Divestitures

6 Months Ended

Jun. 30, 2025

Discontinued Operations and Disposal Groups [Abstract]

Divestitures

Divestitures

By the end of 2024, the Company had substantially completed the previously announced divestitures of its OTC Business, its women’s healthcare business primarily related to oral and injectable contraceptives, its API business in India, its rights to two women’s healthcare products in certain countries, and commercialization rights in the majority of the Upjohn Distributor Markets.

During the three and six months ended June 30, 2025, the Company recorded additional pre-tax charges of approximately $43.8 million and $80.7 million, respectively, related to the divestitures. The additional charges were recorded as a component of Other Expense (Income), Net in the condensed consolidated statements of operations, and were primarily due to an increase in estimated transaction related costs, including the assumption of additional contractual obligations, as well as the impact of working capital and other transaction-related adjustments.

In conjunction with these transactions, Viatris and the respective buyers entered into various agreements to provide a framework for our relationship with the respective buyers after the closing of the divestitures, including transition services agreements, manufacturing and supply agreements, and distribution agreements, some of which include various on-going financial obligations. During the three months ended June 30, 2025 and 2024, the Company recognized TSA income related to all divestitures of approximately $12.4 million and $6.0 million, respectively. During the six months ended June 30, 2025 and 2024, the Company recognized TSA income related to all divestitures of approximately $29.8 million and $19.5 million, respectively. TSA income is recorded as a component of Other Expense (Income), Net.