Cover and table of contents

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

OR

☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __to

Commission file number 001-39695

VIATRIS INC.

(Exact name of registrant as specified in its charter)

Delaware						83-4364296
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

1000 Mylan Boulevard, Canonsburg, Pennsylvania 15317

(Address of principal executive offices)

(724) 514-1800

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class:						Trading Symbol(s)						Name of Each Exchange on Which Registered:
Common Stock, par value $0.01 per share						VTRS						The NASDAQ Stock Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer						☑						Accelerated filer						☐
Non-accelerated filer						☐						Smaller reporting company						☐
												Emerging growth company						☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

The number of shares of common stock outstanding, par value $0.01 per share, of the registrant as of May 6, 2024 was 1,190,675,819.

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VIATRIS INC. AND SUBSIDIARIES

INDEX TO FORM 10-Q

For the Quarterly Period Ended

March 31, 2024

						Page
			PART I — FINANCIAL INFORMATION
ITEM 1.			Condensed Consolidated Financial Statements (unaudited)
			Condensed Consolidated Statements of Operations — Three Months Ended March 31, 2024 and 2023			7
			Condensed Consolidated Statements of Comprehensive (Loss) Earnings — Three Months Ended March 31, 2024 and 2023			8
			Condensed Consolidated Balance Sheets — March 31, 2024 and December 31, 2023			9
			Condensed Consolidated Statements of Equity — Three Months Ended March 31, 2024 and 2023			10
			Condensed Consolidated Statements of Cash Flows — Three Months Ended March 31, 2024 and 2023			11
			Notes to Condensed Consolidated Financial Statements			12
ITEM 2.			Management’s Discussion and Analysis of Financial Condition and Results of Operations			46
ITEM 3.			Quantitative and Qualitative Disclosures About Market Risk			62
ITEM 4.			Controls and Procedures			63
			PART II — OTHER INFORMATION
ITEM 1.			Legal Proceedings			64
ITEM 1A.			Risk Factors			64
ITEM 2.			Unregistered Sales of Equity Securities and Use of Proceeds			64
ITEM 5.			Other Information			64
ITEM 6.			Exhibits			65
SIGNATURES						66

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Glossary of Defined Terms

Unless the context requires otherwise, references to “Viatris,” “the Company,” “we,” “us” or “our” in this Form 10-Q (defined below) refer to Viatris Inc. and its subsidiaries. We also have used several other terms in this Form 10-Q, most of which are explained or defined below. Some amounts in this Form 10-Q may not add due to rounding.

2003 LTIP			Mylan N.V. Amended and Restated 2003 Long-Term Incentive Plan
2020 Incentive Plan			Viatris Inc. 2020 Stock Incentive Plan
2023 Form 10-K			Viatris’ annual report on Form 10-K for the fiscal year ended December 31, 2023, as amended
Adjusted EBITDA			Non-GAAP financial measure that the Company believes is appropriate to provide information to investors - EBITDA (defined below) is further adjusted for share-based compensation expense, litigation settlements, and other contingencies, net, restructuring and other special items
ANDA			Abbreviated New Drug Application
Announced Divestitures			All of the following transactions: on October 1, 2023, Viatris announced it had received an offer for the divestiture of its OTC Business and had entered into definitive agreements to divest its women’s healthcare business and, separately, in another transaction, its rights to two women’s healthcare products in certain countries, its API business in India and commercialization rights in the Upjohn Distributor Markets
AOCE			Accumulated other comprehensive earnings
API			Active pharmaceutical ingredient
ARV			Antiretroviral medicines
ASC			Accounting Standards Codification
ASU			Accounting Standards Update
Biocon			Biocon Limited
Biocon Biologics			Biocon Biologics Limited, a majority owned subsidiary of Biocon
Biocon Biologics Transaction			The transaction between Viatris and Biocon Biologics pursuant to which Viatris contributed its biosimilars portfolio, composed of the Biocon collaboration programs, biosimilars to Humira®, Enbrel®, and Eylea®, as well as related assets and liabilities to Biocon Biologics
Biocon Agreement			The transaction agreement between Viatris and Biocon Biologics, dated February 27, 2022, relating to the Biocon Biologics Transaction, as amended from time to time
Business Combination Agreement			Business Combination Agreement, dated as of July 29, 2019, as amended from time to time, among Viatris, Mylan, Pfizer and certain of their affiliates
CAMT			U.S. corporate alternative minimum tax
CCPS			Compulsory convertible preferred shares
Code			The U.S. Internal Revenue Code of 1986, as amended
Combination			Refers to Mylan combining with Pfizer's Upjohn Business in a Reverse Morris Trust transaction to form Viatris on November 16, 2020
Commercial Paper Program			The $1.65 billion unsecured commercial paper program entered into as of November 16, 2020 by Viatris, as issuer, Mylan Inc., Utah Acquisition Sub Inc. and Mylan II B.V., as guarantors, and certain dealers from time to time
CP Notes			Unsecured, short-term commercial paper notes issued pursuant to the Commercial Paper Program
Developed Markets segment			Viatris’ business segment that includes our operations primarily in the following markets: North America and Europe
Distribution			Pfizer's distribution to Pfizer stockholders all the issued and outstanding shares of Upjohn Inc.
DOJ			U.S. Department of Justice
EBITDA			Non-GAAP financial measure that the Company believes is appropriate to provide information to investors - U.S. GAAP net earnings (loss) adjusted for income tax provision (benefit), interest expense and depreciation and amortization
EDPA			U.S. District Court for the Eastern District of Pennsylvania

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Emerging Markets segment			Viatris’ business segment that includes, but is not limited to, our operations primarily in the following markets: Parts of Asia, the Middle East, South and Central America, Africa, and Eastern Europe
EPS			Earnings per share
EU			European Union
Exchange Act			Securities Exchange Act of 1934, as amended
Famy Life Sciences			Famy Life Sciences Private Limited
FASB			Financial Accounting Standards Board
FDA			U.S. Food and Drug Administration
Form 10-Q			This quarterly report on Form 10-Q for the quarterly period ended March 31, 2024
GA Depot			Long-acting glatiramer acetate depot product
Global Systemically Important Banks			Financial institutions that are considered systemically important by the Financial Stability Board
Greater China segment			Viatris’ business segment that includes our operations primarily in the following markets: China, Taiwan and Hong Kong
Gx			Generic drugs
Idorsia			Idorsia Pharmaceuticals Ltd.
Idorsia Transaction			The transaction between Viatris and Idorsia pursuant to which Viatris acquired the development programs and certain personnel related to selatogrel and cenerimod from Idorsia in exchange for an upfront payment to Idorsia of $350 million, potential development and regulatory milestone payments, certain contingent payments of tiered sales milestones, as well as potential contingent tiered sales royalties
IPR&D			In-process research and development
IRS			U.S. Internal Revenue Service
IT			Information technology
JANZ segment			Viatris’ business segment that includes our operations in the following markets: Japan, Australia and New Zealand
Lilly			Eli Lilly and Company
Mapi			Mapi Pharma Ltd.
Maximum Leverage Ratio			The maximum consolidated leverage ratio financial covenant requiring maintenance of a maximum ratio of consolidated total indebtedness as of the end of any quarter to consolidated EBITDA for the trailing four quarters as defined in the related credit agreements from time to time
MDL			Multidistrict litigation
Mylan			Mylan N.V. and its subsidiaries
Mylan Inc. U.S. Dollar Notes			The 4.550% Senior Notes due 2028, 5.400% Senior Notes due 2043 and 5.200% Senior Notes due 2048 issued by Mylan Inc., which are fully and unconditionally guaranteed on a senior unsecured basis by Mylan II B.V., Viatris Inc. and Utah Acquisition Sub Inc.
NASDAQ			The NASDAQ Stock Market
NDA			New drug application
Note Securitization Facility			The note securitization facility entered into in August 2023 for borrowings up to $200 million and expiring in August 2024
OTC			Over-the-counter
OTC Business			Viatris’ OTC business that the Company has agreed to divest to Cooper Consumer Health SAS, including two manufacturing sites located in Merignac, France, and Confienza, Italy, and an R&D site in Monza, Italy. This excludes the Company’s rights for Viagra®, Dymista® (which, in certain limited markets, are sold as OTC products), and select OTC products in certain markets.
OTC Transaction			On October 1, 2023, Viatris announced it had received an offer for the divestiture of its OTC Business. In January 2024, we exercised our option to accept the offer and entered into a definitive transaction agreement with respect to such OTC Transaction.
Oyster Point			Oyster Point Pharma, Inc.
Pending Announced Divestitures			The remaining Announced Divestitures that have not been consummated
Pfizer			Pfizer Inc.

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PSUs			Performance awards
R&D			Research and development
Receivables Facility			The $400 million accounts receivable facility entered into in August 2020 and expiring in April 2025
Registered Upjohn Notes			The 1.650% Senior Notes due 2025, 2.300% Senior Notes due 2027, 2.700% Senior Notes due 2030, 3.850% Senior Notes due 2040 and 4.000% Senior Notes due 2050 originally issued on October 29, 2021 registered with the SEC in exchange for the corresponding Unregistered Upjohn U.S. Dollar Notes in a similar aggregate principal amount and with terms substantially identical to the corresponding Unregistered Upjohn U.S. Dollar Notes and fully and unconditionally guaranteed by Mylan Inc., Mylan II B.V. and Utah Acquisition Sub Inc.
Respiratory Delivery Platform			Pfizer’s proprietary dry powder inhaler delivery platform
Restricted Stock Awards			The Company’s nonvested restricted stock and restricted stock unit awards, including PSUs
Revolving Facility			The $4.0 billion revolving facility dated as of July 1, 2021, by and among Viatris, certain lenders and issuing banks from time to time party thereto and Bank of America, N.A., as administrative agent
RICO			Racketeer Influenced and Corrupt Organizations Act
Sanofi			Sanofi-Aventis U.S., LLC
SARs			Stock appreciation rights
SDNY			U.S. District Court for the Southern District of New York
SEC			U.S. Securities and Exchange Commission
Securities Act			Securities Act of 1933, as amended
Senior U.S. Dollar Notes			The Upjohn U.S. Dollar Notes, the Utah U.S. Dollar Notes and the Mylan Inc. U.S. Dollar Notes, collectively
Separation and Distribution Agreement			Separation and Distribution Agreement between Viatris and Pfizer, dated as of July 29, 2019, as amended from time to time
SG&A			Selling, general and administrative expenses
stock awards			Stock options and SARs
Teva			Teva Pharmaceutical Industries Ltd.
TSA			Transition services agreement
U.K.			United Kingdom
U.S.			United States
U.S. GAAP			Accounting principles generally accepted in the U.S.
Unregistered Upjohn U.S. Dollar Notes			The 1.650% Senior Notes due 2025, 2.300% Senior Notes due 2027, 2.700% Senior Notes due 2030, 3.850% Senior Notes due 2040 and 4.000% Senior Notes due 2050 originally issued on June 22, 2020 by Upjohn Inc. (now Viatris Inc.) in a private offering exempt from the registration requirements of the Securities Act and fully and unconditionally guaranteed by Mylan Inc., Mylan II B.V. and Utah Acquisition Sub Inc.
Upjohn			Upjohn Inc., a wholly owned subsidiary of Pfizer prior to the Distribution, that combined with Mylan and was renamed Viatris Inc.
Upjohn Business			Pfizer’s off-patent branded and generic established medicines business that, in connection with the Combination, was separated from Pfizer and combined with Mylan to form Viatris
Upjohn Distributor Markets			Select geographic markets that were part of the Combination that are smaller in nature and in which we had no established infrastructure prior to or following the Combination and that the Company has divested or intends to divest
Upjohn U.S. Dollar Notes			Senior unsecured notes denominated in U.S. dollars and originally issued by Upjohn Inc. or Viatris Inc. pursuant to an indenture dated June 22, 2020 and fully and unconditionally guaranteed by Mylan Inc., Mylan II B.V. and Utah Acquisition Sub Inc.
Utah Acquisition Sub			Utah Acquisition Sub Inc., a Delaware corporation and an indirect wholly owned subsidiary of Viatris

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Utah U.S. Dollar Notes			The 3.950% Senior Notes due 2026 and 5.250% Senior Notes due 2046 issued by Utah Acquisition Sub Inc., which are fully and unconditionally guaranteed on a senior unsecured basis by Mylan Inc., Viatris Inc. and Mylan II B.V.
Viatris			Viatris Inc., formerly known as Upjohn Inc. prior to the completion of the Combination
YEN Term Loan Facility			The ¥40 billion term loan agreement dated as of July 1, 2021, among Viatris, the guarantors from time to time party thereto, the lenders from time to time party thereto and Mizuho Bank, Ltd., as administrative agent

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PART I — FINANCIAL INFORMATION

VIATRIS INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(Unaudited; in millions, except per share amounts)

									Three Months Ended
									March 31,
															2024						2023
Revenues:
Net sales															$	3,653.5					$	3,719.1
Other revenues															9.9						10.0
Total revenues															3,663.4						3,729.1
Cost of sales															2,159.4						2,186.9
Gross profit															1,504.0						1,542.2
Operating expenses:
Research and development															199.7						182.9
Acquired IPR&D															6.1						—
Selling, general and administrative															1,017.5						958.9
Litigation settlements and other contingencies, net															76.8						0.6
Total operating expenses															1,300.1						1,142.4
Earnings from operations															203.9						399.8
Interest expense															138.4						147.0
Other income, net															(139.1)						(69.9)
Earnings before income taxes															204.6						322.7
Income tax provision															90.7						98.0
Net earnings															$	113.9					$	224.7
Earnings per share attributable to Viatris Inc. shareholders
Basic															$	0.10					$	0.19
Diluted															$	0.09					$	0.19
Weighted average shares outstanding:
Basic															1,195.2						1,202.5
Diluted															1,209.5						1,205.6

See Notes to Condensed Consolidated Financial Statements

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VIATRIS INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive (Loss) Earnings

(Unaudited; in millions)

									Three Months Ended
									March 31,
															2024						2023
Net earnings															$	113.9					$	224.7
Other comprehensive loss, before tax:
Foreign currency translation adjustment															(342.5)						45.3
Change in unrecognized (loss) gain and prior service cost related to defined benefit plans															(6.2)						1.3
Net unrecognized gain on derivatives in cash flow hedging relationships															28.7						2.8
Net unrecognized gain (loss) on derivatives in net investment hedging relationships															169.1						(66.2)
Net unrealized (loss) gain on available-for-sale fixed income securities															(0.3)						0.9
Other comprehensive loss, before tax															(151.2)						(15.9)
Income tax provision (benefit)															42.4						(12.5)
Other comprehensive loss, net of tax															(193.6)						(3.4)
Comprehensive (loss) earnings															$	(79.7)					$	221.3

See Notes to Condensed Consolidated Financial Statements

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VIATRIS INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Unaudited in millions, except share and per share amounts)

			March 31, 2024						December 31, 2023
ASSETS
Assets
Current assets:
Cash and cash equivalents			$	1,014.6					$	991.9
Accounts receivable, net			3,632.0						3,700.4
Inventories			3,823.2						3,469.7
Prepaid expenses and other current assets			1,933.3						2,028.1
Assets held for sale			2,520.4						2,786.0
Total current assets			12,923.5						12,976.1
Property, plant and equipment, net			2,708.2						2,759.6
Intangible assets, net			19,133.7						19,181.1
Goodwill			9,693.5						9,867.1
Deferred income tax benefit			653.2						692.9
Other assets			2,231.6						2,208.7
Total assets			$	47,343.7					$	47,685.5
LIABILITIES AND EQUITY
Liabilities
Current liabilities:
Accounts payable			$	2,196.9					$	1,938.2
Income taxes payable			148.4						226.8
Current portion of long-term debt and other long-term obligations			1,898.1						1,943.4
Liabilities held for sale			234.8						275.1
Other current liabilities			3,281.7						3,393.9
Total current liabilities			7,759.9						7,777.4
Long-term debt			16,072.5						16,188.1
Deferred income tax liability			1,671.9						1,735.7
Other long-term obligations			1,825.1						1,516.9
Total liabilities			27,329.4						27,218.1
Equity
Viatris Inc. shareholders’ equity
Common stock: $0.01 par value, 3,000,000,000 shares authorized; shares issued: 1,230,891,074 and 1,221,994,491 as of March 31, 2024 and December 31, 2023			12.3						12.2
Additional paid-in capital			18,839.8						18,814.7
Retained earnings			4,607.5						4,639.7
Accumulated other comprehensive loss			(2,941.0)						(2,747.4)
			20,518.6						20,719.2
Less: Treasury stock — at cost
Common stock shares: 40,483,663 and 21,239,521 as of March 31, 2024 and December 31, 2023			504.3						251.8
Total equity			20,014.3						20,467.4
Total liabilities and equity			$	47,343.7					$	47,685.5

See Notes to Condensed Consolidated Financial Statements

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VIATRIS INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Equity

(Unaudited; in millions, except share and per share amounts)

															Additional Paid-In Capital						Retained Earnings																		Accumulated Other Comprehensive Loss												Total Equity
			Common Stock																		Treasury Stock
			Shares						Cost												Shares						Cost
Balance at December 31, 2023			1,221,994,491						$	12.2					$	18,814.7					$	4,639.7					21,239,521						$	(251.8)					$	(2,747.4)											$	20,467.4
Net earnings			—						—						—						113.9						—						—						—												113.9
Other comprehensive loss, net of tax			—						—						—						—						—						—						(193.6)												(193.6)
Issuance of restricted stock and stock options exercised, net			8,842,107						0.1						6.6						—						—						—						—												6.7
Taxes related to the net share settlement of equity awards			—						—						(28.8)						—						—						—						—												(28.8)
Share-based compensation expense			—						—						46.7						—						—						—						—												46.7
Common stock repurchase			—						—						—						—						19,244,142						(252.5)						—												(252.5)
Issuance of common stock			54,476						—						0.6						—						—						—						—												0.6
Cash dividends declared, $0.12 per common share			—						—						—						(146.1)						—						—						—												(146.1)
Balance at March 31, 2024			1,230,891,074						$	12.3					$	18,839.8					$	4,607.5					40,483,663						$	(504.3)					$	(2,941.0)											$	20,014.3

															Additional Paid-In Capital						Retained Earnings																		Accumulated Other Comprehensive Loss												Total Equity
			Common Stock																		Treasury Stock
			Shares						Cost												Shares						Cost
Balance at December 31, 2022			1,213,793,231						$	12.1					$	18,645.8					$	5,175.6					—						$	—					$	(2,761.2)											$	21,072.3
Net earnings			—						—						—						224.7						—						—						—												224.7
Other comprehensive loss, net of tax			—						—						—						—						—						—						(3.4)												(3.4)
Issuance of restricted stock and stock options exercised, net			6,350,585						0.1						3.6						—						—						—						—												3.7
Taxes related to the net share settlement of equity awards			—						—						(19.4)						—						—						—						—												(19.4)
Share-based compensation expense			—						—						42.6						—						—						—						—												42.6
Common stock repurchase			—						—						—						—						21,239,521						(251.8)						—												(251.8)
Issuance of common stock			80,388						—						0.9						—						—						—						—												0.9
Cash dividends declared, $0.12 per common share			—						—						—						(147.8)						—						—						—												(147.8)
Other			—						—						6.1						—						—						—						—												6.1
Balance at March 31, 2023			1,220,224,204						$	12.2					$	18,679.6					$	5,252.5					21,239,521						$	(251.8)					$	(2,764.6)											$	20,927.9

See Notes to Condensed Consolidated Financial Statements

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VIATRIS INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited; in millions)

			Three Months Ended
			March 31,
			2024						2023
Cash flows from operating activities:
Net earnings			$	113.9					$	224.7
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization			691.0						730.0
Share-based compensation expense			46.7						42.6
Deferred income tax benefit			(51.9)						(26.7)
Gain on disposal of business			(70.4)						—
Acquired IPR&D			(5.2)						—
Other non-cash items			(3.0)						29.6
Litigation settlements and other contingencies, net			80.3						2.4
Changes in operating assets and liabilities:
Accounts receivable			9.8						215.0
Inventories			(370.4)						(151.1)
Accounts payable			287.9						183.4
Income taxes			(2.3)						(53.9)
Other operating assets and liabilities, net			(111.8)						(224.8)
Net cash provided by operating activities			614.6						971.2
Cash flows from investing activities:
Cash paid for acquisitions, net of cash acquired			(350.0)						(667.7)
Capital expenditures			(49.8)						(47.8)
Purchase of marketable securities			(7.7)						(9.0)
Proceeds from the sale of marketable securities			7.7						9.0
Payments for product rights and other, net			(1.0)						(34.7)
Refund of IPR&D			5.2						—
Proceeds from sale of assets and subsidiaries			240.6						—
Proceeds from the sale of property, plant and equipment			0.7						0.7
Net cash used in investing activities			(154.3)						(749.5)
Cash flows from financing activities:
Payments of long-term debt			—						(750.1)
Purchase of common stock			(250.0)						(250.0)
Change in short-term borrowings, net			—						204.6
Taxes paid related to net share settlement of equity awards			(28.7)						(30.0)
Contingent consideration payments			(10.9)						(8.4)
Cash dividends paid			(142.8)						(143.8)
Non-contingent payments for product rights			—						(9.7)
Issuance of common stock			0.6						0.9
Other items, net			6.2						11.8
Net cash used in financing activities			(425.6)						(974.7)
Effect on cash of changes in exchange rates			(12.4)						1.2
Net increase (decrease) in cash, cash equivalents and restricted cash			22.3						(751.8)
Cash, cash equivalents and restricted cash — beginning of period			993.6						1,262.5
Cash, cash equivalents and restricted cash — end of period			$	1,015.9					$	510.7

See Notes to Condensed Consolidated Financial Statements

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VIATRIS INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

**1.**General

The accompanying unaudited condensed consolidated financial statements (“interim financial statements”) of Viatris Inc. and subsidiaries were prepared in accordance with U.S. GAAP and the rules and regulations of the SEC for reporting on Form 10-Q; therefore, as permitted under these rules, certain footnotes and other financial information included in audited financial statements were condensed or omitted. The interim financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the interim results of operations, comprehensive loss, financial position, equity and cash flows for the periods presented.

These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto in Viatris’ 2023 Form 10-K. The December 31, 2023 condensed consolidated balance sheet was derived from audited financial statements.

The interim results of operations, comprehensive loss and cash flows for the three months ended March 31, 2024 are not necessarily indicative of the results to be expected for the full fiscal year or any other future period.

Beginning in 2024, upfront and milestone payments related to externally developed IPR&D projects acquired directly in a transaction other than a business combination, which were previously included in cash flows from operating activities in the condensed consolidated statements of cash flows, are now classified as cash flows from investing activities. There were no upfront and milestone payments in the prior year period.

**2.**Revenue Recognition and Accounts Receivable

The Company recognizes revenues in accordance with ASC 606, Revenue from Contracts with Customers. Under ASC 606, the Company recognizes net revenue for product sales when control of the promised goods or services is transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Revenues are recorded net of provisions for variable consideration, including discounts, rebates, governmental rebate programs, price adjustments, returns, chargebacks, promotional programs and other sales allowances. Accruals for these provisions are presented in the condensed consolidated financial statements as reductions in determining net sales and as a contra asset in accounts receivable, net (if settled via credit) and other current liabilities (if paid in cash).

Our net sales may be impacted by wholesaler and distributor inventory levels of our products, which can fluctuate throughout the year due to the seasonality of certain products, pricing, the timing of product demand, purchasing decisions and other factors. Such fluctuations may impact the comparability of our net sales between periods.

Consideration received from licenses of intellectual property is recorded as other revenues. Royalty or profit share amounts, which are based on sales of licensed products or technology, are recorded when the customer’s subsequent sales or usages occur. Such consideration is included in other revenues in the condensed consolidated statements of operations.

The following table presents the Company’s net sales by product category for each of our reportable segments for the three months ended March 31, 2024 and 2023, respectively:

(In millions)			Three Months Ended March 31, 2024
Product Category			Developed Markets						Greater China						JANZ						Emerging Markets						Total
Brands			$	1,178.8					$	541.8					$	184.1					$	404.4					$	2,309.1
Generics			986.6						2.1						133.7						222.0						1,344.4
Total Viatris			$	2,165.4					$	543.9					$	317.8					$	626.4					$	3,653.5

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(In millions)			Three Months Ended March 31, 2023
Product Category			Developed Markets						Greater China						JANZ						Emerging Markets						Total
Brands			$	1,232.0					$	562.4					$	190.3					$	435.6					$	2,420.3
Generics			938.4						2.2						151.9						206.3						1,298.8
Total Viatris			$	2,170.4					$	564.6					$	342.2					$	641.9					$	3,719.1

---

(a)Amounts for the three months ended March 31, 2024 include the impact of foreign currency translations compared to the prior year period.

(b)Complex Gx, which were previously presented as a separate line item in the prior year period, are now included within Generics. Reclassifications were made to prior periods to conform to the current period presentation.

The following table presents net sales on a consolidated basis for select key products for the three months ended March 31, 2024 and 2023, respectively:

						Three months ended March 31,
(In millions)						2024						2023
Select Key Global Products
Lipitor ®						$	388.9					$	417.9
Norvasc ®						176.3						202.7
Lyrica ®						114.2						144.3
Viagra ®						100.7						115.0
EpiPen® Auto-Injectors						80.2						95.8
Creon ®						75.0						72.7
Celebrex ®						72.2						88.8
Effexor ®						59.4						64.6
Zoloft ®						58.0						56.5
Xalabrands						42.5						46.7
Select Key Segment Products
Yupelri ®						$	55.2					$	47.0
Dymista ®						48.2						53.2
Xanax ®						34.5						39.7
Amitiza ®						33.0						36.6

---

(a)The Company does not disclose net sales for any products considered competitively sensitive.

(b)Products disclosed may change in future periods, including as a result of seasonality, competition or new product launches.

(c)Amounts for the three months ended March 31, 2024 include the impact of foreign currency translations compared to the prior year period.

(d)Refer to intellectual property matters included in Note 17 Litigation for additional information regarding Yupelri® and Amitiza®.

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Variable Consideration and Accounts Receivable

The following table presents a reconciliation of gross sales to net sales by each significant category of variable consideration during the three months ended March 31, 2024 and 2023, respectively:

									Three Months Ended
									March 31,
(In millions)															2024						2023
Gross sales															$	6,174.6					$	6,273.0
Gross to net adjustments:
Chargebacks															(1,244.2)						(1,350.7)
Rebates, promotional programs and other sales allowances															(1,048.3)						(992.2)
Returns															(60.3)						(50.4)
Governmental rebate programs															(168.3)						(160.6)
Total gross to net adjustments															$	(2,521.1)					$	(2,553.9)
Net sales															$	3,653.5					$	3,719.1

No significant revisions were made to the methodology used in determining these provisions or the nature of the provisions during the three months ended March 31, 2024. Such allowances were comprised of the following at March 31, 2024 and December 31, 2023, respectively:

(In millions)			March 31, 2024						December 31, 2023
Accounts receivable, net			$	1,482.5					$	1,483.6
Other current liabilities			1,008.8						996.3
Total			$	2,491.3					$	2,479.9

Accounts receivable, net was comprised of the following at March 31, 2024 and December 31, 2023, respectively:

(In millions)			March 31, 2024						December 31, 2023
Trade receivables, net			$	2,790.0					$	2,823.8
Other receivables			842.0						876.6
Accounts receivable, net			$	3,632.0					$	3,700.4

Accounts Receivable Factoring Arrangements

We have entered into accounts receivable factoring agreements with financial institutions to sell certain of our non-U.S. accounts receivable. These transactions are accounted for as sales and result in a reduction in accounts receivable because the agreements transfer effective control over and risk related to the receivables to the buyers. Our factoring agreements do not allow for recourse in the event of uncollectibility, and we do not retain any interest in the underlying accounts receivable once sold. We derecognized $64.2 million and $30.8 million of accounts receivable as of March 31, 2024 and December 31, 2023, respectively, under these factoring arrangements. Additionally, in 2023, we entered into a similar arrangement for certain European countries. As of March 31, 2024 and December 31, 2023, we have assigned and derecognized approximately $285.6 million and $415.7 million, respectively, of Trade Receivables, Net, which are now included in Other Receivables.

**3.**Recent Accounting Pronouncements

Accounting Standards and Disclosure Rules Issued Not Yet Adopted

In March 2024, the SEC adopted final rules under SEC Release No. 34-99678 and No. 33-11275, “The Enhancement and Standardization of Climate-Related Disclosures for Investors” (the “Final Rules”), which will require registrants to provide certain climate-related information in their registration statements and annual reports. The Final Rules require, among other

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things, disclosure in the notes to the audited financial statements of the effects of severe weather events and other natural conditions, subject to certain thresholds, as well as amounts related to carbon offsets and renewable energy credits or certificates in certain circumstances. The Final Rules will also require disclosure outside of the financial statements of material scope 1 and scope 2 greenhouse gas emissions, among other climate-related disclosures. The disclosure requirements of the Final Rules will begin phasing in for the Company for fiscal year 2025. In April 2024, the SEC stayed the effectiveness of the Final Rules. The Company is currently assessing the impact of the new rules on its consolidated financial statements and disclosures.

There were no other significant changes in new accounting standards from those disclosed in Viatris’ 2023 Form 10-K. Refer to Viatris’ 2023 Form 10-K for additional information.

**4.**Acquisitions and Other Transactions

Idorsia

On March 15, 2024, the Company acquired the development programs and certain personnel related to selatogrel and cenerimod from Idorsia in exchange for an upfront payment to Idorsia of $350 million, potential milestone payments (including $300 million payable upon the achievement of certain development and regulatory milestones, and $2.1 billion payable upon the achievement of certain tiered sales milestones), as well as potential contingent tiered sales royalties. Viatris and Idorsia are both contributing to the development costs for both programs. Viatris has worldwide commercialization rights for both selatogrel and cenerimod (excluding, for cenerimod only, Japan, South Korea and certain countries in the Asia-Pacific region). A joint development committee is overseeing the development of the ongoing Phase 3 programs through regulatory approval. The agreements also provide Viatris a right of first refusal and a right of first negotiation for certain other assets in Idorsia’s pipeline. The transaction expands our portfolio of innovative assets by adding two Phase 3 assets and combines our financial strength and worldwide operational infrastructure with Idorsia’s proven, highly-productive drug development team and innovation engine.

In accordance with U.S. GAAP, the transaction has been accounted for as a business combination under the acquisition method of accounting. Under the acquisition method of accounting, the assets acquired and liabilities assumed in the transaction were recorded at their respective estimated fair values at the acquisition date. During the three months ended March 31, 2024, the Company incurred acquisition-related costs of approximately $0.3 million, which were recorded primarily in SG&A in the condensed consolidated statements of operations.

The U.S. GAAP purchase price allocated to the transaction was $695 million, which consisted of $350 million of cash consideration paid and estimated contingent consideration at the date of acquisition valued at approximately $345 million. The fair value of the contingent consideration was valued using a Monte Carlo simulation model using Level 3 inputs. The fair value is sensitive to changes in the forecasts of operating metrics, probability of success, and discount rates. Refer to Note 11, Financial Instruments and Risk Management, for additional information. The preliminary allocation of the purchase price to the assets acquired and liabilities assumed is as follows:

(In millions)
Current assets			$	2.1
IPR&D			675.0
Goodwill			19.5
Total assets acquired			$	696.6
Current liabilities			1.6
Net assets acquired			$	695.0

The preliminary fair value estimates for the assets acquired and liabilities assumed were based upon preliminary calculations, valuations and assumptions that are subject to change as the Company obtains additional information during the measurement period (up to one year from the acquisition date). The primary areas subject to change relate to the finalization of the valuation of IPR&D, contingent consideration, and income taxes.

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The amount allocated to IPR&D represents an estimate of the fair value of purchased in-process technology for research projects that, as of the closing date of the acquisition, had not reached technological feasibility and had no alternative future use. The fair value of IPR&D of $675 million was based on the excess earnings method, which utilizes forecasts of expected cash inflows (including estimates for ongoing costs) and other contributory charges. A discount rate of 20% was utilized to discount net cash inflows to present values. IPR&D is accounted for as an indefinite-lived intangible asset and will be subject to impairment testing until completion or abandonment of the projects. Upon successful completion and launch of each product, the Company will make a determination of the estimated useful life of the individual asset. Viatris and Idorsia will both contribute to the development costs for both programs, which are expected to be incurred through 2026. There are risks and uncertainties associated with the timely and successful completion of the projects included in IPR&D, and no assurances can be given that the underlying assumptions used to estimate the fair value of IPR&D will not change or the timely completion of each project to commercial success will occur.

The goodwill of $19.5 million arising from the acquisition consisted largely of the value of the employee workforce and the expected value of products to be developed in the future. All of the goodwill was assigned to the Developed Markets segment. None of the goodwill recognized in this transaction is currently expected to be deductible for income tax purposes. The acquisition did not have a material impact on the Company’s results of operations since the acquisition date or on a pro forma basis for the three months ended March 31, 2024 and 2023.

**5.**Divestitures

On October 1, 2023, the Company announced it received an offer for the divestiture of its OTC Business, and entered into definitive agreements to divest its women’s healthcare business and, separately, in another transaction, its rights to two women’s healthcare products in certain countries, its API business in India and commercialization rights in the Upjohn Distributor Markets. The OTC, API and women’s healthcare businesses are deemed businesses for U.S. GAAP accounting purposes. As such, the assets and liabilities include an allocation of goodwill. The sale of the rights to two women’s healthcare products in certain countries was accounted for as an asset sale. In conjunction with these transactions, Viatris and the respective buyers have entered or will enter into various agreements to provide a framework for our relationship with the respective buyers after the closing of the divestitures, including TSAs, manufacturing and supply agreements, and distribution agreements, as necessary.

During the three months ended March 31, 2024 and 2023, the Company recognized TSA income related to the divestitures of approximately $13.4 million and $45.7 million, respectively, as a component of Other Income, Net.

Women’s Healthcare

In the third quarter of 2023, Viatris executed an agreement to divest its women’s healthcare business, primarily related to oral and injectable contraceptives, to Insud Pharma, S. L., a leading Spanish multinational pharmaceutical company. The divestiture of the women’s healthcare business is primarily related to our oral and injectable contraceptives and does not include all of our women’s healthcare related products; as an example, our Xulane® product in the U.S. is excluded. The transaction includes two manufacturing facilities in India. Assets and liabilities associated with the women’s healthcare business to be divested were classified as held for sale in the consolidated balance sheet as of December 31, 2023. The transaction closed in March 2024 and upon closing, the Company recognized a pre-tax gain on sale of approximately $80.8 million for the difference between the consideration received and the carrying value of the assets transferred (including an allocation of goodwill). The gain was recorded as a component of Other Income, Net in the condensed consolidated statement of operations during the three months ended March 31, 2024.

In the third quarter of 2023, Viatris also entered into a separate agreement to divest its rights to women’s healthcare products Duphaston® and Femoston® in certain countries to Theramex HQ UK Limited, a leading global specialty pharmaceutical company dedicated to women’s health. The transaction (other than in the U.K., which remains subject to regulatory approval) closed in December 2023, and upon closing, the Company recognized a pre-tax gain on sale of approximately $156.2 million in that quarter for the difference between the consideration received and the carrying value of the assets transferred. The gain was recorded as a component of SG&A expense in the consolidated statement of operations during the year ended December 31, 2023.

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OTC

On October 1, 2023, Viatris received an offer from Cooper Consumer Health SAS, a leading European OTC drug manufacturer and distributor, for Viatris to divest its OTC Business, including two manufacturing sites located in Merignac, France, and Confienza, Italy, and an R&D site in Monza, Italy. In January 2024, we exercised our option to accept the offer in the OTC Transaction and entered into a definitive transaction agreement with respect to such OTC Transaction. The Company will retain rights for Viagra®, Dymista® (which, in certain limited markets, are sold as OTC products) and select OTC products in certain markets. The Company currently expects the OTC Transaction to close by mid-year 2024. The transaction remains subject to regulatory approvals, receipt of required consents and other closing conditions.

The OTC Business to be divested met the criteria to be classified as held for sale on October 1, 2023. As such, the related assets and liabilities were classified as held for sale in the condensed consolidated balance sheets as of March 31, 2024 and December 31, 2023. Upon classification as held for sale in the fourth quarter of 2023, we recognized a total charge of approximately $734.7 million, which was comprised of a goodwill impairment charge of approximately $580.1 million (recorded as a component of SG&A expense), and a charge of approximately $154.7 million to write down the disposal group to fair value, less cost to sell (recorded as a component of Other Income, Net) in the consolidated statement of operations.

API

On October 1, 2023, Viatris executed an agreement to divest its API business in India to Matrix Pharma Private Limited, an affiliate of IQuest Enterprises Private Limited, a privately held pharmaceutical company based in India. The transaction includes three manufacturing sites and a R&D lab in Hyderabad, three manufacturing sites in Vizag and third-party API sales. Viatris will retain some selective R&D capabilities in API. The API business in India met the criteria to be classified as held for sale on October 1, 2023 and the related assets and liabilities were reclassified as held for sale in the consolidated balance sheet as of December 31, 2023. The transaction is expected to close imminently. The Company recognized a pre-tax charge of approximately $10.4 million to write down the disposal group to fair value, less cost to sell (recorded as a component of Other Income, Net) in the condensed consolidated statement of operations.

Upjohn Distributor Markets

In the fourth quarter of 2022, the commercialization rights in the Upjohn Distributor Markets met the criteria to be classified as held for sale. Upon classification as held for sale, the Company recognized a total charge of $374.2 million in 2022, which was comprised of a goodwill impairment charge of $117.0 million, other charges, principally inventory write-offs, of $84.3 million and a charge of approximately $172.9 million to write down the disposal group to fair value, less cost to sell. During the year ended December 31, 2023, the Company recorded additional charges totaling $136.4 million, primarily consisting of losses on the disposals of $85.2 million, which were recorded as a component of Other Income, Net. The additional charges include inventory reserves of $9.2 million and an intangible asset charge of $32.0 million to write down the disposal group to fair value, less cost to sell, in each case during the three months ended March 31, 2023. The divestitures of the commercialization rights in certain of the Upjohn Distributor Markets closed during 2023 and the remaining transactions are expected to be completed during 2024. If the remaining transactions are not completed, the distribution arrangements will expire in accordance with our agreement with Pfizer and the Company will wind down operations in these markets, which may result in additional asset write-offs and other costs being incurred.

Biocon Biologics Transaction

On November 29, 2022, Viatris completed a transaction to contribute its biosimilars portfolio to Biocon Biologics. Under the terms of the Biocon Agreement, Viatris received $3 billion in consideration in the form of a $2 billion cash payment, adjusted as set forth in the Biocon Agreement, and approximately $1 billion of CCPS representing a stake of approximately 12.9% (on a fully diluted basis) in Biocon Biologics. During the three months ended March 31, 2024 and 2023, the Company recorded a gain of $46.9 million and a loss of $2.6 million, respectively, as a component of Other Income, Net, as a result of remeasuring the CCPS in Biocon Biologics to fair value. The Company’s CCPS in Biocon Biologics are classified as equity securities and are included in Other Assets in the condensed consolidated balance sheets. The fair value is reassessed quarterly. Refer to Note 11 Financial Instruments and Risk Management for further discussion. Viatris also is entitled to $335 million of additional cash payments in 2024. In addition, Viatris and Biocon Biologics have agreed to a closing working capital target of $250 million, of which $220 million was paid during 2023. Refer to Note 8 Balance Sheet Components for additional information on assets and liabilities related to Biocon Biologics.

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At the time of closing of the Biocon Biologics Transaction, Viatris and Biocon Biologics also entered an agreement pursuant to which Viatris was providing commercialization and certain other transition services on behalf of Biocon Biologics, including billings, collections, and the remittance of rebates, to ensure business continuity for patients, customers and colleagues. Biocon Biologics had substantially exited all transition services with Viatris as of December 31, 2023.

Assets and Liabilities Held for Sale

Assets and liabilities held for sale consisted of the following:

(In millions)						March 31, 2024						December 31, 2023
Assets held for sale
Accounts receivable, net						$	57.6					$	112.1
Inventories						408.9						422.4
Prepaid expenses and other current assets						5.0						7.5
Property, plant and equipment, net						239.0						262.2
Intangible assets, net						1,846.5						1,946.0
Goodwill						119.1						188.0
Other assets						3.3						5.1
Valuation allowance on assets held for sale						(159.0)						(157.3)
Total assets held for sale						$	2,520.4					$	2,786.0
Liabilities held for sale
Accounts payable						$	126.2					$	137.4
Other current liabilities						34.0						35.3
Deferred income tax liability						48.8						77.2
Other long-term obligations						25.8						25.2
Total liabilities held for sale						$	234.8					$	275.1

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**6.**Share-Based Incentive Plan

Prior to the Distribution, Viatris adopted and Pfizer, in the capacity as Viatris’ sole stockholder at such time, approved the 2020 Incentive Plan (the Viatris Inc. 2020 Stock Incentive Plan) which became effective as of the Distribution. In connection with the Combination, as of November 16, 2020, the Company assumed the 2003 LTIP (Mylan N.V. Amended and Restated 2003 Long-Term Incentive Plan), which had previously been approved by Mylan shareholders. The 2020 Incentive Plan includes 72,500,000 shares of Viatris’ common stock authorized for grant pursuant to the 2020 Incentive Plan, which may include dividend payments payable in common stock on unvested shares granted under awards. No shares remain available for issuance under the 2003 LTIP, however, certain awards remain outstanding under the plan.

Under the 2020 Incentive Plan, shares are reserved for issuance to key employees, consultants, independent contractors and non-employee directors of the Company through a variety of incentive awards, including: stock options, SARs, restricted stock and units, PSUs, other stock-based awards and short-term cash awards. Stock option awards are granted with an exercise price equal to the fair market value of the shares underlying the stock options at the date of the grant, generally become exercisable over periods ranging from three to four years, and generally expire in ten years.

The following table summarizes stock awards (stock options and SARs) activity:

			Number of Shares Under Stock Awards						Weighted Average Exercise Price per Share
Outstanding at December 31, 2023			4,159,333						$	37.41
Exercised			(18,012)						9.02
Forfeited			(417,916)						$	53.13
Outstanding at March 31, 2024			3,723,405						$	35.79
Vested and expected to vest at March 31, 2024			3,707,337						$	35.90
Exercisable at March 31, 2024			3,597,026						$	36.72

As of March 31, 2024, stock awards outstanding, stock awards vested and expected to vest, and stock awards exercisable had average remaining contractual terms of 3.8 years, 3.7 years and 3.6 years, respectively. Also, at March 31, 2024, stock awards outstanding, stock awards vested and expected to vest, and stock awards exercisable had aggregate intrinsic values of $0.8 million, $0.8 million, and $0.4 million, respectively.

A rollforward of the changes in the Company’s nonvested Restricted Stock Awards (restricted stock and restricted stock unit awards, including PSUs) from December 31, 2023 to March 31, 2024 is presented below:

			Number of Restricted Stock Awards						Weighted Average Grant-Date Fair Value Per Share
Nonvested at December 31, 2023			31,096,783						$	11.20
Granted			13,326,359						12.38
Released			(10,336,912)						11.92
Forfeited			(1,305,912)						11.00
Nonvested at March 31, 2024			32,780,318						$	11.46

As of March 31, 2024, the Company had $287.6 million of total unrecognized compensation expense, net of estimated forfeitures, related to all of its stock-based awards, which we expect to recognize over the remaining weighted average vesting period of 1.8 years. The total intrinsic value of Restricted Stock Awards released and stock options exercised during the three months ended March 31, 2024 and 2023 was $129.0 million and $100.8 million, respectively.

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**7.**Pensions and Other Postretirement Benefits

Defined Benefit Plans

The Company sponsors various defined benefit pension plans in several countries. Benefits provided generally depend on length of service, pay grade and remuneration levels. Employees in the U.S., Puerto Rico and certain international locations are also provided retirement benefits through defined contribution plans.

The Company also sponsors other postretirement benefit plans including plans that provide for postretirement supplemental medical coverage. Benefits from these plans are provided to employees and their spouses and dependents who meet various minimum age and service requirements. In addition, the Company sponsors other plans that provide for life insurance benefits and postretirement medical coverage for certain officers and management employees.

Net Periodic Benefit Cost

Components of net periodic benefit cost for the three months ended March 31, 2024 and 2023 were as follows:

															Pension and Other Postretirement Benefits
									Three Months Ended
									March 31,
(In millions)															2024						2023
Service cost															$	7.9					$	7.1
Interest cost															16.6						18.3
Expected return on plan assets															(16.9)						(16.4)
Amortization of prior service costs															0.5						—
Recognized net actuarial gains															(4.3)						(5.0)
Net periodic benefit cost															$	3.8					$	4.0

The Company is making the minimum mandatory contributions to its defined benefit pension plans in the U.S. and Puerto Rico for the 2024 plan year. The Company expects to make total benefit payments of approximately $114.4 million from pension and other postretirement benefit plans in 2024. The Company anticipates making contributions to pension and other postretirement benefit plans of approximately $61.3 million in 2024.

**8.**Balance Sheet Components

Selected balance sheet components consist of the following:

Cash and restricted cash

(In millions)			March 31, 2024						December 31, 2023						March 31, 2023
Cash and cash equivalents			$	1,014.6					$	991.9					$	506.6
Restricted cash, included in prepaid expenses and other current assets			1.3						1.7						4.1
Cash, cash equivalents and restricted cash			$	1,015.9					$	993.6					$	510.7

Inventories

(In millions)			March 31, 2024						December 31, 2023
Raw materials			$	686.7					$	731.7
Work in process			1,097.5						602.1
Finished goods			2,039.0						2,135.9
Inventories			$	3,823.2					$	3,469.7

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Prepaid expenses and other current assets

(In millions)			March 31, 2024						December 31, 2023
Prepaid expenses			$	178.9					$	155.9
Deferred consideration due from Biocon Biologics			328.3						321.2
Available-for-sale fixed income securities			38.7						37.0
Fair value of financial instruments			73.3						106.2
Equity securities			52.1						49.3
Deferred charge for taxes on intercompany profit			701.8						747.3
Income tax receivable			310.7						340.2
Other current assets			249.5						271.0
Prepaid expenses and other current assets			$	1,933.3					$	2,028.1

Prepaid expenses consist primarily of prepaid rent, insurance and other individually insignificant items.

Property, plant and equipment, net

(In millions)			March 31, 2024						December 31, 2023
Machinery and equipment			$	2,745.8					$	2,774.5
Buildings and improvements			1,438.8						1,444.4
Construction in progress			406.5						431.2
Land and improvements			114.6						120.2
Gross property, plant and equipment			4,705.7						4,770.3
Accumulated depreciation			1,997.5						2,010.7
Property, plant and equipment, net			$	2,708.2					$	2,759.6

Other assets

(In millions)			March 31, 2024						December 31, 2023
Non-marketable equity investments			$	165.7					$	165.7
CCPS in Biocon Biologics			1,023.2						976.3
Operating lease right-of-use assets			242.1						245.6
Other long-term assets			800.6						821.1
Other assets			$	2,231.6					$	2,208.7

Accounts payable

(In millions)			March 31, 2024						December 31, 2023
Trade accounts payable			$	1,584.0					$	1,381.4
Other payables			612.9						556.8
Accounts payable			$	2,196.9					$	1,938.2

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Other current liabilities

(In millions)			March 31, 2024						December 31, 2023
Accrued sales allowances			$	1,008.8					$	996.3
Legal and professional accruals, including litigation accruals			321.6						244.0
Payroll and employee benefit liabilities			598.2						844.5
Contingent consideration (1)			105.2						76.1
Accrued restructuring			29.9						36.4
Accrued interest			204.7						66.8
Fair value of financial instruments			70.1						124.6
Operating lease liability			91.8						83.0
Other			851.4						922.2
Other current liabilities			$	3,281.7					$	3,393.9

Other long-term obligations

(In millions)			March 31, 2024						December 31, 2023
Employee benefit liabilities			$	495.1					$	504.3
Contingent consideration (2)			464.7						139.0
Tax related items, including contingencies			406.3						399.3
Operating lease liability			156.2						165.4
Accrued restructuring			57.9						59.2
Other			244.9						249.7
Other long-term obligations			$	1,825.1					$	1,516.9

(1) Balance as of March 31, 2024 includes $30.0 million due to Biocon Biologics. Refer to Note 11 Financial Instruments and Risk Management for additional information.

(2) Balance as of March 31, 2024 includes $345 million related to the Idorsia Transaction. Refer to Note 4 Acquisitions and Other Transactions for additional information.

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VIATRIS INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

**9.**Earnings per Share

Basic earnings per share is computed by dividing net earnings attributable to holders of Viatris Inc. common stock by the weighted average number of shares outstanding during the period. Diluted earnings per share is computed by dividing net earnings attributable to holders of Viatris Inc. common stock by the weighted average number of shares outstanding during the period increased by the number of additional shares that would have been outstanding related to potentially dilutive securities or instruments, if the impact is dilutive.

Basic and diluted earnings per share attributable to Viatris Inc. are calculated as follows:

									Three Months Ended
									March 31,
(In millions, except per share amounts)															2024						2023
Basic earnings attributable to Viatris Inc. common shareholders (numerator):
Net earnings attributable to Viatris Inc. common shareholders															$	113.9					$	224.7
Shares (denominator):
Weighted average shares outstanding															1,195.2						1,202.5
Basic earnings per share attributable to Viatris Inc. shareholders															$	0.10					$	0.19
Diluted earnings attributable to Viatris Inc. common shareholders (numerator):
Net earnings attributable to Viatris Inc. common shareholders															$	113.9					$	224.7
Shares (denominator):
Weighted average shares outstanding															1,195.2						1,202.5
Share-based awards															14.3						3.1
Total dilutive shares outstanding															1,209.5						1,205.6
Diluted earnings per share attributable to Viatris Inc. shareholders															$	0.09					$	0.19

Additional stock awards and Restricted Stock Awards were outstanding during the three months ended March 31, 2024 and 2023, but were not included in the computation of diluted earnings per share for each respective period because the effect would be anti-dilutive. Excluded shares at March 31, 2024 also include certain share-based compensation awards and restricted shares whose performance conditions had not been fully met. Such excluded shares and anti-dilutive awards represented 7.9 million shares and 13.9 million shares for the three months ended March 31, 2024 and 2023, respectively.

The Company paid a quarterly dividend of $0.12 per share on the Company’s issued and outstanding common stock on March 18, 2024. On May 6, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $0.12 per share on the Company’s issued and outstanding common stock, which will be payable on June 14, 2024 to shareholders of record as of the close of business on May 24, 2024. The declaration and payment of future dividends to holders of the Company’s common stock will be at the discretion of the Board of Directors, and will depend upon factors, including but not limited to, the Company’s financial condition, earnings, capital requirements of its businesses, legal requirements, regulatory constraints, industry practice, and other factors that the Board of Directors deems relevant.

On February 28, 2022, the Company announced that its Board of Directors had authorized a share repurchase program for the repurchase of up to $1.0 billion of the Company’s shares of common stock. The Company subsequently announced that on February 26, 2024, its Board of Directors authorized a $1.0 billion increase to the Company’s previously announced $1.0 billion share repurchase program. As a result, the Company’s share repurchase program now authorizes the repurchase of up to $2.0 billion of the Company’s shares of common stock. Such repurchases may be made from time-to-time at the Company’s discretion and effected by any means, including but not limited to, open market repurchases, pursuant to plans in accordance with Rules 10b5-1 or 10b-18 under the Exchange Act, privately negotiated transactions (including accelerated stock repurchase programs) or any combination of such methods as the Company deems appropriate. The program does not have an expiration date. During the three months ended March 31, 2024 and 2023, the Company repurchased approximately 19.2 million shares of common stock at a cost of approximately $250 million and approximately 21.2 million shares of common stock at a cost of approximately $250 million, respectively, under the program. As of March 31, 2024, the Company had repurchased a total of $500 million in shares under the program. The share repurchase program does not obligate the Company to acquire any particular amount of common stock.

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VIATRIS INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

**10.**Goodwill and Intangible Assets

Goodwill

The changes in the carrying amount of goodwill for the three months ended March 31, 2024 are as follows:

(In millions)			Developed Markets (1)						Greater China						JANZ (2)						Emerging Markets (3)						Total
Balance at December 31, 2023:			7,107.4						932.8						645.7						1,181.2						9,867.1
Acquisitions			19.5						—						—						—						19.5
Foreign currency translation			(153.5)						(7.5)						(24.6)						(7.5)						(193.1)
Balance at March 31, 2024:			$	6,973.4					$	925.3					$	621.1					$	1,173.7					$	9,693.5

---

(1)Balances as of March 31, 2024 and December 31, 2023 include an accumulated impairment loss of $929.0 million.

(2)Balances as of March 31, 2024 and December 31, 2023 include an accumulated impairment loss of $30.0 million.

(3)Balances as of March 31, 2024 and December 31, 2023 include an accumulated impairment loss of $124.0 million.

Intangible Assets, Net

Intangible assets consist of the following components at March 31, 2024 and December 31, 2023:

(In millions)			Weighted Average Life (Years)						Original Cost						Accumulated Amortization						Net Book Value
March 31, 2024
Product rights, licenses and other (1)			13						$	33,830.4					$	15,690.8					$	18,139.6
In-process research and development									994.1						—						994.1
									$	34,824.5					$	15,690.8					$	19,133.7
December 31, 2023
Product rights, licenses and other (1)			13						$	34,178.1					$	15,316.4					$	18,861.7
In-process research and development									319.4						—						319.4
									$	34,497.5					$	15,316.4					$	19,181.1

---

(1)Represents amortizable intangible assets. Other intangible assets consist principally of customer lists and contractual rights.

During the three months ended March 31, 2024, the Company recorded IPR&D of approximately $675.0 million as part of the Idorsia Transaction. Refer to Note 4 Acquisitions and Other Transactions for additional information.

Amortization expense and intangible asset disposal & impairment charges (which are included as a component of amortization expense) are classified primarily within Cost of Sales in the condensed consolidated statements of operations and were as follows for the three months ended March 31, 2024 and 2023:

									Three Months Ended
									March 31,
(In millions)															2024						2023
Intangible asset amortization expense															$	601.0					$	603.3
Intangible asset disposal & impairment charges															—						32.0
Total intangible asset amortization expense (including disposal & impairment charges)															$	601.0					$	635.3

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VIATRIS INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

During the three months ended March 31, 2023, the Company recognized an intangible asset charge of approximately $32.0 million, which was recorded within Cost of Sales in the condensed consolidated statement of operations, to write down the disposal group to fair value, less cost to sell, related to our commercialization rights in the Upjohn Distributor Markets, which are classified as held for sale. Refer to Note 5 Divestitures for additional information.

Intangible asset amortization expense over the remainder of 2024 and for the years ending December 31, 2025 through 2028 is estimated to be as follows:

(In millions)
2024			$	1,750
2025			2,255
2026			2,205
2027			2,006
2028			1,769

**11.**Financial Instruments and Risk Management

The Company is exposed to certain financial risks relating to its ongoing business operations. The primary financial risks that are managed by using derivative instruments are foreign currency risk and interest rate risk.

Foreign Currency Risk Management

In order to manage certain foreign currency risks, the Company enters into foreign exchange forward contracts to mitigate risk associated with changes in spot exchange rates of mainly non-functional currency denominated assets or liabilities. The foreign exchange forward contracts are measured at fair value and reported as current assets or current liabilities in the condensed consolidated balance sheets. Any gains or losses on the foreign exchange forward contracts are recognized in earnings in the period incurred in the condensed consolidated statements of operations.

The Company has also entered into forward contracts to hedge forecasted foreign currency denominated sales from certain international subsidiaries and a portion of forecasted intercompany inventory sales denominated in Euro, Japanese Yen, Chinese Renminbi and Indian Rupee for up to twenty-four months. These contracts are designated as cash flow hedges to manage foreign currency transaction risk and are measured at fair value and reported as current assets or current liabilities in the condensed consolidated balance sheets. Any changes in the fair value of designated cash flow hedges are deferred in AOCE and are reclassified into earnings when the hedged item impacts earnings.

Net Investment Hedges

The Company may hedge the foreign currency risk associated with certain net investment positions in foreign subsidiaries by either borrowing directly in foreign currencies and designating all or a portion of the foreign currency debt as a hedge of the applicable net investment position or entering into foreign currency swaps that are designated as hedges of net investments.

The Company has designated certain Euro and Yen borrowings as a hedge of its investment in certain Euro-functional and Yen-functional currency subsidiaries in order to manage foreign currency translation risk. Borrowings designated as net investment hedges are marked-to-market using the current spot exchange rate as of the end of the period, with gains and losses included in the foreign currency translation component of AOCE until the sale or substantial liquidation of the underlying net investments. In addition, the Company manages the related foreign exchange risk of the Euro and Yen borrowings not designated as net investment hedges through certain Euro and Yen denominated financial assets and forward currency swaps.

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VIATRIS INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

The following table summarizes the principal amounts of the Company’s outstanding Euro and Yen borrowings and the notional amounts of the Euro and Yen borrowings designated as net investment hedges:

												Notional Amount Designated as a Net Investment Hedge
(In millions)						Principal Amount						March 31, 2024						December 31, 2023
2.250% Euro Senior Notes due 2024						€	1,000.0					€	1,000.0					€	1,000.0
1.023% Euro Senior Notes due 2024						750.0						750.0						750.0
2.125% Euro Senior Notes due 2025						500.0						500.0						500.0
1.362% Euro Senior Notes due 2027						850.0						850.0						850.0
3.125% Euro Senior Notes due 2028						750.0						750.0						750.0
1.908% Euro Senior Notes due 2032						1,250.0						1,250.0						1,250.0
Foreign currency forward contracts						500.0						500.0						500.0
Euro Total						€	5,600.0					€	5,600.0					€	5,600.0
Yen
YEN Term Loan						¥	40,000.0					¥	40,000.0					¥	40,000.0
Yen Total						¥	40,000.0					¥	40,000.0					¥	40,000.0

At March 31, 2024, the principal amount of the Company’s outstanding Yen borrowings and the notional amount of the Yen borrowings designated as net investment hedges was $264.3 million.

During the third quarter of 2023, the Company executed fixed-rate cross-currency interest rate swaps with notional amounts totaling Japanese Yen 14.6 billion with settlement dates through 2026. The transactions hedge a portion of the Company’s net investment in certain Yen-functional currency subsidiaries. All changes in the fair value of this derivative instrument, which is designated as a net investment hedge, are marked-to-market using the current spot exchange rate as of the end of the period. The portion of this change related to the excluded component will be amortized in interest expense over the life of the derivative while the remainder will be recorded in AOCE until the sale or substantial liquidation of the underlying net investments. The semiannual net interest payment received related to the fixed-rate component of the cross-currency interest rate swaps will be reflected in operating cash flows.

During the fourth quarter of 2023, the Company executed foreign currency forward contracts with notional amounts totaling Euro 500 million with settlement dates in 2024. The transactions hedge a portion of the Company’s net investment in certain Euro functional currency subsidiaries. The contracts have been designated as a net investment hedge.

During the second quarter of 2024, the Company executed fixed-rate cross-currency interest rate swaps with notional amounts totaling Euro 500 million with settlement dates through 2026. The transactions hedge a portion of the Company’s net investment in certain Euro-functional currency subsidiaries. All changes in the fair value of this derivative instrument, which is designated as a net investment hedge, are marked-to-market using the current spot exchange rate as of the end of the period. The portion of this change related to the excluded component will be amortized in interest expense over the life of the derivative while the remainder will be recorded in AOCE until the sale or substantial liquidation of the underlying net investments. The semiannual net interest payment received related to the fixed-rate component of the cross-currency interest rate swaps will be reflected in operating cash flows.

Interest Rate Risk Management

The Company enters into interest rate swaps from time to time in order to manage interest rate risk associated with the Company’s fixed-rate and floating-rate debt. Interest rate swaps that meet specific accounting criteria are accounted for as fair value or cash flow hedges. All derivative instruments used to manage interest rate risk are measured at fair value and reported as current assets or current liabilities in the condensed consolidated balance sheets. For fair value hedges, the changes in the fair value of both the hedging instrument and the underlying debt obligations are included in interest expense. For cash flow hedges, the change in fair value of the hedging instrument is deferred through AOCE and is reclassified into earnings when the hedged item impacts earnings.

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VIATRIS INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

Cash Flow Hedging Relationships

The Company’s interest rate swaps designated as cash flow hedges fix the interest rate on a portion of the Company’s variable-rate debt or hedge part of the Company’s interest rate exposure associated with the variability in the future cash flows attributable to changes in interest rates. Any changes in fair value are included in earnings or deferred through AOCE, depending on the nature and effectiveness of the offset. Any ineffectiveness in a cash flow hedging relationship is recognized immediately in earnings in the condensed consolidated statements of operations.

Credit Risk Management

The Company regularly reviews the creditworthiness of its financial counterparties and does not expect to incur a significant loss from the failure of any counterparties to perform under any agreements. The Company is not subject to any obligations to post collateral under derivative instrument contracts. Certain derivative instrument contracts entered into by the Company are governed by master agreements, which contain credit-risk-related contingent features that would allow the counterparties to terminate the contracts early and request immediate payment should the Company trigger an event of default on other specified borrowings. The Company records all derivative instruments on a gross basis in the condensed consolidated balance sheets. Accordingly, there are no offsetting amounts that net assets against liabilities.

The following table summarizes the classification and fair values of derivative instruments in our condensed consolidated balance sheets:

			Asset Derivatives												Liability Derivatives
(In millions)			Balance Sheet Location			March 31, 2024 Fair Value			December 31, 2023 Fair Value						Balance Sheet Location			March 31, 2024 Fair Value			December 31, 2023 Fair Value
Derivatives designated as hedges:
Foreign currency forward contracts			Prepaid expenses & other current assets			$	35.9		$	17.5					Other current liabilities			$	10.0		$	35.8
Total derivatives designated as hedges						35.9			17.5									10.0			35.8
Derivatives not designated as hedges:
Foreign currency forward contracts			Prepaid expenses & other current assets			37.4			88.7						Other current liabilities			60.1			88.8
Total derivatives not designated as hedges						37.4			88.7									60.1			88.8
Total derivatives						$	73.3		$	106.2								$	70.1		$	124.6

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VIATRIS INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

The following table summarizes information about the gains/(losses) incurred to hedge or offset operational foreign exchange or interest rate risk:

						Amount of Gains/(Losses) Recognized in Earnings									Amount of Gains/(Losses) Recognized in AOCE (Net of Tax) on Derivatives									Amount of Gains/(Losses) Reclassified from AOCE into Earnings
						Three months ended March 31,
(In millions)			Location of Gain/(Loss)			2024			2023						2024			2023						2024			2023
Derivative Financial Instruments in Cash Flow Hedging Relationships (1) :
Foreign currency forward contracts			Net sales (3)			$	—		$	—					$	24.8		$	11.1					$	6.6		$	8.9
Interest rate swaps			Interest expense (3)			—			—						(1.2)			(0.9)						(1.6)			(1.2)
Derivative Financial Instruments in Net Investment Hedging Relationships:
Cross-currency interest rate swaps			Interest expense (2)			1.2			—						4.9			—						—			—
Foreign currency forward contracts						—			—						10.7			—						—			—
Non-derivative Financial Instruments in Net Investment Hedging Relationships:
Foreign currency borrowings						—			—						117.0			(51.9)						—			—
Derivative Financial Instruments Not Designated as Hedging Instruments:
Foreign currency option and forward contracts			Other (income) expense, net (2)			(22.8)			44.6						—			—						—			—
Total						$	(21.6)		$	44.6					$	156.2		$	(41.7)					$	5.0		$	7.7

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(1)At March 31, 2024, the Company expects that approximately $3.0 million of pre-tax net gains on cash flow hedges will be reclassified from AOCE into earnings during the next twelve months.

(2)Represents the location of the gain/(loss) recognized in earnings on derivatives.

(3)Represents the location of the gain/(loss) reclassified from AOCE into earnings.

Fair Value Measurement

Fair value is based on the price that would be received from the sale of an identical asset or paid to transfer an identical liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, a fair value hierarchy has been established that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below:

*•*Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

*•*Level 2: Observable market-based inputs other than quoted prices in active markets for identical assets or liabilities.

*•*Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.

In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considers counterparty credit risk in its assessment of fair value.

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VIATRIS INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

Financial assets and liabilities carried at fair value are classified in the tables below in one of the three categories described above:

			March 31, 2024																		December 31, 2023
(In millions)			Level 1						Level 2						Level 3						Level 1						Level 2						Level 3
Recurring fair value measurements
Financial Assets
Cash equivalents:
Money market funds			$	500.3					$	—					$	—					$	651.4					$	—					$	—
Total cash equivalents			500.3						—						—						651.4						—						—
Equity securities:
Exchange traded funds			51.9						—						—						49.1						—						—
Marketable securities			0.2						—						—						0.2						—						—
Total equity securities			52.1						—						—						49.3						—						—
CCPS in Biocon Biologics			—						—						1,023.2						—						—						976.3
Available-for-sale fixed income investments:
Corporate bonds			—						14.4						—						—						15.9						—
U.S. Treasuries			—						14.2						—						—						11.2						—
Agency mortgage-backed securities			—						3.2						—						—						4.6						—
Asset backed securities			—						4.9						—						—						5.1						—
Other			—						2.0						—						—						0.2						—
Total available-for-sale fixed income investments			—						38.7						—						—						37.0						—
Foreign exchange derivative assets			—						73.3						—						—						106.2						—
Total assets at recurring fair value measurement			$	552.4					$	112.0					$	1,023.2					$	700.7					$	143.2					$	976.3
Financial Liabilities
Foreign exchange derivative liabilities			—						70.1						—						—						124.6						—
Contingent consideration			—						—						569.9						—						—						215.1
Total liabilities at recurring fair value measurement			$	—					$	70.1					$	569.9					$	—					$	124.6					$	215.1

For financial assets and liabilities that utilize Level 2 inputs, the Company utilizes both direct and indirect observable price quotes, including interest rate yield curves, foreign exchange forward prices and bank price quotes. Below is a summary of valuation techniques for the Company’s financial assets and liabilities:

• Cash equivalents — valued at observable net asset value prices.

• Equity securities, exchange traded funds — valued at the active quoted market prices from broker or dealer quotations or transparent pricing sources at the reporting date. Unrealized gains and losses attributable to changes in fair value are included in Other income, net in the condensed consolidated statements of operations.

• Equity securities, marketable securities — valued using quoted stock prices from public exchanges at the reporting date. Unrealized gains and losses attributable to changes in fair value are included in Other income, net in the condensed consolidated statements of operations.

• CCPS in Biocon Biologics — valued using a Monte Carlo simulation model using Level 3 inputs. The fair value of the CCPS is sensitive to changes in the forecasts of operating metrics, changes in volatility and discount rates, and share dilution. The Company elected the fair value option for the CCPS under ASC 825. The fair value is reassessed quarterly and any change in the fair value estimate is recorded in Other income, net in the condensed consolidated statements of operations for that period.

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VIATRIS INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

*•*Available-for-sale fixed income investments — valued at the quoted market prices from broker or dealer quotations or transparent pricing sources at the reporting date. Unrealized gains and losses attributable to changes in fair value, net of income taxes, are included in accumulated other comprehensive loss as a component of shareholders’ equity.

• Foreign exchange derivative assets and liabilities — valued using quoted forward foreign exchange prices and spot rates at the reporting date. Counterparties to these contracts are highly rated financial institutions.

Contingent Consideration

As of March 31, 2024, the Company had contingent consideration liability of $345 million related to the Idorsia Transaction. As of March 31, 2024 and December 31, 2023, the Company had a contingent consideration liability of $173.2 million and $177.6 million, respectively, related to the Respiratory Delivery Platform, and $30.0 million and $15.8 million, respectively, related to the Biocon Biologics Transaction. The measurement of these contingent consideration liabilities is calculated using unobservable Level 3 inputs based on the Company’s own assumptions primarily related to the probability and timing of future events and payments which are discounted using a market rate of return. At March 31, 2024, a discount rate of 8.5%, and at December 31, 2023, discount rates ranging from 6.4% and 8.0%, were utilized in the valuations. Significant changes in unobservable inputs could result in material changes to the contingent consideration liabilities.

A rollforward of the activity in the Company’s fair value of contingent consideration from December 31, 2023 to March 31, 2024 is as follows:

(In millions)			Current Portion (1)						Long-Term Portion (2)						Total Contingent Consideration
Balance at December 31, 2023			$	76.1					$	139.0					$	215.1
Acquisition			—						345.0						345.0
Payments			(10.9)						—						(10.9)
Reclassifications			40.0						(40.0)						—
Accretion			—						15.9						15.9
Fair value loss (3)			—						4.8						4.8
Balance at March 31, 2024			$	105.2					$	464.7					$	569.9

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(1)Included in other current liabilities in the condensed consolidated balance sheets.

(2)Included in other long-term obligations in the condensed consolidated balance sheets.

(3)Included in litigation settlements and other contingencies, net in the condensed consolidated statements of operations.

Although the Company has not elected the fair value option for financial assets and liabilities other than the CCPS, any future transacted financial asset or liability will be evaluated for the fair value election.

**12.**Debt

For additional information, see Note 10 Debt in Viatris’ 2023 Form 10-K.

Receivables Facility and Note Securitization Facility

The Company has a $400 million Receivables Facility which expires in April 2025 and a $200 million Note Securitization Facility which expires in August 2024. Under the terms of each of the Receivables Facility and Note Securitization Facility, certain of our accounts receivable secure the amounts borrowed and cannot be used to pay our other debts or liabilities. The amount that we may borrow at a given point in time is determined based on the amount of qualifying accounts receivable that are present at such point in time. Amounts outstanding under either facility are included as a component of short-term borrowings, while the accounts receivable securing these obligations remain as a component of accounts receivable, net, in our condensed consolidated balance sheets.

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VIATRIS INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

Long-Term Debt

A summary of long-term debt is as follows:

($ in millions)			Interest Rate as of March 31, 2024						March 31, 2024						December 31, 2023
Current portion of long-term debt:
2024 Euro Senior Notes **			2.250		%				1,078.7						1,103.5
2024 Euro Senior Notes ****			1.023		%				810.9						831.5
Other									0.6						0.4
Deferred financing fees									(0.5)						(0.7)
Current portion of long-term debt									$	1,889.7					$	1,934.7
Non-current portion of long-term debt:
2025 Euro Senior Notes *			2.125		%				539.3						551.7
2025 Senior Notes ***			1.650		%				754.8						755.7
2026 Senior Notes **			3.950		%				2,245.6						2,245.1
2027 Euro Senior Notes ****			1.362		%				943.3						967.2
2027 Senior Notes ***			2.300		%				768.4						769.8
2028 Euro Senior Notes **			3.125		%				805.7						824.1
2028 Senior Notes *			4.550		%				749.1						749.1
2030 Senior Notes ***			2.700		%				1,503.0						1,505.0
2032 Euro Senior Notes ****			1.908		%				1,442.4						1,478.4
2040 Senior Notes ***			3.850		%				1,642.3						1,644.0
2043 Senior Notes *			5.400		%				497.5						497.5
2046 Senior Notes **			5.250		%				999.9						999.9
2048 Senior Notes *			5.200		%				747.8						747.8
2050 Senior Notes ***			4.000		%				2,195.1						2,196.3
YEN Term Loan Facility			Variable						264.3						283.6
Other									2.4						2.4
Deferred financing fees									(28.4)						(29.5)
Long-term debt									$	16,072.5					$	16,188.1

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• Instrument was issued by Mylan Inc.

** Instrument was originally issued by Mylan N.V.; now held by Utah Acquisition Sub Inc.

*** Instrument was issued by Viatris Inc.

**** Instrument was issued by Upjohn Finance B.V.

At March 31, 2024 and December 31, 2023, the aggregate fair value of the Company’s outstanding notes was approximately $15.09 billion and $15.25 billion, respectively. The fair values of the outstanding notes were valued at quoted market prices from broker or dealer quotations and were classified as Level 2 in the fair value hierarchy.

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Mandatory minimum repayments remaining on the notional amount of outstanding long-term debt at March 31, 2024 were as follows for each of the periods ending December 31:

(In millions)			Total
2024			$	1,888
2025			1,289
2026			2,514
2027			1,667
2028			1,559
Thereafter			8,549
Total			$	17,466

**13.**Comprehensive Loss

Accumulated other comprehensive loss, as reflected in the condensed consolidated balance sheets, is comprised of the following:

(In millions)			March 31, 2024						December 31, 2023
Accumulated other comprehensive loss:
Net unrealized loss on available-for-sale fixed income securities, net of tax			$	(1.4)					$	(1.2)
Net unrecognized gain and prior service cost related to defined benefit plans, net of tax			266.4						271.4
Net unrecognized gain (loss) on derivatives in cash flow hedging relationships, net of tax			13.6						(8.0)
Net unrecognized gain on derivatives in net investment hedging relationships, net of tax			369.6						237.1
Foreign currency translation adjustment			(3,589.2)						(3,246.7)
			$	(2,941.0)					$	(2,747.4)

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Components of accumulated other comprehensive loss, before tax, consist of the following, for the three months ended March 31, 2024 and 2023:

			Three Months Ended March 31, 2024
Gains and Losses on Derivatives in Cash Flow Hedging Relationships																		Gains and Losses on Net Investment Hedges						Gains and Losses on Available-for-Sale Fixed Income Securities						Defined Pension Plan Items						Foreign Currency Translation Adjustment						Totals
(In millions)			Foreign Currency Forward Contracts						Interest Rate Swaps						Total
Balance at December 31, 2023, net of tax															$	(8.0)					$	237.1					$	(1.2)					$	271.4					$	(3,246.7)					$	(2,747.4)
Other comprehensive earnings (loss) before reclassifications, before tax															33.7						169.1						(0.3)						(2.4)						(342.5)						(142.4)
Amounts reclassified from accumulated other comprehensive (loss) earnings, before tax:
Gain on foreign exchange forward contracts classified as cash flow hedges, included in net sales			(6.6)												(6.6)																														(6.6)
Loss on interest rate swaps classified as cash flow hedges, included in interest expense									1.6						1.6																														1.6
Amortization of prior service costs included in SG&A																																	0.5												0.5
Amortization of actuarial gain included in SG&A																																	(4.3)												(4.3)
Net other comprehensive earnings (loss), before tax															28.7						169.1						(0.3)						(6.2)						(342.5)						(151.2)
Income tax provision (benefit)															7.1						36.6						(0.1)						(1.2)						—						42.4
Balance at March 31, 2024, net of tax															$	13.6					$	369.6					$	(1.4)					$	266.4					$	(3,589.2)					$	(2,941.0)

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			Three Months Ended March 31, 2023
Gains and Losses on Derivatives in Cash Flow Hedging Relationships																		Gains and Losses on Net Investment Hedges						Gains and Losses on Available-for-Sale Fixed Income Securities						Defined Pension Plan Items						Foreign Currency Translation Adjustment						Totals
(In millions)			Foreign Currency Forward Contracts						Interest Rate Swaps						Total
Balance at December 31, 2022, net of tax															$	(18.5)					$	377.0					$	(2.3)					$	268.5					$	(3,385.9)					$	(2,761.2)
Other comprehensive earnings (loss) before reclassifications, before tax															10.5						(66.2)						0.9						6.3						45.3						(3.2)
Amounts reclassified from accumulated other comprehensive (loss) earnings, before tax:
Gain on foreign exchange forward contracts classified as cash flow hedges, included in net sales			(8.9)												(8.9)																														(8.9)
Loss on interest rate swaps classified as cash flow hedges, included in interest expense									1.2						1.2																														1.2
Amortization of actuarial gain included in SG&A																																	(5.0)												(5.0)
Net other comprehensive earnings (loss), before tax															2.8						(66.2)						0.9						1.3						45.3						(15.9)
Income tax provision (benefit)															1.1						(14.3)						0.2						0.5						—						(12.5)
Balance at March 31, 2023, net of tax															$	(16.8)					$	325.1					$	(1.6)					$	269.3					$	(3,340.6)					$	(2,764.6)

**14.**Segment Information

Viatris has four reportable segments: Developed Markets, Greater China, JANZ, and Emerging Markets. The Company reports segment information on the basis of markets and geography, which reflects its focus on bringing its broad and diversified portfolio of branded and generic products, including complex products, to people in markets everywhere. Our Developed Markets segment comprises our operations primarily in North America and Europe. Our Greater China segment includes our operations in China, Taiwan and Hong Kong. Our JANZ segment reflects our operations in Japan, Australia and New Zealand. Our Emerging Markets segment encompasses our presence in more than 125 countries with developing markets and emerging economies including in Asia, Africa, Eastern Europe, Latin America and the Middle East as well as the Company’s ARV franchise.

The Company’s chief operating decision maker is the Chief Executive Officer, who evaluates the performance of its segments based on total revenues and segment profitability.

Certain costs are not included in the measurement of segment profitability, such as costs, if any, associated with the following:

◦Intangible asset amortization expense and impairments of goodwill and long-lived assets;

◦R&D and Acquired IPR&D expense;

◦Net charges or net gains for litigation settlements and other contingencies;

◦Certain costs related to transactions and events such as (i) purchase accounting adjustments, where we incur expenses associated with the amortization of fair value adjustments to inventory and property, plant and equipment; (ii) acquisition-related costs, where we incur costs for executing the transaction, integrating the acquired operations and restructuring the combined company; and (iii) other significant items, which are substantive and/or unusual, and in

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some cases recurring, items (such as restructuring) that are evaluated on an individual basis by management and that either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. Such special items can include, but are not limited to, non-acquisition-related restructuring costs, as well as costs incurred for asset impairments and disposals of assets or businesses, including costs related to divestitures, and, as applicable, any associated transition activities.

◦Corporate and other unallocated costs associated with platform functions (such as digital, facilities, legal, finance, human resources, insurance, public affairs and procurement), patient advocacy activities and certain compensation and other corporate costs (such as interest income and expense, and gains and losses on investments, as well as overhead expenses associated with our manufacturing, which include manufacturing variances associated with production) and operations that are not directly assessed to an operating segment as business unit (segment) management does not manage these costs.

The Company does not report depreciation expense, total assets and capital expenditures by segment, as such information is not used by the chief operating decision maker.

The accounting policies of the segments are the same as those described in Note 2 Summary of Significant Accounting Policies included in the 2023 Form 10-K.

Presented in the table below is segment information for the periods identified and a reconciliation of segment information to total consolidated information.

						Net Sales												Segment Profitability
						Three Months Ended March 31,												Three Months Ended March 31,
(In millions)						2024						2023						2024						2023
Reportable Segments:
Developed Markets						$	2,165.4					$	2,170.4					$	913.3					$	938.7
Greater China						543.9						564.6						366.3						394.3
JANZ						317.8						342.2						87.3						130.5
Emerging Markets						626.4						641.9						279.5						313.0
Total reportable segments						$	3,653.5					$	3,719.1					$	1,646.4					$	1,776.5
Reconciling items:
Intangible asset amortization expense																		(601.0)						(603.3)
Intangible asset disposal & impairment charges																		—						(32.0)
Globally managed research and development costs																		(199.7)						(182.9)
Acquired IPR&D																		(6.1)						—
Litigation settlements & other contingencies																		(76.8)						(0.6)
Transaction related and other special items																		(202.3)						(178.5)
Corporate and other unallocated																		(356.6)						(379.4)
Earnings from operations																		$	203.9					$	399.8

**15.**Licensing and Other Partner Agreements

We periodically enter into licensing and other partner agreements with other pharmaceutical companies for the development, manufacture, marketing and/or sale of pharmaceutical products. Our significant licensing and other partner agreements are primarily focused on the development, manufacturing, supply and commercialization of multiple complex products. Under these agreements, we have future potential milestone payments and co-development expenses payable to third parties as part of our licensing, development and co-development programs. Payments under these agreements generally become due and are payable upon the satisfaction or achievement of certain developmental, regulatory or commercial milestones or as development expenses are incurred on defined projects. Milestone payment obligations are uncertain, including the prediction of timing and the occurrence of events triggering a future obligation and are not reflected as liabilities in the

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condensed consolidated balance sheets, except for obligations reflected as acquisition related contingent consideration, including those related to the Idorsia Transaction. Refer to Note 11 Financial Instruments and Risk Management for further discussion of contingent consideration.

Our potential maximum development milestones not accrued for at March 31, 2024 totaled approximately $409 million*.* We estimate that the amounts that may be paid through the end of 2024 to be approximately $18 million. These agreements may also include potential sales-based milestones and call for us to pay a percentage of amounts earned from the sale of the product as a royalty or a profit share. The amounts disclosed do not include sales-based milestones or royalty or profit share obligations on future sales of product as the timing and amount of future sales levels and costs to produce products subject to these obligations is not reasonably estimable. These sales-based milestones or royalty or profit share obligations may be significant depending upon the level of commercial sales for each product.

Mapi

In 2018, the Company entered into an exclusive license and commercialization agreement with Mapi for the development and commercialization on a world-wide basis of GA Depot. Under the terms of the license and commercialization agreement, as of March 31, 2024, Mapi is eligible to receive regulatory approval and commercial launch milestone payments of up to $90.0 million. Additionally, upon commercial launch of GA Depot, Mapi is eligible to receive potential contingent payments, such as tiered royalties and tiered sales-based milestones.

In December 2023, the Company entered into a letter agreement, as amended, with Mapi for the development and commercialization of certain additional products, which is subject to finalization pending the execution of a definitive agreement, which is expected in the first half of 2024. The Company made an initial upfront payment of $75.0 million which was accounted for as Acquired IPR&D expense in the consolidated statements of operations during the fourth quarter of 2023.

During the first quarter of 2024, the Company was informed that Mapi received a Complete Response Letter (“CRL”) regarding the NDA for GA Depot 40 mg from the FDA. The Companies are reviewing the content of the CRL and will be determining the appropriate next steps.

The Company holds investments in preferred shares of Mapi that are accounted for at cost, less impairment, if any, adjusted for observable price changes, in accordance with ASC 321, Investments – Equity Securities. During the second quarter of 2023, the Company made an additional investment of $30.0 million in preferred shares of Mapi. The preferred shares are convertible on a one-to-one basis into Mapi ordinary shares at Viatris’ option. The Company recognized a gain of $45.6 million during the second quarter of 2023 as a result of remeasuring our pre-existing equity interest in Mapi, which was recorded as a component of Other Income, Net in the condensed consolidated statements of operations. The Company has determined that Mapi represents a variable interest entity (“VIE”), but has concluded that Viatris is not the primary beneficiary of Mapi as we do not have the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance. Accordingly, we have not consolidated Mapi’s results of operations and financial position into our condensed consolidated financial statements.

As of each of March 31, 2024 and December 31, 2023, our condensed consolidated balance sheets included, within Other Assets, $132.1 million related to our equity investments in Mapi, which included cumulative unrealized gains of $62.1 million, and within Prepaid Expenses and Other Current Assets, $52.5 million related to advances, including for initial orders of commercial launch supply of GA Depot under our supply agreement with Mapi. Our maximum exposure to loss as a result of our involvement with Mapi is limited to the carrying value of the investments and advances.

There have been no other significant changes to our licensing and other partner agreements as disclosed in our 2023 Form 10-K.

**16.**Income Taxes

Legislative Updates

On August 16, 2022, the U.S. government enacted the Inflation Reduction Act of 2022 (the “Inflation Reduction Act”) into law, which includes a new corporate alternative minimum tax (“CAMT”) and an excise tax of 1% on the fair market value of net stock repurchases. Both provisions are effective for years after December 31, 2022. The Company reflected the

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applicable estimated excise tax in treasury stock as part of the cost basis of the stock repurchased and recorded a corresponding liability in Other current liabilities in our condensed consolidated balance sheets as of March 31, 2024 and December 31, 2023. The share repurchase and authorization amounts otherwise disclosed in this Form 10-Q exclude the excise tax. The Company does not anticipate being subject to the 15% CAMT tax in either 2023 or 2024 based on enacted law and regulatory guidance; however, our CAMT status could change in the future, depending on new regulations or regulatory guidance issued by the U.S. Department of the Treasury.

In addition, many countries are actively considering or have proposed or enacted changes to their tax laws based on the Pillar Two Global Anti-Base Erosion Rules (“Pillar Two Rules”) proposed by the OECD. The Pillar Two Rules impose a global minimum tax of 15%, and under these rules, the Company may be required to pay a “top-up” tax to the extent our effective tax rate in any given country is below 15%. Several countries have enacted the Pillar Two Rules effective January 1, 2024, with many countries postponing implementation to January 1, 2025 or later, if at all. After determining which jurisdictions are not required to calculate a Pillar Two liability as a result of the existing safe harbors, the Company has determined that the impact of the Pillar Two Rules in the countries that have enacted such rules effective January 1, 2024, is not material to our results of operations for the three months ended March 31, 2024. While the Company is monitoring developments and evaluating the potential impact on future periods, we do not expect Pillar Two Rules to have a significant impact on the 2024 financial results.

Tax Examinations

The Company is subject to income taxes and tax audits in many jurisdictions. A certain degree of estimation is thus required in recording the assets and liabilities related to income taxes. Tax audits and examinations can involve complex issues, interpretations, and judgments and the resolution of matters that may span multiple years, particularly if subject to litigation or negotiation.

Although the Company believes that adequate provisions have been made for these uncertain tax positions, the Company’s assessment of uncertain tax positions, including those arising from legal entity restructuring transactions in connection with the Combination, is based on estimates and assumptions that the Company believes are reasonable but the estimates for unrecognized tax benefits and potential tax benefits may not be representative of actual outcomes, and variations from such estimates could materially affect the Company’s financial condition, results of operations or cash flows in the period of resolution, settlement or when the statutes of limitations expire.

The Company is subject to ongoing IRS examinations. The years 2020 through 2022 are open years, with 2020 and 2021 under examination.

Several international audits are currently in progress. In some cases, the tax auditors have proposed adjustments or issued assessments to our tax positions, including with respect to intercompany transactions, and we are in ongoing discussions with some of the auditors regarding the validity of their tax positions.

In instances where assessments have been issued, we disagree with these assessments and believe they are without merit and incorrect as a matter of law. As a result, we anticipate that certain of these matters may become the subject of litigation before tax courts where we intend to vigorously defend our position.

In Australia, the tax authorities have issued notices of assessments to the Company for the years ended December 2009 to December 2020, subject to additional interest and penalties, concerning our tax position with respect to certain intercompany transactions. The tax authorities denied our objections to the assessments for the years ended December 2009 to December 2020 and we have commenced litigation in the Australian Federal Court challenging those decisions. A trial took place in October 2023 and on March 20, 2024, the Court issued a decision in favor of the Company. The tax authorities did not appeal the Court decision. The Company made a partial payment of $56.0 million in 2021 and $5.2 million in 2022 in order to stay potential interest and penalties resulting from this litigation, which will be refunded, subject to currency exchange fluctuations, in future periods.

In France, the tax authorities have issued notices of assessments to the Company for the years ended December 2013 to December 2015 concerning our tax position with respect to whether income earned by a Company entity not domiciled in France should be subject to French tax. We have commenced litigation before the French tax courts where the tax authorities will seek unpaid taxes, penalties, and interest.

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In India, the tax authorities have issued notices of assessments to the Company seeking unpaid taxes and interest for the financial years covering 2013 to 2018 concerning our tax position with respect to certain corporate tax deductions and certain intercompany transactions. Some of these issues were resolved through the Company entering into an agreement with the tax authorities in March 2023 in respect of the pricing of its international transactions. The Company recorded tax expense of approximately $22.3 million during 2023 due to the terms of this agreement. The remaining issues are in the audit phase or are being challenged in the Indian tax courts.

In 2020, the Swedish Tax Authorities (“STA”) asserted an underpayment of tax against Meda A.B. for the tax years 2014 to 2019. The claim was that profits earned by its Luxembourg subsidiary should have been attributed to Meda A.B. The Company appealed the STA’s assessment to the Administrative Court of Stockholm. On September 16, 2022, the Court ruled in favor of Meda A.B. that no tax was due. The STA appealed that decision. On April 10, 2024, the Administrative Court of Appeals overturned the lower Court’s ruling and issued a decision in favor of the STA upholding its original assessment. The amount due including interest and penalties is approximately $19.0 million. The Company plans to file a petition seeking review of the decision to the Supreme Administrative Court.

The Company has recorded a net reserve for uncertain tax positions of $281.8 million and $287.1 million, including interest and penalties, in connection with its international audits at March 31, 2024 and December 31, 2023, respectively. In connection with our international tax audits, it is possible that we will incur material losses above the amounts reserved.

The Company’s major U.S. state taxing jurisdictions remain open from fiscal year 2013 through 2022, with several state audits currently in progress. The Company’s major international taxing jurisdictions remain open from 2012 through 2023.

Accounting for Uncertainty in Income Taxes

The impact of an uncertain tax position that is more likely than not of being sustained upon audit by the relevant taxing authority must be recognized at the largest amount that is more likely than not to be sustained. No portion of an uncertain tax position will be recognized if the position has less than a 50% likelihood of being sustained.

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**17.**Litigation

The Company is involved in various disputes, governmental and/or regulatory inquiries, investigations and proceedings, tax proceedings and litigation matters, both in the U.S. and abroad, that arise from time to time, some of which could result in losses, including damages, fines and/or civil penalties, and/or criminal charges against the Company. These matters are often complex and have outcomes that are difficult to predict.

In addition, in connection with the Combination, the Company has generally assumed liability for, and control of, pending and threatened legal matters relating to the Upjohn Business – including certain matters initiated against Pfizer described below – and has agreed to indemnify Pfizer for liabilities arising out of such assumed legal matters. Pfizer, however, has agreed to retain various matters – including certain specified competition law matters – to the extent they arise from conduct during the pre-Distribution period and has agreed to indemnify the Company for liabilities arising out of such matters.

While the Company believes that it has meritorious defenses with respect to the claims asserted against it and the assumed legal matters referenced above, and intends to vigorously defend its position, the process of resolving these matters is inherently uncertain and may develop over a long period of time, and so it is not possible to predict the ultimate resolution of any such matter. It is possible that an unfavorable resolution of any of the ongoing matters could have a material effect on the Company’s business, financial condition, results of operations, cash flows, ability to pay dividends and/or stock price.

Some of these governmental inquiries, investigations, proceedings and litigation matters with which the Company is involved are described below, and unless otherwise disclosed, the Company is unable to predict the outcome of the matter or to provide an estimate of the range of reasonably possible material losses. The Company records accruals for loss contingencies to the extent we conclude it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Company is also involved in other pending proceedings for which, in the opinion of the Company based upon facts and circumstances known at the time, either the likelihood of loss is remote or any reasonably possible loss associated with the resolution of such proceedings is not expected to be material to the Company’s business, financial position, results of operations, cash flows, ability to pay dividends and/or stock price. If and when any reasonably possible losses associated with the resolution of such other pending proceedings, in the opinion of the Company, become material, the Company will disclose such matters.

Legal costs are recorded as incurred and are classified in SG&A in the Company’s condensed consolidated statements of operations.

EpiPen® Auto-Injector Litigation

On February 14, 2020, the Company, together with other non-Viatris affiliated companies, were named as defendants in a putative direct purchaser class action filed in the U.S. District Court for the District of Kansas relating to the pricing and/or marketing of the EpiPen® Auto-Injector. On September 21, 2021, Plaintiffs filed an amended complaint asserting federal antitrust claims which are based on allegations concerning a patent settlement between Pfizer and Teva and other alleged actions regarding the launch of Teva’s generic epinephrine auto-injector. Plaintiffs seek monetary damages, declaratory relief, attorneys’ fees and costs. A trial is currently scheduled to begin in March 2026.

Beginning in March 2020, the Company, together with other non-Viatris affiliated companies, were named as defendants in putative direct purchaser class actions filed in the U.S. District Court for the District of Minnesota relating to contracts with certain pharmacy benefit managers concerning EpiPen® Auto-Injector. The plaintiffs claim that the alleged conduct resulted in the exclusion or restriction of competing products and the elimination of pricing constraints in violation of RICO and federal antitrust law. These actions have been consolidated. Plaintiffs seek monetary damages, attorneys’ fees and costs. A class certification motion is pending.

The Company has a total accrual of approximately $5.5 million related to these matters at March 31, 2024, which is included in other current liabilities in the condensed consolidated balance sheets. Although it is reasonably possible that the Company may incur additional losses from these matters, any amount cannot be reasonably estimated at this time. In addition, the Company expects to incur additional legal and other professional service expenses associated with such matters in future periods and will recognize these expenses as services are received. The Company believes that the ultimate amount paid for these services and claims could have a material effect on the Company's business, financial condition, results of operations, cash flows, ability to pay dividends and/or stock price in future periods.

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Drug Pricing Matters

Department of Justice

On December 3, 2015, the Company received a subpoena from the Antitrust Division of the DOJ seeking information relating to the marketing, pricing, and sale of certain of our generic products and any communications with competitors about such products. On September 8, 2016, the Company, as well as certain employees and a member of senior management, received subpoenas from the DOJ seeking similar information. Related search warrants also were executed.

On May 10, 2018, the Company received a civil investigative demand from the Civil Division of the DOJ seeking information relating to the pricing and sale of its generic drug products.

We have fully cooperated with these investigations, which we believe are related to a broader industry-wide investigation of the generic pharmaceutical industry. We have not had contact from DOJ concerning the above-described subpoenas or civil investigative demand in several years.

Civil Litigation

Beginning in 2016, the Company, along with other manufacturers, has been named as a defendant in lawsuits filed in the United States and Canada generally alleging anticompetitive conduct with respect to generic drugs. The lawsuits have been filed by plaintiffs, including putative classes of direct purchasers, indirect purchasers, and indirect resellers, as well as individual direct and indirect purchasers and certain cities and counties. The lawsuits allege harm under federal laws and the United States lawsuits also allege harm under state laws, including antitrust laws, state consumer protection laws and unjust enrichment claims. Some of the United States lawsuits also name as defendants the Company’s former President, including allegations against him with respect to a single drug product, and one of the Company’s sales employees, including allegations against him with respect to certain generic drugs. The vast majority of the lawsuits have been consolidated in an MDL proceeding in the Eastern District of Pennsylvania (“EDPA”). Plaintiffs generally seek monetary damages, restitution, declaratory and injunctive relief, attorneys’ fees and costs. The EDPA Court has ordered certain plaintiffs’ complaints regarding two single-drug product cases to proceed as bellwethers. The Company is named in those plaintiffs’ complaints that regard one of the two individual drug products and class certification motions are pending.

Attorneys General Litigation

On December 21, 2015, the Company received a subpoena and interrogatories from the Connecticut Office of the Attorney General seeking information relating to the marketing, pricing and sale of certain of the Company’s generic products and communications with competitors about such products. On December 14, 2016, attorneys general of certain states filed a complaint in the United States District Court for the District of Connecticut against several generic pharmaceutical drug manufacturers, including the Company, alleging anticompetitive conduct with respect to, among other things, a single drug product. The complaint has subsequently been amended, including on June 18, 2018, to add attorneys general alleging violations of federal and state antitrust laws, as well as violations of various states’ consumer protection laws. This lawsuit was transferred to the aforementioned MDL proceeding in the EDPA. The operative complaint includes attorneys general of forty-four states, the District of Columbia and the Commonwealth of Puerto Rico. The Company is alleged to have engaged in anticompetitive conduct with respect to four generic drug products. The amended complaint also includes claims asserted by attorneys general of thirty-four states and the Commonwealth of Puerto Rico against certain individuals, including the Company’s former President, with respect to a single drug product. The amended complaint seeks declaratory and injunctive relief, disgorgement, attorneys’ fees and costs, and certain states seek monetary damages, civil penalties, restitution, and other equitable monetary relief. The states’ claim for disgorgement and restitution under federal law in this case has been dismissed.

On May 10, 2019, certain attorneys general filed a new complaint in the United States District Court for the District of Connecticut against various drug manufacturers and individuals, including the Company and one of its sales employees, alleging anticompetitive conduct with respect to additional generic drugs. On November 1, 2019, the complaint was amended, adding additional states as plaintiffs. The operative complaint is brought by attorneys general of forty-five states, certain territories and the District of Columbia. The amended complaint also includes claims asserted by attorneys general of forty states and certain territories against several individuals, including a Company sales employee. The amended complaint seeks declaratory and injunctive relief, disgorgement, attorneys’ fees and costs, and certain states seek monetary damages, civil penalties, restitution, and other equitable monetary relief. This lawsuit was transferred to the aforementioned MDL proceeding in the EDPA.

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On June 10, 2020, certain attorneys general filed a new complaint in the United States District Court for the District of Connecticut against drug manufacturers, including the Company, and individual defendants (none from the Company), alleging anticompetitive conduct with respect to additional generic drugs. On September 9, 2021, the complaint was amended, adding an additional state as a plaintiff. The operative complaint is brought by attorneys general of forty-four states, certain territories and the District of Columbia. The amended complaint seeks declaratory and injunctive relief, disgorgement, attorneys’ fees and costs, and certain states seek monetary damages, civil penalties, restitution, and other equitable monetary relief. The states’ claim for disgorgement and restitution under federal law in this case has been dismissed. This lawsuit was transferred to the aforementioned MDL proceeding in the EDPA and was ordered to proceed as a bellwether.

On January 31, 2024, the United States Judicial Panel on Multidistrict Litigation granted the Attorneys Generals’ motion to remand the aforementioned complaints to the U.S. District Court for the District of Connecticut. The U.S. Court of Appeals for the Third Circuit denied the Defendants’ challenge to remand and the aforementioned complaints have been transferred to the U.S. District Court for the District of Connecticut.

Securities Related Litigation

Purported class action complaints were filed in October 2016 against Mylan N.V. and Mylan Inc. (collectively, for the purposes of this paragraph, “Mylan”), certain of Mylan’s former directors and officers, and certain of the Company’s current directors and officers (collectively, for purposes of this paragraph, the “defendants”) in the United States District Court for the Southern District of New York (“SDNY”) on behalf of certain purchasers of securities of Mylan on the NASDAQ (“SDNY Class Action Litigation”). The complaints alleged that defendants made false or misleading statements and omissions of purportedly material fact, in violation of federal securities laws, in connection with disclosures relating to the classification of their EpiPen® Auto-Injector as a non-innovator drug for purposes of the Medicaid Drug Rebate Program. On March 20, 2017, a consolidated amended complaint was filed alleging substantially similar claims, but adding allegations that defendants made false or misleading statements and omissions of purportedly material fact in connection with allegedly anticompetitive conduct with respect to EpiPen® Auto-Injector and certain generic drugs.

The operative complaint is the third amended consolidated complaint, which was filed on June 17, 2019, and contains the allegations as described above against Mylan, certain of Mylan’s former directors and officers, and certain of the Company’s current directors, officers, and employees (collectively, for purposes of this paragraph, the “defendants”). A class has been certified covering all persons or entities that purchased Mylan common stock between February 21, 2012 and May 24, 2019 excluding defendants, certain of the Company’s current directors and officers, former directors and officers of Mylan, members of their immediate families and their legal representatives, heirs, successors or assigns, and any entity in which defendants have or had a controlling interest. Plaintiffs seek damages and costs and expenses, including attorneys’ fees and expert costs. On March 30, 2023, the Court dismissed all of Plaintiffs’ claims by granting Defendants’ motion for summary judgment and denying Plaintiffs’ cross-motion for partial summary judgment. Plaintiffs’ appeal to the U.S. Court of Appeals for the Second Circuit was rejected and the SDNY’s decision dismissing Plaintiffs’ claims was affirmed. Plaintiffs’ petition for rehearing before a full panel of the Second Circuit is pending.

On April 30, 2017, a similar lawsuit was filed in the Tel Aviv District Court (Economic Division) in Israel (“Israel Litigation”), which had been stayed pending a decision in the SDNY Class Action Litigation. The Israel Litigation was dismissed by the Court due to lack of activity and may be refiled.

On February 14, 2020, the Abu Dhabi Investment Authority filed a complaint against Mylan in the SDNY asserting allegations pertaining to EpiPen® Auto-Injector and certain generic drugs under the federal securities laws (“ADIA Litigation”) that overlap with those asserted in the SDNY Class Action Litigation. The complaint filed in the ADIA Litigation seeks monetary damages as well as the plaintiff’s fees and costs.

On June 26, 2020, a putative class action complaint was filed by the Public Employees Retirement System of Mississippi, which was subsequently amended on November 13, 2020, against Mylan N.V., certain of Mylan N.V.’s former directors and officers, and a former officer/current director of the Company (collectively for the purposes of this paragraph, the “defendants”) in the U.S. District Court for the Western District of Pennsylvania (“WDPA”) on behalf of certain purchasers of securities of Mylan N.V. (“WDPA Mylan N.V. Class Action Litigation”). The amended complaint alleges that defendants made false or misleading statements and omissions of purportedly material fact, in violation of federal securities laws, in connection with disclosures relating to the Nashik and Morgantown manufacturing plants and inspections at the plants by the FDA. Plaintiff seeks certification of a class of purchasers of Mylan N.V. securities between February 16, 2016 and May 7, 2019. On

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May 18, 2023, the Court dismissed 45 of the 46 challenged statements. The complaint seeks monetary damages, as well as the plaintiff’s fees and costs.

On February 15, 2021, a complaint was filed in the SDNY by Skandia Mutual Life Ins. Co., Lansforsakringar AB, KBC Asset Management N.V., and GIC Private Limited, against the Company, certain of Mylan N.V.’s former directors and officers, a former officer/current director of the Company, and certain former and current employees of the Company (“Skandia Litigation”). The Complaint filed in the Skandia Litigation asserts claims which are based on allegations that are similar to those in the SDNY Class Action Litigation and WDPA Mylan N.V. Class Action Litigation. Plaintiffs seek compensatory damages, costs and expenses and attorneys’ fees.

On October 28, 2021, the Company and certain of its then officers and directors were named as defendants in a putative class action lawsuit filed in the Court of Common Pleas of Allegheny County, Pennsylvania on behalf of former Mylan shareholders who received Company common stock in connection with the Combination. A non-Viatris affiliated company and persons were also named as defendants. The complaint alleges violations of Sections 11, 12(a)(2), and 15 of the Securities Act of 1933 for purportedly failing to disclose or misrepresenting material information in the registration statement and related prospectus issued in connection with the Combination. On January 3, 2023, an amended complaint was filed naming the same defendants and alleging the same violations as the original complaint. Plaintiffs seek monetary damages, reasonable costs and expenses, and certain other equitable and injunctive relief. A settlement has been reached to fully resolve this matter, subject to court approval.

Beginning in May 2023, putative class action complaints were filed against the Company and certain of the Company’s current and former officers, directors, and employees in the WDPA on behalf of certain purchasers of securities of the Company. These actions have been consolidated and, on October 23, 2023, a consolidated amended putative class action complaint was filed in the WDPA against the Company, a director, and a former officer and director (“WDPA Viatris Class Action Litigation”). The operative complaint alleges that defendants made false or misleading statements and omissions of material fact, in violation of federal securities laws, in connection with disclosures relating to the Company’s projected financial performance and biosimilars business. Plaintiffs seek certification of a class of purchasers of Company securities between March 1, 2021 and February 25, 2022. Plaintiffs seek monetary damages, reasonable costs and expenses, and certain other relief.

Beginning in August 2023, stockholder derivative actions purportedly on behalf of Viatris were filed in the WDPA against certain of the Company’s current and former officers, directors, and employees alleging that defendants failed to ensure that the Company was making truthful and accurate statements in connection with the disclosures alleged in the WDPA Viatris Class Action Litigation. Viatris is named as a nominal defendant in these derivative actions. Certain of the complaints also assert claims for corporate waste and unjust enrichment. Plaintiffs seek various forms of relief, including damages, disgorgement, restitution, costs and fees.

Opioids

The Company, along with other manufacturers, distributors, pharmacies, pharmacy benefit managers, and individual healthcare providers is a defendant in more than 1,000 cases in the United States and Canada filed by various plaintiffs, including counties, cities and other local governmental entities, asserting civil claims related to sales, marketing and/or distribution practices with respect to prescription opioid products. In addition, lawsuits have been filed as putative class actions including on behalf of children with Neonatal Abstinence Syndrome due to alleged exposure to opioids.

The lawsuits generally seek equitable relief and monetary damages (including punitive and/or exemplary damages) based on a variety of legal theories, including various statutory and/or common law claims, such as negligence, public nuisance and unjust enrichment. The vast majority of these lawsuits have been consolidated in an MDL in the U.S. District Court for the Northern District Court of Ohio.

On January 13, 2023, the Company received a civil subpoena from the Attorney General of the State of New York seeking information relating to opioids manufactured, marketed, or sold by the Company and related subject matter. A similar subpoena was received in January 2024 from the Attorney General of the State of Alaska. The Company is fully cooperating with these subpoena requests.

The Company has accrued $150.7 million in connection with the possible resolution of certain of these matters at March 31, 2024, which is included in other current liabilities in the condensed consolidated balance sheets. Although it is

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reasonably possible that the Company may incur additional losses from these matters, any amount cannot be reasonably estimated at this time. In addition, the Company expects to incur additional legal and other professional service expenses associated with such matters in future periods and will recognize these expenses as services are received. The Company believes that the ultimate amount paid for these services and claims could have a material effect on the Company's business, financial condition, results of operations, cash flows, ability to pay dividends and/or stock price in future periods.

Citalopram

In 2013, the European Commission issued a decision finding that Lundbeck and several generic companies, including Generics [U.K.] Limited (“GUK”), had violated EU competition rules relating to various settlement agreements entered into in 2002 for citalopram. After various appeals, the European Commission’s decision was upheld in March 2021. On March 28, 2023, bodies of the national health authorities in England & Wales served a claim in the U.K. Competition Appeals Tribunal against parties to the citalopram investigation, including GUK, seeking monetary damages, plus interest, purportedly arising from the settlement agreements. GUK, beginning in approximately 2018, has received notices from other health service authorities and insurers asserting an intention to file similar claims. Pursuant to an indemnification agreement, Merck KGaA and GUK have agreed to equally share any damages claimed against Merck KGaA and/or GUK alleged to have been caused by the conduct which is the subject of the European Commission decision.

The Company has accrued approximately €12.2 million as of March 31, 2024 related to this matter. It is reasonably possible that we will incur additional losses above the amount accrued but we cannot estimate a range of such reasonably possible losses at this time. There are no assurances, however, that settlements reached and/or adverse judgments received, if any, will not exceed amounts accrued.

Product Liability

Like other pharmaceutical companies, the Company is involved in a number of product liability lawsuits related to alleged personal injuries arising out of certain products manufactured/or distributed by the Company, including but not limited to those discussed below. Plaintiffs in these cases generally seek damages and other relief on various grounds for alleged personal injury and economic loss.

The Company has accrued approximately $65.3 million as of March 31, 2024 for its product liability matters. It is reasonably possible that we will incur additional losses and fees above the amount accrued but we cannot estimate a range of such reasonably possible losses or legal fees related to these claims at this time. There are no assurances, however, that settlements reached and/or adverse judgments received, if any, will not exceed amounts accrued.

Nitrosamines

The Company, along with numerous other manufacturers, retailers, and others, are parties to litigation relating to alleged trace amounts of nitrosamine impurities in certain products, including valsartan and ranitidine. The vast majority of these lawsuits naming the Company in the United States are pending in two MDLs, namely an MDL pending in the United States District Court for the District of New Jersey concerning valsartan and an MDL pending in the United States District Court for the Southern District of Florida concerning ranitidine. The lawsuits against the Company in the MDLs include putative and certified classes seeking the refund of the purchase price and other economic and punitive damages allegedly sustained by consumers and end payors as well as individuals seeking compensatory and punitive damages for personal injuries allegedly caused by ingestion of the medications. Similar lawsuits pertaining to valsartan have been filed in other countries. Third party payor, consumer and medical monitoring classes were certified in the valsartan MDL. The Company has also received requests to indemnify purchasers of the Company’s API and/or finished dose forms of these products. The original master complaints concerning ranitidine were dismissed on December 31, 2020. The end-payor plaintiff immediately appealed to the U.S. Court of Appeals for the Eleventh Circuit, which affirmed the dismissal. The personal injury and consumer putative class plaintiffs filed amended master complaints. The Company was not named as a defendant in the amended master complaints, though it was still named in certain short form complaints filed by personal injury plaintiffs. The trial court has dismissed all remaining claims against the generic defendants. Certain of the personal injury plaintiffs appealed this dismissal, which remains pending.

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Lipitor

A number of individual and multi-plaintiff lawsuits have been filed against Pfizer in various federal and state courts alleging that the plaintiffs developed type 2 diabetes purportedly as a result of the ingestion of Lipitor. Plaintiffs seek compensatory and punitive damages. In February 2014, the federal actions were transferred for consolidated pre-trial proceedings to an MDL in the U.S. District Court for the District of South Carolina. Since 2016, certain cases in the MDL were remanded to certain state courts. In 2017, the District Court granted Pfizer’s motion for summary judgment, dismissing all of the cases pending in the MDL. In June 2018, this dismissal was affirmed by the U.S. Court of Appeals for the Fourth Circuit. State court proceedings remain pending in Missouri and New York.

Intellectual Property

The Company is involved in a number of patent litigation lawsuits involving the validity and/or infringement of patents held by branded pharmaceutical manufacturers including but not limited to the matters described below. The Company uses its business judgment to decide to market and sell certain products, in each case based on its belief that the applicable patents are invalid and/or that its products do not infringe, notwithstanding the fact that allegations of patent infringement(s) or other potential third party rights have not been finally resolved by the courts. The risk involved in doing so can be substantial because the remedies available to the owner of a patent for infringement may include, a reasonable royalty on sales or damages measured by the profits lost by the patent owner. If there is a finding of willful infringement, damages may be increased up to three times. Moreover, because of the discount pricing typically involved with bioequivalent products, patented branded products generally realize a substantially higher profit margin than generic and biosimilar products. The Company also faces challenges to its patents, including suits in various jurisdictions pursuant to which generic drug manufacturers, payers, governments, or other parties are seeking damages for allegedly causing delay of generic entry. An adverse decision in any of these matters could have an adverse effect that is material to our business, financial condition, results of operations, cash flows, ability to pay dividends and/or stock price.

The Company has approximately $5.1 million accrued related to its intellectual property matters at March 31, 2024. It is reasonably possible that we may incur additional losses and fees but we cannot estimate a range of such reasonably possible losses or legal fees related to these claims at this time.

Yupelri

Beginning in January 2023, certain generic companies notified us that they had filed ANDAs with the FDA seeking approval to market generic versions of Yupelri® with associated Paragraph IV certifications. The companies assert the invalidity and/or non-infringement of polymorph patents expiring in 2030 and 2031, and a method of use patent expiring in 2039. The companies have not filed Paragraph IV certifications to our compound patents, which currently expire in December 2025, with one compound patent subject to a patent term extension to October 2028. In February 2023, we brought patent infringement actions against the generic filers in federal district courts, including the U.S. District Court for the District of New Jersey, the U.S. District Court for the District of Delaware, and the U.S. District Court for the Middle District of North Carolina, asserting infringement of the patents by the generic companies. The actions filed in Delaware and North Carolina have been dismissed and the actions will proceed in New Jersey. The Company has entered into settlement agreements with Teva, Accord, Orbicular, and Lupin granting licenses to commercialize their generic versions of Yupelri® in April 2039 or earlier depending on certain circumstances. Three ANDA filers remain in the litigation.

Tyrvaya

In June 2023, a generic company notified Oyster Point that it had filed an ANDA with the FDA seeking approval to market a generic version of Tyrvaya® with associated Paragraph IV certifications. The generic company asserts the invalidity and/or non-infringement of six Orange Book listed patents that all have expiration dates in October 2035. In July 2023, Oyster Point brought a patent infringement action against the generic filer in the U.S. District Court of the District of New Jersey asserting infringement by the generic company. In March 2024, Oyster Point filed an amended complaint asserting infringement with respect to four additional patents that were recently listed in the Orange Book for Tyrvaya® and also have expiration dates in October 2035.

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Amitiza

In September 2023, Sawai Pharmaceutical Co. (“Sawai”) filed challenges with the Japanese Patent Office (“JPO”) asserting invalidity of patent term extensions for the JPP ‘4332353 patent (the ‘353 patent) relevant to Amitiza®, which the Company commercializes in Japan as a licensee of the relevant patents, including the ‘353 patent. Towa Pharmaceutical Co. Ltd. also filed a challenge to the ‘353 patent term extension in January 2024. Separately, in December 2023, Sawai filed an invalidity action with the JPO against the ‘353 patent itself. With the granted extensions, the ‘353 patent has expiration dates for the Company’s 24µg and 12µg strengths of April 2025 and April 2027, respectively. In April 2024, Sawai filed challenges with the JPO with respect to the 12µg strength, asserting invalidity of patent term extensions of three additional patents expiring in August 2027, November 2027, and December 2028, and challenged the validity of the August 2027 patent itself.

Other Litigation

The Company is involved in various other legal proceedings including commercial, contractual, employment, or other similar matters that are considered normal to its business. The Company has approximately $6.5 million accrued related to these various other legal proceedings at March 31, 2024.

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