Q3 2021 Cardinal Health Inc Earnings Call
Good day.
[music].
Presentation for a description of these risks of uncertainty.
Please note that during the discussion today or comments will be on a non-GAAP basis, unless they're specifically called out of gap.
GAAP to non-GAAP reconciliation for all relevant period can be found in the scheduled attached to our press release.
During the Q&A portion of today's call. We plan that that you try and limit yourself. The one question. So that we can try and give everyone an opportunity.
With that I will now turn the call over to Mike.
Thanks, Kevin Good morning, everyone.
Before I turn it over to Jason I will provide a few high level thoughts.
We remained focused on serving our customers and their patients and continue to advance our strategic priorities.
With our resilience business model, we are navigating the effects of the pandemic on our businesses.
In the quarter, we continue to see strong demand for lab, and PPE products and volume recovery in our nuclear business.
Medical elective procedure utilization experienced some volatility and we saw ongoing COVID-19 related sauces, and generics volumes, which we now expect to extend into the next fiscal year.
With this update of the assumption, we have revised our pharma segment outlook.
Despite the impacts of COVID-19, our business fundamentals are strong demonstrated by the underlying growth we are seeing in both segments.
And we continue to advance our strategic priorities, including Optimising, our supply chain and portfolio as you saw in our recently announced the agreement to sell the quarters business.
As we navigate the pandemic our customer focus remains central to our activities. We deeply appreciate that it is our responsibility of serve health care providers their patients and those on the front lines.
Although the operating environment remains dynamic it has reinforced are critical role in the supply chain.
And it highlights opportunities for us to enhance our operations and evolve for future growth.
I'll discuss some of the changes we are making later in my comments, but first I'll turn it over to Jason to provide additional details on our results and the outlook.
Thanks, Mike and good morning, everyone.
Before I die of into the current quarter. As a reminder, we are now comparing against the prior year quarter that included the benefit from accelerated pharmaceutical sales and increased PPE demand due to the onset of COVID-19.
Now for our consolidated third quarter results totaled.
Total company revenue of 39 $3 billion was in line with the prior year.
Consolidated gross margin for the period was one $8 billion.
SG&A decreased nearly 4% to 1.1 billion demonstrating.
Hurting cash flow of $277 million, bringing our year to date operating cash flow the one $8 billion.
As a reminder, the day of the week in which the quarter and effects point in time cash flows.
We ended the quarter of the cash balance of three $5 billion and no outstanding borrowings on our credit facilities.
Now for the segment results beginning of farm on slide five.
Farm of segment revenue was flat at $35.1 billion.
This reflects sales growth from pharmaceutical distribution of specialty solutions customers compared against the previously mentioned of COVID-19 related the sales acceleration in the prior year.
Segment profit decreased 4% to $511 million, primarily due to COVID-19 related volume declines in our generic program, which was partially offset by of higher contribution from brand sales mix.
Excluding the volume impacts are generic program continued to see generally consistent market dynamics.
Additionally, we were encouraged to see on nuclear business continuous recovery as we saw an improvement on volumes as we exited the quarter.
And specialty we continued to see year over year growth and are excited about recent lens in our <unk> and hub businesses.
And the farm of team remained focused on diligent expense management delivering strong cost savings in the quarter.
Now transitioning to medical on slide six.
Medical segment revenue increased 3% of four $2 billion, driven primarily by of net positive impact from COVID-19 on products and distribution.
As in prior quarters, we saw higher selling prices and volume and PPE as well as higher volumes on our lab business, partially offset by lower demand for surgical products, resulting from reduced elective procedures.
Segment profit decreased 2% to of $174 million.
During the quarter cost savings, including global manufacturing efficiencies were offset by a decline in products and distribution of.
Additionally segment profit experienced a slight net negative impact due to COVID-19, driven by the sell through of TBE safety stock in the prior year.
Now, let me step back to health time, our performance sequentially within the context of the previously discussed factors.
During the third quarter demand for surgical products using the elective procedures average approximately 90% of pre COVID-19 levels compared to the 95 per cent average in the prior quarter.
Saw choppiness, especially early in the quarter consistent with the evolution of the virus and various geographies.
But as we exited the third quarter elect the volumes rebounded back to around 95%.
Our lab business continued to experienced the tailwind from increased demand for COVID-19 testing products. The lies the expected not quite at the peak level of seen last quarter.
Regarding PPE, we continue to see elevated volumes.
And the quarter, we were successful in managing the significant cost increases that we've encouraged to procure select PPE products.
As we previously mentioned many of our customers have chosen the leverage our supply assurance program to manage market uncertainties, and we continued to expect timing variability as we support our customers through this dynamic environment.
Next.
On slide eight I will review updates to our fiscal 21 outlook.
Based on our performance to date and the increased visibility for the balance of the fiscal year, we are narrowing our EPS guidance to $5 90.
To $6 on <unk>, which continues to reflect 10% EPS growth at the midpoint.
We're making the following changes to our corporate assumptions.
We now expect interest in other in the range of 145% of $160 million driven primarily by the deferred compensation favorability to date, which is a reminder is offset above the line.
We are narrowing are effective tax rate to 23, 5% to 25%, reflecting the previously mentioned the IRS resolutions.
We expect diluted weighted average shares outstanding of approximately 294 million chairs, which includes the repurchases completed during the quarter.
Additionally, capital expenditures are now expected in the range of $400 million to $430 million.
Moving to the segment outlooks on slide nine.
We are updating our farm of segment profit outlook too flat to down low single digits due to updated expectations for COVID-19.
Based on our third quarter exit right and what we saw on April we still expect brand pharmaceutical volumes to the at or near pre COVID-19 levels as we exit the fiscal year, but we now expect the volume recovery of certain therapeutic classes within generics to extend into the end of calendar year of 2021.
Combined with prior repayments. This would represent of total debt reduction of nearly $5 billion over five years.
While we will continue to evaluate additional opportunities to reduce debt, we anticipate our future repayments will be more modest as we approach our leverage target.
At the same time, we are committed to our dividend, which remains an important component of our capital allocation strategy with that in mind. Our board recently approved a 1% dividend increase for fiscal 'twenty two.
Outside of these three key priorities will continue to evaluate tuck in M&A within our strategic growth areas and opportunistic share repurchases as I mentioned, our improving financial flexibility enabled the deployment of capital for share repurchases during the third quarter with that I'll turn it back over to Mike.
Thanks, Jason as I mentioned earlier, the last year has highlighted certain opportunities for growth transformation and innovation.
And we're confident that our strategic direction will deliver both short and long term success.
In pharma, we are excited about the mid to long term trajectory of the segment.
Our business model is resilient and we're expecting strong long term growth in key areas like specialty and nuclear.
<unk> of which are rebounding well from prior COVID-19 related impacts.
And we are executing a robust pipeline of initiatives and PD to support our customers' evolving needs.
We also continued to invest in new technology solutions that enhance the customer experience and improve patient care.
In specialty our recently launched the Vista Tech solutions uses artificial intelligence to identify and match cancer patients to clinical trials.
These insights enable oncologists to improve outcomes and reduce costs as they transition to value based care.
We are also offering digital solutions and the connected care businesses that we recently branded collectively has outcomes.
Each year medication non adherence cost the U S health care system over 500 billion.
And contributes to around 275000 avoidable patient death.
With outcomes, we've created a digital ecosystem that unites pharmacist, payors and pharmaceutical companies to improve medication adherence.
Drive better outcomes and lower the cost of care.
Outcomes currently supports of network of 23 million patients in more than 60000 pharmacy sites nationwide and through continued growth is positioned to address the challenge of medication adherence.
As I look towards the future I am excited about these innovations across the segment that combine our heritage and strengths with new technologies to create unique solutions that support our customers ever changing needs and create long term value across the continuum of care.
Turning to medical we continue to enhance our operations to better serve our customers and their patients.
For example, we continue to diversify the geographic concentration of our sourcing and invest in our self manufacturing capabilities.
This includes producing 15 million more safety needles and syringes 'twenty.
$20 million more isolation gowns, and $150 million more surgical and procedure mass annually in our own North American facilities.
We're also supporting customers' inventory needs with stockpile as the service storage solution and partnering with the strategic National stockpile, the store and distribute 80000 pallets of critical PPE.
We are incorporating robotics automation and data analytics across our warehouse and distribution processes, we are piloting various technologies and being thoughtful about how and where the scale them across our network.
We also continue to invest in key areas across the segment.
For example, we are expanding our lab kitting services to support home collection for a broad array of lab test from wellness to infectious disease, and we are coupling these services with capabilities in our Cardinal health at home and off the freight businesses to maximize value and create differentiated solutions.
The meeting the patient where they are our lab kitting supports testing protocol adherence and detection of early onset disease ultimately lowering the cost of care.
And in medical services are off the freight logistics business is launching innovative and comprehensive health care logistics offerings like our same day solutions, which is being scaled nationally to support the time critical logistics of our customers.
Together these work streams across medical position us to support our customers and drive long term growth.
Along with these work streams of each segment. We're also focused on enterprise wide investments as well as advancing our capital allocation portfolio optimization and ESG priorities.
We continue to invest in our delivery networks cold chain capabilities and supply chain capacity and visibility.
For example, we are partnering with for kite, the largest predictive supply chain visibility platform to create of cognitive network spanning both pharma and medical that combines real time supply chain visibility machine learning and artificial intelligence.
This network facilitates inventory flow and gives our customers end to end visibility to see products in transit, enabling us to make any necessary adjustments for our customers in real time, so they can better serve their patients.
Regarding our capital allocation priorities, we have strong momentum we remain committed to investing for future growth, maintaining a strong balance sheet and returning capital to shareholders.
We are on track to exceed our savings targets and are continuing to use some of these savings to reinvest in the business.
We also remain focused on optimizing our portfolio.
The pending sale of Cordis is progressing as expected and this divestiture enables us to simplify our operating model further optimize our infrastructure and focus on our strategic growth areas, where we are in an advantaged owner.
We are committed to our strategy as the global medical products and distribution leader and are focused on conducting business and markets in areas that align with our priorities.
Finally, we're also advancing our environmental social and governance activities.
We recently partnered with AEP to power, our global headquarters and on National Logistics Center with clean energy and.
And we remain deeply committed to advancing diversity equity and inclusion at every level to ensure all of our employees could bring 100% of themselves to work every day.
The close I want to thank each of our employees, whose commitment and ingenuity enable us to support our customers their patients and our collective communities with that I'll pause to open it up for questions.
Thank you and if you would like to ask a question. Please signal by pressing star one on your account.
Non keypad if you.
You are using a speaker phone. Please make sure your mute function is turned off.
The lions share of equipment.
Again, it is star one if you would like to ask a question and we'll pause for a moment to allow everyone an opportunity to signal for questions.
And we will go ahead and take our first question from Michael Cherny from Bank of America. Please go ahead.
Good morning, and thanks for taking the question.
I wanted to dive in a little bits of the comment you made about your expected growth.
Ex COVID-19 I believe you said, that's with the mid single digits by my simple math, if you assume thats, 5% that gets you to roughly $66 million headwind versus the baseline. So along those lines can you break down a little bit.
Within that area.
Some of the biggest drivers were of the underperformance and then we'll be taking on with regards to that question and the generic volumes any more color you can give us on some of the classes that you expect to continue to contribute the weakness over the next couple of quarters.
Sure. Yes. This is Jason let me start with your first question there and your math is very accurate that would represent the right around $60 million of the overall enterprise impact to the COVID-19 that is entirely in the pharma segment within medical there was a very insignificant impact in the quarter.
Order due to COVID-19 now there were a lot of moving pieces pluses or minuses, but net it out for no significant impact within the quarter.
As it relates to the pharma business that driver is driven by the generic volumes that Mike referenced in his comments and I referenced in my comments and I think that maybe might be inclined a little more color behind the second part of that question, Yes, Michael Thanks for the question.
As it relates to the generics remember.
We always talk about is our overall generics program.
What we're seeing here on our overall generics program as debt market dynamics are generally consistent.
The only thing that has any real material.
The impact on the program right now is generic volumes in certain therapeutic classes related to COVID-19, and its probably not hard to think about a few of been following the IQ the data and the other day of the there are certain classes, particularly around the acute scripts, where we don't see.
Those getting back to pre COVID-19 levels.
Prior to our fiscal year, and we think as.
Kids get back to school of more people on masking and all of those types of things. We would expect the environment to generally of return, but we don't know seeing that set of certain therapeutic classes within generics returning to more of pre COVID-19 levels until the end of the calendar year. So overall again good market are.
The consistent market dynamics in the generics program really just focused on those.
The new class is related to COVID-19.
Like the add one more thing that $60 million remember there was a pull ahead last year. So only about half of it is an adverse impact on the current year. The other half is related to the comparisons of the prior year.
Got it thanks.
Next question.
We'll go ahead and move on to our next question from Charles <unk> from Cowen. Please go ahead.
Yes, thanks for taking the question if I could follow up on that when you when you say certain therapeutic classes.
Related to COVID-19 so are we.
Talking like cold cough, and flu like kind of flu and antibiotics. These kind of generic that might've been.
We're not seeing it because we had a weak.
Flu season, then you Wouldnt expect that until maybe the company's flu season.
Yes, great question.
I'll try to be helpful. Here, Yes, I would say flu season, as we know has been light, but we've also said in the past generally if it were Jeff flu season itself and just flu specific like focused on just like a tam of flow and some of those it wouldn't be that big of a driver would be of negative for us, but it wouldn't be probably of material driver.
What we would call out, but you said it well at the beginning it's really the broader list of categories. So it's anti bacterial anti biotics anti virals and pain meds those generics in those categories are on what we're seeing that are have just not return to the pre COVID-19 level.
And if you look at the <unk> data in these categories what were seeing both on our own data as you can imagine a lot of conversations across the various classes of trade is very consistent on what we're seeing in terms of those volumes coming back.
Okay. Thanks, Dave if I could just follow up on where these where we've seen these dynamics last quarter and is it more of that.
More of this was prescribed last year during COVID-19.
Versus this year and so thats, what we are or is it is it the depression that people haven't been going to the Doctor and you don't see people still really going back to the doctor as much. That's that's driving this thanks.
Yes, it's hard to know for sure, but I'll give you a couple of thoughts one is I think it is somewhat related to the physician office visits second of all people are masking social distancing washing hands.
On half the people playing quite sports at the same level on all of those things of having the injuries related to the pain meds on all of those types of sort.
I think it's the combination of a lot of those things, adding up we've been seeing this.
And monitoring all of the categories and we've been saying since the beginning of the year.
Our assumption for our guidance for both pharma and the overall company has been about getting back to the pre COVID-19 at or near pre COVID-19 levels by June 30, and it's good to note that we're seeing that in brand, we're still expecting that we're seeing that in the majority of.
On generics, particularly the quality of generic zones are coming back, but we were hoping to see more of a ramp and the other ones were just not seeing it. So we believe that it's important.
Not only through March but we also looked at our April data. So it drove us to make the decision to change our pharma guidance for this year.
Alright, thank you for exploration.
On a go ahead and move on to our next question from Ricky Goldwasser.
Morgan Stanley. Please go ahead.
Yeah, Hi, good morning, So my question still on generic pricing clearly at the bank.
Debate on investors now.
So Mike.
What are you seeing in terms of generic pricing are you seeing accelerated.
The information or any other trends and also if you can talk a little bit about.
On my side spread.
Yes. Thanks, Ricky Thanks for the question as you know, it's really hard to get into individual components of the generics program because.
As we've said for a while now just calling out sell side deflation without talking about the buy side cost improvements or launches or overall volumes. It's you are really not giving of complete story and that's why we've really been focused on just discussing how we see our overall generics program performing.
And we really are seeing market dynamics are generally consistent with the only driver in the programs I just mentioned the COVID-19 related volumes in certain categories.
Okay.
The follow up question Dan.
We have been we think about the sales side.
You need to think about sort of contract renewals that could change dynamics either in contract renewals either thank you of a book of business or across the industry.
Debt he the renewed recently or the upcoming debt you can point of view.
Okay got it.
Yes, as far as contract renewals go on the ones that we specifically talk about.
Our three largest ones, which we have disclosed both still have a couple of years left on them before there's any renewals of those contract and everything else as it relates to the contract renewals for this year is generally tracking as expected it's always one of those.
Headwinds as the year over year basis, but everything is tracking as we expected at the beginning of this year.
Thank you.
And we'll move on to our next question from Robert Jones from Goldman Sachs. Please go ahead.
Great. Thanks for the questions I guess, maybe just to move over to medical Mike Obviously COVID-19 has created a couple.
Cross currents in that business as far as GP and then the lack of utilization could you maybe just tell us kind of where we are today as we think about the two broad buckets.
The benefit that obviously you had.
And probably continue to see from PPE and testing versus kind of the core business coming back as utilization starts to COVID-19.
Do you become more normal.
Yes. This is Jason thanks for the question I'll start.
With within let's just kind of step back from the COVID-19 perspective overall for the medical business as I mentioned in my prior answer overall for the quarter. There was an insignificant impact in the quarter related to COVID-19 a lot of moving pieces now I'll get into the couple of the key drivers and as a reminder, just like the pharma comment.
The condition of the price and costs associated with the much higher cost with with P. P E and the dynamics continue to be somewhat fluid, but uhm, we do definitely still see higher cost of higher prices for some of the P. P product, especially especially gloves, some moderation, but generally on still elevated and.
Uhm anything else at my other got something up well.
Great. Thanks.
Oh.
And we'll move on to our next question feminine Steven and now I can't send Barclays. Please go ahead.
Hey, Thanks, a lot of good morning, guys. So.
Usually when there is some negative supply of demand and balance on commoditized products it can impact price.
So with the sorcerer generic volume on those categories that you mentioned, the anti Bacterials antibiotics et cetera, I guess for me I would just visualize that though with the buy side and the sales side pricing would maybe come down the simultaneously on those products in conjunction with the softer our ex demand.
I'm just curious about is consistent of what you saw I just wanna confirm the have one way or the other it's not the beat this topic of that but just wanted to get some confirmation around that.
X.
Yeah, you know.
That's the hard question the answer in the sense of the the level of detail of looking at all of our both our by five in sales five for all of those individual categories. Nothing Pops out to me related to that component of the driver is with the really overall was nerikes program market dynamics.
We're generally consistent it was more just they'll call you on related item on those categories nothing stands out in pricing, whether the buy or sell the I would call out.
Okay, Okay alright. Thanks.
Alright. Thanks.
And the move I'm trying next question of family Lisa Gal send that J P. Morgan. Please go ahead.
Alright, Thanks day, and I think in the morning, Mike and Jason.
So of 'twenty that we had roughly a $100 million headwind associated with COVID-19, which was more of an all in the fourth quarter now this year and then there is just on this.
On a script todays prepared remarks, we commented that it was a relatively.
Consistent flat impact year over year from of COVID-19 perspective, now on this update so that implies roughly $100 million Inc.
Included in fiscal 'twenty. One now the key question is exactly how does that roll off down the 22 and I would first go back and highlight that a number of the areas, we anticipate getting at or near pre COVID-19 levels by the end of the fiscal year like like the medical elective volumes nuclear to of similar extent the <unk>.
<unk> volumes. We've highlighted are also similar it's those very specific therapeutic drugs within generics.
Will be deferred then until more of like the middle of our fiscal 'twenty. Two so there'll be some offset there that will continue on into the the.
The next year now there is going to be a lot of other moving pieces with COVID-19.
We would expect there still to be some elevated demand for areas like PPE and the lab business, but we also have the timing element associated with PPE price and cost that we continue to track very closely and it will really be a function of those.
Pricing and cost dynamics as we go forward.
So when I think about the two different segments.
That really comes down to is that certainly the greatest impact we have the headwind built into this guidance of about $100 million associated with the pharma business and we have now more of a tailwind for the medical business and so we highlighted that from a year over year perspective, as well on the prepared remarks.
<unk>.
So a meaningful impact in both of this year and so they will behave differently next year and then of course the other key piece to think about the puts and takes as the announcing the sale of cordis. So we do anticipate that being in the first quarter hopefully earlier in the first quarter and we disclosed prior debt that business carries of.
Out of $60 million to $70 million annualized.
Earnings right and so as we get more specific to the exact timing and other details around that we will provide more color as to what the impact will be for our fiscal 'twenty two.
Okay very helpful. Thank you.
Good day.
And we will move on to our next question from Chris on that.
On the research. Please go ahead.
Thank you question on the specialty business it sounds like Youre expecting that trend of normalizing in that business.
Wanted to ask count the profitability levels have been running in that business, whether you're seeing benefits from biosimilars in the.
Of late there has been the call out of maybe some of the oral solid products that are more specialty generics and Biosimilars are you participating in economics on those.
Yes, I would say there is nothing I would call out that's dramatically changing of our specialty.
Particularly as it relates to the sales of drugs to the into the physician office space that we're seeing generally consistent profitability. We are participating in the various different opportunities in there whether it's the actual generics that are in specialty the biosimilars.
We're participating in all of those activities, we're seeing increased volumes on certain key drugs.
<unk>.
As you know we've been saying for a while we have seen oncology come back more quickly than the other areas, but we do expect all of the classes of the trade of the at this point in time within specialty to be at or near pre COVID-19 levels by the end of our fiscal year and then of those to our upstream services businesses like our <unk>.
All of our hub and other businesses those are the.
Businesses continued to perform well and compete very effectively in the marketplace.
Next question please.
And we'll move on to our next question from.
John Youre seeing from credit Suisse. Please go ahead.
Yes, thanks, and good morning.
Wondering if you could double click into manufacturing efficiencies you highlighted in the medical segment can you provide some details there and any of those efficiencies in the cordis business that could be rolling off the field.
The business.
Yes, I mean, we've clearly had manufacturing efficiencies in our cordis business like all of our manufacturing businesses. The the team. There has just done an excellent job across all of our 30 or more global manufacturing plants of driving efficiencies. There is nothing in particular about.
The cordis efficiencies that would change the estimate that that Jason just gave you that that business when it rolls off hopefully in our early on our first quarter of next year would have about a 60 or $70 million.
Earnings associated with it.
Okay. Thank you.
And we'll move on the next question from George Hill from Deutsche Bank. Please go ahead.
Moving on day by day to US clearly capacity, that's being worked in to provide more supply, but especially on glaus. It just takes a longer process to get that supply to market.
As it relates to our cordis on any dis synergies I wouldn't call it dis synergies.
There are.
Certainly when we look at just our overall cost structure and stranded costs or things of that nature, but when we estimate the $60 million to $70 million. That's the all in impact that's associated with that we would not anticipate that there are other issues and in fact I would go the opposite way on par.
Of what we'd highlighted before about this transaction is that it allows us to focus and to simplify our operating structure around the remaining businesses and so we think it will create some opportunities for additional synergies more of than more of a dis synergies by by being more focused on.
The cost efficiencies of what remains the only thing I would add to that too to be helpful. As we of.
Really invest it in our overall owned global manufacturing capabilities and if you remember in my script for instance.
We are a large manufacturer of syringes, we've increased our capacity there by 15 million units on an annual basis on gowns, we've added capacity to add 20 million self manufactured gallons a year and on <unk>.
Mask were at $150 million more mask of year annually, all in our own facilities, which are all either U S or near U S. They're all North American.
The types of facility so.
<unk> been a debt I think of very excellent job on the medical segment of increasing our capacity and which really I think strengthen strengthens our supply chain and we've also invested in our sourcing capabilities and broadened our relationships with suppliers. So we feel really good about some of the changes and developments we've made.
Our overall supply chain and the medical.
Thank you.
And our last question comes from Kevin Kelly <unk> from UBS. Please go ahead.
Thanks, Thanks for taking thanks for taking my question.
I just want to go back to the sort of the headwind and tailwind for for fiscal 'twenty two.
And if I, if I'm sort of netting everything out it sounds like COVID-19 impact for medical is pointing to the increments like you considered incremental negative that I think about that right and can you just go through that one more time.
Yes for the medical business I would anticipate that the impact of COVID-19 in the fiscal year, so not a year over year comparison, but just what's the impact of COVID-19 will be of tailwind for this year.
So the question is what are those the same types of the dynamics next year do we see more permanent longer lasting PPE volume low volumes.
Referenced the timing associated with the price and cost of the PPE that could could carryover into next year.
But if it goes all if everything goes back to the pre COVID-19 World look like it would imply a headwind of <unk>.
Of course, we expect there to be a more significant tailwind opportunity on the pharma side, but specifically to the med business.
The Robert.
Sure you're trying to go with the question is that when we think about our full year guidance of the low to mid twenties percentage growth on.
Obviously, we have within that some of that benefit I am talking about and just to be real clear, even if you back that out we do have growth in the medical business, but it is a key part of the growth that we're seeing this year as well.
Okay. Thank you and all of that.
And with that that does conclude our question and answer session. At this time I would like to turn the call on thank you Mike Kaufmann for closing remarks.
Yes, I just want to thank everyone for joining us today, and we and the entire Cardinal Health team Hope you and your family stay safe and well and we look forward to speaking with you again soon.
And with that that does conclude today's call.
For your participation you may now disconnect.
[music] on.
Okay.
[music].
Yeah.
Okay.
Yes.
[music].
The.
Yes.
The.
True.
Lisa.
[music].
Yes.
Yes.
Sure.
Sure.
Yes.
Yes.
[music].
Yes.
The.
[music].
The.
Okay.
[music], Inc.
The.
[music].
The net.
Sure.
Yeah.
Sure.
Sure.
[music].
And the unit.
Okay.
Sure.
Right.
Yes.