Viatris Inc. (VTRS) Earnings Call Transcript & Summary

Good morning, everyone, and welcome to the Viatris Q2 2026 Earnings Call. [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] please also note today's event is being recorded. At this time, I'd like to turn the floor over to Bill Szablewski, Head of Capital Markets. Sir, please go ahead.

Good morning, everyone. Welcome to our Q2 2026 earnings call. With us today is CEO, Scott Smith, Interim CFO, Paul Campbell, Chief R&D Officer, Philippe Martin; and Chief Commercial Officer, Karen Magal. During today's call, we will be making forward-looking statements on a number of matters, including our financial guidance for 2026 and various strategic initiatives. These statements are subject to risks and uncertainties. We will also be referring to certain actual and projected non-GAAP financial measures. Please refer to today's slide presentation and our SEC filings for more information, including reconciliations of those non-GAAP measures to most directly comparable GAAP measures. When discussing 2026 actual or reported results, we will be making certain comparisons to 2025 actual or reported results on an operational basis, which excludes the impact of foreign currency rates. When comparing our 2026 actual or reported results to our expectations, we are making comparisons to our 2026 financial guidance. With that, I'll hand the call over to our CEO, Scott Smith.

Good morning, everyone. We're off to an exceptional start in 2026. We delivered another strong quarter that reinforces our confidence in the strategy we outlined earlier this year. In the second quarter, we delivered $3.8 billion in total revenues, representing 3.5% operational revenue growth year-over-year, adjusted EBITDA of $1.2 billion and adjusted EPS of $0.69 per share. These results exceeded our expectations and reflect the strong momentum across our businesses and continued improvement in operating leverage. Just as importantly, these results give us confidence to raise our outlook for the remainder of the year. Let me briefly highlight some of the progress we've made across our businesses. Commercial execution was excellent across our global portfolio during the quarter, led once again by Greater China, where the commercial investments in our portfolio of established brands are generating meaningful growth. In North America, execution across our complex generics and transdermal products also drove solid growth. Our pipeline is progressing as expected. As we announced last week, we received U.S. regulatory approval for Winland and expect to launch the product later this year. At the same time, launch preparations continue for Fast Acting loxcamp as it progresses through FDA review. We're confident in the differentiated clinical profiles of both medicines and also and our commercial readiness. In Japan, we recently reported Phase III results for NEPCON while pitolisant continues to progress through the final stages of regulatory review, underscoring the momentum we're building across our pipeline in the strategically important market. Beyond these opportunities, our Phase III programs for chelation and cenerimod remain on track with important readouts expected in 2027, which, if successful, we believe will represent meaningful long-term blockbuster growth opportunities. Taken together, these milestones provide a robust set of near-term catalysts with the potential to accelerate our long-term growth profile. As we prepare for our next phase of growth, we're prioritizing our capital, talent and resources toward the opportunities we believe offer the greatest long-term growth potential. As part of that effort, we agreed to sell the global rights to turbid, reflecting a strategic shift away from eye care as a therapeutic area of focus. Turning to our enterprise-wide strategic review. We're delivering the savings we committed to earlier this year while reinvesting a portion of those savings to support future growth. We're beginning to see those actions translate into the real operating leverage we expected. That's creating a stronger Viatris with greater flexibility to invest in growth and create long-term value. Turning to capital allocation. We continue to take a balanced and opportunistic approach supported by strong cash generation and the additional financial flexibility created through the monetization of our Biocon equity stake, we're executing across all our capital allocation pores. We continue to return significant capital to shareholders through our dividend and more recently through our continued share repurchases, together totaling approximately $550 million to date. At the same time, we're maintaining flexibility to pursue disciplined business development opportunities that we believe can play a significant role in accelerating our long-term growth. As we think about our performance so far this year and the outlook for the rest of the year, we're raising the midpoint of our 2026 financial guidance ranges across all key financial metrics. Our updated outlook incorporates all the business dynamics we expect in the second half, including certain intermittent manufacturing disruptions at our Nashik facility following the fire and the FDA's May 2026 inspection. We are communicating with the FDA, working closely with external experts and have initiated a comprehensive remediation plan to address the inspection observations. In summary, I'm very pleased with our execution through the first half of the year and the momentum we're carrying into the second half. We're entering a catalyst risk period with multiple upcoming launches, important Phase III milestones and the financial flexibility to pursue disciplined accretive business development. Together, we believe these opportunities position Viatris to accelerate long-term growth and create meaningful value for shareholders. With that, I'll turn it over to Philippe.

Thank you, Scott. We have delivered a strong first half of the year in R&D as we continue to execute with discipline against our strategy. Starting with our value-added medicines, we were pleased to receive FDA approval for winnow last week ahead of its PDUFA date. We lose a new discrete once-weekly transdermal hormonal contraceptive patch that offers women in an invasive, reversible option in the low dose of estrogen. Importantly, the approved label reflects the strength of our clinical program, including demonstrated efficacy in women with a BMI of 25 to less than 30 kilograms per square meter with no BMI-based limitation of use for this population. We are also working on addressing the unmet need for women with a BMI at or above through our next contraceptive transdermal system, progestin-only patch currently in development. This program has completed Phase III enrollment, and we expect top line results in the first half of 2027. As patients continue to seek convenient and noninvasive treatment options, we believe our deep expertise in developing and manufacturing transdermal drug delivery systems position us well to advance additional opportunities across this platform. Regarding fast-acting Meloxica, we continue to have positive engagement with FDA as the NDA review progresses and as we approach the mid-cycle point of the review. We continue to believe that the investigational profile of fast-acting meloxicam, including its rapid absorption, clinically meaningful pay relief and reductions in opioid use positions the product as a meaningful addition to the evolving mutupain treatment landscape, pending final labeling negotiations ahead of an anticipated FDA approval. Regarding our pipeline in Japan. We recently announced positive top line Phase III results evaluating the efficacy and safety of Nefecon in Japanese dog with primary IGA nephropathy designated intractable disease in Japan. If approved, Nefecon has the potential to provide a meaningful disease-modifying treatment option for these patients. We are targeting submission of a new drug application in Japan by the end of 2026. In addition, applications for pitolisant for the treatment of excessive daytime sleepiness associated with obstructive sleep apnea in narcolepsy remain on track and have reached the final stages of review. We anticipate regulatory decisions for both indications in the second half of this year. Turning to our innovative global Phase III program. For cenerimod, we continue to expect results from both Phase III SLE studies in plus 1 and in the first half of 2027. So far, most patients have elected to continue treatment in the open-label extension study with a study treatment duration extending up to years. For flat we remain on track to reach good enrollment in our SOS Phase III study around year-end and are maintaining an enrollment rate of approximately 1,200 patients per month. We continue to expect a data readout in the first half of 2027. And finally, turning to our generic pipeline. We continue to execute well across our pipeline and remain on track to achieve more than 100 new product approvals this year with [ 70 ] approvals already secured in the first half. A key area of focus remains our complex generics, including complex injectables where we have established a meaningful expertise. Over the past 2 years, we have secured approval in the U.S. for 11 complex injectables, including octreotide and recently, we were the first approved for all 3 strengths for both iron Sikas and ferry carboxymaltose injection. Overall, the substantial progress we've made in the first half of the year reflects both the disciplined execution of our teams and the breadth of capabilities we've built with multiple regulatory, clinical and scientific milestones ahead we remain confident in our ability to execute our R&D strategy, advance meaningful medicines for patients and continue strengthening our scientific leadership. With that, I'll turn it over to [ Paul ].

Thank you, Philippe, and good morning, everyone. I'm pleased to report that we delivered another strong quarter, reflecting the durability of our global portfolio and disciplined execution of our strategy. . This morning, I'll highlight the drivers of this strong second quarter performance, the progress we've made delivering on our capital allocation priorities and details supporting our financial guidance raise for the year. Beginning with our second quarter results. Total revenues were $3.8 billion, representing operational growth of approximately 3.5% year-over-year. This performance was driven primarily by continued growth in our cardiovascular portfolio in Greater China and strong performance across our generics product category in developed markets, led primarily by our complex generics and transdermal products in North America. The commercial highlights for the quarter across each of our segments is as follows: in developed markets, net sales increased by 2% versus the prior year, exceeding our expectations. For North America, net sales grew 1%, driven by increased demand across our diverse generics portfolio, including estradiol patches as well as continued strength from Brain. New product revenues also benefited from continued momentum across our more durable higher-margin complex injectable portfolio, including octreotide and iron sucrose. Within our branded product category, solid growth from YUPELRI was more than offset by anticipated competitive pressure within our established brands portfolio. In Europe, net sales increased 2% versus the prior year, primarily driven by strength in the generics portfolio across key countries, including France and Italy, as well as contributions from new product revenues. The brand's portfolio declined slightly year-over-year as continued solid growth from Creon and Brufen was offset by anticipated competitive pressure on dimes stock. Turning to emerging markets. Net sales declined 2% versus the prior year, coming in below our expectations. The decline was primarily driven by continued supply constraints affecting our lower-margin ARV generics portfolio. Net sales in our brand product category increased 6% year-over-year, supported by stable growth across established brands. Within Jans, net sales were essentially flat versus the prior year, exceeding our expectations. This result reflects uptake from the launch of effector or generalized anxiety disorder and broad volume growth in generics, offset by the anticipated impact of government-driven price regulations in Japan and increased competition for certain brands in Australia. Lastly, we delivered another exceptional quarter in Greater China with net sales increasing 16% year-over-year, once again ahead of our expectations. We continue to benefit from favorable market fundamentals in China, including an aging population and demand for our cardiovascular products. In addition, our strategic investments in selling and marketing capabilities, including our e-commerce and retail platforms have positioned us to capitalize on the strength of our well-recognized brands. As a result, we saw growth across all channels during the quarter, including e-commerce, where sales increased 36% versus the prior year. Now turning to the remainder of the P&L. Adjusted gross margin was 57.5% for the quarter, representing nearly 1% improvement versus the prior year. The increase was driven primarily by the strong performance in Greater China and the favorable product mix in our North American generics portfolio, as mentioned earlier. Operating expenses declined as a percentage of total revenues compared with the prior year partially reflecting continued SG&A discipline and realization of the expected savings from our enterprise-wide strategic review. R&D investment progressed in line with our expectations, driven primarily by the ongoing Phase III programs for selatogrel and cenerimod. For free cash flow, we generated $329 million of cash during the quarter, inclusive of transaction and restructuring-related costs and taxes. Excluding these items, free cash flow would have been $449 million. The year-over-year improvement was primarily driven by stronger operating performance and favorable working capital dynamics. Turning to capital allocation. Through early August, we have deployed approximately $1.4 billion of capital consistent with our balanced capital allocation strategy, including the return of approximately $550 million of capital to shareholders through dividends and approximately $270 million of share repurchases. Additionally, we continued to strengthen our balance sheet by repaying approximately $900 million of debt that matured in June while refinancing the remaining balance. As a result, we ended the quarter with a gross leverage ratio of approximately 2.9x below the midpoint of our long-term target range of 2.8 to 3.2x. For the remainder of our equity stake in Biocon. Now a few comments on our updated financial guidance and phasing for the remainder of the year, based primarily on our strong first half performance and our continued confidence in the momentum of our businesses, we are raising our 2026 financial guidance for all key metrics. The midpoint of each of our revised guidance ranges represent expected operational growth of approximately 2% for total revenues, 5% for adjusted EBITDA and 7% for adjusted EPS versus the prior year. To provide further visibility into the segments, our updated full year guidance for total revenues reflects the following expectations compared to the prior year. Low double-digit growth in Greater China, developed markets roughly flat, with North America declining slightly, low single-digit growth in emerging markets and low single-digit decline in Jans. In addition, this takes into account the following expected second half dynamics. Moderation in Greater China growth due to the implementation of a procurement policy change expected to negatively impact volumes in our hospital channel. Additional competitive pressure in developed markets including for Brena and Wixela in North America and additional expected supply disruptions, primarily resulting from our Nashik facility and primarily impacting our low-margin oral solid dose generics in emerging markets and certain generic products in Europe. We currently anticipate the impact of supply disruptions to be between $100 million and $150 million to total revenues in the second half of 2026. Lastly, as Scott mentioned, we reached an agreement to divest our global product rights for Tirva. The transaction is expected to close in the second half of 2026, subject to customary closing conditions. The anticipated impact of this transaction has been fully considered in our updated 2026 financial guidance. Turning to phasing for the remainder of the year. Total revenues are expected to be weighted to the second half at approximately 51% of our full year outlook. Adjusted EBITDA and adjusted EPS are now expected to be slightly lower in the second half, and free cash flow is still expected to be more heavily weighted to the second half. In closing, we are pleased with our performance through the first half of the year, reflecting strong execution against our strategy. As we look ahead, we believe our diversified portfolio, strong commercial execution and financial flexibility positions us well to deliver sustainable revenue and earnings growth. With that, I'll hand it back to the operator to begin the Q&A.

We will now begin the question-and-answer session. [Operator Instructions] Our first question today comes from Ash Verma from UBS.

Okay. Congrats on the progress. Maybe just on China. So great to see solid operational growth here that you've seen in the first 2 quarters. I know you've noted e-commerce has been a big source of growth. Just help us understand what percentage of your revenue right now is coming from e-commerce, retail or the government channel, where I know you mentioned some headwinds on the procurement in the hospital channel. So if you can just give us a little bit of a breakdown, that would be helpful. And then secondly, just to help us understand the guidance. So at the midpoint of 2026 guide, you're raising revenue by $50 million, but EBITDA by $100 million. Is this because you're expecting some very high-margin products to launch? Or is there a chance that your reiterated OpEx guides come towards the lower end?

Good. So thank you and thank you for the questions. Let me make some comments. I'll kick it over to Paul for some more detail. Relative to China, a really strong quarter for China. Our commercial team, I believe, is doing an outstanding job. I think we've got great leadership there. We've made the right investments in China and are participating very, very well in health care in China. There's a real focus right now in China on health care, quality of life. There's a sizable aging middle class, et cetera, which really allows us to participate strongly in China. We're very, very pleased with the progress there. . And we continue to see what I believe is real and strong demand iconic brands that we have in China, which is really nice to see. Relative to the guidance, there based on the strong strength of the first half and the strength that we see throughout the rest of the year, being able to raise guidance on all our key financial metrics and I think we're in really good shape as we sit here in August in '26 and are moving towards the second half of '26 and '27, and we feel very, very good about the strength of the business. Now I'll kick it over to Paul to comment specifically on China and also the guidance.

Thanks, Ash. So as far as China goes, I think it's important to note that we have seen growth across all channels in the market not just the retail platform or e-commerce. However, e-commerce is about 10 -- between 10% and 15% of the overall business. which is specifically why I know you didn't ask, but in the second half of the year, we expect some decline in the hospital channel growth as a result of the implementation of the policy. But we do expect -- I think in first quarter, we said it was too early. We do expect the growth overall to continue similar to the trajectory we saw in the first half, it's just going to be muted because of the policy issue. As far as the guidance goes, so we ran ahead of expectations for the first half, both revenue and EBITDA. Adjusted EBITDA was approximately twice the growth or the increasing expectation over revenue, right? And a lot of that is because of the cost containment measures are on track and even ahead of schedule in certain instances. However, in the back half of the year, we do see the challenges on the additional competition that we have in the North America products, which are high margin and the China business, which is high margin, kind of muting that. But if you also think about the revenue challenges from Nashik that we've talked about in the back half of the year, they're lower-margin generic products that are impacted. So the revenue component of the guidance we had to mute a little bit because of that, whereas EBITDA ran pretty strong in the first half of the year. And even with the challenges in the second half of the year, we expect that, that will, for the full year, exceed the midpoint to where we put it compared to revenue.

Paul hit on I think an issue that I think it's good for us to expand on a little bit, and that's the enterprise-wide strategic review, which we've engaged in taking a look of the company, making sure we got the resources in the right place, and we're executing that. We're delivering on that. And from that, we're seeing real EBITDA leverage here for the second quarter in a row. So we're very pleased with the outcome of that particular enterprise-wide strategic review.

Our next question comes from Omer Rates from Evercore.

I just wanted to ask a 3-part question on selatogrel, if I may. First, at what point in the patients journey post an event? Are they initiating an oral antiplatelet? I understand in the trial, if you're on an active arm, you'll be on Selatiperhaps right away. But at what point, once you're in the hospital, after the index event, are you initiating an oral and to play number one which sort of leads me to my second part, which is what -- I know what the half-life is, but what's the OFF time where no more platelet inhibition is in place? And I ask because if I go by your EC50, which is, I think, 14-nanometers, it looks like the 16 mg dose doesn't get to that EC50 until 8 to 10 hours post the dosing? And then finally, for patients that do end up needing a more intensive procedure like a CABG, I guess how is that being handled in the trial in terms of how they're taking all the blood thinner or the timing post initial Selatogrel administration?

Before we get to the answer the technicalities of your question, thank you for the question. We're really excited about SolAero. . We expect to read out on when we get into the first half of '27 on this. We've enrolled a lot of patients. Philippe can give you some context on that. And I think we've been very, very pleased with the execution and enrollment and progress of this particular trial. We see if positive, we see real blockbuster opportunities for Selatogrel here and a major expansion. I say the same thing for cenerimod. There's a lot of attention on Slater, which is great very unique product. But we're also really excited about the progress, execution and the potential of cenerimod as well. So we really appreciate the question. I love talking about new interesting products that can help drive our revenue future. And let me kick it over to Philippe to give you some context.

Thanks, Scott, and thank you, Mark, for the question. So patients that are on the study, the vast majority are on drill antiplatelet therapy to begin with. So they are already on an overall clopidogrel for the most part is what we expect to see. So that while selatogral added on top of that. Now for those that are not necessarily on it, they could be post treatment within 24 hours or so the effect of Slate is no longer present. Therefore, treatment with an oral P2 trial could be initiated at that point in time, should be required. With regards to to the offset, as I said, I think we know that within 6 to 7 hours, we get to peak platelet inhibition, 80% plated inhibition after 15 minutes or more than 80% after 15 minutes is what we've seen in Phase II. The offset is, as I said, within 24 hours, Seadrill is no longer present. Now in terms of the CABG, I think CABG can be initiated at any point, should it be required. Should it be de required? It's the current guidelines. There is no need to wait if it has been urgent. But that being said, again, within post 8 hours CABG, post 8 hour post selatogrel injection CABG can be initiated safely. Again, it is not a requirement to wait.

Our next question comes from Matt Delator from Goldman Sachs.

Congrats on the progress. Maybe a couple on the branded pipeline, starting with fast-acting meloxicam or FAM. Could you comment on any recent interactions with the FDA regarding the label being opioid sparing and then just remind us how this asset is factored into your longer-term guidance targets and the degree to which success could represent upside to those, either the base or bull case. . And then on selatogrel, could you just remind us what magnitude of benefit you believe we need to see. I think you've disclosed in the past that the study is powered for a 20% benefit. So I guess what's the minimum benefit that could drive meaningful uptake and then when we see the data, will there be any subtleties that we need to keep in mind, given it is a composite endpoint, for instance, does it matter which of the components is driving the benefit? It seems like they're all fairly serious, but I just wanted to confirm.

Thanks, Matt. First of all, on meloxicam fast acting, we think it's going to be a significant contributor to our pipeline, to our revenue to the U.S. business between now and 2030. And so I'm not getting into specific numbers at this point in time. We don't have a label yet, and there's some other things that we really need to look at. But we see it being a very significant contributor in the U.S. to high-margin branded portfolio in the United States. Philippe can talk a little bit about the labor and the progression of discussions with the FDA and Selada, then maybe we can loop back to Karen to talk a little bit about the potential session.

Yes. Thank you. So we look at to Meloxicam first and the progress of the review currently ongoing with FDA. We are reaching mid-cycle. Things are progressing as planned. FDA is very engaged. We are answering all the queries that they have and expect to get approval towards the end of the year at the time of PDUFA. In terms of the labeling negotiations, there's been I mean there's interaction on the clinical data with the agency labeling negotiations won't start until October, November time frame. So this is when really we'll start talking about the exact language around opioid sparing. As I previously mentioned, this was heavily discussed with the agency during Phase II and during -- putting the protocol together for Phase III. And we've followed every recommendation that the agency had for us in order to be able to get this language included in the label section. Where in the level section in exactly what language I can't tell you as of today, but we should get a better idea around the October and November timeframe.

And we see a lot of excitement about this product we're getting very positive feedback from KOLs. Definitely, the results of the Phase III program and notably on the opioid spread is seen as a real positive. So in terms of potential that we see for aspecting meloxicam and, as you call it, the potential is large. That pain is an acute pain is a broad market with about 80 million patients suffering from pain every year. And unfortunately, half of those patients already are dependent on opioids for pain relief. So we see that this product has the right profile. This is generating a lot of interest, and we can imagine that with market activity that could potentially go beyond 3 years as we are finding more patent. We could reach up to $500 million in peak sales with these assets and that will contribute meaningfully to our long-term guidance, both...

And then on your question on Carige. So the actual benefit that the study sizes for is approximately a 20% risk reduction. We -- I've discussed this obviously, heavily with our KOLs and investigators. The minimal bar is much lower than that in the mind of the investigators and KOL. I think if we were to be able to show is closer to 10% to 15%, that would be very much acceptable and the lowest bar commercially to get this drug to patients. So again, the study is overpowered for that 20% risk reduction and that's really the minimal bar we're seeking at this point in time. In terms of the endpoint itself, as you know, it is -- the endpoint is ranked according to the outcome and according to their clinical importance. What we expect to see is that Selatogrel is blunting acute MI from happening, if injected at the right time. And we also expect to see that Cidara will reduce the severity of the MI that these patients are expecting, making them a lot more manageable for the patient with a lot less equally over time, which leads to patients being hospital a lot less, a lot or much shorter amount of time as well. So add a lot of benefits to the patient and to the payers of...

And these post-MI patients are very, very expensive for the health care system. They're very difficult to manage over time. And so being able to improve any particular outcome for a patient has not only tremendous benefits to that patient, but also on the health care system overall. So that's why part of the excitement that we feel about Saladino being a unique drug in the space.

Our next question comes from Glen Santangelo from Barclays.

Scott, I just had a couple of follow-up questions. I wanted to talk about this China dynamic. It seems like you're describing a situation that maybe has some durability in those commercial efforts beyond just 2026 because it seems like it's that market that gave you the ability to sort of raise guidance despite the fire-related disruptions you're sort of calling out in the back half of the year. And so I know it's a little bit too early to comment on '27, but I was kind of curious if you could comment on the durability of the strength there. And then should these fire-related disruptions be contained to just 2026. And then my follow-up was on meloxicam. It seems like meloxicam and the presbyopia solution are the 2 meaningful approvals you have left this year. At your Analyst Day, you sort of highlighted that value-added medicines pipeline would add about 1% to the growth algorithm. And in a previous question you just sort of highlighted that you think it can be a meaningful contributor. And I'm just kind of curious, when I think about that value-added pipeline are you still thinking about it as a 1% contributor to the growth algorithm? Or do you have maybe greater expectations at this point?

Thank you very much for the question. So yes, we're really pleased with the performance in China. There seems to be some good durability. We had good performance last year. We see good performance this year. I think we see some of the investments that we've made in China in terms of the channels that we're going to reach in to the patients, trying to restructure our business there, trying to make sure that we're over investing in some of the demand for some of these iconic brands. there seems to be good durability there. The only thing you worry about in China is there's policy changes at times and sometimes you see them coming sometimes not. Sometimes they're inconsistently applied across provinces and things. We try and obviously work with the government in China to deliver the best health care we can. But China seems to me to be a good engine for us moving forward. And I think it's not only China that allowed us to sort of beat and raise and to have a good outlook for this particular year. There was some good strength in a number of other businesses as well. We see good strength in the value-added medicines that we're bringing in the United States and other places. So we're very pleased with the business overall. You raised NASC. And just to put that in perspective for you, we currently operate 26 manufacturing facilities around the world. We have inspections and observations and things all the time, specific to NASA, as I said in my prepared remarks, we're communicating with the FDA. We're working closely with the external experts and initiated comprehensive remediation plan to address all the issues or any issues that we see there. And we had a fire, as you said in Q1, and some of the inspection observations in May. We expect the remediations, as Paul was pointing out, to have some impact in second half revenues, but it's fully baked into our guidance. And as a reminder, we raised guidance for the year for all key financial metrics. We see this being sort of intermittent as we remediate the fire and some of the things from the observations in the inspection and we don't expect this to be long term affecting the business now.

Yes. Maybe if I could just add 1 thing, too, from an expectation perspective. we do see the impact being larger in Q3 and moderating a bit in Q4. So I think, as Scott intimated, we expect this supply disruption to be shorter term in nature. And hopefully, by exiting the end of the year into the beginning of next year, we will have been gotten ourselves past it. That's our expectation.

And Nacho, just to characterize it as a lot of smaller products. It's mainly emerging markets, Jans. There's no 1 product there that's more than $20 million in revenue. So it's a lot of little pieces. And again, as we remediate and get things online, we expect to see relatively short-term intermittent effects of that, but the strength of the business allows us to get through that and again, be in a position to raise our guidance across all financial metrics. I think you had a question around meloxicam as well.

Yes, maybe I can address this. Again, Glenn, just to say that, again, we remain very optimistic about about meloxicam. We're expecting beat at the end of the year. So of course, we'll wait for the label to be available to finalize our pricing strategy and value proposition. But everything we are seeing so far and the feedback that we get from the market is very positive. So we believe that there is room for another asset that is fan-taking that would have a meaningful growth in acute pain and really expand the utilization of NSA with peacheminoxigam having a very well-characterized ability and safety profile. So we're looking forward to launching this product. It will be branded assets. We will deploy a specialty sales force, and I'm looking forward to talking about our launch at the next call.