Risk Factors Update Summary

• Expanded regulatory requirements include pricing laws, competition laws, and environmental matters.
• Sales of generics medicines historically and expected to represent a significant portion of total revenues.
• Delays in regulatory approvals led to substantial additional costs, e.g., delays in approvals for various medicines.
• Total revenues from sales of generic medicines decreased from $8,601 million to $8,734 million.
• The company faces increasing competition in the generic market, impacting sales and profitability.
• Increased scrutiny from the DOJ with a civil investigation and criminal indictment for price-fixing.
• Sales of complex, high-value generics products are increasingly important, impacting overall performance.
• Failure to develop and commercialize biosimilars could lead to loss of opportunities and increased competition.
• Settlement of nationwide opioid claims finalized, contingent on sufficient state participation, impacting operations.
• Net sales may be affected by fluctuations in drug prices, delays in payments, and loss of business.
• Changes in credit ratings could impact the company's financial strength and share price.
• ESG-related regulations require detailed sustainability reporting, impacting operations, reputation, and compliance costs.
• Material weakness in internal control over financial reporting identified, affecting accurate financial reporting and reputation.
• Shareholder rights and responsibilities may impact equity ownership and shareholder duties.