Rajiv Malik
President at Viatris
Thanks, again, Michael. I'm going to focus this next session on the role our strong development platform can play to achieve the end goal of going up the value chain. As we have already touched on, enhancing our R&D is an essential part to achieve the future direction of the Company. I'm very proud of many accomplishments of our science team over the years.
As I see it, we are a development house with capabilities that can be further strengthened and focused in coming years, as we continue to move up the value chain. We intend to leverage our Global Healthcare Gateway to further strengthen our R&D engine with differentiated and novel products that target gaps in care. We believe that we are an ideal development partner that offer strong science, regulatory and clinical skills as well as strong global commercial footprint to companies with Phase II and III assets.
We'll continue to invest in generics with a focus on complexity and diligently pursue life-cycle management opportunities around our current therapeutic areas.
We expect to ramp up our R&D investments steadily to approximately 9% of revenue by 2026. This slide shows our roadmap to execute our R&D evolution. On the left you see, where our portfolio and pipeline is today, which is a diverse across a wide range of therapeutic areas across segments and markets. We intend to continue to build the pipeline focusing on products with complexity, and also investing in life-cycle management of certain key products in our current portfolio of various regions.
I'll walk you through certain examples in one of my following pipeline Slides. We will seek additional inorganic assets through our Global Healthcare Gateway around current therapeutic areas of regional focus. More importantly, we'll be aggressively looking into several Phase 2 and Phase 3 opportunities to build critical mass of new chemical entities and 505(b)2s novel products in the three focused therapeutic areas of GI, ophthalmology and dermatology, as Michael mentioned.
In order to execute our R&D strategy, we will leverage the foundation that has been built over a number of years. This slide highlights our extensive scientific capabilities, we have across a broad range of dosage forms and delivery mechanisms. We also have proven expertise in all of the related areas that are essential to develop [Phonetic] and scale these types of products up through and including novel products.
For example, the robust API and formulation development capabilities, the global expertise in preclinical study design and execution as well as device enginnering, strong clinical development and medical affairs across multiple therapeutic areas, strong in market regulatory, legal and IP skill set and broad and scalable manufacturing capabilities.
The backbone of this platform is of course, a strong team of 3,000 scientists and medical professionals working across 12 development centers and having regulatory expertise in 55 markets. We have a broad range of demonstrated clinical experience and have conducted over 80 clinical development and post marketing programs including Phase I, Phase II, Phase III and Phase IV studies. The bottom line is that we believe we are well positioned to support and enable the advancing of science up the value chain.
There is no better representation of our scientific expertise, then this slide are proven results. When we make a decision to pursue the development of a complex generic or a novel product, our track record shows our commitment. On an average, complex products can take seven years to nine years from development to approval. And we are so proud to bring most of these products first to the market.
Recently, we added another first to our basket with the approval of generic Restatis, building off the momentum of our first interchangeable biosimilar Semglee. I would like to dive a bit deeper into our existing pipeline to help visualize this progression.
Beginning with our core generics, as you can see we have [Indecipherable] 4 4:47 launched or have approval or have submitted some of significant products such as generics for Revlimid, Xarelto and Eliquis. We are targeting launching many of these core generics in the next one years to two years.
Flipping to the next Slide, as you can see, we are continuing to move up the value chain with more complex product. Projected launch timings for many of these are in the next two years to four years. What's unique about our complex generics pipeline is that, it's primarily vertically integrated giving us a much better control on the execution of these programs and R&D flexibility you need to succeed and bring these products to the market. It also improves the margin profile of these products, as we will no longer be sharing the profits. I'm very confident that like in the past, we are well positioned to bring the first generic of many complex products to the market, such as Symbicort, Invega Trinza, Pentasa and Abilify long-acting injection.
As I mentioned earlier in the next five years, we also intend to invest in the life-cycle management of certain core products in our portfolio to meet unmet patient needs. We are already doing this for many products, such as Levothyroxine Oral Suspension, which we have submitted and expect a regulatory action this year. Glatiramer once monthly injection built upon our success with generic Copaxone. And we are completing the clinical phase of the development intermitting and relapsing multiple sclerosis.
We have also initiated a Phase IV trial, and are investing in the science around our Yupelri to explore the impact of revefenacin on a peak inspiratory flow rate and further expand the patient base. We are investing in the life-cycle management of our Xulane product and have initiated a Phase III study on a low dose option. We have initiated clinical study for Effexor in Japan to extend the labeling for generalized anxiety disorder. And we are developing several new fixed doses combinations in cardiovascular for Chinese market.
Finally, we are also developing Meloxicam for rapid onset of post-surgical pain. We have submitted our IND and are now entering into our Phase II studies. As we enhance our R&D investments and put our capital to use, we look forward to further concentrating this pipeline around GI, ophthalmology and dermatology.
Our pipeline, excluding biosimilars that we shared with you today is well positioned to deliver approximately $500 million plus in new product launches annually after 2023. Our total pipeline is valued at $183 billion in IQVIA brand value. This broad pipeline also shows that we will cover almost 80% of the current top 100 IQVIA products and it's more heavily weighted on complex products. I can hope you can feel and appreciate the excitement and the confidence we have in our platform.
Let's now pivot and discuss the business execution for the near term. While we reshape Viatris in the coming years, our business execution remains a top priority. I walk you through how we will reshape our portfolio and deliver the pipeline earlier. So now [Phonetic] I'll provide an update on how we performed in '21, the progress on integration and how we expect to continue to further stabilize the business in '22.
'21, we performed strongly, as a team, while we were creating a new company and navigating a dynamic environment. I truly appreciate and thank all of my colleagues around the world, who seamlessly executed a successful first year as Viatris. We've made significant progress with our integration. We executed our restructuring program and achieved our target of approximately $500 million of cost synergies, while already executing the Pfizer TSA exits for several programs. We delivered strong overall results exceeding our expectations across all segments.
In developed markets, Europe benefited from our Thrombosis portfolio as well as strong performance in key brands like Influvac, Lipitor and biosimilars. North America's base business performed as expected despite unexpected competition in product like Miacalcin. Yupelri and EpiPen are other key contributors to the growth.
We effectively managed the dynamics of the hospital channel in China, while strongly growing the retail segment. Emerging markets responded to the challenge of providing the COVID-19 related products like remdesivir and AmBisome in several of their markets, which help them offset the impact of chain therapy in antiretroviral. Japan managed our Lyrica LOE exceedingly well, growing Amitiza and Lipacreon, while leveraging the portfolio of authorized generics.
On the pipeline front, we delivered on our commitment of approximately $700 million in new product revenue and significantly progress our robust pipeline of hard to make and complex products. Our science teams once again made us proud with the FDA approval and the launch of the first interchangeable biosimilar, Semglee to expand access for patients with diabetes. The strong performance across the globe was well supported by our global supply chain, which enabled us to achieve record high customer service levels, while navigating COVID-19.
Let me speak on the integration path forward. We remain on track to realize an additional $500 million cost synergies over the next two years, resulting in a $1 billion cumulative cost synergies since coming Viatris. Our synergies in '21 were largely focused on actions around cost of goods, SG&A, cost avoidance and restructuring. And as planned, the remaining focus for our cost synergies in '22 and '23 is on the restructuring and exiting the remaining Pfizer TSAs. We already completed a number of TSA exits through February of '22 [Phonetic] and expect to exit the remaining TSAs by the end of the year.
Let me now talk to you about '22. We are laser focused to continue to further stabilize the business during this transition period. You will have this slide as a reference point, as I would like to move to the next one to review the headwinds and tailwinds in '22.
We are well positioned to build on the momentum of '21 and we will do this by delivering the approximately $600 million of new product launches, which I will talk about more on the next slide, driving growth in our key markets including Europe, where we expect mid single-digit growth, as well as China retail, where we continue to invest in the same, the key emerging markets like Turkey, Thailand, Mexico, Brazil and Korea are also expected to grow on the back of a more normalized market environment post COVID-19.
Growing products such as Yupelri, Viagra, our Thrombosis portfolio, Creon, Amitiza and Dymista are also expected to grow in '22 and lend strength and stability to the business in the respective geographies. Continue ramping up of our market share of interchangeable Semglee to mid to high teens in '22, building off our successful launch and by maintaining our leadership in Wixela and Xulane. At the same time, dynamic market conditions are an inherent part of our business, and our job is to perform in this ever evolving environment.
So '22 is going to be no different. We expect mid single-digit base business erosion in '22 largely driven by the continuation of increased competition in certain high margin key products like Perforomist and Miacalcin, continued implementation of China's healthcare policy, the changes in the antiretroviral therapy guidelines, which we expect to continue to drive contraction of the market that has been stable or expanding over the last 10 years. We also expect total revenue to be negatively impacted by lower volumes for COVID-19 related products mostly in our emerging market segment, and '22 will also face the inflationary impact on input costs on manufacturing operations of our business.
Going into more detail regarding our $600 million of expected new product launches in '22, of which about a third is related to biosimilars. First, I'm excited to highlight that approximately 95% of our new product launches in '22 and '23 are already scientifically executed, meaning that they have been either already launched, approved or are pending approval. Interchangeable insulin glargine, Revlimid, Restasis, Insulin Aspart are a few key products in this bucket. So while we have not included Symbicort in our '22 financial guidance, we are happy with the progress on the product and remain ready to launch if the opportunity present itself in '22.
While I won't go into great detail on the following segment slides, I'll hit on a few highlights. In developed markets, we expect low single-digit growth primarily driven by strong performance of Europe. Europe, we expect to continue to see strong growth, driven by our Thrombosis portfolio, Creon and Influvac along with the robust new generic launches like Revlimid and Zytiga.
In North America, our balanced portfolio of brand complex generics, injectables and retail generics, as well as our robust product launches will help us partially offset the inherent erosion in the market, as well as competition and lower EpiPen volumes coming off COVID-19 demand in '21. Yupelri will be the one of the key contributors to offset this.
In emerging markets, we expect to see a year-over-year decline entirely driven by impact of lower COVID-19 product related volumes. In JANZ, we expect strong volume growth from our key brands like Amitiza, Lipacreon and Effexor, as well as continued success in building our authorized generics. We also expect government price regulations to have an increased impact resulting in a high single-digit decline year-over-year.
Our strong and well-established commercial presence in the hospital segment in China will support us, as we continue to navigate the evolution of the healthcare policy. At the same time, we are confident in the macro drivers of China supported by a growth in the healthcare consumerism, and therefore, are focused on continuing to expand our footprint in retail segment.
To sum up, it's all about execution of our key priorities. We will complete the integration and realize remaining cost synergies. We will deliver the pipeline and expand our robust development house to move up the value chain, and we will continue further stabilizing the business. While we take actions to reshape the Company, we'll close the biosimilar transaction in the second half of '22. We'll start working on the other identified divestment opportunities to continue to unlock value and simplify the portfolio. And more importantly, we'll continue leveraging the Global Healthcare Gateway to find value creating business development opportunities. With this clear execution plan, we will create is simpler, stronger and more focused Company of the future.
Now, I will turn it over to Sanjeev.
