Viatris Business Model Canvas

Viatris collaborates with a broad spectrum of global distribution and supply chain partners to ensure its medicines reach patients efficiently. This extensive network includes distributors, wholesalers, and specialized logistics providers.

These key partnerships are vital for Viatris’s mission to provide access to high-quality medicines. In 2024, the company continued to leverage these relationships to serve an estimated 1 billion patients annually across diverse geographic markets.

The strength and reliability of this distribution infrastructure are fundamental to Viatris's global operational strategy and its commitment to patient access.

• Distributors and Wholesalers: Partners who manage the flow of Viatris’s products through national and regional healthcare systems.
• Logistics Providers: Companies specializing in the transportation and warehousing of pharmaceutical products, ensuring temperature control and timely delivery.
• Global Reach: These collaborations enable Viatris to deliver its portfolio to approximately 1 billion patients worldwide each year.

Viatris cultivates robust partnerships with hospitals, clinics, and healthcare professionals worldwide. These collaborations are crucial for gaining insights into patient needs, driving product adoption, and ensuring the correct utilization of their medicines. By actively engaging with medical communities, Viatris effectively integrates its pharmaceutical offerings into established patient care pathways, a strategy that underpins its market presence.

These key relationships are vital for Viatris's market penetration and product lifecycle management. For instance, in 2024, Viatris continued to emphasize its role in providing essential medicines to healthcare systems facing various challenges, including supply chain resilience and access to affordable treatments. Their engagement with healthcare providers directly influences prescribing patterns and patient access to Viatris's diverse portfolio, which spans numerous therapeutic areas.

• Global Reach: Viatris's network of healthcare provider relationships extends across more than 165 countries and territories as of recent reporting, facilitating broad access to its medicines.
• Product Integration: Partnerships enable Viatris to work with institutions on formulary inclusion and clinical guidelines, directly impacting the use of their products in patient treatment plans.
• Feedback Loop: Direct engagement with medical professionals provides Viatris with critical feedback on product performance and unmet medical needs, informing future research and development.
• Market Intelligence: These relationships offer invaluable market intelligence, allowing Viatris to adapt its strategies to regional healthcare demands and regulatory landscapes.

Viatris's financial capital and strong balance sheet are cornerstones of its business model, enabling strategic flexibility and resilience. The company's ability to generate substantial cash flows, exemplified by its consistent operating cash generation, allows for significant investment in research and development and strategic acquisitions. For instance, in the twelve months ending September 30, 2023, Viatris reported a strong operating cash flow, underscoring its financial health.

This robust financial position is crucial for Viatris to pursue growth opportunities and return value to shareholders. The company's focus on debt reduction further strengthens its balance sheet, providing a solid foundation for navigating market dynamics and investing in future innovation. Effective capital allocation remains a key priority, ensuring resources are deployed to maximize long-term shareholder value.

• Financial Strength: Viatris demonstrates significant financial strength through consistent cash flow generation, supporting strategic investments and debt management.
• Strategic Investments: A healthy balance sheet empowers Viatris to fund critical R&D initiatives and pursue value-enhancing business development opportunities.
• Capital Return: The company's financial capacity allows for the return of capital to shareholders through dividends and share repurchases.
• Debt Reduction Focus: Viatris prioritizes reducing its debt levels, enhancing financial stability and flexibility for future strategic actions.

Viatris's human capital is a cornerstone of its business model, featuring a highly skilled global workforce. This team possesses deep expertise across critical areas such as research and development, manufacturing, regulatory affairs, and commercial operations. Their collective knowledge is vital for navigating the complexities of the pharmaceutical industry and executing the company's strategic objectives.

The intellectual capital resident within Viatris's employees fuels its operations and innovation. This expertise is particularly crucial in areas like drug development and market access, where a nuanced understanding of global regulations and market dynamics is paramount. For instance, in 2023, Viatris continued to invest in talent development, aiming to enhance the skills of its approximately 37,000 employees worldwide, ensuring they remain at the forefront of pharmaceutical advancements.

• Global Expertise: Viatris employs roughly 37,000 individuals globally, bringing diverse perspectives and specialized skills to R&D, manufacturing, and commercial functions.
• Intellectual Capital: The deep understanding of the pharmaceutical landscape held by its workforce is key to Viatris's ability to operate effectively and pursue strategic growth.
• Talent Development: Continuous investment in employee training and development is a priority to maintain a competitive edge and foster innovation within the organization.

Viatris, while primarily operating on a business-to-business model, actively engages in patient-centric support programs to enhance health outcomes. These programs are crucial for monitoring product safety through robust pharmacovigilance systems, a key component of their customer relationships.

The company's commitment extends to direct patient support, where applicable, focusing on critical areas like medication adherence and the management of specific chronic conditions. This proactive approach underscores Viatris's dedication to empowering individuals globally in their pursuit of healthier lives.

• Pharmacovigilance: Viatris maintains rigorous safety monitoring of its products, collecting and analyzing adverse event data to ensure patient well-being.
• Patient Support Programs: Where feasible, Viatris offers programs designed to assist patients with medication adherence, disease education, and access to treatment.
• Global Health Mission: The overarching objective is to enable people worldwide to lead healthier lives through accessible and reliable healthcare solutions.

Viatris prioritizes building strong, lasting connections with its worldwide network of pharmaceutical wholesalers and distributors. These alliances are absolutely crucial for getting Viatris's medicines efficiently from manufacturing to pharmacies and hospitals. For instance, in 2023, Viatris reported net sales of approximately $13.3 billion, underscoring the significant volume these partnerships manage.

These collaborations are more than just transactional; they involve joint efforts to ensure products are consistently available and to effectively reach target markets. This deep integration helps Viatris navigate complex global supply chains and maintain its market presence. In 2024, the pharmaceutical distribution sector is expected to continue its growth trajectory, with Viatris aiming to leverage these established relationships to capitalize on this expansion.

• Global Reach: Viatris's established network spans numerous countries, facilitating broad market access.
• Supply Chain Efficiency: Partnerships ensure timely and cost-effective delivery of pharmaceutical products.
• Market Penetration: Collaborative strategies enhance product visibility and uptake in diverse healthcare settings.
• Reliability: Long-term relationships foster trust and dependability in product supply, critical for patient care.

Government health agencies and public sector programs are crucial customers for Viatris, particularly for its portfolio of generic and essential medicines. These bodies are instrumental in shaping national health policies, managing large-scale drug procurement processes, and ultimately ensuring that citizens have access to affordable and vital medications. Viatris actively partners with these entities to bolster public health initiatives and improve healthcare outcomes.

In 2024, Viatris continued to engage with governments worldwide, supplying essential medicines that form the backbone of public health systems. For instance, Viatris is a key supplier for many national immunization programs, providing vaccines and related treatments. The company's commitment to affordability makes it a preferred partner for tenders and bulk purchases aimed at serving large populations, reflecting a strategic focus on public health access.

• Government Procurement: Viatris regularly participates in national and regional tenders for essential medicines, securing contracts that ensure widespread availability.
• Public Health Initiatives: The company collaborates on programs targeting chronic diseases, infectious diseases, and maternal health, aligning with governmental public health priorities.
• Affordable Access: Viatris's generic offerings are vital for governments seeking to manage healthcare costs while expanding access to critical treatments for their citizens.
• Global Reach: Viatris serves numerous government health ministries across diverse markets, demonstrating its capacity to meet varied regulatory and supply chain demands.

Pharmaceutical wholesalers and distributors are pivotal customer segments for Viatris, acting as essential intermediaries. They purchase Viatris's diverse portfolio of medicines, including generics and branded products, and then channel these essential treatments to a vast network of pharmacies, hospitals, clinics, and other healthcare facilities. This segment is critical for Viatris’s market reach, allowing for efficient and widespread distribution across numerous geographic regions.

These partners are the backbone of Viatris's supply chain efficiency. By leveraging their established logistics and customer relationships, Viatris can ensure its products are readily available to patients. For instance, in 2024, the global pharmaceutical distribution market was valued at over $1.6 trillion, highlighting the sheer scale and importance of these intermediaries in getting medicines to where they are needed most.

• Key Role: They are the primary channel through which Viatris's pharmaceutical products reach end-users like pharmacies and hospitals.
• Market Penetration: Strong partnerships with wholesalers are vital for Viatris to expand its market share and ensure broad product availability.
• Supply Chain Efficiency: These distributors manage complex logistics, enabling Viatris to operate leanly and focus on product development and manufacturing.
• Revenue Generation: Sales to these wholesale entities represent a significant portion of Viatris's overall revenue, underscoring their financial importance.

New product revenues are a vital engine for Viatris's growth, stemming from medicines introduced this year and the ongoing contributions of recent launches. The company anticipates substantial new product revenue generation in 2025, fueled by progress in its product pipeline.

This revenue stream plays a critical role in counterbalancing the decline in sales from Viatris's established products. For instance, Viatris reported that its new product portfolio contributed significantly to its performance in recent quarters, with specific launches showing strong uptake.

• Key Growth Driver: New product revenues are essential for Viatris's expansion strategy.
• 2025 Outlook: Significant revenue generation is projected for 2025, supported by pipeline advancements.
• Revenue Offset: This stream is crucial for mitigating revenue decreases from mature products.
• Recent Performance: Viatris has highlighted the positive impact of its new product launches on recent financial results, indicating a strong start to this revenue stream.

Viatris can earn income from royalties and licensing deals tied to its intellectual property or through partnerships with other drugmakers. These revenue streams, while perhaps less significant than direct sales, bolster the company's finances and capitalize on its scientific advancements.

These agreements underscore the financial worth of Viatris's innovation and its collaborative efforts within the pharmaceutical industry. For instance, in 2023, Viatris continued to manage its extensive portfolio, which includes licensed products and collaborations, contributing to its overall financial performance.

• Intellectual Property Monetization: Viatris leverages its patents and proprietary technologies through licensing, generating ongoing royalty payments.
• Strategic Partnerships: Collaborations with other pharmaceutical companies for co-development or marketing rights can create royalty-based revenue streams.
• Portfolio Diversification: These agreements offer a diversified revenue source, reducing reliance solely on direct product sales and enhancing financial stability.