Viatris Inc. (NASDAQ:VTRS) Q2 2023 Earnings Call Transcript

Sanjeev Narula: And Nate, I’ll take the question on the gross margin. So, as I talked about the gross margin came in ahead of our expectation and that’s again, obviously, driven by strong operational business performance, in particular, we had a favorable segment and a portfolio mix and lower-than-expected inflation cost on the COGS. So, what’s going on things products like lenalidomide, which have a higher gross margin contributed to the higher gross margin that we said. And then we had inventory beginning of the year, which was built at the lower cost that we were able to consume giving us a benefit that we saw in the gross margin in the first half of this particular quarter two of the year. For the balance of the year, we expect gross margin to step-down a little bit and that’s expected, as we have the expected impact of the inflation, and then a little bit of the segment mix and the portfolio mix that probably we’ll have a little bit of pressure on the gross margin, but that’s all expected and built into the forecast.

In a full-year basis, I expect our gross margin will be within the range of 57.5% to 58.5%.

Operator: I will now turn the call back over to Scott Smith, CEO, to make a few closing remarks.

Scott Smith: Thank you very much. Obviously, I’m very, very pleased with the second quarter. It’s one of the strongest quarters that we’ve had to date at Viatris. I could not be more pleased with the overall execution of the company. But most importantly, I’m very much looking forward to the road ahead and moving into Phase 2 and beyond. I think we have tremendous opportunities as a company for over the next foreseeable years. Really, I’m very excited to be executing and with that forward-looking view. So, I’d just like to say also, thank you all very much for your attention this morning and for your questions. And I look forward to interacting as we go forward.

Operator: This does conclude today’s Viatris 2023 Second Quarter Earnings Call and Webcast. Please disconnect your line at this time and have a wonderful day.