Cencora (COR) 1 Feb 232023 Q1 Earnings call transcript

Hello, everyone, and welcome to the AmerisourceBergen Q1 FY 2023 Earnings Conference Call. My name is Bruno and I will be operating your call today. [Operator Instructions]

I will now hand over to your host, Mr. Bennett Murphy. Mr. Bennett. ahead. go Please

Senior morning, joining Good AmerisourceBergen's and you Bennett thank XXXX Relations of Thank Treasury. and for good this for Murphy, am I us quarter discuss President, conference all Head first Investor you. results. afternoon, Vice call fiscal to

me Steve President Collis, Joining and Cleary, Jim and today President Vice are Executive and Chairman, CEO; CFO.

which our are discussing of these On at Reconciliation provided today's also today's slide measures. in call, posted on on non-GAAP presentation today's we financial investor is press investor.amerisourcebergen.com. We've to release, will website. website press to GAAP available our be a measures release accompany

During on EPS, and income the about expectations an statements adjusted forward-looking taxes. non-GAAP operating income, but we conference to, will basis, make limited financial our business and including, call, not

management's statements expectations based Forward-looking subject change. and to and on current are uncertainty are

and key including SEC refer For recent risks to discussion most our our assumptions, a and press filings, today's we release of you XX-K.

update forward-looking and the AmerisourceBergen assumes expressed without any of statements, cannot no this be company. permission the rebroadcast to obligation call

many us within You get to per after management by participant remarks to that ask order your we will the ask in hour. for opportunity today’s and you as one possible questions to limit an participants have as questions to

to With over I'll that, turn the Steve. call

and fiscal at identity, innovation and and first unified pharmaceutical quarter afternoon Thank you, the call. future AmerisourceBergen's to a center will Good new Bennett. XXXX discuss from Today, global good results, impact morning everyone on access. our of we the under our our position

provided with resilience business $XX These from solutions growth representing to market customers, with revenue our benefited fiscal results year-over-year adjusted X%. excellence, strong of XXXX, EPS value-added our nearly on as X% quarter reflect basis delivered billion, a position. we financial first the execution focus our the results, along solid and we of In growth of on of

allocation. to our to to also our We sheet approach acted strong utilize value-creating balance capital employ on opportunities

to providing partners continues strong proposition maintain focus we health on customers business and and Our care chain. up our the value differentiated our have a down as fundamentals to value

underscores strategy, our performance the scale expertise, long-term growth. our Importantly, of we our to as drive capabilities sustainable leverage strength our and pharmaceutical-centric

week, identity Cencora. under includes announced operating our as future new unified last a we As

and new resonates are and geographies, members across name Our across represents with pharmaceutical as customers who care. team our purpose-driven we reflects impact better organization, a

Cencora with building growing vision also and growth on strategy and our businesses. our high-growth in pharmaceutical high-margin, aligns long-term of distribution leadership our

organization remain drive will create on our capabilities as and our Importantly, an united be the same. our innovating and while enhancing as our differentiation. to our further changing, We responsibility in purpose business, our core name we remains we growth to advancing focus are who and futures healthier

network. have a medications reach destinations distribution continue We customers by providing Throughout and core our invested securely. advance to with infrastructure our their our ensure efficiently, our to leading history, in we market-leading business that critical reliably

the have seek a be infrastructure quarter. also the Coast, during distribution celebrated we and our our specialty which investments, facility in We West on further we with new next-minded enhanced opening state-of-the-art to

the the unique now continued the to we and growth positioned with partners are for facilitating specialty We rapid by pipeline our even of access future. medicines, promote their the in logistical better pharmaceuticals and specialty customers now to support patient in and the needs market

of to in for categories. of medicines strengthen accordingly. pharma on This leadership the global our broad we To biotech for and enhance the future legacy of role as across choice includes plan our support our a specialty healthcare growing continue to and our companies, customers' capabilities building delivery needs partner of range

leading of acquisition clinical market services of portfolio development to ranging specialty provider with have a from the consulting of We solutions our recently authorization. expanded PharmaLex, pharmaceutical

pharmacovigilance and and affairs, additional with capabilities the compliance and and in both services regulatory development quality our US enhances management PharmaLex affairs, scientific internationally. consulting

but only investing the our these our of imperative strategic drive specialty leadership our in expanding on With differentiation. advances in acquisition innovation on also enhancements, not to further

specialty them. portfolio across as the distribution and access innovative commercialization and the pharma ultimately patients such our serve who and of cycle, market biotechs treatments positioned specific solutions assets to With uniquely deliver promising needs the product is lead and PharmaLex, comprehensive life to and logistical most need

bringing future and As to in we by continue This our accelerate to serve our cell such enhancing our technology business we of journey. current partners to on scientific differentiation to treatment to deliver to are gene the our throughout the area patients advancements and investing patient therapy, worldwide. and for support in therapies partnerships technology-centric access, example, pharmaceutical the as to innovation latest support In our focused customers' our and needs. integrated complete prescribe access capabilities many includes have designed visibility and we platform cell gene

of our specialty investing decentralized white This distribution in from logistics capabilities clinical the global therapies. and time- also most providing includes temperature-sensitive glove which trials to range facilitating

ensure their PharmaLex. individually partner members partner-by-partner, unparalleled now team at are that delivered on the the our pharmaceuticals story of the With of worldwide choice. trust pharma include and have situation, right capabilities of dedication biotechs most and be This each who gained success to schedules the through is and the team from and trust behind life-sustaining temperature talent is we consistently complex built

I'm an make humbled the we forward impact and our by of are we pursuit every Our unwavering purpose. people as our the guided day foundation are business that drives by

initiatives role and a a ethics, create responsibility futures, we advancing our access improving environmental, care. United people planet and embrace equity on to are positive of foundation the and a while transparency, integrity, in business and foster to as health to from in we committed impact our social, responsible governance healthier our

and we equitable, governance report, create culture. in particularly a we environmental, made more progress week, which made seventh social, XXXX. the inclusive annual diverse, published the we of proud our progress highlights Last and I'm fiscal to

can which and and collaborate Global improve data-driven establish consult, resource In fiscal through DEI DEI, progress we for we that better our measure of organization groups, the governance partner, Counsel XXXX, employee and excellence using a channels center approach. established the across way our a oversees including teams

progress made in of XX,XXX have I'm indirect, suppliers. $X.X and supplier great more supported small In diverse we by within program suppliers' than in our chain Through a our impacts enterprises. similar with direct, investing fashion, community program, our billion the communities. and jobs spend and our has minority-owned diversity supply impressed

We to of the the challenges committed emergency. pandemic our remain In mpox care years, in communities. forefront COVID-XX at health the health business positive has to including and making a been global impact public our responding recent

evolved relationships From these experiences, we further and our to increase our have public and and private resiliency. capabilities our strengthened agility

future to to well-positioned in affect disproportionately and governments, are for footprint, organizations. strong reach, and particular, with vulnerable due that providers, populations those challenges, manufacturers, potential We community our solve relationships

helping plans is One Organization, antimicrobial to significant resistance, around. initiated the World government, the and each Health that health the are which global have issue action European US address we Commission

call collaborative We the and in a explore health for care health to efforts in global with recently distributors Europe organization to a response. umbrella private to full-service for led partnership action public drive multi-sector GIRP, care distributors

ESG to ESG increasingly that has business become our to progress stakeholders reinforce accountable and and further objectives important hold priorities. our making to areas in our ourselves

our We for an compensation XXXX. executive within are ESG program incorporating metric fiscal

and business planning collected, have on representation roles our on feedback leadership events, female focused climate-driven based employee engagement. for quantifiable we ESG globally in includes resiliency Designed inclusion components three metrics and

to more, public pharmaceutical health, continue are Redonda team future includes to evaluating Miller are holds we driving that innovation, have the and our This ensure also the Dr. pleased organization to success. for to the future from our about think we we delivery we right welcomed As Directors guiding care what have January. of our constantly our individuals the in top and leadership Board

Dr. to key sets and help The addition our delivering support Miller, diverse perspectives our President who Hospital, of illustrates Johns our of business further on focus on and purpose. is adding skill Hopkins strategy

for Jane also to Mike shape and We today. and their appreciation and AmerisourceBergen Dr. wisdom helped to advice, sincere meritorious counsel our Their have thanks want Haney of the service. Long offer

powered our enabling our capture confident us in the resilience deliver forward to beyond, and innovation. opportunities rest to will long-term are of sustainable exciting and business the Looking by the of by remain growth we strategy pharmaceutical-centric that pharmaceutical year

a which pharmaceutical partners differentiated to reinforce bolsters place, center have our and the relationships We services margin, provide the high-growth access. customers, strengthens we innovation at our high and of global foundation turn in position and strong in our and our value

we to value. shareholder innovation As in and purpose-driven continue drive further invest to and significant advance enhance differentiation, foundation, our capabilities our remain to create we our well-positioned

our Now I for quarter in-depth will to Jim? a Jim guidance. review turn updated our the more of and results call first over

morning Good Steve. afternoon, and Thanks, everyone. good

of in our Before want will announcement our organization the I second pharmaceutical other to change I and to customers becoming footprint, my calendar we members, team on to unified expressing role By our as our turn with intend name in across Cencora leading half on join will connect supporting recent a and better results, our represent we XXXX. basis Cencora, to and Cencora that Steve and solutions healthcare our to able impact access. be stakeholders a excitement innovation better

line and opportunistic anticipated remarks results an and mostly quarter. otherwise our expectations. stated. on our our unless in quarter EPS result our reminder, finished as adjusted will quarter a year count expenses elevated my in Now financial business lower over in of We share offset from diluted today turning previously to fundamentals solid non-GAAP of increase X% recent quarter prior $X.XX, were first results with delivered focus quarter. benefited EPS a results, first a adjusted the that as Adjusted in with of helped the our repurchases, strong AmerisourceBergen the our share

by Our International X% pressure which consolidated of offset Solutions by the Solutions sales revenue up driven on billion segment, in US $XX.X our was segment. our translation the growth in foreign was Healthcare Healthcare currency

of While headwind fiscal historically segment the level weakened detail levels discuss expected, created a the which as when seen I in the year-over-year reviewing strong results. the dollar will fourth from US XXXX, in comparison still more quarter

Healthcare up $X. to growth was the Solutions profit gross segment. Consolidated in X US X% billion, due

the prior consolidated at the each was International the gross margin profit segment as the margins impact consolidated was had profit exchange margin better relative to Healthcare flat year-over-year on year on level. drag While Solutions segment quarter, higher-margin a foreign gross growth

expenses X.X% due support $X.X were expenses distribution, operating to administrative and expenses. operating growth to selling revenue up higher inflationary billion, on Consolidated reflecting certain impacts and

quarter. the the in The our XXXX to in year was driven begin did prior inflationary not on tougher quarter our of by November out versus the first we called growth call, I earnings a towards this see higher As rate period. business expense year's comparison March until end pressures

in operating become We growth sequentially year. decline subsequent expect rate to and expense normalized full rate quarters the more to the for the a

Solutions million, was currency the by the primarily basis. $XXX prior The a was driven impact year segment, for partially decrease X% currency a I'll more offset was segment, decline growth of level the or on segment the quarter up income discuss foreign approximately Healthcare operating in X% and which compared review Solutions I of results. translation International Consolidated constant to US when by in as-reported detail Healthcare

our to from first down for interest due and million, now on expense net income interest balances cash $XX the net quarter, was to Moving interest investments. rates resulting approximately interest higher expense XX% higher

will opportunistic in average lower early be completion following the the balances upcoming quarter, ahead, XXXX Looking cash acquisition, the successful the we the and repurchases repayment. announced PharmaLex our share March debt of

balances expense our in coming called invested will fiscal and November. XXXX, higher expense in cash quarters lower Our interest higher the as result interest net I versus in drive out

expectations to taxes, to tax effective rate the to our XX.X% year was quarter our rate of The for be was the XX% compared in range XX%. income lower tax line in continue the full effective quarter. and year in approximately to tax to our now rate with expect income prior we Turning XX.X%

by XXX.X over the share Our past X.X% diluted count first $XXX shares, opportunistic compared quarter million the to share repurchases and million fiscal a of completed several November in repurchases including December. months, driven XXXX, decline was of

of on cash sheet to ended balance Regarding balance beginning lower closed of with quarter. our we acquisition resulted PharmaLex in We on cash the prefunded a billion the acquisition prepaid quarter of due timing approximately we holidays asset December around cash XX, our when January. $X.X at closed the the and balance, the the which

consolidated we flow guidance flow approximately cash cash to results. free fiscal adjusted This remain free million, adjusted the review was quarter, achieve our completes year. $XXX the for billion In on our and track of the $X of

I'll segment for turn first our quarter. to the results Now

segment where for to we in to to continued deliver and million. see and including broad biosimilars, X% as US growth leadership again US as in were recently, well to oncology solid Healthcare $XXX based approximately specialty increased Sales quarter specialty in was Solutions by are health physicians systems health once and in the strong operating us strong quarter trends X% position Solutions our specialty seeing our continue good human distribution up in $XX.X ophthalmology. more segment growth we revenue to sales income businesses. Healthcare billion, the approximately

in expenses, offset strength in and The as anticipated animal to health previously specialty as helped in trends the well softness utilization health good market. broad-based human distribution the higher operating

pressures As animal animal widely in is the our health has will short-term animal however, the cadence markets. quarter. second From softness the in discussed the a related and production are the in of both in quarter been normalize industry, companion there and business in to perspective, timing health some

the revenue on will Healthcare was X.X% is currency reported turn XX.X% $X.X on foreign a by now International billion, fluctuations. Solutions business exposed Alliance the currency Healthcare Healthcare The for I quarter, down as translation driven up constant was on as to impact the currency Solutions to revenue our decline In reported basis of segment. basis. more a International or

$XXX reported basis, and XXXX. income on for Specialty, of International by of impact the approximately in segment translation operating operating X% fiscal divestiture foreign Healthcare income Solutions the represented income currency a the was approximately XX% quarter of Alliance first ProPharma driven of down million, on Healthcare which

XX% on at countries. this a segment price the price discuss will impact the the last it expectations. of our our value manufacturer favorable by basis, the occurred underlying fundamentals perspective a in results. adjustment solid our decline growth XXXX the of local That I segment driven cadence market developing looking income currency. activity and currency fiscal our adjustments completes this one operating When price the updated guidance constant in level quarter. of year, adjustment From quarter now of second fiscal offset in delivered review This negative

metrics of guidance basis, forward-looking following guidance X As non-GAAP provide metrics Investor a guidance a presentation basis. fiscal a so on our basis. be on XXXX provide reminder, our of our GAAP certain and details also Relations we not provided on will found X constant currency do I are adjusted on website. Pages the earnings can an on Full

begin with EPS. I'll

a or to of our a are prior X% as X% full to guidance on $XX.XX range raising $XX.XX We of representing $XX.XX, reported of to EPS on range currency to growth constant our X% basis, an year diluted up to basis. from $XX.XX X%

which Our XXX count. We our opportunistic on million results from is XXX increased average a million our to our repurchases primarily updated guidance result first EPS count range in year guidance range full our shares, share expect of share the approximately diluted down share of in quarter, to be now previous XXX million shares.

a income guidance in Our reduced from the increased of the is the as-reported US. offset by partially also health contribution higher EPS international range and solutions, result operating COVID care

to our segment. last the brief the the In like compared $X.XX COVID-XX in Next, $X.XX on contributed a update international I EPS in consolidated first to distribution COVID-XX quarter, US with our would provide about contributions. $X.XX to treatment of quarter and $X.XX treatments first in year,

treatment down the full our now November. to-date, we Given from $X.XX the provided in $X.XX, year we trends $X.XX that distribution range $X.XX expect range contribution be to of in of have to seen to we previous from COVID-XX

of For of the just segment the is a contribution year. rest segment few the with expected expected contribution majority in more pennies the the year, in for the International of the COVID US

reported as from healthcare To are of reflect end distribution, the expected we COVID operating lowering solutions bottom the our guidance. contribution US treatment lower income

in We X% the from growth segment range as growth. prior of range of now the X% to to the reported widened to expect deliver X% growth X%

at growth Our contributions for the fiscal excluding in X% remains US COVID X% segment to Healthcare unchanged guidance Solutions XXXX.

International income the Solutions operating assumptions. to updated moving Now Healthcare segment-level

of income of our a from International growth decline by to and contribution a decline from to to dollar segment X% of of the incremental guidance driven a range operating as-reported X%, Healthcare of of Solutions our weakening for X% US range raising are of X% a previous the We the PharmaLex. decline the general

and through welcome we and incremental another to capital is value to the example deployment, AmerisourceBergen. PharmaLex accretive The strategic of create how we team are excited deal

partnerships to from built cycle leading the services. and capabilities upon manufacturers our and to we logistics strategies support development allow throughout to clinical us as solutions access provide PharmaLex's with deepen providing will support existing regulatory pharma our

you the measures were For I presentation dollar and increased for guidance guidance would operating These income the the investor of by International also refer additional US from measures to segment, Solutions deck. the our contribution incremental general Healthcare driven weakening PharmaLex.

adjusted In contributions. have income. expectations guidance operating summary, while made lowering in we is our regarding for our consolidated as-reported are our COVID updates we the to raising there guidance for year, full adjusted the guidance, for no change EPS And all

few are to Before resilient highlights like I we about change. ensure briefly a and to on would supply mitigate a remarks, closing impact discuss chain our I turn to climate my working how

global role and this the and and safe of chain chain, crucial medications. take a in play teams resiliency. We key a As plans pharmaceutical place seriously member supply the of supply to reliable ensuring support supply robust we role in have

nearly In scope to fiscal assessment In since across assessment business supply The will we last in process XX we our XXXX. disasters. included process risk expanded reflect physical advance or up the continuity natural physical help XXX assessment ensure continuity of XXX event we inform risk our efforts sites from countries, of our expanded weather extreme XXXX, a and the updated XXXX, of these planning to footprint the in conducted sites.

change can be we we the reduce prepare climate, address impacts to we stewards. for environmental carbon at in good our adapt continue footprint While look to and of and our a ways business

near-term submitted gas to for these reduce greenhouse the initiative targets of efforts, part As science-based our in validation. we XXXX, emissions target to May a

reduction emissions science-based approved targets target. we January, In near-term learned science-based the initiative our

creating and published with reporting aligns we report of The its have microsite initiatives. a living and discussed to on number ESG our are frameworks and ESG additional the futures dedicated would contains information at through addition key to and how recently the our In review our entirety report's purpose have leading assured. points healthier I externally encourage data today, I items on report standards been Steve ESG you esg.amerisourcebergen.com.

of strategic fiscal shareholders to our our continued a our proposition closing, and reflects continued resilience updated business. partners. to for value business through use our capital Powered of investing In our in and capital our combination the our value XXXX guidance returning of by for further create to growth stakeholders

on higher-margin, executing we sustainable well pharmaceutical and and we create focused are foundation businesses, we high-growth progress remain complementary positioned strategy, long-term to As through on our through distribution and XXXX, growth. our long-term

will the to call I questions. Now for Operator? turn over the line to operator the open

[Operator first ahead. is is from question open. Evercore. Instructions] Anderson line Elizabeth, now Our Elizabeth from go Please your

if much very a was now of about taking if a what to some the Thanks for bit things to question. some month, transaction you client in, guys. you've what that are and you little ownership could new since of Obviously, what wins wondering Hi, that nice the terms of could see have from they're talk fully I of was are had a little asset. that and bit wondering the for early. more. about interested most talk whole a the you closed in been it I And of like sort early perspective PharmaLex the was

the team we and question. other takes and some sure all this our management dollars start could Good thanks available general key that we make Hi. we morning, and capital capital for want than to about more deployment. deployment. our have. approach reputation seriously Maybe there's opportunity, the to just nothing Literally, with our leverage comments Elizabeth, I It's

our investing of PharmaLex strategy a Having distribution services. in is further and continuation said of leadership that, to specialty AmerisourceBergen's

through investments, significant been literally strategic completed inorganic recently decades and including has this portfolio of Our built acquisition. organic

on operating recall the to and will coming focused had when the complementary from value-added fact, US platform, business, manufacturer a services our they of and we that that also, bought Alliance higher you in This services. out those existing businesses, their is services we pointed percentage income

our So, international capabilities. this enhances we feel that significantly

area higher-growth we've particularly, focused for And on robust area us. our growing higher-margin, businesses. as is a identified AmerisourceBergen this

would AmerisourceBergen goal like for is for. be the businesses term first to like services to Our that deploy the PharmaLex our and manufacturers long any in stop

was ago management before, me team. person. meet pleasure also to two them that weeks had in just the literally Let calls some was PharmaLex We've say I with it a

and impressed I'm this with into ahead I've have Bob been taken about his integration acquisition. excited very this that for approach the PharmaLex leadership our very team with opportunities the with And of Thank the and existing merging Mauch you. businesses.

ahead. is now from Michael Our America. Michael, line open, is your Bank Cherny next go question from of please

you embedded so There's segment taking can Thank into moving the number question. bit. if within Perfect. your growth. for X% a dive reiterated of US ex-COVID for to the we X% pieces a much Maybe EBIT

the some have about talked year. course you annualizing that's You pressure the year versus of last over of OpEx the

You variability talked about animal some in of the health.

dig side, with mix? a curious to that year's would there through range hitting putting volume be as that's of the other potential last from variability little to general you bit where may Day? upside price more what's within into the of metrics, growth basically Just that the some of your robust forward Along guidance thinking in you versus long-term allowing typically versus part Analyst some you the good drive stuff have

key business in Thank distribution, continued Michael, specialty and health question trends. really for continued have I in that that and and strong broadly performance is think strong Yes. really and a utilization US performance our seeing and point strong we're kind key you, human a takeaway across of asking we

the And at performance during where so true it's the utilization also in that's and quarter. Alliance and US, strong trends international really true saw we

but in out below expect year. reported, adjusted excluding And the full improving as rate and COVID performance kind to X% the to for US evidenced COVID broadly X% of, prepared we for And the higher my operating both in X% we to a that's human as I COVID, called excluding came health as of guidance basis, X% remarks kind think, had to X% expectations and OpEx you normalize really segment. execution said guidance softer referenced during rate, during a the our that consolidated in and animal that from quarter distribution, I health remarks, strong growth and I income in our quarter, the prepared in to just is of the And across on specialty X%. takeaway in that our quarter. key maintaining

Our Erin, is Please Stanley. from Morgan go Erin now your is question Wright open. next line ahead. from

And Thank about terms underlying you're surprises trends And the what Great. wholesaling Can of, be quarter in we we more balance be most seeing should you year of you. that utilization about of have speak little any for how recent in bit thinking the and in been a international should that business? there aware the quarterly to kind cadence the about international, name or more five over vastly broadly, how different with international of contribution of on just about the does you? that thinking there? the and segment in integration And or think the so. Thanks. your footprint years and you change just five business so, next look years just international next the and across

comment sure I'll want will question, to to also. Yes, I'm start Erin, and with then the Steve some

quarter. also the early impact of split PharmaLex. essentially the low the I we utilization range. percentage end end international So points close evenly that's the X guidance of and dollar and FX we've since remarks, good we're the in put at by business, update International done out our If another an percentage the seeing as that strong by basis, high prepared segment, weakened increased we our generally range, guidance in performance. on points mentioned the at since during as-reported look trends had of has X Alliance and the guidance the the at of we And

of is about each those percentage points. so worth And X things

or in management team But good a overall, of the really good we're performance terms of seeing and execution the say trends. I should of execution utilization business, the the the by business,

this comment in the I'll first thing in one remarks, fiscal of price mention fiscal quarter year was is this prepared that in I increase the quarter a market there year. the in that did last second happened happened developing of The and on, a

just So Steve? that the bit. will impact cadence a

thanks, Erin. Yes,

drug the and be anchored prescription I really squarely Alliance. consistently -- reporting our It's they've are prescription is think to AmerisourceBergen impressed very is and very in I've very services market, seventh market. trying our been facing around is resilient. been them, distribution quarter now the with

in market country in. almost and we've we're We every have strong it. to, we've had positions complemented where

Some Norway markets, of in and example, we're for Netherlands, the smaller retail.

a for closely focused most Alloga with aligned got interesting with business, was on of also which being a us. more the strong in ICS very aspects of closely is integration complex in very business, products. past acquisition World We're our therapies. which business this aligning Alloga and very strong We've Courier pharmaceutical is more one basis historically the the Alliance and has And core that

PharmaLex to So the I'm is also excited about going what to bring equation.

manufacturer and talent important We X,XXX be them can PharmaLex was analogous I have specialty of development group, growth. European experience that lot to about have smaller we've I to back XXX around of in business group, think our but the a and degrees. was thought we PharmaLex go team the the and about the members international so when my and intellectual with added uplift at equivalent that and to specialty the scale, PhD I when acquired Xcenda

I to like what bring we're make. to us. comment I'd this to like just So, are well-positioned. Jim very And we're going is has acquisition just -- more I think one

Yes, thanks.

Erin, Just in one the our I overall, of to very thing as operating to on XX% about US you do question do business XX% want say, thanks much international, international. our I mix income at look say, and the is course, want for

Thanks the question. for

your ahead. question please next next go open, Eric, Eric line is from now Research. Nephron from Percher Our

quarter it see the two, called recognizing -- called out, last a US care, question to or few we Thank physician growth pretty be reading I on the And out haven't you. I consistently A here. specialty into much health noticed you too practices seen words mail driver. as a could

change and But distribution that we discussion thoughts clients, or is to self-distribution trends? been those in directly benefit. source the there the on I specialty I'm curious, Any largest know mail biosimilar pharmacy see could some we activity and volumes any there's for larger as see

in so -- customer AmerisourceBergen question. No, that we're on going that, for do we well area. on continue. They directly have following dollar it's that is to we'll think could that products Part thanks and Scripts comment are Eric, of prescription a and Cigna segment But customers we our and known of some lead -- them. the So, too specifically D customers, our customer not fast-growing Express focused see D, trend is the Part a more broad I the specifically source

we really And Express happy with segment of to of our more of it's customers, needs But relationship. best large like customers smaller our to do and than portfolio complex for needs customers of job the tend want just Scripts very them. our can some the one use the the of services we're that distributor as are readily. different We a

all add? on Jim, that's you'd probably So, anything that.

covers I Thanks. think it. that

next is from line Charles your open, go question Cowen. please now from Our Charles, ahead. is Rhyee

taking thanks questions. Yes, for the

repurchases kind sort if, can about company, its that You where mentioned was the that? over terms last the capacity months. do of of stake of the continue down in of are for share talk in before you give opportunistic you a sort for continue to you what us Walgreens take to have few to Can to sense example, you

that's to potentially strong And work any as together the a opportunity two our million good focus including sales, a and we repurchasing would very feel we've conjunction maintain collaborated collaborative with past of on view our And their done on very And continue $XXX opportunistic continues, in you to repurchasing these we on a repurchases. sales. we've result of good shares. with to obviously, position, expect with several successfully And plan financial opportunistic future as the relationship We sales, as Yes. those over repurchase know, share we share months. Walgreens repurchases about shares WBA. And about latest course, which in shares. we

do additional they if so And decide we view opportunity an would sell it to shares, as repurchase. to

next from Our George Please Deutsche open. from line question is now Bank. ahead. go George, is Hill your

the in than would level, number going of of whether to sales gross drug drugs guys say that, with that is you. taking a at ABC's not is of And questions. closing of morning, kind Good of XX% related for safe well? reflective are and two XX% one numbers International shot services the now questions. assume manufacturer brief Jim, we sales PharmaLex, the kind segment? guess mix at to or the you is now can is profits I'm Is the macro take thanks greater of specialty Thank mix segment. US my kind in follow-up be as Pharmaceutical that approaching total look of it if I

those segment thing for it to call is they that reason sales than operating is in out are segment in that is a of higher of just the are will one of they the really the those and margin is our International there, international say you'll higher are US we I and lot business. I the But international And part in so business, services was not do the than that higher-margin manufacturer percentage sorts like a kind businesses there break Yes, our the think are percentage segment. in services services. in of significantly key note US out US important specifically And our segment. of a

of And World But they're of acquisition given of also, business. percentage things successful some Alliance's services it's the greater the Alloga PharmaLex. And driven like exciting XPL is alliances by of which business business now and very an Courier, even historically course.

a just And on so market. commentary bit international that's little the of

specialty market specialty are And of in some products. a cases, XPL. In you asked the number about the products international

for kind so key leader business, leading in And that started parts and also a know, many for of part a business. partnerships. our market, about the our very legacy continues both US physician course, our of non-physician businesses really think we're us future the and you in driver specialty I the asked be through important US the practices part well. a specialty as of to ago you years And Steve business, a of super and for of it's And

That’s you. helpful. Thank

Our Please is next ahead. open. line your question from is from Valiquette go Barclays. Steven, Steven now

there? are you Steve,

Steven, is now your line open.

with your You can question…. proceed

right, question we'll go to next All Bruno. the then

No Problem.

question Coldwell is now is Eric Our next your open, go from ahead. line Baird. from please Eric,

updates both they're terms somewhat today. the and might, when in on fiscal you I the related if guardrails of versus outlined first Two, much. XXXX outlook very Thanks

changed not market? front we the on other perspective know drugs have the the now have your as that one, views have large important First launch of pound-for-pound, and biosimilar in the HUMIRA. here? administration. I as change you any center, channel in due of we dynamics particularly at it's But all Have certain had to that

the change somewhat absorbed is, that with months, name it maybe guidance seven, silly incremental? expenses rebranding, and then it a the through or on is whatever in second question, And be some corporate correlated timing last eight a in the of bit there associated guidance but will

on you've if topic first a expenses could might fiscal quantify is or the on much. when newer out capitalization absorbed? expense that side, I laid were assuming guardrails this so XXXX, subsequently some just you the Thanks and guess, here you interesting? impact be that you And it

hear to from you Thanks. Good Eric.

for first Obviously, it largest in So, off. the launched health talked history. start some never was week, and we've and this going our be it an But biosimilar drug here. about of by to this system, measures, it's for like while, drug the US important course, seems a I'll HUMIRA

an new AmerisourceBergen headroom the to in. And that stakeholders innovative the introduction is going creator therapies is to our so of important serve be for well-positioned

So, important. that's

to first And you go. aspects them so the July, interested and clinical them entrants, how more we're know. we'll of to well The some in trends have as some -- see see again, different

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serious it and too won't very this the So, a our to in milestone or but not anything change it Jim, anything on market product. much, look see guidance we'll -- other biosimilars, absorbs how aspects? is guidance the

aren't of spread will Yes, but that out of get this say in time, specifics years, the change the whatnot the phases. related really some change. lot the about it a and and I into asked three next And Eric three to to Eric, costs going at had the name be over happens we and name spend will

brand over second of will ongoing depreciated portion are GAAP then migration non-GAAP majority The time and only costs and planning and as adjusted preparation, against they nonrecurring a our these is be launch, a nature. first recorded is cost and third And in and be of capitalized the the the will is results.

amortization I'll also increase comment beginning and that some with is in accounted names, relating our is as an expense, it trade regard not disclosed in will in quarter be of a trade names recorded to amortization existing to and of as adjusted our there will expense GAAP-only March and included expense reminder, a for be amortization results. and our

Steven is your from question Please open. line now Valiquette Steven, next ahead. from Barclays. go is Our

for Great. Thanks. in me morning. here. Thanks squeezing Good back

been how source general Europe. around the the to potentially of the in a about There's possibility Just European certain countries in European marketplace be external other able question you countries Thanks. your chatter from to entities just inventory expansion, ability some drug to maybe lower drug operations. for I'm at thoughts that this may talk costs. could guess I have about impact this least and directionally, lead high-level curious if international around any maybe

Europe, there's do focus we something any a further heard there's This is in on. a on I highly that. that. definitely expand There actually which any have haven't so that parallel heard But Yes, market much that you insight we not intention. intention focus is trade agree? is don't not of Jim, for haven't regulated. to And I area us. key really

Yes.

please. question, Next

is question from Jefferies. open. next go is line Please Brian, Tanquilut Brian ahead. from your Our now

morning. good Hey,

in question. of well, be you've of assumptions quick this think It expected in are terms up the guidance about like for middle the how the macro a pretty in the you the recession the about your the sometime about holding year, hitting looks should how Just of US thinking I US? business year? Thanks. as Steve, but is thinking we baked in,

running systems, Yes, are prove I to thing, we course, very able the first less the times story well. patients And we -- or drug year wholesale I to that one told systems, debt. think was in what's that the $X in that than our $X we bad had both commercial AmerisourceBergen, access our serve industry, And we we, and important has world payer And in down. of work is And my million and us and to think full-on ultimately I've which government XXXX, resilient. the melting continue the that are proved whole million the fact, in if pretty and business products. many time, is

all Europe businesses, in many access US, we care. for it's And whether with continued single-payer to of key our or systems. working is are patient So cases, but

beauties the go to so we stress through very of good is changes we whatever specialty at the want the But we manufacturer but just cycles, also fundamental are and the one we AmerisourceBergen I are many the need make. And systems. to provide that health services and businesses to adapting then about core to

would application I extremely So of say COVID applicable that. is an

economy of We of I had month say, would and moving really just of so go many of were to on other virtual really important. sorts to and which businesses that is one adjust earnings the much because so resilient cash than Jim? disruption, inside. we our flow, all carry to able through of that, I AmerisourceBergen very cycles proven that are producing has have very say and But

just just wonderful resilience. just it's of and echo one I the – company about that. would our things my one proven industry Well, From of our is perspective, Steve, the our

to our up excited potential well-positioned Jim, And the very in wraps market, long-term and specialty by talking core patient utilization in Cencora, that I an continued quarter, it customer ending for for innovation. change. differentiated And we demographics, from benefit and distribution base. and about in our also we'll driven high anchored continue services and growth pharmaceutical growth today. trends, whether highly are thank with for prescription resilience. that you the had Cencora that say I'm about would keyword, Well, or future And and excellent name AmerisourceBergen we the on we're

Thank you. today. this you hour last It's time spending for with your pleasure a been

for this today's you gentlemen, Thank and Ladies call. joining. concludes

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