In 2025, the Company initiated an EWSR to enable the Company to build a more focused, efficient and future-ready organization and position the Company for sustained growth beginning in 2026. On February 26, 2026, the Company announced the results of its EWSR, and as a part of the review, committed to and began implementation of certain restructuring activities. These restructuring activities are expected to optimize the Company’s commercial capabilities, enabling functions, R&D, medical affairs and regulatory activities, and sourcing, manufacturing and supply chain activities, including inventory optimization. As a result, the Company expects a global workforce reduction of up to approximately 10%. The Company anticipates that these restructuring activities, as well as associated costs and savings, will be completed primarily over the next three years.

The Company expects to record charges for costs associated with the restructuring activities of the EWSR. For the committed restructuring activities, the Company expects to incur total pre-tax charges ranging between $700 million and $850 million.

Charges for restructuring and ongoing cost reduction initiatives are recorded in the period the Company commits to a restructuring or cost reduction plan, or executes specific actions contemplated by the plan and all criteria for liability recognition have been met. These charges are recognized in Cost of Sales, R&D and SG&A in the condensed consolidated statements of operations based on the classification of the affected employees or the related operations.


(In millions)	Employee Related Costs		Other Exit Costs		Total
Balance at December 31, 2025:	$	—	$	—	$	—
Charges (1)	75.8		2.1		77.9

Cash payment	(5.9)		—		(5.9)
Utilization	—		(2.1)		(2.1)
Foreign currency translation	(0.1)		—		(0.1)
Balance at March 31, 2026:	$	69.8	$	—	$	69.8
Charges (1)	22.9		4.4		27.3

Cash payment	(31.4)		—		(31.4)
Utilization	—		(4.4)		(4.4)
Foreign currency translation	(0.5)		—		(0.5)
Balance at June 30, 2026:	$	60.8	$	—	$	60.8

(1) For the three months ended June 30, 2026, total restructuring charges in Developed Markets, Emerging Markets, Greater China, and Corporate/Other were approximately $19.5 million, $3.5 million, $0.8 million, and $3.5 million. For the six months ended June 30, 2026, total restructuring charges in Developed Markets, Emerging Markets, Greater China, and Corporate/Other were approximately $87.0 million, $9.2 million, $1.3 million, and $7.7 million, respectively.

Additional restructuring charges, primarily for facilities to be closed or disposed of that are not a component of the 2026 restructuring program, were also incurred during the three and six months ended June 30, 2026. At June 30, 2026 and December 31, 2025, accrued liabilities for restructuring and other cost reduction programs were primarily included in other current liabilities and other long-term obligations in the condensed consolidated balance sheets.

As previously disclosed, in February 2026, a fire occurred in a service area at the Company’s oral solid dose manufacturing facility in Nashik, India. Manufacturing at the facility was temporarily suspended.

In May 2026, the FDA inspected the facility and issued Form 483 observations. The Company responded to the Form 483 observations and promptly initiated a comprehensive remediation plan. The Company has also engaged independent third-party subject matter experts to support its remediation plan. Activities under the remediation plan are ongoing and have led to intermittent disruptions at the facility.

While production at the facility has resumed, the temporary manufacturing suspension due to the fire at the facility in February along with these intermittent disruptions are expected to impact product supply in the second half of the year.

During the three and six months ended June 30, 2026, the Company recognized total charges of $14.9 million and $86.8 million, respectively, within Cost of Sales in the condensed consolidated statements of operations primarily related to the write off of inventory and fixed assets damaged in the fire and incremental manufacturing variances. The Company believes it has certain insurance coverages for these losses, including for assets and business interruption. In the event the plant cannot be returned to sustained normal operations or the Company’s insurance coverage is unavailable or inadequate, this event could have a negative impact on our financial position, results of operations and cash flows.