies.

8. Gilead Sciences

• Website: https://www.gilead.com/
• Description: A biopharmaceutical company that develops and commercializes innovative medicines. Viatris has a collaboration agreement with Gilead Sciences for the development and commercialization of certain HIV products.

9. Biontech SE

• Website: https://www.biontech.de/en/
• Description: A biotechnology company that develops and manufactures mRNA-based vaccines and immunotherapies. Viatris has a collaboration agreement with Biontech for the production and distribution of vaccines and immunotherapies.

10. Biocon

• Website: https://www.biocon.com/
• Description: A global biopharmaceutical company that develops, manufactures, and markets generic, biosimilar, and novel biologics. Viatris has a partnership with Biocon for the development and commercialization of biosimilar products.

Key Cost Structure of Viatris Inc.

1. Cost of Goods Sold (COGS)

• Estimated annual cost: $11.2 billion

COGS includes the costs associated with manufacturing and distributing Viatris's products, such as:

• Raw materials
• Labor
• Manufacturing overhead
• Shipping and handling

2. Selling, General, and Administrative (SG&A) Expenses

• Estimated annual cost: $4.2 billion

SG&A expenses include the costs associated with marketing, sales, and administration, such as:

• Sales and marketing personnel salaries and expenses
• Advertising
• Customer service
• Rent and utilities
• General and administrative overhead

3. Research and Development (R&D) Expenses

• Estimated annual cost: $1.3 billion

R&D expenses include the costs associated with developing new products and technologies, such as:

• Research scientists' salaries and expenses
• Clinical trials
• Patent filing and maintenance

4. Depreciation and Amortization

• Estimated annual cost: $1.1 billion

Depreciation and amortization expenses represent the non-cash expense associated with the allocation of the cost of capital assets over their useful life.

5. Employee Benefits

• Estimated annual cost: $1.0 billion

Employee benefits include the costs associated with providing benefits to employees, such as:

• Health insurance
• Retirement plans
• Paid time off

6. Interest Expense

• Estimated annual cost: $0.8 billion

Interest expense represents the cost of borrowing money to finance operations.

7. Other Expenses

• Estimated annual cost: $0.6 billion

Other expenses include various other costs not included in the above categories, such as:

• Legal fees
• Professional services
• Insurance premiums

Sales Channels

Viatris Inc. operates through the following sales channels:

Wholesalers and Distributors (80% of revenue): Viatris sells its products to wholesalers and distributors who then distribute them to pharmacies, hospitals, and other healthcare providers.

Direct Sales Force (15% of revenue): Viatris has a dedicated sales force that sells directly to healthcare providers, including hospitals, clinics, and long-term care facilities.

Online Sales (5% of revenue): Viatris sells a limited number of products directly to consumers through its website and online retailers.

Estimated Annual Sales

Viatris' annual sales for the fiscal year ended December 31, 2022, were approximately $17.7 billion. The breakdown of sales by channel is as follows:

Sales Channel | Estimated Annual Sales ---|---| Wholesalers and Distributors | $14.2 billion Direct Sales Force | $2.7 billion Online Sales | $0.8 billion

Additional Information

• Viatris has a global presence, with sales in over 165 countries.
• The company's largest markets are the United States, Europe, and Asia.
• Viatris sells a wide range of pharmaceutical products, including branded, generic, and over-the-counter medications.
• The company's sales are primarily driven by its generic drug portfolio, which includes a broad range of therapeutic categories.

Customer Segments and Estimated Annual Sales of Viatris Inc.

1. Healthcare Providers

• Estimated Annual Sales: $10-12 billion
• This segment includes hospitals, clinics, pharmacies, and other healthcare facilities.
• Viatris supplies a wide range of generic and branded pharmaceuticals, including antibiotics, cardiovascular drugs, pain relievers, and respiratory medications.

2. Payers

• Estimated Annual Sales: $5-6 billion
• This segment includes insurance companies, government healthcare programs, and employers.
• Viatris negotiates drug prices and rebates with payers to ensure access to its products for patients.

3. Government Agencies

• Estimated Annual Sales: $2-3 billion
• This segment includes the U.S. Department of Veterans Affairs, the Centers for Disease Control and Prevention, and the World Health Organization.
• Viatris supplies essential medicines and vaccines to government programs both domestically and internationally.

4. Patients

• Estimated Annual Sales: $2-3 billion
• This segment includes individuals who purchase Viatris's products over-the-counter or through prescription.
• Viatris offers a variety of products for common ailments, such as cough and cold medicines, pain relievers, and anti-nausea medications.

5. Other Customers

• Estimated Annual Sales: $1-2 billion
• This segment includes research institutions, pharmaceutical companies, and distributors.
• Viatris provides research services, such as clinical trials and drug development, and distributes its products through various channels.

Total Estimated Annual Sales: $20-26 billion

Note: These estimates are based on publicly available information and may vary from actual sales figures.

Value Proposition of Viatris Inc.

Mission Statement: "Viatris exists to empower people worldwide to live healthier at every stage of life."

Value Proposition:

1. Affordable, High-Quality Healthcare:

• Provides affordable, quality generic and biosimilar medicines to patients in over 165 countries.
• Focuses on cost-effective solutions to meet the growing healthcare needs of underserved populations.

2. Expanded Access to Essential Medicines:

• Leverages its global reach and expertise to expand access to essential medicines in low- and middle-income countries.
• Partners with healthcare providers, governments, and NGOs to ensure that patients have access to affordable, life-saving treatments.

3. Innovation and R&D:

• Invests in research and development to create innovative medicines that address unmet medical needs.
• Focuses on therapeutic areas such as oncology, ophthalmology, and dermatology.
• Partners with external organizations to accelerate innovation and bring new therapies to market.

4. Diversified Portfolio:

• Offers a broad portfolio of over 1,500 medicines across various therapeutic categories.
• This diversification allows Viatris to mitigate market risks and serve a wide range of patient needs.

5. Sustainable Business Practices:

• Prioritizes sustainability throughout its operations, including environmental stewardship, responsible sourcing, and ethical business practices.
• Aiming to reduce its carbon footprint and promote social responsibility in the communities where it operates.

6. Patient-Centric Approach:

• Places patients at the heart of its decision-making and product development.
• Listens to patient feedback and works with advocacy groups to understand their needs and improve access to healthcare.
• Provides patient support programs and educational resources to empower patients in their health journeys.

7. Strong Distribution Network:

• Maintains a global distribution network to ensure timely and reliable delivery of medicines to patients.
• Collaborates with a wide range of wholesalers, pharmacies, and healthcare providers.

8. Scale and Global Reach:

• As a leading global healthcare company, Viatris benefits from its large scale and established presence in the industry.
• This scale allows it to leverage economies of scale, invest in infrastructure, and expand its reach to underserved markets.

Target Audience:

• Patients in need of affordable, quality healthcare
• Healthcare providers seeking cost-effective treatment options
• Governments and organizations working to improve healthcare access
• Research institutions and pharmaceutical companies partnering on innovation
• Communities committed to environmental and social responsibility

Business Risks

• Reliance on generic and biosimilar products: Viatris generates a significant portion of its revenue from generic and biosimilar products, which are subject to competition and price erosion.
• Regulatory and legal challenges: The pharmaceutical industry is highly regulated, and Viatris is exposed to potential regulatory actions, patent disputes, and product liability claims.
• Manufacturing and supply chain disruptions: Viatris' operations may be affected by disruptions in its manufacturing facilities or supply chain, which could result in product shortages or delays.
• Currency fluctuations: Viatris operates globally and is exposed to foreign currency risks that could impact its financial results.
• Integration risks: Viatris has acquired several companies in recent years, and the integration of these businesses poses potential risks such as cultural differences, operational inefficiencies, and increased debt.

Financial Risks

• High debt levels: Viatris has a significant amount of debt, which could increase its financial leverage and exposure to interest rate risk.
• Refinancing risk: Viatris may need to refinance its debt in the future, and it may face challenges in securing favorable terms if market conditions are unfavorable.
• Dividend payments: Viatris has a history of paying dividends, which may require significant cash outflows and limit its financial flexibility.
• Pension and other post-retirement obligations: Viatris has substantial pension and other post-retirement obligations that could impact its earnings and cash flow.

Operational Risks

• Data security and privacy: Viatris handles sensitive patient information, and data breaches or privacy violations could damage its reputation and lead to regulatory penalties.
• Product quality issues: Product quality issues could result in product recalls, product liability claims, and reputational damage.
• Employee turnover: Viatris has a large workforce, and employee turnover could disrupt its operations and affect its productivity.
• Compliance risks: Viatris must comply with a complex regulatory environment, including anti-corruption laws, healthcare regulations, and environmental regulations. Failure to comply could result in penalties, fines, or reputational damage.

Other Risks

• Macroeconomic uncertainty: Economic downturns or geopolitical events could impact Viatris' revenue and earnings.
• Climate change: Climate change could pose operational risks, such as supply chain disruptions or increased regulatory requirements, as well as reputational risks.
• Market sentiment: Viatris' stock price and financial performance may be influenced by market sentiment and investor perceptions, which can be volatile.