Viatris Inc. (NASDAQ:VTRS) Q4 2022 Earnings Call Transcript

Robert Coury: So I think Balaji on due time, you will get confirmation from us about the trajectory and the patients and all that. But I think, it’s going to be a very meaningful product from 2024, 2025 onwards for us. But I’ll tell you more excited, I am is about the science behind it, the data we have seen, analyzed because perception is maybe it’s a just a convenient place, not even if a conveniently €“ it’s one injection against 12 injections, which is the current therapy, 40-milligram against 480. But more importantly, I think we have seen the insights €“ insights and the data that the statistical significance we are seeing in the standard disability score, the EDSS, which basically connects directly to the quality of life €“ that’s where I think we’re excitement is that we’ll be able to build it in the label and that will drive that.

So more €“ and more over that this platform, you should be tuning to see that this platform can be the platform which we may potentially use for many extendedly steeper form for 505(b) (2) opportunities like the Glatiramer Acetate. So, provide.

Jeff Nau: Yes. Good morning. This is Jeff Nau. And I want to give you an update on the question about Tyrvaya. Thanks for asking that question. In 2023, we expect that we will more than double revenue for Tyrvaya. There are a number of key fundamental drivers behind that number. The first being Medicare Part D coverage, which we did have €“ very minimal last year, we’ve grown that to almost 32.5% already. We expect that to continue to grow this year. We’ve also launched a 90-day script program, and we’re investing in the business. And so we’re really excited about investing in that from a marketing perspective. And so we expect to have a great year this year.

Sanjeev Narula: And Balaji, regarding the point about the investment, we saw that in the bridge that we provided on the IT division, SG&A investment, that’s a function of investment in our field force, investment in the marketing program and the investment in direct to consumer that we’ll be implementing later in this year.

Robert Coury: And investment in science.

Sanjeev Narula: And investment in science, in the R&D, yeah absolutely.

Operator: Thank you. Our next question will come from Jason Gerberry with Bank of America.

Jason Gerberry: Hey, guys. Thanks for taking my questions. Just looking at the product level disclosure. So LIPITOR and NORVASC has held up pretty nicely. I think it was about $2.4 billion in revenue. So looks like those products have weathered the VBP process. And I’m just trying to get a sense, if you can speak to the extent to which sales of these products are still concentrated in China. And really trying to just frame product concentration risk, it would seem like these two products probably contribute a pretty substantial amount of EBITDA by our estimate, maybe even close to $2 billion. So just wanted to get any framing that you can offer there? And then just on sort of the 2028 outlook for the $1 billion in additional revenue, is there any specific Famy product that you’d say is the biggest contributor to that? Thanks.

Rajiv Malik: Let me talk about China and the Lipitor and Norvasc. So even if we analyze these products and many other brands is that one of the reasons behind the stability is the effective management of these established brands. So we’ve seen the Lipitor, Norvasc and Xanax, whether it’s in emerging markets or in Europe, steadying up and having even 1%, 2% growth over there. But China is, I would say, our business continues to perform solid. Despite COVID lockdowns, you see the strength in the business. And we have a great team and commercial infrastructure in China, which has very well understood the nuances as well as the rationale behind this policy framework where we are completely, as I said, agree with the China government’s initiative to expand the sales.