McKesson (MCK) 2 Aug 232024 Q1 Earnings call transcript

Please standby. Welcome to McKesson’s First Quarter Fiscal 2024 Earnings Conference Call. Please be advised that today’s conference is being recorded. At this time, I would like to turn the call over to Rachel Rodriguez, VP of Investor Relations. Please go ahead.

operator. you, Thank welcome, earnings and McKesson’s quarter first Good everyone, XXXX call. fiscal afternoon, to joined our Today, and Brian by I’m Tyler, our Financial Britt Chief Chief Officer. Vitalone, Officer; Executive we’ll off, Britt, followed Brian a will and lead then session. question-and-answer move by to

annual forward-looking to at discussion refer slides forecast about results. cautionary available results and of information in section Risk and investor.mckesson.com differ recent for presentation that statements most the from statements. in on SEC our such McKesson’s Today’s additional statements periodic as website and current concerning and operations to could include Factors filings future cause to those release factors risk our forward-looking our our will the actual Please today’s earnings materially

we a quarter for webcast, that also GAAP presentation during Information include earnings measures in to The summary financial will reconciliation results guidance. can those and of about including the be found release slides and a results, updated today’s measures this of slides. discuss presentation non-GAAP our

With me to over that, Brian. turn let it

to fiscal range importantly earnings focused the We of to total and Thank guidance pleased updated in share, diluted really from our impact XXXX a strong for and $XX.X earnings the everybody. But us on which you a quarter us the to reported joining McKesson timing exceeding the from on today. both in $X.XX expectations. per call business, included first $XX.XX favorable per afternoon, raise you, confidence $XX.XX across businesses. gives discrete momentum most in tax our is quarter, adjusted billion our $XX.XX share the we’re operational driven underlying fiscal good broad-based revenues We an the by thing performance range and $XX.XX. of with appreciate Rachel, diluted delivered adjusted to strong performance a item. The

In the same-store U.S. performance in patient and utilization the in contributed network. solid saw that first I visits growth observing. growth the our particularly solid the visits. on volume the pace quarter, want prescription review Oncology, trends the loss In an we’ve a first drugs, provide Before update we GLP-X been we quarter, I volumes business strong to while the prescription growth of trends, revenue to in expand at in or The to good in quarter. grew continued weight reach patient

forward, we going we to customers are our to positioned patients. products the As and deliver monitor the evolving needs closely well support services of trends and

in the Britt always on review, of key our discuss results. to biopharma key areas will the the move progress we’ve me business growth also made our of let positions company for priorities services. details quarter growth our in drivers financial provide some to and I’ll the on and I additional executing Now and oncology remarks want my about and market on as today our focus differentiated

grew in XX% driving So let’s where U.S. growth. performance core saw as first COVID-XX-related reflected the business, when the the start with our and the year. the revenue in priority adjusted Pharmaceutical operating the XX% In sustainable distribution we of profit of increased prior segment, from in pharmaceutical growth strong items contribution excluding quarter,

systems We’re higher including national growth really, retail all accounts momentum pleased broad-based from our in and customer with the volumes across health good channels, segment.

innovate and inventory Pinpoint We by pharmacies. Community system collective Through more this voice community and community foster event help independent annual strengthen proprietary to also to May, a discussion than that pharmacies using connections, improve Supplylogix increase long designed pharmacists attendees. and performance. operational their that’s June, growth have In brought a McKesson maximize management deeper of efficiency we flow, inventory supporting a were the nationwide In the of X,XXX help products we powered cash ways in our new and to investing history and pharmacy software services. Solutions, launched thrive we proud to Conference, of their ideaShare form together education, and host discover community

customers also To automation support us distribution efficiency. investing the our automation allow and the in and customers sustainable pharmaceuticals. U.S. to innovations we’re partnered state care, businesses partnerships. serving closely specialty the quite to built opened new at new and of to and past the continue And the level the two increased facility important improve new of segment, supply and Pharmaceutical, our across This productivity. enhance Government infrastructure with center better through both the of years, the the U.S. the to public alternate we we’ve growth In a initiatives. with opportunities core federal collaborations. quarter, for these relationships health on latest serve we’re Medical-Surgical within In dedicated we technology, dedicated really look proud close chain to incorporates it’ll for In sites distribution past we’re in we’ve

participation government experience: of also cooperative service dedicated programs. level every of and in a and grown administration We’ve with team goal teams customer then, sales shared state through business successful a at and government stacked procurement fulfillment solutions Since purchasing best-in-class built service, our legal the we’ve supporting with government. sales, government providing

Last chain procurement Medical-Surgical our We broad our portfolio and we’re we brand products, expand national also As and our diversify expand and and international label and tools with presence. private to our enhancing manufacturing team effort relationships ten our strategically year, manufacturers track representing more we’re serve better relationships, to continued sourcing. supply our of managing geographic to diversity. customer ensure domestic a relationships traveled than processes countries, sourcing to

of of providers in evolve example testament of grow differentiated network and we of our over total our July, that the is were Cancer and network Care to continue In welcome to growth X,XXX. The U.S. the the next the continued platforms. how the excited move we the of company Kansas to Oncology strong number Network, oncology growing me proposition and Let on expanding priority, to the value assets. portfolio is a biopharma and an to to

network management services, care, business practices over innovative oncology The just With cycle to and drug experience, the value management substantial technologies ample resources, that optimization. beyond including significant savings. and have purchase the high-quality network efficient revenue support patient expertise XX and years clinical access of in drug brings practice

savings of its of care largest enabling cancer care Oncology network. patient Network Participating Since more organizations than is advancing kind, high-quality forefront Model, in patients The network. model, physicians which in value-based one been the delivered to care. of and Recently, of at XX% significant across U.S. its for the announced in better the we from Enhancing practices oncology to program representation outcomes. Network dedicated the lead participation the while the Oncology patients have the the As over participation to Medicare. network’s the the care generating XXX,XXX enrolled continues U.S. Oncology includes in initial

the of is and In growth success solutions biopharma the in our products the reflected we delivered innovative services, quarter. first in

increase Prescription revenue saw operating increase and XX% Technology in profit. adjusted a XX% segment Solutions

positive receive market on enabling to continue penetrate further We feedback us the our channel to products, our reach. and expand

the strong commercial loss the particularly I higher trends, as performance led the of drugs, mentioned to to and prior also prescription quarter. GLP-X in weight demand contributed the earlier, success authorization our Solid solutions for

on strategic services growth focused and our committed platform of one remain pillars. biopharma as the expanding We

who companies business. continue with We biopharma sponsor relationships the the of are to strengthen primary this

the each in value proposition the care. creating of continuum stakeholders of for also comprehensive We’re

electronic we access progression industry-leading providers their payers along For connections, their and help health in the providers, Through plans. simplified the patients who our faster. our the treatment and platforms between of journey understand XX% real-time decisions payer represent therapies technology patient’s and help prescription and support U.S. volumes them offer support

them pharmacies, Retail improve value XX,XXX ultimately, we and more than and lead to from automatic Store honored lives. to recognizing We’re their Recently, pharmacies. our efficiency also XXXX operational we were Drug connected Awards and News, programs coupon solutions distribution, like the Excellence bring they field and helping receive retail what helping patients solutions the of offer to healthier central

in progress As to is foundational unwavering highlight We, we continue culture want people talent at that on I best strategies. believe to priorities, focus and having our to the our our essential, culture. company it’s make and and our McKesson, significant

Starts a The Future You commitment demonstrate of employer. our employees Health makes We company, a top employee proposition. value we to further to call what As defined with McKesson and it our our

Focusing strive McKesson. growth and belonging, at who of each individual on a works well-being build the supports that to and culture we care, meaning

and offer opportunity form advancing also the employees employee to connections for the advocate company’s authentic We groups. culture resource through

culture ERG grew more participation, of these promote strengthen see and membership to in two than years. becoming by and the channel pleased past increased our to by belonging collaboration. inclusion, XX% an are important the resource We’re employee Supported groups

as a to positive and organization. but Our impact-driven focus on and it’s priorities, health pillar strive services also important to our care part focused value on broader as an deliver is of and our our people customers lasting impact. only We initiative not also communities, company’s our enacting of company, culture diversified and an

partners, in June, strategy our and meaningful future proud progress tomorrow published report impact track, FYXXXX what advancing and and our very, pillars: many FYXXXX healthier all I’m progress making communicate impact impact to our around and shared great our build through driving measure generations. we initiatives pillars. for outcomes a In of our we’ll achieved, We these people, on focused has our community impact our an our to team detailed four very planet. the that and our continue

we’re and over first before to with meaningful everything consistent me hand together. company pull priorities. delivered progress strong Britt, a it our Now let I and McKesson quarter, making

We and growth fundamentals across I momentum the of segments, for the we’ve market XXXX. possible I’m sincerely achieved your thank advancing remain your fiscal of grateful the the them and with business would McKesson proud all every have employees. leader outlined positive vision. the in not be to each pleased McKesson. solid to outlook and We’re without we and of support and them. of the to refer be one as to Team contributions our their What for dedication tremendously commitment want

for Britt, hand you additional over to With insights. that, I’ll it

above first be against and growth afternoon to mentioned, I’m our tracking the quarter you our we provided which long-term Brian, May, progress it targets. you, results, that Thank as discuss year reflects are pleased in solid fiscal here guidance to and full this

the Given today. raising and line both the strong bottom guidance top momentum our start year to across we’re the and business,

otherwise. start first range. of share updated state a per My of and unless earnings our with provide diluted review comments adjusted an XXXX will overview results quarter I’ll to adjusted results, refer fiscal XXXX today including I fiscal outlook, first our our our

Let our results. a me consolidated with review start of

specialty to offset the our growth volumes, divestitures increased loss fiscal XX% increased national completed partially from account including customers, segment, by revenues from European And by resulting during within are segment, revenues XXXX. in they or $XX.X resulting volumes in lower retail which weight higher was drugs. Pharmaceutical billion, the Consolidated U.S. International and from GLP-X products prescription led business

of decrease completed of European XX%. of And European the impact growth the quarter, a primarily our operations our the increased the operations, when the profit for excluding U.S. excluding was X% completed business of in When billion Gross result Solutions increased in profit segments. a Technology business Pharmaceutical divestitures, including Prescription X%. impact divestitures, $X.X and quarter, and first revenues gross

in operating joint venture second expenses Operating business included X% impact related Sarah with expenses of Cannon Rx Research completed our increased the costs the which Institute, expenses X% When operations, divestitures, acquisition decreased XXXX. of both Savings fiscal integration the during in Solutions excluding quarter European completed of to Operating of quarter. half a including our were the year-over-year. and

our items with XXXX and increased in completed divestitures International within by segment. profit equity partially excluding fiscal associated the business in X% European increased fiscal profit by of investments XXXX billion, in our growth North primarily operating the quarter which When American X% offset COVID-XX-related operations, of Venture XXXX, operating driven to impact and are First the McKesson businesses, quarter. $X.X our in losses

strong above with growth these are pleased which the targets. results, We’re operating long-range

momentum, We’re operating and against and performance strategies. delivering executing our durable sustained we’re

discuss below in certain different $XX XXXX discrete I’ll expense owned year-over-year portfolio, by tax to net recognition our rate that between The was benefit the the intellectual in entities $XXX of wholly a repatriation transactions the fiscal of Moving tax quarter of effective jurisdictions. were of driven debt my million, by related a later legal property the driven remarks. first long-term within tax Interest X.X%, line. based was decrease, million in which

not As of timing provide tax do we guidance. rate a discrete to difficult reminder, items quarterly tax is predict, effective the and therefore,

effective guidance Our rate year the tax unchanged. remains full for

an it was million, of – quarter weighted increase earnings average year-over-year. outstanding a represents per quarter million the diluted Adding decrease first diluted XX% $XXX.X over X% First XXX.X prior of all up, share of over $X.XX per the excluding COVID-XX-related diluted XXXX, fiscal was items XX% share within and year. earnings of our first in up prior fiscal the When Ventures McKesson portfolio losses quarter quarter XXXX first XXXX year. and shares in

with segment found XX, to results first I’ll Slides and profit start which through expectations. the our in and be X exceeded Turning operating Pharmaceutical. results, quarter Revenue our quarter U.S. can on

year-over-year. a are lower services, margin GLP-X volumes, to category our affordability support were generally First which as quarter. conversions. or We an national launches, were of drug such customers, growth partially similar $XX.X retail of drugs. Revenue revenues including specialty and weight by authorization of increases rates within other programs recognize the revenue prior the segment. GLP-X increased brand The access to tailwind provided quarter account RxTS products, in offset growth generic GLP-X for of volumes led higher and new for these increased XX% demand offered distribution our products reflected billion, the increase from growth prescription the The drugs. transaction branded loss to These

also quarter marked against further progress growth our oncology strategy. first The

the the GPO recently, network Oncology Network, the strength of in of We with over Cancer to we by total pleased Network, expanding across added U.S. our our growth mentioned, And growth as to the U.S. of number our the all X,XXX. providers Oncology oncology of assets. Center We’re supported in Brian saw capabilities. Kansas

and During Network. the solid Oncology contribution U.S. delivered we the quarter, performance from

fiscal on data year. we in Ontada. approximately advancement and grew oncology clinical our joint trial XXXX and the U.S. visits Cannon patient visits Research above prior insights support above The trials total of same we to with business the basis, and quarter continue practice the year were progressing XX% Institute invest Sarah clinical and well progress research, First prior is venture expansion patient and X% and as the the

progress These oncology the pieces to we’re about capabilities development that long-term assets important and the continued seeing. we’re and segment, are excited of the growth

which systems Pharmaceutical X% specialty increased our U.S. of to health products new driven contributions from operating generics and providers quarter First product and to the increased by the launches included program, $XXX million quarter. distribution in profit within growth

XXXX, When the from U.S. growth volumes continued solid target. of growth reflects The the provide, quarter including growth the capabilities segment first in excluding discipline, and operating fiscal of the Pharmaceutical Pharmaceutical the the sourcing of contributions, impact distribution momentum profit long-term ahead breadth our year-over-year of COVID-XX volumes delivered and vaccine operating profit of U.S. XX% generic that oncology operating and we increased prescription platform. segment’s

Let now me move to Solutions. Prescription Technology

to growth and an prescription adherence increase were XX% businesses of driven profit in logistics XX% due increasing our demand access services solutions. Operating $XXX revenues quarter by third-party billion year-over-year, increased by volumes. million, First $X.X technology for driven to increased and affordability

As improvement The I volumes higher solid my remarks, volume our earlier prior transaction in transaction for mentioned our quarter. products. including programs, the authorization increased showed access in drove prescription demand

the positions included of utilization the strength capture our strong brand by GLP-X supporting we During program us to drug the and prescription noted volumes, prescription which category. strong The affordability solutions quarter, demand access the driven new trends.

prior is for continue the deliver and CoverMyMeds a example products automate recognition process this way feedback authorization One electronic the of faster providers prior authorization solutions positive receive complete has, requests. was value the partners. that solutions. providing our authorization to they a Our to this to track that and technology process time and tedious we easier McKesson consuming review prior through for task Historically, and

provider delivering CoverMyMeds payers, and that are generation and and between affordability, biopharma integrated our by adherence into returns for increasing workflows. pharmacies, automated partners next and value manufacturers access solutions connectivity through providers,

support First broad of quarter our results programs exemplify range services. technology the and of success

Surgical line Medical performance In was Solutions, quarter expectations. in our with first our

revenue profit increase decrease year-over-year a quarter, Revenues Our $X.X of $XXX an was XX%. core in of X% were business profit and operating demonstrated and operating billion growth. the million,

U.S. flu when for anticipated distribution of results in to lower the lower and kiting, prior program were contributions the tests testing, and vaccine COVID-XX COVID-XX impacted storage, season year. illness by and supplies ancillary including Government’s First quarter the compared

an As illness extension the first the higher season, of quarter testing reminder, a of products. and illness levels saw XXXX fiscal XXXX of driving related

million. the profit primary non-recurring XXXX, in quarter excluding the operating extended driven care the offset items growth the When growth delivered of of by related a of first from $XX of partially businesses, impact COVID-XX expense X%, by fiscal in segment

we volumes solutions, was care growth and in pharmaceuticals. the led care growth specialty new Within which to included saw of nutritional supplements. the market, extended by lab market, increased In sales primary customers, equipment,

results, with We in solid are continued are expectations. with line pleased which the our

across combined for execution Our growth alternate sites with leadership position operating continued the us of positions care.

an $XX million, $XX decrease let Next, quarter International address On XX% of million, of decrease XX%, a XX%. first were basis, FX and decrease were our XX%. me an adjusted $X.X results. billion, profit in decrease a Revenues operating was $X.X profit first the operating was a quarter of revenues billion, of year-over-year, a

year-over-year reflect European First within businesses. combined quarter the results our from the divestitures FX

me up Let of year-over-year. expenses the segment $XXX increase Corporate wrap quarter, were review. an in our million X%

included receivable Healthcare. As a a receipt of previous the payment to reminder, of agreement relating Change quarter joint a our corporate expenses first fiscal XXXX, in tax with venture the prior in

During portfolio $X fiscal to quarter, first share we approximately losses million per losses compared within related equity the $XX the million share quarter Ventures to $X.XX XXXX. the investments or McKesson $X.XX had in of per of of or

As the and Ventures stage reminder, health holds in growth services a digital McKesson several portfolio investments companies. equity

result, portfolio. each be quarter-to-quarter, the that with influenced and each for the performance our individual may can through losses, investment. of we’ve result the which in financials timing can on of magnitude or by pleased We’re obtained the this The results gains consolidated customs and impacts as insights and investments a investment vary

distribution capital priorities. and on cash and data support technology, $X.X expenditures, ended as as centers, We our equivalents. sheet includes growth of $XXX to million XX. analytics cash in investments Slide existing our We in now to made capital which cash and Turning new with deployment billion balance in position, quarter and investments well the

day as cash the capital $X.X our cash resulting reminder, free be had it For or timing, quarter million flows that by the dividend cash And of can negative first ends million repurchases position the billion. and vary each quarter, on, a includes in a impacted metrics return therefore and and included payments. share of $XXX of flow of we cash to the $XXX which week working quarter-to-quarter. which shareholders, We million $XX can from

interest billion were reduced credit approximately recent These our they completed five evidenced offering further that notes public for During Concurrently, retired we successfully the as with quarter, we $X and by notes rating our XXXX. profile upgrades. tenures. and of credit $XXX of million March a strong our support XX-year due expense of transactions

Our of Board July. actions two Directors approved in

First, to dividend Board XX% our Board the the share the approved to total management of quarterly increase an confidence repurchase and additional bringing strategic demonstrate $X second, $X billion. the Directors repurchase share our of execution the per have authorization to approximately $X.XX and the actions that remaining These in authorization, share, priorities. billion of

XXXX. fiscal Now let The relates guidance I’m today me our updated to discuss providing outlook.

As I’ll with our we on be on do provided following of a a adjusted of presentation. found on assumptions non-GAAP in are The slide XX provide can not full reminder, our discuss and guidance additional details consolidated metrics key supplemental GAAP the a items list beginning an guidance, XX forward-looking through basis. basis. our Slides

a per about the fiscal talked diluted to outlook performance increasing encouraged $XX.XX by new to we’ve a As XXXX. result, we’re our we first quarter already the earnings strong And of $XX.XX. range of are share as today, in

increase share anticipate now excluding XX% when per items. certain we to diluted XX% this, of result a As to earnings

in fiscal be year. prior agreement profit items We Pharmaceutical to associated declined XXXX and gains COVID-XX-related early related XXXX, by and increase excluding As X% U.S. items, to of operating of items a be fiscal will and with McKesson profit tax COVID-XX-related $X.XX our impact equity investments the a Medical with in termination Change segments anticipate flat related to losses immaterial we operating to to X% Ventures anticipate certain compared XXXX. benefit fiscal and Surgical certain XX% the in XXXX the When fiscal we the year-over-year. include, anticipate to and in the net Healthcare reminder to receivable to items XXXX, $X.XX of what

the me discuss segments. Let our outlook for

at our segment continues growth customers, business access including Our portfolio where U.S. in value and our anticipate biologics, its can plasma-derived a biologics and the differentiated business and specialty products, to single within strong of prices source. an distribution specialty we other Pharmaceutical expansive demonstrate proposition core competitive our treatments, from drugs further plasma oncology to customers distribution,

revenue higher GLP-X During or quarter, related weight loss tailwind volumes from the first a we experienced drugs. to

We that U.S. outlook may revenue will anticipate elevated continue related drugs of class through we our year for a customers will to be tailwind remain full Pharmaceutical vary and support our Our assumes the compared GLP-X quarter-to-quarter. services. year as volumes distribution prior to to drugs this to

earlier, discussed I margin have lower these As drugs distribution a profile. rate

we operating revenues full For year, X% XX% and increase to increase to now Pharmaceutical XX% X% anticipate to U.S. the to profit year-over-year.

fiscal distribution we in vaccine Excluding increased anticipate continued and spend increased impact performance technology the of our includes to XX%. in operating growth segment. to to full X% oncology of COVID-XX XXXX, investment year the the The profit platform support

In reflects trajectory segment, and transaction occur growth transaction we anticipate offer. we demand We to products our the brand new X% which growth XX%, anticipate and variability the strong volumes, drug profit quarter-to-quarter launches that in for affordability, driven by drugs that to product of of fourth XX% Prescription segment customers GLP-X that of the verification pace programs the including and quarter. and may our new access we provide volumes, programs prescription and the in see this and to and for utilization revenue continue adherence Solutions we increased fiscal that Technology annual operating XX%

to decline In the to be X% we approximately Medical decrease and Surgical X% to anticipate profit growth XX%. Solutions X% revenues segment, operating to a

the from we results. XXXX anticipate remain full related of fiscal fiscal the For to immaterial and COVID-XX compared decline to the volumes XXXX, to will COVID-XX items continue tests year impact to

of from increase operating profit XX% year-over-year. XXXX to Excluding anticipate fiscal to the related COVID-XX impact we XX% items results,

to of finally European we that contribution XX% by anticipate XX% fiscal a from XXXX. decline to businesses closed XX%. the during includes and This in year-over-year to segment, transactions we by International decrease operating XX% And loss decline and operating profit revenues to profit

to As discussed, offset repurchases through intended to the share deploy we capital from the European previously resulting dilution divestitures. I’ve

we In range the technology elevated $XXX in million, to includes be quarter, spend reported Ventures segment, associated as growth of McKesson the to which million as the with losses the in our Corporate support to equity first expenses investments well anticipate businesses. of $XXX

the line. Now, below moving

of remarks, earlier transactions in result anticipate $XXX interest in I a that to debt my the we $XXX discussed the As million lower expense of million. range

Let me $X.X We turn $X.X of capital free billion, billion cash acquisitions flow now cash to deployment. and of anticipate property approximately net to expense. flow and capitalized software

incorporates plan repurchase approximately billion $X.X outlook Our to shares. of

As the approximately we estimate repurchases of weighted activity, a be to to in average range XXX outstanding million diluted result share of the shares million. XXX

Our and on our remain growth capital focus to operating value flow. our and on XX% continues capital shareholder committed to strong illustrates free return cash deployment, profit creation. portfolio invested We efficient generate

of our and new our to of per an range earnings the a summary, $XX.XX. share XXXX for In adjusted to increase to the strong year outlook start remainder $XX.XX fiscal diluted in to results

of anticipate impact contribution per XX% and the share fiscal European XX% in XXXX. growth certain we the diluted Excluding our earnings operations, to items from of

outlook that discussed creation further shareholder value framework previously. demonstrates Our we’ve the

to deployment sustainable be capital. continue and on focused We efficient of growth

We’re the pleased start year. with strong fiscal to a

McKesson deliver to continue exceptional XX,XXX associates Our performance. team

reflects of performance as portfolio. financial quarter their dedication our the first well as Our strength

outcomes biopharma for by Through our supporting and expansive advancing patients customers oncology platforms, health all. and we’re

for delivering time We’re new discovery, we’re and accelerating of development the to and faster patients, therapies. manufacturing therapy

improving quality forefront ensuring access the more patients outcomes of at and and care. services solutions patient have Our to are

and momentum we aligned underlying and confident growth that of XXXX first the for remain sustainable strong our creation fiscal to our focus quarter on strategies, value shareholders. long-term continue growth we’ll from deliver our With our

the me over for questions. to turn With back it that your let operator

Gill ahead. our Please question go And Lisa [Operator will from you. Thank Instructions] JPMorgan. come first with

and to understand good you GLP-X. afternoon. I much just few a around very Thank just want all details. things the back Thanks and for go better

I coming revenue us So much specifically how between some things XX% data, cold I XX%, increase other profit about to how then that on the other this? some chain of the when X% gross can is understand talk offset a to is XX% potentially gave that lot Britt, I from the GLP-X. to think the about about do of GLP-Xs? but And and areas can But less you from in you that think

stabilization right hearing We’re now. generic in pricing

margin, growth talked areas, generally also opportunities. You think about talked in procurement I about some lower you’ve but the which is specialty, other of

two And to and forward? about the So, side? about going side, things: have how I understand then just about we really think wanted do to one, of the bifurcate contribution secondly, try revenue the can idea on modeling these margin how so of think we think some the when to we to margin an GLP-Xs things

There’s thanks, to Lisa, Well, question. lot for the a there. unpack

see try me Let those if I some can questions you. of for to answer

do include As provide U.S. based revenue as tailwind. talked mentioned, GLP-Xs. growth within the I about, the that we’re we but particular, company, very broad they Pharma. benefiting in a does utilization Certainly, was across from stronger And trends overall, and

trends speaking continue growth utilization and be improvement. though, generally to solid Just

we breadth segment. And within margin as like margin authorization technology They’re have, mentioned, a the profile, a I offer programs from I affordability distribution But GLP-X of been to value certainly, our We’re prior well access rate customers. have lot of rate our profile. mentioned, a the also, and very that lower solutions also have providing we those as received. portfolio

And so those there’s to a the we that behalf of component secondary on provide services drugs.

to – speaking, continued continues I utilization solid. think generally pricing been stable. be competitive The environment just to but that has be the environment So

the that just we generic provide from across well, broad-based benefiting to of Our services channels quite our all we’re performance And particularly programs. continue perform sourcing to. programs

Next question please.

take our Michael question with Bank will Cherny next We go from of America. ahead. Please

growth. if of was Last discovery the RxTS. year, year the taking thanks little I much of terms some Good pieces saw profit a it the on of can of moving mentioned you the question. coming really prior I strong over terms This so that afternoon like and course out the year. gate And of Maybe year, spend time a authorizations. we for in almost the in know

I of growth thereof fact And or volatile of we’ve backdrop to relative we GLP-X the the, course could noise other see that have in and broadly business? guess, we areas, all that over driver you the moving and would had think bit in was expected? lack think the about the a last prior against should we year RxTS than more year see is of that how little biggest Given authorizations that the lumpiness this pieces the I

which start We’ve the technologically the the of that I’ll the more talk Michael. profiles quarter of a business, we versus had oriented the about business, bit. the in RxTS different the mix about have. business and little in in past importance XPL this Thanks, good talked financial solutions growth

so be over year. some And fiscal fluctuations our and will introduce that always mix did important prior quarter-to-quarter

I help by our relationships, business. our extending win would the going benefit if this though, that is the [ph] places in go more prior up, spend going up, need today, authorization these as to the say, them it’s from services And where that’s will. And Britt utilization about. for winning as more relationships prescription trends for to go we’re we general in specifically, volumes talked of have penetration, business manufacturer you

time. We’re from of going those benefit to kinds things over volume-related

and and part natural be cycles, Now of drugs that’s go some they business. as launch, there demands as services new a the through variation the of life we the needs offer, can into their just

is, we Mike, one other would I thing add to develop this just maybe that segment. continue

we’re capabilities and things One it. within of programs add to continue that the doing is

Rx we’re which us Savings available whole We to offering more trends. last another Solutions advantage economics of a taking added So capability set another year, and of utilization as customers. services, time with certainly is so our on, goes

and acquisition adding, what just to think that year-over-year I on growth seeing adding segment that is Savings Rx the Solutions within additional the and you’re So basis. programs and seeing we’re capabilities the the the we’re making we’re is that of certainly a investments

make to continue that into the this those of and segment, always also investments investments linear. isn’t We timing

Next question, please.

And Coldwell be next Eric Please will with ahead. Baird. go

thanks Hey, on Congrats much. nice report. very a

it much as terms also formal you in debate name things things So restructuring base challenges what larger, at about, in such talk of lot or I’ll was account, status other Curious could a be then one general, Just health during a just larger account to critical when leave if XX, here. I’m very very known in you has an challenges. you in whether of do protections kind from the picture bigger what actually of And what of of pronounced the debate protections items? you that customers, inventories, quarter, the chapter of Thank put time in vendor have occur your were possible you of see happens investor like just a terms do in practices out much, a and if place, more sort. collection the if

to you’re this or on where for thanks close We and don’t get obvious probably customers. the from coming of reasons, health economics stay appreciate into very for customers. our I our the Eric, the we question the do situation or

for ways trying find to always find them capabilities additional services We’re to help and them. grow and to

set think relationships. of customer – we So contacts the broad I to have feel across of good about their from growth base that comfortable that trying growth they’re our understand perspective. our and the our manage to that and customers feel each have I segments their with what And how ability we we strategies a do

really our I the of you customer. Beyond we that into contracts specifics have that. each get understand can’t with Hopefully that, can

please. question, Next

And Caliendo next Please be UBS. ahead. with will go Kevin

is supply up? set to might just distribution contractually my typical whatever is you way of do that share your your market normally just the or guess corresponds have have you’re the it’s you than your market think of such have question. a means more it’s but whether for your share or taking to drug? thanks for mix Meaning channel been ask, greater do driver, Hi, any on I able that reason, a because share is or a to GLP-Xs, have big obviously percent within the a secure category you such you I that

representative would in with communicate I we probably been mix appropriate expect. can and vendors sure of get overall, would share supply with than where appropriate mix, time customers. less I’d our But retail been he our has representative be – and think We This and share our our that and that would points overall. we We we with health and systems, demand. of would fair to coordinate business them have appropriate the share, our closely our effectively independence, our share work there all mix our large accounts. national make say and have have fairly

reflects question. that talked say distribution did was business. just as remind we broad the And segment It our each and It I was business, the of GLP-Xs base. GLP-Xs. would capabilities tailwind generics products. a broad a we our and really fair outside specialty Yes, services that segments have utilization you would about, the that customer across provide for And our I across revenue it’s trends. that based. that also of But provide in growth was the the was across It very to reflects we it

have and really tailwind, quite but base. across performing categories our all the well topical business are provided customer GLP-Xs certainly and So is a

you. Thank

Next question, please.

And will Nephron with Percher go ahead. be Eric Please next Research.

want does products RxTS early somewhat access more you. assistance go adherence you moving which tightly change? offerings? to Thank as RxTS’ restricted And access, offering is is GLP-X from or I from seen that managed to question you see how success other related, ask a have to open

to to are of can market, they how there, the around each services these there dictate going employer, maturity, the to we employer try at want are and products can certain you on to I and of drugs – into the be it business. what what drug depend different Obviously competitors relatively be the payer it’s you, the positive We other how at supporting than their employers, new lifetime. want what cycle. life the offer. a treat employers for often to speaking about want class. launch them. lot for for tell as its out we you is how at handle will can thinking an course are mean decisions I different I think the different but momentum the of different to That’s Well, the they in come generally over that as of about nature mean, points drugs might And classes offer might like

please. Operator, Next question next question please.

And ahead. Mr. next you Please will be your Rice, A.J. Rice with Credit line? are on check button. Suisse. go the mute Please

Yes.

just ecosystem. Sorry. wanted oncology the Hello delve everybody. to little into a bit I

mode. in the year? and to than sort place, in from out Is realize? different on own. you’re push to that And year’s numbers? have could is its you’re it benefit making of I a investment this on it to businesses as that think the oncology in putting rest flywheel investment And But quarter-to-quarter this expecting still meaningfully Sarah Ontada this the obviously, from the Cannon lay of I you meaningfully an you level you last different from wondered as expect comment if benefit are

thanks A.J., the for Hey question.

Let me for try I’ll Brian on. that and and start you. answer can add

probably overall Ontada data principally business, developing our And that and the have we’re a in I We is on vary basis. a year-to-year too on much year-to-year would say where been insights. investment investing basis, not

Now develop investment both principally but and annual constant making basis Cannon we’ve integration basis a been business constant. that the Cannon it integration been our acquisition on an quarter-to-quarter, that of talked has the quarter-to-quarter Solutions. But our has for been Sarah Research Sarah pretty the in year-over-year, of and And vary. investment some on the would Rx it really Savings of is Ontada I can and phase, certainly year-to-year vary, pretty – and as costs the about

Next question please.

ahead. be go Daniel Citi. next with Please And will Grosslight

Hi. question. to to the taking Thanks the for environment. I go generics back want

tailwind. a this times mentioned as You’ve few a

If you at environment. pricing more generic data, point benign seems third-party much look to it to a

your driving then press are year, that what better managing we about shortages your guidance? potential how environment in should the this recently? the environment? is I’m And generics the curious some remainder of you think on for have So and just impact that revised How view got pricing

for Thanks question. Yes. the

say. would I what Here’s

which that And In the the have discipline manufacturing that some across of have, hundreds have of is program, of that the we partners. And then it we our activities relationships the reflects combination sell-side. a led really we really generics terms results. it of on that has combination to sourcing reflects the good

those also launches had as participate some the we some and new in we well. I had brand we’ve a generic Now benefited few new quarter in launches, that say certainly or And generic from. we should new

at in create ability to a our marketplace time spread, of the supply. providing that stable combination sourcing operations, a the stability has So seeing same for provided the competitive with the us customers our we’re pricing competitive

You have more – year. the been Every that program last quite base will have we partners mentioned time supply season that’s a shortages, product is seeing had through the we’ve of first in the now And manage like to year, full would that you’ll seen From is the that what performance momentum well. have the challenged. seeing guidance cold sourcing be spike as seen flu allows we’re would some shortages – long time, we I in which and from products the continued illness or from the speaking, the that as historically. we’re broad that with year. will the quarter, company. that our more included with have we up with I’ve in they in then, last for for to and I line what Generally of that products now us think But we say perspective a and

please. Next question

Hill with Bank. ahead. will Please be George Deutsche next The go

come to want to and talk back well oncology. oncology I as U.S. Yes. about

assume was pricing were in positive. said XX% You I’ll drug X%. total, up visits up same-store was

versus with in exposure? the of that U.S. can oncology, growth exposure of in like to practices of of oncology us is And little the growth Thank give more on seeing guess you. you quarter. – profile So the bit the XX% of drugs McKesson’s detail versus we’re talking I GPO? of segments kind the type kind we’re in a like in McKesson’s kind all what line oncology

the Hi George, question. for thanks

would we’ve And XX% reflects patient And some metrics. – year. thought or some a done insight increase over patient provided. visits me new on it we’ve be and that be would We in had that I practices clear the same-practice last Let the total the year-over-year what into that of insightful. some also basis. be thought insightful. added on visits provided the I acquisitions I of I that X%

know, comment to the on again, patient indicate I want So you the anything didn’t if that besides only, numbers were other. and metrics visit that. I don’t provided Brian, you I else

the it’s we managing an it’s have it’s because not the we say, contributions here, revenue of offer iKnowMed of the management, cycle services. just would practice about to to those services. the think the the I GPO practice and side, this diverse of systems management referred EMR, solutions we other broad It’s effectively. set often just the On very oncology and ecosystem that as It’s the clinical

in – think recent that complemented then with venture analytics joint data And our We’ve insight there’s and the years distribution Cannon. Ontada, I with Sarah business. business the

years, the we they it why growth in several self-reinforce. when think So good put I last ecosystem in that’s all an network. you’ve And ways, in think together, seen, we call those pretty many you because the

I we a that expansive value to they both provide attractiveness business partner the practices well think and can. to patient manage represent to in these to that’s best as as and proposition their them part help care as possible the

for question, one last And more time have please. we question so

that Elizabeth from question will ISI. Certainly Anderson come with Evercore

sort you is reimbursement in is a unlikely something – fewer to fluctuation that Hi be and volume XXXB but of of real driver guys. XXXB could but sort a wondering you. something helps? on there? I get your – real the a impact, to know that of it? potentially I PTS Is it question. does impact Or this the as these Thanks have Is we as perspective, it for on you from changes, a if a market part the really so that that have it kind much doesn’t business. Thank prescriptions potentially have of just speak was could modest impact

XXXB as So all much past afternoon. I driver I more be would and impact I reflected would in in of business, XXXB the over that And regulatory pharmaceutical our a you business. the characterize guidance our of just those resident in flat is be this Prescription quarters evolutions of provided Technology Britt asked and XXXB about reactions. whether a And actions distribution best a say think we’ve I’d to commercial view that lot XXXB, business. have that obviously, talked our I or would relative the not And say out. particular

delivered in Thank the appreciate Okay. you, for strong the first interest you I’ll call. your the thoughtful just I McKesson call. joining results. and Thank saying you, up facilitating questions thank McKesson. everybody. wrap Well, quarter for by Cynthia,

a financial health testament made Our a services company. significant in we’ve McKesson is the care advancing really diversified progress as strength to

confident value. continue in our for create hope market have to to joining I evening. We’re execute and shareholder Thanks all ability terrific position long-term our differentiated you a and again us.

Thank you for joining today’s conference call.

You great have may day. disconnect, and a now