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 three years ending 2028.

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
Charges (1)	47.2		4.9		52.1

Cash payment	(19.8)		(0.5)		(20.3)
Utilization	—		(4.4)		(4.4)
Foreign currency translation	(1.2)		—		(1.2)
Balance at September 30, 2026:	$	87.0	$	—	$	87.0

(1) For the three months ended September 30, 2026, total restructuring charges in Developed Markets, Greater China, JANZ, Emerging Markets, and Corporate/Other were approximately $49.1 million, $(0.2) million, $0.3 million, $0.6 million, and $2.3 million, respectively. For the nine months ended September 30, 2026, total restructuring charges in Developed Markets, Greater China, JANZ, Emerging Markets, and Corporate/Other were approximately $136.1 million, $1.1 million, $0.3 million, $9.8 million, and $10.0 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 nine months ended September 30, 2026. At September 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.

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. While production at the facility had resumed, the temporary suspension of manufacturing and activities under the remediation plan led to disruptions at the facility.

In September 2026, the Company received notice from the FDA that the inspection classification of the facility was OAI, which could lead to enforcement actions, including a warning letter or import alert. In October 2026, out of an abundance of caution, the Company voluntarily suspended manufacturing at the facility to focus on remediation activities. The Company expects to resume production at the facility during the first quarter of 2027. The foregoing manufacturing suspension is expected to result in incremental costs associated with the Company’s remediation activities, operational inefficiencies, reduced production volumes and delays in production during the affected period. Any enforcement action by the FDA in connection with the OAI inspection classification of the facility could also lead to additional delays in production, product launches, interruptions in product supply, increased operating costs, or reduced product availability, one or more of which could have a material adverse effect on the Company’s business, financial condition, results of operations, cash flows, ability to pay dividends or repurchase shares and/or stock price.

During the three and nine months ended September 30, 2026, the Company recognized total charges of $11.8 million and $98.6 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.