Q1 2022 Amerisourcebergen Corp Earnings Call

Speaker 1: The Act that.

Yes.

[music].

Speaker 2: Hello and welcome to the Emeritus Sbergen First Call to Fifth School Year 2022 earnings school. My name is Alex and I'll be your cool operator for today. If you'd like to ask a question at the end of the presentation, you can press style one on your telephone queue pants. If you'd like to withdraw your question, you may press start two.

Hello, and welcome to the Amerisourcebergen first quarter fiscal year 2022 earnings call. My name is Alex and I'll be your operator for today, if you'd like to ask a question at the end of the presentation. You can press star one on your telephone keypad, if you'd like to withdraw your question that you made.

So, let's say I will now hand over to your host Bennett Murphy Senior Vice President of Investor Relations over to you Bennett. Thank you good morning.

Speaker 3: I will now hand over to your host, Bennett Murphy, Senior Vice President of Investor Relations. Over to you, Bennett. Thank you. Good morning. Good afternoon. Thank you all for joining us. This conference goes to discuss the Marisou's Burgen First Quarter, fiscal year 2022 results.

Thank you all for joining US today's conference call to discuss Amerisourcebergen first quarter fiscal year 2022 results.

Speaker 3: I am Ben and Murphy, Senior Vice President of the Federation, joining me today are Steve Collins, Chairman of the President's CEO .

I Havent Bennett Murphy Senior Vice President Investor Relations. Joining me today are Steve Collis, Chairman President and CEO .

Speaker 3: Jim Cleary, Executive Vice President CFO . On today's call we will be discussing non-GAF-20 intermediaries. Reconciliation of these measures to GAF are providing today's press release was available on our website at investor.amarciperian.com.

And Jim Cleary Executive Vice President and CFO on today's call will be discussing non-GAAP financial measures reconciliations of these measures to GAAP are provided in today's press release, which is available on our website investor.

Bergen Dot com.

We've also posted a slide presentation to accompany today's press release on our Investor website.

Speaker 3: During this Congress call, we will make four looking statements about our business and financial expectations on adjusted non-gap basis, including without limited to EPS operating and commanding contact.

This conference call, we will make forward looking statements about our business and financial expectations on an adjusted non-GAAP basis, including but not limited to EPS operating income and income taxes forward looking statements are based on management's current expectations are subject to uncertainty and change for a discussion of key risks and assumptions to refer to today's press release and our SEC filings.

Speaker 3: Forging and statements are based on management's current expectations are subject to uncertainty and change. For discussion of key risks and assumptions we've created today's press release and RSEC filing, including our most recent 10k.

Our most recent 10-K.

Speaker 3: Merises burn assumes no obligation to update any poor looking statements. And this call cannot be re-broadcast without the express permission of the company.

<unk> assumes no obligation to update any forward looking statements and this call cannot be rebroadcast without the express permission of the company you will have an opportunity to ask questions. After today's remarks by management, we as you can.

Speaker 3: You'll have an opportunity to ask questions after these remarks by man.

Speaker 3: We ask you to limit your question to one participant in order for us to get to as many participants as possible within the hour. Would that alter in the call or to Steve?

Limit your questions to one per participant in order for us to get to as many participants as possible within the hour.

That I will turn the call over to Steve.

Speaker 4: Thank you, Bennett. Good morning and good afternoon to everyone on the call.

Thank you Ben it's good morning, and good afternoon to everyone on the call.

Speaker 4: Before we begin our results for the quarter, I want to take a moment to comment on the status of the proposed settlement agreement to address opioid-related claims of states and political subdivisions.

Before we begin our results for the quarter I wanted to take a moment to comment on the status of the proposed settlement agreement.

<unk> opioid related claims of states and political subdivisions.

Speaker 4: Since we announced last September that the proposed settlement agreement would move to the next phase, several more states have announced their 10 to sign on to the agreement, increasing the number of participating states to 46.

Since we announced last September and the proposed settlement agreement would move to the next phase several more states have announced they intend to sign on to the agreement.

<unk> seen the number of participating states to 46.

Speaker 4: We are encouraged by this progress and over the next few weeks we will review the level of participation by subdivisions and determine whether to proceed with the final settlement. We look forward to providing an update once a decision has been made.

We are encouraged by this progress and over the next few weeks, we will review the level of participation by subdivisions and assume and determine whether to proceed with the final settlement. We look forward to providing an update once a decision has been made.

Speaker 4: Marisol's burden continues to work diligently with our partners to combat drug diversion while supporting real solutions that help address the crisis in the communities where we live, work and serve.

Amerisourcebergen continues to work diligently with our partners to combat drug diversion, while supporting real solutions that help address the crisis in the communities, where we live work and Sue.

Speaker 4: Turning now to discuss our results for the first quarter of fiscal 2022 and continued progress on strategic imperatives, Amerisaw's Birken began the fiscal year with solid financial performance.

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Turning now to discuss our results for the first quarter of fiscal 2020 , two and continued progress on strategic imperatives Amerisourcebergen began the fiscal year with solid financial performance.

Speaker 4: Revenue grew 13% over the prior to $39 billion.

Revenue grew 13% over the prior year to $59 billion.

Speaker 4: adjusted operating income increased by 21% and adjusted EPS grew by 18%.

Adjusted operating income increased by 21% and adjusted EPS grew by 18%.

Speaker 4: Our growth reflected the benefit of our Alliance Healthcare acquisition and solid performances across our business.

Our growth reflected the benefit of our lives health care acquisition and solid performances across our businesses.

Speaker 4: Our results continue to demonstrate the value of our pharmaceutical centric strategy, strong customer relationships, leadership in specialty and unparalleled global commercialisation service.

Our results continue to demonstrate the value of our pharmaceutical centric strategy strong customer relationships either ship in specialty and unparalleled global commercialization services.

Speaker 4: These differentiating factors are key drivers of our long-term growth and enable a merisource burden to create significant value for all our stakeholders as a global healthcare leader.

These differentiating factors are key drivers of our long term growth and enable amerisourcebergen to create significant value for all our stakeholders as a global health care leader.

Speaker 4: Our solution oriented culture and the journey of our teams has allowed us to strengthen our relationships with partners as we help them navigate the increased complexity and challenges that the evolving pandemic presents.

Our solution oriented culture, and the agility of our teams has allowed us to strengthen our relationships with partners as we help them navigate the increased complexity and challenges at the evolving pandemic presents.

Speaker 4: Merrill's horse bergens focus on leading with market leaders. Continuous to position our company for success.

Maryland supposed spoons focus on leading with market leaders continues to position our company for success.

Speaker 4: Recently, we're reviewing our relationship with express groups by extending our supply agreements through 2026. This extension reflects our focus on long-term lasting partnerships with anchored customers that enable us to continue to support patient access wherever a prescription is needed.

Recently, we renewed our relationship with express scripts by extending our supply agreements through 2026.

The expansion reflects our focus on long term lasting partnerships with anchor customers.

Well as to continue to support patient access wherever a prescription is needed.

Speaker 4: Nation access is more vital than ever as we enter the third year of our fight against COVID-19.

Patient access is more vital than ever as we enter the third youre about fight against COVID-19.

Speaker 4: As I've said over the past year, we are proud to be a part of the solution to support the government response to the pandemic in the US.

As I've said over the past year, we are proud to be a part of the solution to support the government response to the pandemic in the U S.

Speaker 4: Through our work with the government and manufacturer partners, we are distributing COVID-19 antibody and anti-viral treatments to providers across the country.

Through our work with the government and manufacturer partners. We are distributing COVID-19 antibody and anti viral treatments to providers across the country.

Speaker 4: As pharmaceutical innovation continues to expand treatment resources to respond to the pandemic, we are playing an even greater role to leverage our infrastructure and expertise to support efficient access to COVID-19 therapies. In partnership.

<unk> pharmaceutical innovation continues to expand treatment resources to respond to the pandemic, we are playing an even greater role to leverage our infrastructure and expertise to support efficient access to COVID-19 therapies in.

In partnership with the federal government.

Speaker 4: The newly authorized oral COVID treatments are a milestone in the efforts to curb the impact of the virus. And we are supporting their distribution to sites of care across the US. Our robust, public-private partnerships with former manufacturers and the US government demonstrate the value of a merisource burden's international conference.

Our newly authorized oral COVID-19 treatments are a milestone in the efforts to curb the impact of the virus and we all supporting the distribution to sites of care and across the U S. A robust public private partnerships with pharma manufacturers in the U S government demonstrate the value of <unk>.

Bergen intellectual confidence as we Havent utilized our commercial springs and ability to collaborate effectively to quickly create solutions in the health care system.

Speaker 4: As we have utilized our commercial springs and ability to collaborate effectively to quickly create solutions in the health cases.

Speaker 4: Outside the US, a Merisaw Spurgen's network of global businesses, a large healthcare world career, and in a foreign Canada, are playing a pivotal role in supporting the COVID-19 vaccination efforts across city plus country.

Outside the U S. Amerisourcebergen network of global businesses lines held came well in Korea, and in Tomorrow, and Canada, all playing a pivotal role in supporting the COVID-19 vaccination efforts across 30 plus countries.

Speaker 4: The collective distribution supports spans full continents and includes a wide range of services from third-party logistics to temperature-controlled packaging, storage, and transport.

The collective distribution support spans four continents and includes a wide range of services from third party logistics to temperature controlled packaging storage and transport.

Speaker 4: Alliance Health Care continues to deliver strong results while supporting the COVID-19 response in multiple countries from vaccination to testing, including in the UK, where the team is supporting the distribution of vaccines and serving as the sole distributor of the rapid lateral flow COVID-19 testing kits to pharmacy.

<unk> continues to deliver strong results, while supporting our COVID-19 response and multiple countries on vaccination two tasting, including in the U K, where the team is supporting the distribution of vaccines and serving as the sole distributor of the rapid lateral flow COVID-19.

Testing kits to pharmacies.

Speaker 4: Lions health care performance underscores why we were so excited to bring this business into an Amerisaw's Bergen family and how this acquisition enables us to advance our role as a key pillar of pharmaceutical innovation and access globally.

Lines held case performance underscores why we were so excited to bring this business in terms of Amerisourcebergen family and how this acquisition enables us to advance our role as a key pillar of pharmaceutical innovation and X pace globally.

Speaker 4: How teams are working diligently and collaboratively to ensure the integration continues to progress, success.

Our teams are working diligently and collaboratively to ensure the integration continues to progress successfully.

Speaker 4: Lions Healthcare Foundation in wholesale distribution and the International Segment significant footprint in complementary value added services and solutions, parallel and merisource bourgans US capabilities and provide us with a strong global plan.

Our lives <unk> Foundation, and wholesale distribution and the international segments significant footprint and complementary value added services and solutions parallel amerisourcebergen to use capabilities and provide us with a strong global platform.

Speaker 4: for sustainable long-term growth and value creation in service to our global bio-former suitable manufacturer of parts.

Sustainable long term growth and value creation and service chart global biopharmaceutical manufacturer partners.

Speaker 4: Creating value for all our stakeholders is paramount for a merisource burden. And as we look at our networks of community providers across the globe, we remain focused on supporting this critical component in the health cases.

Creating value for all our stakeholders is paramount for Amerisourcebergen and as we look at our networks of community providers across the globe. We remain focused on supporting this critical component in the health care system.

Speaker 4: Community practitioners from veterinarians to independent pharmacies and community special positions played a vital role in supporting local healthcare needs.

Community practitioners from veterinarians to independent pharmacies and community special positions.

Vital role in supporting local health care needs community pharmacies are key to facilitating health equity and access, particularly in rural and underserved areas.

Speaker 4: Community pharmacies are key to facilitating health equity and access, particularly rural and underserved areas.

Speaker 4: Through our independent pharmacy network, good-name pharmacy, or GFP, in the US, and alliances our Fager network in Europe , we have continued to strengthen our relationship with these providers and support their ability to expand access to critical healthcare solutions.

Through our independent pharmacy network, good neighbor pharmacy or GMP in the U S and alliances our favorite network in Europe . We have continued to strengthen our relationship with these providers and support their ability to expand access to critical health care solutions.

Speaker 4: Our GMP network has played an important role in helping communities address the pandemic.

Our G&P near Quip has played an important role in helping communities address the pandemic.

Speaker 4: In partnership with the Federal Retail Pharmacy Program, GMP has helped to support allocation of 4 million COVID-19 vaccine doses to more than 1,600 pharmacies nationwide.

In partnership with a favorable retail pharmacy program G&P has helped to support allocation of 4 million COVID-19 vaccine doses to more than 1600 pharmacies nationwide.

Speaker 4: These allocations are helping reach communities where health is needed most.

These applications are helping reach communities where help is needed most.

Speaker 4: There is 50% of the individual's vaccinated performances in our GMP network living zip codes with a high social vulnerability index as defined by the CDC.

Nearly 50% of the individuals' vaccinated by pharmacies in our G&P Nitwit living ZIP codes with a high social vulnerability index as defined by the CDC.

Speaker 4: The value of this initiative continues to grow for our communities, and we are pleased to be working with the federal government to support the distribution of N95 Moss from the Strategic National Stock Pile to our GMP customers currently enrolled in the program.

The value of this initiative continues to grow for our communities and we are pleased to be working with the federal government to support the distribution of N 95 loss on the strategic National stockpile, John G&P customers currently enrolled in the program.

Speaker 4: In our Alliance Healthcare Business, we are also seeing significant growth in our Fagus membership as independent pharmacies recognize the value of working with the Alliance and the services we offer.

Our life <unk> health care business. We are also seeing significant growth in our Vegas membership as independent pharmacies recognize the value of working with their lives and the services we offer.

Speaker 4: as a leading European network of independent pharmacists.

As a leading European network of independent Pharmacists Health Vegas Pharmacy members continue to deliver on a mission of helping to improve the quality of health in their communities.

Speaker 4: Health Fager pharmacy members continue to deliver our name mission of helping to improve the quality of health in their communities.

Speaker 4: Our favourite pharmacy members throughout the pandemic have gone above and beyond to deliver care to their patients.

Fangled pharmacy members throughout the pandemic have gone above and beyond to deliver care to their patients.

Speaker 4: These extraordinary efforts have gone at numerous accolades from around the industry.

These extraordinary efforts have garnered numerous accolades from around the industry.

Speaker 4: We are excited to share best practices between Elfaga and GMP to further the support we provide community pharmacists both in the US and Europe .

We're excited to share best practices between our Vega and GMP to further the support we provide community pharmacists.

In the U S and Europe .

Speaker 4: As we continue to bowl on our strengths, we are focused on expanding on our leadership in special.

As we continue to build on our strengths, we all focus on expanding our leadership in specialty.

Speaker 4: The growth and biosomalists has helped improve access to effective therapies while mitigating overall healthcare spending to make room for continued pharmaceutical innovation, including the introduction of new therapeutics and additional indications for existing therapies to improve the standards of care.

The growth in Biosimilars is help improve access to effective therapies, while mitigating overall health care spending to make room for continued pharmaceutical innovation, including the introduction of new therapeutics and additional indications for existing therapies to improve the standards of care.

Speaker 4: Leadership in Specialty continues to provide us with a scale, partnerships and expertise to create significant value for our stakeholders.

Our leadership in specialty continues to provide us with a scale partnerships and expertise to create significant value for our stakeholders.

Speaker 4: Emeritus, Bergen's global scale and strong partnerships upstream and down make us a key partner in connecting manufacturers and positions.

Amerisourcebergen global scale, and strong partnerships upstream and down make us a key partner in connecting manufacturers and physicians. We continue to look at new ways to apply our existing capabilities and expertise to create further value through this linkage.

Speaker 4: We continue to look at new ways to apply existing capabilities and expertise to create further value through this linkage. Particularly as a shift to value

Particularly as the shift to value based care accelerates by leveraging our distribution infrastructure expertise and outcome and reimbursement and our investments in the physician practices services space, we are well positioned to contribute to pharmaceutical driven outcomes and support the long term success of this.

Speaker 4: By leveraging our distribution infrastructure, expertise in outcome and reimbursement, and our investments in the position practices services space, we are well positioned to contribute to pharmaceutical driven outcomes and support the long-term success of this transition.

Transition.

Speaker 4: Access and commercial solutions become increasingly important as we look to the future with a strong pipeline of pharmaceutical innovation, particularly in specialty pharmaceuticals.

Accessing commercial solutions become increasingly important as we look to the future with a strong pipeline of pharmaceutical innovation, particularly in specialty pharmaceuticals.

Speaker 4: More than half of the part line of new treatments are coming from a small and mid-sized biotech and pharmacist.

More than half of the parts out of new treatments are coming from a small and midsize biotech and pharma companies.

Speaker 4: Merisaw Spurgen's boss distribution reach in global commercialization services position has to be a part of choice for these manufacturers.

So spoons boss distribution reach and global commercialization services position us to be a partner of choice for these manufacturers.

Speaker 4: Our expanded platform of manufacturer services allows us to deliver a range of logistics and supply chain services, market access and innovative solutions to help improve patient care with global reach and local expertise.

Our expanded platform of manufacturer services allows us to deliver a range of logistics and supply chain services market access and innovative solutions to help improve patient care with global reach and local expertise.

Speaker 4: The Marathon's burger and the lion's teams are working collaboratively to leverage our complimentary capabilities to create different shared solutions.

Amerisourcebergen and the Lions teams are working collaboratively to leverage our complementary capabilities to create differentiated solutions.

Speaker 4: for our upstream partners and help them expand access to careful patients around the world.

For our upstream partners and help them expand access to care for patients around the world.

Speaker 4: One example of how we are supporting access in the US is our recently launched baby disparities in cancer care initiatives.

One example of how we are supporting access in the U S is our recently launched ABB disparities in cancer care initiatives.

Speaker 4: This initiative is focused on improving access to all components of cancer care, from expanding access to clinical trial and community practices, to bringing awareness of health disparities to legislate.

This initiative is focused on improving access to all components of cancer, Kate probably expanding access to clinical trials and community practices to bringing awareness of health disparities legislators.

Speaker 4: Using our trusted roles of partners to community practitioners and pharmaceutical manufacturers alike, we believe this program will help bring down certain barriers to high quality, cancer care for patients in local communities we serve.

Using our trusted role as a partner to community practitioners and pharmaceutical manufacturers alike. We believe this program will help bring down certain barriers to high quality cancer care for patients in local communities we serve.

Speaker 4: This is an example of how our teams live our purpose of being united in our responsibility to create healthier futures every day.

This is an example of how our teams about purpose of being United in our responsibility to create healthier futures every day.

Speaker 4: Being guided by our purpose ensures we are contributing to improving the well-being of human and animal populations by expanding access to quality health care, operating sustainably and upholding the highest standards of safety and quality.

<unk> got about purpose ensures we are contributing to improving the wellbeing of human and animal populations by expanding access to quantity healthcare opt.

Operating sustainably and upholding the highest standards of safety and quality.

Speaker 4: To help achieve this vision, we are focused on investing in our people, culture and commitment to ESD.

To help achieve this vision, we are focused on investing in our people culture and commitment to ESG.

Speaker 4: A healthier future is also a more sustainable one. We recently published our six annual global sustainability report, which highlights the progress we made in fiscal 2021 on our environmental, social, and governance initiatives, and provides significant transparency in job business.

<unk> future results that are more sustainable one we recently published our sixth annual global sustainability report, which highlights the progress we made in fiscal 2021 on our environmental social and governance initiatives and provide significant transparency into our business.

Speaker 4: AmeriSource citizens continue progress and commitment to advancing EST initiatives is reflected by the company's inclusion in the S&P Global Sustainability Yearbook 2022, one of the most comprehensive publications providing in-depth analysis on corporate sustainability.

<unk> continued progress and commitment to advancing ESG initiatives as reflected by the company's inclusion in the S&P Global sustainability Yearbook 2022, one of the most comprehensive publications, providing in depth analysis on corporate sustainability.

Speaker 4: And Marisos Bergen is also committed to building a more diverse equitable, inclusive and engaged work.

Amerisourcebergen is also committed to building a more diverse equitable inclusive and engaged workforce.

Speaker 4: Throughout this coming year and beyond, we will continue to focus on our people, our culture and our community as the first three pillars of the DER work.

Without this coming year and beyond we will continue to focus on our people our culture and our community as the first three pillars of the <unk> work. This.

Speaker 4: This year we added an important pillar, our progress, that will more closely link DEI with our purpose of creating healthier futures through expanding access to quality health care globally and promote health equity.

This year, we added an important pillar our progress that will more closely linked.

With our purpose of creating healthier futures through expanding access to quality healthcare globally and promote health equity.

Speaker 4: We are on it that our work in ESG is gaining recognition.

We are honored that our work in ESG is gaining recognition last month use week magazine included Amerisourcebergen on its 2022 list of most responsible companies.

Speaker 4: Last month, Newsweek magazine included a merrothorist person on his 2022 list of most responsible companies.

Speaker 4: Usually responsible companies that is a well-regarded ranking of corporate ESG performance and this recognition further underscores our progress on objectives to improve access and equity in healthcare, create more resilient and sustainable operations across the supply chain and inspire our team members to achieve their potential.

Huge weeks most responsible companies. This is a well regarded ranking of corporate ESG performance and this recognition further underscores our progress on our objectives to improve access and equity in healthcare.

It's more resilient and sustainable operations across the supply chain and inspire our team members to achieve their potential.

Speaker 4: Our commitment to ESG is fundamental to our long-term sustainable value creation for all of our stakeholders. And we are focused on continuing to goals on our ESG platform to support our team, partners and community.

Commitment to ESG is fundamental to our long term sustainable value creation for all of our stakeholders and we are focused on continuing to build on our ESG platform to support our team partners and community.

Speaker 4: We are pleased with our performance thus far in fiscal 2022 and the progress we continue to make against our strategic priorities to enhance our differentiated value proposition.

We are pleased with our performance thus far in fiscal 2022, and the progress we continue to make against our strategic priorities to enhance a differentiated value proposition and strengthen our relationship with customers drive innovation and build on our strong momentum.

Speaker 4: strengthen our relationship with customers, drive innovation, and build on our strong momentum.

Speaker 4: I remain inspired by the commitment and performance of our 42,000 team members who truly embody our purpose in helping our partners navigate the ever more complex and evolving global healthcare landscape.

I remain inspired by the commitment and performance of our 42000 team members.

Truly embodies our purpose in helping our partners navigate enroll more complex and evolving global health care landscape.

Speaker 4: As a global healthcare solution leader, a merisource person is creating different checker capabilities to help advance pharmaceutical innovation and access.

As a global health care solutions leader Amerisourcebergen is creating differentiated capabilities to help advance pharmaceutical innovation and access.

Speaker 4: Now I will turn the corner over to Jim from more in-depth review of our first quarter 2022 results and to discuss updated financial guidance. Jim.

Now I will turn the call over to Jim for a more in depth review of our first quarter of 2022 results and to discuss our updated financial guidance Jim.

Speaker 5: Thank you, Steve, and thank you all for joining us on today's call. Before I turn to our results, as usual, my comments will focus primarily on our adjusted non-gavel financial results.

Thank you Steve and thank you all for joining us on today's call.

I turn to our results as usual my comments will focus primarily on our adjusted non-GAAP financial results growth rates and comparisons are made against the prior year December quarter for more details on our GAAP results. Please refer to our earnings press release.

Speaker 5: Growth rates and comparisons are made against the prior year December quarter. For more details on our gap results, please refer to our earnings press release.

Speaker 5: Amerisource Bergen delivered another quarter of solid financial results as our pharmaceutical centric strategy, strong underlying business fundamentals, and the contribution from Alliance Healthcare continue to help drive our company forward.

Amerisourcebergen delivered another quarter of solid financial results and our pharmaceutical centric strategy strong underlying business fundamentals and the contribution from alliance healthcare continued to help drive our company forward our.

Speaker 5: Our differentiated value proposition continues to position us well to create long-term stakeholder value, and it's supported by our investment in our talent and commitment to ESG in our business practices.

Our differentiated value proposition continues to position us well to create long term stakeholder value and is supported by our investment in our talent and commitment to ESG and our business practices.

Speaker 5: Turning now to our results. Amerisource Bergen finished the quarter with adjusted, diluted earnings per share of $2.58, and 18% increase.

Turning now to our results.

<unk> Berg and finished the quarter with adjusted diluted earnings per share of $2 58 and.

An 18% increase with.

Speaker 5: with operating income growth in both our U.S. healthcare solutions segment and our international healthcare solutions segment. Our consolidated revenue grew about 14% to $59.6 billion, driven by revenue growth in both segments.

With operating income growth in both our U S Health care solutions segment, and our International Health Care Solutions segment. Our consolidated revenue grew about 14% to 59 $6 billion driven by revenue growth in both segments.

Speaker 5: Consolidated gross profit increased 41% to $2 billion driven by increases in gross profit in both segments.

Consolidated gross profit increased 41% to $2 billion driven by increases in gross profit in both segments gross profit margin grew by 66 basis points to 338% driven by the alliance healthcare acquisition.

Speaker 5: Gross profit margin grew by 66 basis points to 3.38% driven by the Alliance Healthcare acquisition. Consolidated operating expenses were $1.3 billion, up from $810 million as a result of higher distribution, selling, and administrative expenses and depreciation expense primarily due to the Alliance Healthcare acquisition.

<unk> operating expenses were $1 $3 billion up from $810 million as a result of higher distribution selling and administrative expenses and depreciation expense, primarily due to the alliance healthcare acquisition.

Consolidated operating income was $749 million.

Up 21% the increase was driven by operating income growth in both segments, which I will touch on in more detail when discussing the segment level results.

Speaker 5: Turning now to interest expense and tax rate, net interest expense was $53 million in the quarter, an increase of 59% due to an increase in debt related to the Alliance Healthcare acquisition.

Turning now to interest expense and tax rate.

Net interest expense was $53 million in the quarter, an increase of 59% due to an increase in debt related to the alliance healthcare acquisition. We now expect full year net interest expense to be in the range of $210 million to $215 million.

Speaker 5: We now expect full-year net interest expense to be in the range of $210 to $215 million, representing similar quarterly net interest expense for the balance of the year.

Anything similar quarterly net interest expense for the balance of the year.

Speaker 5: Our effective income tax rate was 21.3% in line with our full year guidance range for tax rate compared to 22% in the prior year quarter.

Our effective income tax rate was 21, 3% in line with our full year guidance range for tax rate compared to 22% in the prior year quarter.

Speaker 5: Our diluted share count increased 2% to 211.2 million shares as a result of dilution related to employee compensation in the June 2021 issuance of 2 million shares to Walgreens Boots Alliance as part of our acquisition of Alliance Healthcare.

Our diluted share count increased 2% to $211 2 million shares as a result of dilution related to employee compensation and the June 2021 issuance of 2 million shares to Walgreens Boots Alliance as part of our acquisition of Alliance healthcare.

Speaker 5: Regarding free cash flow and cash balance, adjusted free cash flow was $809 million and we remain on track to achieve our adjusted free cash flow guidance of $2 billion to $2.5 billion in the fiscal year.

Regarding free cash flow and cash balance adjusted free cash flow was $809 million and we remain on track to achieve our adjusted free cash flow guidance of 2 billion to $2 $5 billion in the fiscal year.

Speaker 5: We ended the quarter with $3.2 billion in cash with approximately $670 million held outside the United States.

We ended the quarter with $3 $2 billion in cash with approximately $670 million held outside the United States.

Speaker 5: This completes the review of our consolidated results. Now I'll turn to our first quarter segment level results.

This completes the review of our consolidated results now I'll turn to our first quarter segment level results.

Speaker 5: Starting with our U.S. healthcare solution segment, segment revenue increased by 2.7% to $53 billion, driven by an increase in sales to one of our larger customers and growth in our specialty physician services and MWI animal health businesses, offsetting a $1.1 billion decline in sales of the commercial COVID-19 therapy.

Starting with our U S Health care solutions segment segment revenue increased by two 7% to $53 billion driven.

Driven by an increase in sales to one of our larger customers and growth in our specialty physician services and <unk> animal health businesses offsetting a $1 1 billion decline in sales of the commercial COVID-19 therapy.

Speaker 5: Revenue from US Human Health was $51.8 billion, representing growth of 2.6% and revenue from US Animal Health was $1.2 billion up to 6.9% year over year.

Revenue from U S. Human health was $51 8 billion.

Representing growth of two 6% and revenue from U S. Animal health was $1 2 billion.

Up six 9% year over year.

Speaker 5: Segment operating income was $569 million, representing growth of 0.6% versus the first quarter of fiscal 2021.

Segment operating income was $569 million.

Representing growth of 0.6% versus the first quarter of fiscal 2021.

Speaker 5: As it relates to the COVID therapy impact on the quarter, the headwind for the quarter was four cents, which was a smaller headwind than previously expected.

As it relates to the Covid therapy impact on the quarter the headwind for the quarter was four <unk>, which was a smaller headwind than previously expected.

Speaker 5: sales of the commercial COVID therapy in November and December were higher than previously expected and also there was better than expected contribution to operating income from other COVID therapies.

Sales of the commercial Colgate's therapy in November and December were higher than previously expected and also there was better than expected contribution to operating income from other COVID-19 therapies.

Speaker 5: This smaller year-over-year headwind helped offset a slow start from our Manufacturer Services Group, which is expected to normalize in the second half.

This smaller year over year headwind helped offset a slow start from our manufacturer services group, which is expected to normalize in the second half.

Speaker 5: As we look at our full year expectations, we continue to see good performance and trends for our businesses across the segment.

As we look at our full year expectations, we continue to see good performance and trends for our businesses across the segment.

Speaker 5: Given our nationwide role in supporting COVID-19 therapy distribution, including newly authorized oral therapies, we now expect COVID therapies to be a tailwind for the full year.

Given our nationwide role in supporting Covid, 19 therapy distribution, including newly authorized oral therapies. We now expect COVID-19 therapies to be a tailwind for the full year.

Speaker 5: As a result of our updated expectations for the operating income impact of COVID therapies, we are raising our fiscal 2022 US healthcare solutions segment operating income guidance to a range of 2.375 to 2.45 billion dollars representing growth of five to nine percent.

As a result of our updated expectations for the operating income impact of Covid therapies, we are raising our fiscal 2022 U S Health care solutions segment operating income guidance to a range of $2 $3 75 to 245 billion.

Representing growth of 5% to 9%.

Speaker 5: This increase also leads us to raise our total Amerisource burden, consolidated operating income guidance range to high teens percent growth, up from mid to high teens percent growth.

This increase also leads us to raise our total amerisourcebergen consolidated operating income guidance range to high teens percent growth up from mid to high teens percent growth.

Speaker 5: I will now turn to our International Healthcare Solutions segment. In the quarter, International Healthcare Solutions revenue was $6.6 billion, reflecting $5.6 billion in revenue from the Alliance Healthcare acquisition and revenue growth of over 15% for the balance of the International Healthcare Solutions segment.

I'll now turn to our international Health care solutions segment in the quarter International Healthcare solutions revenue was $6 6 billion.

Reflecting $5 $6 billion in revenue from the alliance healthcare acquisition and revenue growth of over 15% for the balance of the international Health care solutions segment.

Speaker 5: segment operating income was strong for the first quarter at $180 million, up 253% on a reported basis, and 268% on a constant currency basis.

Segment operating income was strong for the first quarter at $180 million up 253% on a reported basis and 268% on a constant currency basis.

Speaker 5: As it relates to foreign exchange, the relative strength of the U.S. dollar in the month of December had a negative impact on the segment, and we will continue to monitor the impact of currency translation on the dollar value of segment results.

As it relates to foreign exchange the relative strength of the U S. Dollar in the month of December had a negative impact on the segment and we will continue to monitor the impact of currency translation on the dollar value of the segment results.

Speaker 5: As Steve mentioned, Alliance Healthcare has been performing well since we completed the acquisition in June . Alliance Healthcare's important work to support the COVID response in a number of countries that's inspiring and clearly shows the importance of our capability.

Keith mentioned alliance healthcare has been performing well since we completed the acquisition in June Alliance Healthcare's important work to support the Covid response, and a number of countries is inspiring and clearly shows the importance of our capabilities.

Speaker 5: The contribution from these activities is offsetting higher labor and supply chain cost pressures for the Alliance Healthcare business.

The contribution from these activities is offsetting higher labor and supply chain cost pressures for the alliance healthcare business.

Speaker 5: Our teams are working closely on IT infrastructure initiatives at Alliance, but the ramp of IT spending in the first quarter would slower than expected, benefiting our Q1's segment operating income.

Our teams are working closely on IP infrastructure initiatives at alliance, but the ramp of spending in the first quarter was slower than expected benefiting our Q1 segment operating income in.

Speaker 5: In subsequent quarters, expenses in the segment will increase as we continue to work towards modernizing Alliance Healthcare's business technology, operability, and infrastructure.

In subsequent quarters expenses in this segment will increase as we continue to work towards modernizing Alliance healthcare's business technology, Operability and infrastructure.

Speaker 5: The segment came in above expectations for the first quarter.

The segment came in above expectations for the first quarter.

Speaker 5: But normalizing for the lower than expected IT expense in the quarter, and a one time discrete country level expense benefit, obsessed in part by the unfavorable foreign exchange, the segment operating income would have been in line with our initial expectation.

But normalizing for the lower than expected <unk> expense in the quarter and a one time discrete country level expense benefit offset in part by the unfavorable foreign exchange.

Segment operating income would have been in line with our initial expectations.

Speaker 5: The Alliance Healthcare team continues to impress, and the business continues to deliver on our expectations.

The alliance healthcare team continues to impress and the business continues to deliver on our expectations.

Speaker 5: This completes the review of our segment level results. So I will now turn to our updated fiscal 2022 guiding.

This completes the review of our segment level results. So I will now turn to our updated fiscal 2022 guidance.

Speaker 5: We are raising our fiscal 2022 adjusted EPS guidance range from $10.50 to $10.80 to a new guidance range of $10.60 to $10.90.

We are raising our fiscal 2022, and adjusted EPS guidance range from $10 50 to $10 80.

So our new guidance range of $10 62.

The $10 90.

Speaker 5: The new guidance range reflects the updated, full-year expectations for COVID therapies offset partially by higher interest expense.

The new guidance range reflects the updated full year expectations for Covid therapies, offset partially by higher interest expense.

Speaker 5: And as you'll remember, Q2 of the fiscal 2021 had a seven-cent contribution from the commercial COVID therapy. With that in mind, as you look at updating your fiscal 2022 models, it is important to keep in mind that the increased contribution from the newly authorized COVID therapies will be primarily in the back half of our fiscal year as supply becomes available.

And as Youll remember Q2 of fiscal 2021 had a 7% contribution from the commercial COVID-19 therapy with that in mind as you look at updating your fiscal 2022 models. It's important to keep in mind that the increased contribution from the newly authorized Covid <unk>.

<unk> will be primarily in the back half of our fiscal year at supply becomes available.

Speaker 5: Before I conclude my remarks today, I would like to briefly highlight some of our ESG initials.

Before I conclude my remarks today I would like to briefly highlight some of our ESG initiatives.

Speaker 5: Yesterday, we published our sixth annual Global Sustainability and Corporate Responsibility Report that is presented on its own microsite, which I would encourage you to visit at investor.amerisourcebergen.com.

Yesterday, we published our sixth annual global sustainability and corporate responsibility report that is presented on its own micro site, which I would encourage you to visit at Investor Dot Amerisourcebergen Dot com.

Speaker 5: The report aligns with many leading global sustainability frameworks, including SASB, GRI, the UN's Sustainable Development Goals and PCFD.

The report aligns with many leading global sustainability frameworks, including SaaS B <unk>, the un's sustainable development goals and Tc ft.

Speaker 5: The report details our progress and initiatives and a number of areas, including our global ESG commitments as we became a signatory of the United Nations Global Compact.

More details of our progress and initiatives and a number of areas, including our global ESG commitments as we became a signatory of the United Nations Global compact committed to the science based target initiative and aligned our ESG strategy to include the expanded footprint of alliance.

Speaker 5: committed to the Science Space Target Initiative and aligned our ESG strategy to include the expanded footprint of Alliance Healthcare.

Health care.

Speaker 5: Additionally, as we work to more deeply and bend diversity, equity, and inclusion, and ESG principles into our business, we will look forward to providing updates on our progress in these important areas. In closing, I continue to be impressed with how our teams use our commercial strengths and expertise to find ways to help public and private partners navigate the current complexities and challenges across the healthcare system.

Additionally, as we work to more deeply embed diversity equity and inclusion and ESG principles into our business. We will look forward to providing updates on our progress in these important areas.

Closing I continue to be impressed with how our teams used our commercial strengths and expertise to find ways to help public and private partners navigate the current complexities and challenges across the health care system.

Speaker 5: This important work aligns with our purpose and creates a value for all our stakeholders, including our shareholders.

This important work aligns with our purpose and creates value for all our stakeholders, including our shareholders.

Speaker 5: The proven resilience and strength of our business and results gives us great confidence in our pharmaceutical-centric strategy and our ability to create long-term sustainable growth.

Proven resilience and strength of our business and results gives us great confidence in our pharmaceutical centric strategy and our ability to create long term sustainable growth to deliver this growth. We will continue to focus on expanding our leadership in specialty leading with market leaders support.

Speaker 5: To deliver this growth, we will continue to focus on expanding on our leadership and specialty, leading with market leaders, supporting community providers, and facilitating global pharmaceutical access and opportunity.

<unk> community providers, and facilitating global pharmaceutical access and opportunity we.

Speaker 5: We remain dead best in our purpose of being united in our responsibility to create healthier futures. And we believe our purpose-driven culture and focus on developing our talent will help further our value creation.

We remain steadfast in our purpose of being United in our responsibility to create healthier futures and we believe our purpose driven culture and focus on developing our talent will help further our value creation.

Speaker 5: Thank you for your interest in Amerisource Bergen, and now I will turn the call over to the operator to begin our Q&A operator.

For your interest in Amerisourcebergen and now I will turn the call over to the operator to begin our Q&A operator.

Speaker 2: Thank you. We will now begin the Q&A. If you'd like to ask a question, let's start one on your telephone keypad.

Thank you we will now begin the Q&A, if you'd like to ask a question Thats star one on your telephone keypad.

Speaker 6: Our first question for today comes from Charles Reihie from Cohen. Charles, your line is now open.

First question for today comes from Charles <unk> from Cowen Charles Your line is now open.

Charles.

Okay, operator childhood hearing Charles.

Yes.

Speaker 2: My apologies. Our next question for today comes from Ricky Goldwasser from Morgan Stanley . Ricky, your line is now open.

My apologies. Our next question for today comes from Ricky Goldwasser from Morgan Stanley Ricky Your line is now open.

Yeah, Hi, good morning.

So with with Europe , becoming a bigger part of the story in earnings.

We're hearing a lot about sort of wage inflation or a participant.

That's been picking up.

What have you seen ex U.

And it takes out cost structure since you've provided.

The December guidance and instead of what's included in current guidance.

Speaker 5: Yeah, and so let me talk about inflation overall. And then let me talk about what we're seeing with regard to inflation in Europe .

Yes, So let me talk about inflation overall, and then let me talk about what we're seeing with regard to inflation.

Speaker 5: Ricky and so you know, we are seeing higher labor and transportation costs and let me say that they were embedded in our guidance So they were included in our guidance and they're also included in our last couple of orders actual results one thing about a bear source burden Overall, and we certainly are impacted by higher labor and transportation costs, but you know less so than most businesses You know, pharmaceuticals, as you know, are very value dense which mitigates freight costs and then our distribution centers are highly automated which mitigates labor costs as we look at some of our businesses and I'll use MWIs an example and MWIs performing very well and it's very good results But it's a little bit more impacted by inflation because it has a broader array of products including men's surge and nutritional supplements and less automation and that

<unk>.

Ricky and so we are.

Seeing higher labor and transportation costs, and let me say that they were embedded in our guidance. So they were included in our guidance and they are also included in our last couple of quarters.

Actual results one thing about Amerisourcebergen overall, and we certainly are impacted by higher labor and transportation costs, but less so than most businesses pharmaceuticals. As you know are very value dense which mitigates.

Mitigates.

<unk> costs and then our distribution centers are highly automated which mitigates labor costs as we look at some of our businesses and I'll use <unk> as an example, and FWS its performing very well and it's very good results, but it is a little bit more impacted by inflation because it has a broader array of products, including med surge in.

<unk> supplements and less automation than that.

Distribution centers, but overall.

Speaker 5: distribution centers, but overall, you know, inflation, it's included in our guidance, and we're, you know, managing through it very well. We are seeing inflation also in the

Inflation is included in our guidance and we're managing through it very well we are seeing inflation also in the.

Speaker 5: Alliance business and there are higher labor and freight costs there also. And Alliance is really fully offsetting that by the important work that we're doing there on COVID therapies, which is benefiting the Alliance from an operating income standpoint.

Alliance business and there are higher labor and freight costs. They're also an alliance, it's really fully offsetting that by the important work that we're doing there on COVID-19 therapies, which is benefiting the alliance from an operating income standpoint.

Speaker 2: Thank you. Our next question comes from Eric Coldwell from Bad. Eric, your line is now open.

Thank you.

Next question comes from Eric Coldwell from beds, Eric Your line is now open.

Speaker 7: Thanks, good morning. I was hoping we could get some more details on the role you're playing with the new COVID-19 virus. We're seeing some states like Georgia, I think Texas and others highlight your role as a network administrator for the HHS COVID-19 therapeutic dispensing program. We saw Mark highlight you as a distributor, but I was hoping overall we could get more details on the kind of the backstory on what you're doing, how you're doing it.

Thanks, Good morning, I was hoping we could get some more details on the role you're playing with the new Covid Antivirals.

Seeing some states like Georgia, I think Texas and others highlight your role as a network administrator for the HHS COVID-19 therapeutic dispensing program. We saw Merck highlight you is the distributor, but I was hoping overall, we could give more details on kind of the back story on what Youre doing how youre doing it.

Speaker 7: Perhaps your role with Pfizer on Paxlovit as well. Just any additional details would be fantastic. Thanks so much.

Perhaps your role with Pfizer on <unk> as well just any any additional details would be fantastic. Thanks, so much.

Speaker 4: Hi, Eric, I'll start off in an lecture and comment. You know, we've made the comment that never has our purpose become clearer than during the pandemic of being united in our responsibility to create healthier futures and the role that we've done with, you know, in COVID therapies, distributing over 100 million vaccines worldwide, doing all the lack of flow tests in the UK, you know, world career getting early vaccines out in some, you know, difficult areas in Europe , but also, you know, probably most pivotly the role we've played in the US with the antiviral therapies and the tremendous data and relationships that we've developed.

Hi, Eric I'll start off and let Jim comment.

Some comments on <unk>.

Made the comment that Naver has a purpose becomes clearer than during the pandemic are being United in our responsibility to create healthier future futures and the role that we've done with <unk>.

Covid therapies distributing over 100 million vaccines worldwide doing all the lateral flow test in the UK.

Well Korea getting early vaccines out.

Difficult areas in Europe , but also probably most vividly the role we play in the U S with the antiviral therapies and the tremendous data and relationships that we've developed.

Speaker 4: working with the U.S. government and the states and counties to get these therapies out.

Working with the U S government and the states and counties to get these therapies out.

Speaker 4: We also have always been a very upstream centric company as well and have been honored to be selected. As a distributor, there was so many of these critical therapies. It's a moving target. Supply is often, is really often ramping up. And then you also have different...

We also have always been a very upstream centric company as well and.

Have been audit to be selected as a distributor for so many of these critical therapies.

It's a moving target.

Supply is often.

It was really often ramping up.

And then you also have different.

Speaker 4: disease rates in various states, and so we, AmerisourceBergen has shown tremendous

Disease rates in various states.

Space and so we Amerisourcebergen has shown tremendous adaptability resilience and also incredible informatics and strong relationship skills, which have enabled us to really.

Speaker 5: the death, the ability, resilience, and also incredible informatics and strong relationship skills, which have enabled us to really, you know, be the distributor for these important therapies. Jim, I know you have some other comments as well. Yeah, sure, I'll comment a little bit about it from the financial perspective. And as we indicated in our prepared remarks.

BV distributor for these important therapies, Jim I know you have some other comments as well sure ill comment a little bit about it from the financial perspective, and as we indicated in our prepared remarks on the guidance raise is related to updated outlook for Colgate Colgate therapy.

Speaker 5: The guidance raised is related to updated outlook for COVID therapy.

Speaker 5: contribution and in particular within US healthcare solutions.

Contribution and in particular within U S health care solutions.

Speaker 5: We increased the operating income guidance $50 million at both the low end and the high end of the range. And that's due to higher COVID-19 therapy sales and we had originally expected. And in our initial guidance.

We increased the operating income guidance by $50 million at both the low end and the high end of the range and Thats due to.

Higher COVID-19 therapy sales than we had originally expected in our initial guidance that we put out a few months ago I am COVID-19 therapies were expected to be a headwind maybe breakeven at the top end of the range, but now we expect them to be a tailwind.

Speaker 5: that we put out a few months ago. COVID therapies were expected to be a headwind to maybe break even at the top end of the range, but now we expect them to be a palewind for fiscal year 22. And you asked about the different products, including the oral pills. And I think one thing that's important to note is you guys do your modeling that the...

Our fiscal year.

<unk> 22, and you asked about the different products.

<unk> the.

Oral pills and I think one thing that it's important to note as you guys do your modeling.

<unk>.

Speaker 5: that the therapy contribution includes, you know, both a commercial product.

The therapy contribution includes both the commercial products that we own and we recognize revenue line and the government owned therapies that are authorized under emergency use authorizations, where we don't own the product and we earn a fee and.

Speaker 5: that we own and we recognize revenue on and the government owned therapies that are authorized under emergency use authorizations where we don't own the product and we earn a fee. And so, you know, COVID therapies were expecting to be a pale wind in the fiscal year from an operating income standpoint, but as you do year modeling, they will be headwind from a relative standpoint. And I think one thing I'd really like to finish with is there'll be a lot of questions on COVID therapies is they are, you know, a recent board are increasing our guidance, but overall, you know, the business, even without COVID therapies, is performing as expected with really good outlook, you know, strong fundamentals and continued executions. So, we have a high degree of, you know, confidence in our businesses and the way that they're executing now.

Covid therapies, we're expecting to be a tailwind in the fiscal year from an operating income standpoint, but as you do your modeling there will be a headwind from a.

Revenue standpoint, and I think one thing I'd really like to finish with just there'll be a lot of questions on COVID-19 therapies as they.

A recent Florida are increasing our guidance, but overall the business.

Even without Covid therapies is performing as expected with really good outlook.

<unk> fundamentals and continued execution. So we have a high degree of confidence in our in our businesses and the way that they are executing now Eric.

Speaker 2: Thank you. Our next question comes from Lisa Gill of JP Morgan. Lisa, your line is now open.

Thank you. Our next question comes from Lisa Gill of Jpmorgan.

Your line is now open.

Speaker 8: Great, thanks very much and good morning. Steve and Tim, I just want to go back to your comments around specialty and you talked about new therapies, you talked about the focus on specialty and biosimilars. I know you don't break out, specialty specifically anymore, but can you give us an idea of how specialty is growing and the contribution you are seeing from biosimilars, new therapies and how do we think about that component of your business?

Great. Thanks, very much and good morning.

Stephen Tim I, just want to go back to your comments around specialty and you talked about new therapies, you talked about the focus on specialty and Biosimilars.

No you don't breakout specialty specifically anymore, but can you give us an idea of how specialty is growing and the contribution you are seeing from.

<unk>, new therapies, and how do we think about that component of your business.

Speaker 4: You know, so the reason I mean it's literally because I mean, plus we're to break out especially because essentially our brand business has become...

He said the reason I mean, it's literally becoming plus would've breakout specialty because essentially our brand business has become especially business and we probably think about new areas like precision medicine cell and gene therapy.

Speaker 4: especially business and we probably think about new areas like precision medicine, saline gene therapy.

Speaker 4: the new sort of niche businesses, it would have been almost impossible to conceive.

The new sort of niche businesses.

Would have been almost impossible to conceive just how fundamental specialty products would become two pharmaceutical care.

Speaker 4: just how fundamental specialty products would become to pharmaceutical care. And as we looked a couple of decades ago, when we got started with the specialty businesses.

As we looked as we looked at a couple of decades ago. When we got started.

With the specialty businesses.

Speaker 4: So perhaps I can just give you some comments. Our specialty physician services business, which is a lot of our legacy, well-known specialty businesses, including Betsy Medical, oncology supply, and ion are performing extremely well. We're really proud of the positioning, lacking all our businesses. We focus on long-term partnerships.

So perhaps I can just give you some comments.

Specialty physician services business, which is a lot of our legacy well known specialty businesses, including basically medical oncology supply and ion <unk>.

Forming extremely well.

We're really proud of the positioning locked in all our businesses, we focus on long term partnerships.

Speaker 4: I on, you know, I left the specialty group about 11 or 12 years ago. I mean, in terms of closely running it, and we really just have three or four manufacturer contracts. They have several dozen.

Ion.

<unk>.

The specialty group about 11, or 12 years ago, I mean in terms of close to running it and we really just have three or four manufacturer contracts. They have several dozen now and continue to grow in the role being the close adviser to the physicians the practices and the manufacturers basically medical is.

Speaker 4: and continue to grow in a role being the close advisor to the physicians, the practices and the manufacturers.

Speaker 4: Best medical is getting more and more involved in several other position specialties, have a key role in ophthalmology and oncology supply is an exemplary business in terms of customer service.

Getting more and more involved in several other physician specialties.

Key role in ophthalmology.

And oncology supply is is an exemplary business in terms of customer service.

Speaker 4: I also could not mention what is our legacy.

Also could not.

I mentioned one is our legacy.

Speaker 4: I would be remiss if I didn't mention what is our legacy hospital, especially business, our ASC business, which continues to really have been the forefront of a lot of the COVID work we're doing, a lot of the antiviral therapies, because of the limited distribution, the data expertise, and the concentrated distribution programs that we've learned to do so within ASC. So it's a little bit of a long answer, but it's such important work for us.

I would be remiss, if I didn't mention what is our legacy hospital specialty business, our ASD business, which continues to really have been the full run a whole lot of the Covid work, we're doing a lot of the antiviral therapies because of the limited distribution the data expertise and concentrated distribution programs that we've learned to do.

So we're in AUC, so that's a little bit of a long answer, but such important work for us.

Speaker 4: I'm going to just comment on biosimilus and then I'll hand over to Jim. So biosimilus has become very important to ourselves, to our customers.

Just comment on Biosimilars, and then I'll hand over to Jim. So biosimilars has become very important to ourselves to our customers.

Speaker 4: The sweet spot for us is pot-be drugs. We've been encouraged by trends.

Sweet spot for US is part B drugs, we've been encouraged spot trades I think the acceptance of Biosimilars is certainly increasing all the time from.

Speaker 4: I think the acceptance of biosimilitis is certainly increasing all the time from all elements of the stakeholder system. And we've noticed recent interchangeability approvals.

All elements of the stakeholder system and we have noticed recent into Changeability approvals.

Speaker 4: Next year will be tremendously interesting from the part deep perspective, which is also important for the system. But for us, the sweet spot is the part the therapeutic compatibility and the contracting abilities we have to organizations like Ion and ITN.

Next year will be tremendously interesting from a port deepest baked of which is also important for the system, but for us the sweet spot is the part the therapeutic compatibility and the contracting a bit of these we have through organizations like ion and not yet Jim.

Speaker 5: Well, I always feel proud to follow up Steve on specialty since he founded that part of our business, but I'll just bake quickly and generally from a financial standpoint, specialty position services is performing as expected, which is really good because we had high expectations and we're seeing very good trends in the business and continue to see good financial trends with biosimilar.

Well.

It's tough to follow up Steve on specialty since even since he founded that part of our business, but I'll just say quickly in generally from a financial standpoint specialty physician services is performing as expected, which is really good because we had high expectations and we're seeing very good trends in the business and continue to see good financial trends with Biosimilars.

Speaker 2: Our next question comes from Eric Pertcher of Nephron Research. Eric, your line is now open.

Our next question comes from Eric Percher of Nephron research.

Your line is now open.

Speaker 9: Thank you. I will return to the antivirals and I think the commercial comment helps us understand the revenue step down versus some strong growth profit.

Thank you I will return to the anti Virals and I think the commercial comment helps us understand the revenue step down versus some strong gross profit.

Speaker 9: For the, you've increased guidance by 50 million, but your comment was that you expect a larger net contribution versus last year. I believe you disclosed 18 cents.

You've increased guidance by $50 million, but your comment was that you expect a larger net contribution versus last year I believe you disclosed 18.

Speaker 9: So that fair to assume that we're looking at something above the 18th sensor, roughly $80 million dollars for the year, and that much of that may come without the full revenue benefit, but more of a gross margin benefit.

So is it fair to assume that we're looking at something above the 18th center roughly $80 million for the year and that much of that may come without the full revenue benefit but more of a gross margin benefit.

Speaker 5: Yeah, let me provide some more information there that I think will be helpful. And I think...

Yes, let me let me provide some more information there that I think will be helpful and I think we.

Speaker 5: We've had a high degree of transparency with regard to impact of

Had a high degree of transparency with regard to impact.

Speaker 5: of the COVID therapies on our bottom line, and we plan to continue to do that. So, last year, the contribution to the bottom line from COVID therapies was $0.30, and we kind of indicated on a quarterly basis it was $0.14 in the first quarter, $0.07.

Of the Covid therapies on our bottom line and we plan to continue to do that so last year we.

The contribution to the bottom line from Covid therapies was 30, and we've kind of indicated on a quarterly basis. It was <unk> 14 in the first quarter of <unk>.

Speaker 5: in the second quarter, three cents in the third and six cents in the fourth quarter. When we saw in the first quarter, this year was a 10 cent contribution, so it was a forced and headwind. What we'd expect to see in the...

In the second quarter three in the third <unk> in the fourth quarter, what we saw in the first quarter.

This year was a 10 spend contribution so it was up four cents headwind, what we'd expect to see in the.

Speaker 5: in the second quarter would be a few cent tailwind. So we made a contribution of seven cents in the second quarter. Last year, we'd expect a few cent tailwind and then a more substantial tailwind.

In the second quarter would be a few cents tailwind. So we made a contribution of <unk> in the second quarter last year, we'd expect a few cent tailwind and then a more substantial tailwind in the back half of the fiscal year.

Speaker 5: in the back half of the fiscal year as supplies of the product become more available.

<unk> of the products become more available.

Speaker 5: And so when we originally guided a few months ago, if I said we were expecting a headwind to maybe break even at the high end from COVID therapies, and we increased the guidance as a result of COVID therapies for USL care solutions, but 50 million dollars at the low end and the high end of the range. So I think that gives you a lot to work with there in terms of modeling.

And so when we.

Originally guided a few months ago as I said, we're expecting a headwind and maybe breakeven at the high end from Covid therapies and we.

Increased the guidance as a result of the Covid therapies for U S health care solutions by $50 million at the low end and the high end of the range. So I think that gives you a lot to work with there in terms of modeling.

Speaker 2: Thank you. Our next question comes from Jalindra Singh from Credit Suisse. Jalindra, your line is now open.

Thank you. Our next question comes from Jonathan dressing from credit Credit Suisse. Your line is now open.

Speaker 10: Thank you and good morning everyone. Now that we are over a month into 2022, I was hoping if you could provide an update on the drug pricing environment and how that has been trending compared to your expectations, both on brand drugs inflation as well as like generic market overall.

Thank you and good morning, everyone.

No that would be out over a month into 2022 I was hoping if you could provide an update on the drug pricing environment and how that has been trending compared to your expectations. Both on brand drugs inflation as well as like generic market overall.

Speaker 5: Sure, I'll give you thoughts on drug pricing. And it is in line with our expectations.

Sure.

Give your thoughts on drug pricing.

And it's in line with our expectations and.

Speaker 5: And, you know, we'll say on brand inflation, and I'll start there, that, you know, it's less important for Amerisourceburg, and we've talked about this, and that over 95% of our brand buy side dollars are fee-for-service. But I will say that the initial pricing changes in 2022 have been in line with expectations. And then on generic deflation, there's nothing major to call out. Overall deflation rates are relatively in line with the last couple years.

I will say on brand inflation and I'll start there.

It's less important for Amerisourcebergen and we've talked about this and that over 95% of our brand buy side dollars our fee for service, but I will say that the initial pricing changes in.

In 2022 have been in line with expectations and then.

On the generic deflation theres nothing major to call out overall depletion rates are relatively in line with the last couple of years.

Speaker 5: And we'd expect that to continue throughout our fiscal year, supply and demand dynamics remain generally in balance. And again, this is something that we talked about before, but it's important.

And we'd expect that to continue throughout our fiscal year and supply and demand dynamics remain generally in balance and again. This is something that we've talked about before but it's important that our business model is not as reliant on generic pricing as it once was in the past because several years ago.

Speaker 5: that our business model is not as reliant on generic pricing as it once was in the past because several years ago were...

Speaker 5: business leaders recognize the need to have a more balanced profitability across support both the pharmaceuticals and so we rebalance.

Business leaders recognize the need to have a more balanced profitability across the portfolio of pharmaceuticals, and so we rebalanced.

Speaker 5: to ensure that we receive fair compensation for the value we provide across brand, generic

To ensure that we receive fair compensation for the value, we provide across brand generics and specialty and of course, the market continues to shift more towards.

Speaker 5: and specialty. And of course, the market continues to shift more towards

Speaker 5: But, you know, in response to your specific question, it's what we're seeing both within brand and generic pricing is in line with our expectations.

Specialty but.

And our response to your specific question, it's what we're seeing both within brand and generic pricing is in line with our expectations.

Speaker 2: Thank you. Our next question comes from George Hill of Deutsche Bank. George, your line is now open.

Thank you.

Our next question comes from George Hill of Deutsche Bank, George Your line is now open.

Speaker 11: Yeah, good morning guys and thanks for taking the question. Jim, Steve, I'd ask a quick one on the express scripts for Noel. I guess any meaningful changes to pricing or economics, or maybe could you comment on the competitive environment because I feel like we haven't seen one of these big contracts which hands in a while and Steve, my first follow up would be is I haven't heard the train whistle in a while on the earnings call. What have you guys done about that?

Yes, good morning, guys and thanks for taking the question, Jim and Steve I'd ask a quick one on the express scripts renewal I guess any meaningful changes to pricing your economics or maybe could you comment on the competitive environment, because I feel like we haven't seen one of these big contracts switched hands in a while and Steve My quick follow up would be is I haven't heard the train with little while on the earnings call and what have you guys do.

About that.

Speaker 4: Hi George, I always remember your little train that could comment after our little engine that could after our 23 calls, our 13 announcements. So, you know, Jim just answered the question about pricing trends and when you deal with a sophisticated customer like Express Scripts.

Okay.

Hi, George I always remember your little train that could comment off throughout 'twenty, the little engine that could off that 23 call. So.

13 that announcements.

No.

Jim just answer the question about pricing trends and when you deal with a sophisticated customer like express scripts.

Speaker 4: They understand the business trends as well as we do and we do a really good job of servicing large customers like that and focus on the long-term relationships.

I understand the business trends as well as we do.

We do a really good job of.

Servicing large customers like that and focus on the long term relationships.

Speaker 4: You know, we proud because we were a legacy distributor to Madeco and

We are proud because we were a legacy distributor to make cowen.

Went through the express scripts transition with Medco and became the distributor for express scripts and now of course are working with the new Sigma Sigma management team. So.

Speaker 4: became the distributor for Express Scripts, and now, of course, are working with the new Sigma management team. So, you know, it's a tremendous example of our focus on long-term partnership with anchor customers and, again, with the understanding and the fact that we reflect the competitive environment that we're in, there's no headwind to call out at all. On the train whistle, we are proud to be the new headquarters, which are not as affected by the train whistle.

It's a tremendous example of our focus on long term partnership.

With anchor customers and again with the understanding and the fact that we.

Reflect the competitive environment that we're in there's no headwind to call out at all on the train whistle, we are proud to be a new headquarters, which.

Speaker 4: which are not as affected by the train with all.

While not as affected by the train whistle.

Speaker 4: which Jim and our currently working out of and we hope that our associates will return to in the next couple of months as things improve.

Jim and are currently working out of and we hope that our associates were returned to the next couple of months if things improve.

Our next question.

Yeah.

My apologies.

Speaker 4: Sorry, I just wanted to also thank George that there's really no end when to call out at all on the express scription. You also We pleased to report that

Sorry, I just wanted to also say George that there's really not a headwind to call out at all on the express scripts renewals.

We are pleased to report that.

Thank you operator.

Speaker 2: Thank you. Our next question comes from Stephen Valliquette from Barclays. Stephen, your line is now open.

Thank you. Our next question comes from Steven Valiquette from Barclays. Steven Your line is now open.

Speaker 12: Thanks. Good morning, guys. So, I also just had a quick follow-up on Express Scripts as well. You know, as time passes, I forgot just the approximate level of penetration of the generic distribution with Express and whether this is primarily a brand-only contract or have you had pretty strong penetration on distributing the generics to them as well? And then also, was there any change in their level of involvement in WEBAD with the renewal? Thanks.

Thanks. Good morning, guys. So I also just had a quick follow up on express scripts as well.

As time passes I forgot just.

Approximate level of penetration of the generic distribution with express and whether this is primarily a brand only contract or have you had pretty strong penetration on distributing the generics to them as well.

And then also was there any change in their level of involvement and we bad with the renewal.

Speaker 4: Yeah, you know, nothing on WeBad that we can report. This is primarily a brand and specialty contract, as you do recall, Steve, and so, nothing. Jim, anything else you'd add on Express Scripts? I think we covered it. Yes.

Yes.

Nothing on <unk> bed that we can report this is primarily a brand and specialty contract.

Because if you recall Steve.

And so I think Jim anything else get Abilene Express scripts I think we covered it yes.

Speaker 2: Our next question comes from Michael Churney of Bank of America. Michael, your line is now open.

Great question.

Comes from Michael Cherny of Bank of America.

Your line is now open.

Speaker 13: Good morning, Jim. I wanted to go back to the comments you've made about the manufacturer services business. Appreciate all the color, especially on all the antivirals and how that flows through the year. You made some quick comment about how you were off.

Good morning, Tim I wanted to go back to the comments you've made about the manufacturer services business appreciate all the color, especially on.

Antivirals and how that flows through the year you made some quick comment about.

We're off I think you said the slow start to year to dive a little bit into what drives that and especially now that manufacture services post alliance is a much bigger piece of your business. How should we think about leading indicators to support a return towards the robust growth rates that youre looking for.

Speaker 13: at a slow start to the year. If you dive a little bit into what drives that, and especially now that manufacturer services post-Alliance.

Speaker 13: is a much bigger piece of your business, how should we think about leading indicators to support a return towards the robust growth rates that you're looking for?

Speaker 5: Yeah, yeah, thank you. Thank you for the question. We do expect the manufacturer services business to normalize in the fiscal year and to have a good fiscal year. I mean, these businesses are important differentiators for us.

Yes, yes. Thank you. Thank you for the question, we do expect that manufacturer services business to normalize in the fiscal year and to have a good fiscal year.

<unk>.

Businesses are important differentiators for us and they are very valued by the manufacturers and we feel that we have several strong manufacturer services businesses. We have realigned the organization to provide better end to end solutions.

Speaker 5: And they are very valued by the manufacturers. And we feel that we have, you know, several strong manufacturer services.

For our customers and there are opportunities for increased cross functional collaboration between our manufacturer services businesses, It's actually an area with the alliance acquisition where are there opportunities.

Speaker 11: opportunities to have offerings of our manufacturer services on a more global scale and they're also good synergy opportunities between our manufacturer services businesses and the Alliance value-added businesses and so we do expect the businesses to have a good fiscal year and to be on plan and that was just one of the things that we you know called out as you know one of them you know many puts and takes during the during during the quarter but we have you know good long-term confidence in the businesses our next question comes from a cabin Caliendo from UBS Kevin your line is now open great thanks so I'm still a little confused by the guidance changes I guess trying to understand where we are now versus where we were before with

To have offerings.

Manufacturer services on a more global scale and they are also not a good synergy opportunities between our manufacturer services businesses and the alliance value added businesses and so on.

We do expect that the business is to have a.

Good fiscal year and to be on plan and that was just one of the things that we called out as one of the many puts and takes during the during the quarter, but we have good.

A long term.

<unk> and <unk> businesses.

Speaker 2: Our next question comes from Kevin Caliendo from UBS. Kevin, your line is now open.

Our next question comes from Kevin Caliendo from UBS, Kevin Your line is now open.

Speaker 14: Great, thanks. So, I'm still a little confused by the guidance changes. I guess trying to understand where we are now versus where we were before with the addition of the Pfizer contract. Is there any change at all to the way you're guiding the base business? Because the increase in the COVID

Great. Thanks, So I'm still a little confused by the.

The guidance changes.

I guess trying to understand.

Where we are now versus where we were before with the addition of the Pfizer contract is there any change at all.

The way you are guiding the base business.

The increase.

And the Covid.

Speaker 14: therapy seems to be more than the guidance range raised.

<unk> therapy seems to be more than the guidance range raise.

Speaker 14: And I'm just wondering if there's any change to core earnings or if there's anything below the line interest expense or anything that's offsetting some of the benefit. Can you just take us through, Bridget, in a way that's easier for me to understand?

And I'm just wondering if there's any change to core earnings or if theres anything below the line interest expense or anything that's offsetting some of the benefit can you just take us through yes, it'd be bridge it in a way easier.

These are fine I understand.

Speaker 5: Yeah, yeah, thank you. Thank you for asking that question. That is a great question. And I think, you know, a few things. First of all, and most importantly, you know, the business is performing as expected. The outlook is very good, strong fundamentals, continued execution. We have confidence in the businesses and the guidance.

Yes, yes. Thank you. Thank you for asking that question that is is it's a great question and I think a.

A few things first of all and most importantly.

The business is performing as expected the outlook is very good strong fundamentals continued execution, we have confidence in the businesses and the guidance that would have to answer your question.

Speaker 5: Now, to answer your question, the guidance range at U.S. healthcare solutions of $50 million at the, you know, low end and the high end of the operating income guidance range. And then, you know, the, the, the raise at the low end and the high end for EPS was 10 cents. And really the, the, the thing to understand there is, you know, the race is related to an updated outlook for cobit therapy contribution, more operating income contribution from cobit therapies and that's partially offset.

<unk> range.

U S health care solutions, a $50 million at the low end and the high end of the operating income guidance range.

And then the.

The the raise at the low end and the high end for EPS was <unk> 10 and.

And really the.

The thing to understand there is the raise is related to an updated outlook for COVID-19 therapy contribution.

More operating income contribution from Covid therapies, and that's partially offset by higher interest expense and a stronger dollar and so the stronger dollar versus what we had in our original guidance that is part of the branch and that is the.

Speaker 5: by higher interest expense and a stronger dollar.

Speaker 5: And so the stronger dollar versus what we had in our original guidance, that is part of the bridge.

Speaker 5: And then the other part of the bridge is higher interest expense that's related to local country debt for an Alliance Healthcare non-wholly-owned subsidiary. And so those are the two things to bridge. But really kind of the most important thing is that the operating businesses are performing as expected very, very well, and we're very pleased by that.

Other parts of the bridge.

As higher interest expense and its related to local country that far and alliance healthcare and non wholly owned subsidiary and so those are that those are the two things to enbridge, but really kind of the most important thing is that the operating businesses are performing as expected with very very well.

And we are very pleased by that.

Speaker 2: Thank you. Our next question comes from Elizabeth Anderson of Evercore. Elizabeth, your line is now open.

Thank you.

Next question comes from Elizabeth Anderson of ethical Elizabeth Your line is now open.

Speaker 15: Thanks so much for the question guys. I just need a follow-up maybe from Kevin's question. Can you sort of talk us through your expectations around not biosimilar, new biosimilars, but new generic oral cells this year? Seems like there's a pretty significant step-up versus prior years, and so I just wanted to understand what was embedded in your expectations from the generic conversion perspective. Thank you.

Thanks, so much for the question guys.

Just as a follow up maybe some kevin's question can you talk us through your expectations around.

Not a biosimilar, new biosimilars, but new generic oral solids. This year. It seems like there's a pretty significant step up versus prior years.

I just wanted to understand what was embedded in your expectations on the generic conversion perspective.

Speaker 4: No, honestly, nothing important to call out from our vantage point. This has really become much less of an area of differentiation in terms of the way our earnings momentum rolls out. It's just the whole way that Generics rolled out.

No I don't see that nothing nothing important to call out from from our vantage point in time.

This has really become much less of a area of differentiation in terms of the way our earnings momentum.

Ah rolls out.

Just the whole way that Jeanette.

Generic rolled out.

Speaker 4: It's much more wider industry participation than just the wholesalers. So I really don't think there's anything important to call out, and Jim agrees.

It's much more water industry participations and just the wholesalers. So I really don't think there's anything important to call out in a gym.

Jim Jim agrees, yes.

Yes.

Next question please.

Speaker 2: Thank you. Our final question for today comes from Charles Raihee of Cohen. Charles, your line is now open. Yeah, thanks. Can you hear me guys?

Thank you our final question for today comes from Charles <unk> of Cowen Charles Your line is now open.

Yes. Thanks can you hear me guys.

Yes, we can hear you will correct, okay, sorry about that earlier.

Speaker 16: Okay. Sorry about that earlier. I just wanted to, I know you've talked about the antivirals a number of times already, but maybe, I think you mentioned briefly about your role there in Europe . Do you guys have any kind of formal agreements similar to the U.S. for distribution in Europe through alliance? And then second,

I just wanted to.

I know you've talked about the Antivirals a number of times already but maybe I think you mentioned briefly about.

Your role there in Europe do you guys have any kind of formal agreements similar to the U S for distribution in Europe through Alliance and then secondly, just on these Antivirals you know I think this is a very short time window.

Speaker 16: on these antivirals, you know, I think there's a very short time window.

Speaker 16: to get some of these oral therapies to a patient for them to really be effective.

Some of these oral therapies to patients.

So for them to really be effective.

Speaker 16: Um, does that, you know, I guess, you know, what can you do to really speed these products?

Does that.

I guess, what can you do to really speed these products to get to the patients.

Speaker 16: to get to the patients. And then really, part of that is, does that kind of limit really the potential of these therapies being contributors long-term? Thanks.

And then really part of that is does that kind of limit the potential of these therapies being contributors long term. Thanks.

Speaker 4: You know, let me just deal with the U.S. part of the question first. We do a tremendous job of working with constrained inventory, often inventory as it's coming out of production and is procured and sent to our distribution centers to get it out.

Yeah.

Let me just deal with the U S part of the question first.

We do.

Made this job of working with constrained inventory often inventory as it's coming out of production and has procured and St. John distribution centers to get it out.

Speaker 4: In many cases, as you know, with the oral pills right now, there's incredible demand way beyond, you know, way beyond what the supply is available and, you know, these products are operating under an emergency use authorization.

In many cases as is.

The Aro pools right now.

These are incredible demand way beyond <unk>.

Way beyond what the supplies available.

These products all operating under an emergency use authorization so.

Speaker 4: So the Marisol's bourbon, I can assure you, is not a bottleneck in getting these products out as fastly and as efficiently and economically as possible. I think that's why we've continued to be selected as the distributor for almost all these therapies. So I would say that.

<unk> Bergen I can assure you is not a bottleneck in getting these products out.

As fast.

As efficiently as economically as possible I think that's why we've continued to be selected as the distributor for almost all of these therapies.

So.

Speaker 4: But, you know, I also will say that we're always open to new areas of cooperation, both with the manufacturers and the...

I would say that.

But.

I also will say that we are always open to new areas of cooperation both with the manufacturers and the.

Speaker 4: you know, the patients that we ultimately serve through their provider models, you know, be they retail pharmacy or acute care models, infusion centers, whatever the prescription-based care treatment is, we will be there. In Europe , we do various things, our Spanish business does.

Patients that we ultimately serve through their provider models.

Retail pharmacy or acute care models.

Infusion centers, whatever the whatever the prescription base that.

K treatment is we will be we will be there.

In Europe , we do various things.

Finished business does.

Speaker 4: different things, but there's nothing that's really as comparable to the concerted effort and the launches for these therapies that we've seen in the U.S.

Things, but.

There's nothing that's really is comparable to the concerted effort than the launches for these therapies that we've seen in the U S.

Speaker 4: and you know the government role it's I'd say that it's

And the government draw.

I'd say that it's a pretty unique model.

Speaker 4: It's a pretty unique model and the materiality and extent of it. So we haven't seen anything comparable in Europe .

And the materiality of the extent of it. So we haven't seen anything comparable in Europe I have mentioned that we've done over 100 million vaccines, we've distributed.

Speaker 4: I have mentioned that we've done over 100 million vaccines we've distributed, and a large part of that is in Europe where we do about half of the NHS in the UK. We've done a lot in Spain. Well, Korea has done a distribution in several countries. We also do the lack of flow test. So we have a very...

A large part of that is in Europe .

We do about half of the NHS in the U K, we've done a lot in Spain will Korea has been distribution in several countries. We also do the lateral flow tests. So we have a very.

Speaker 4: a pivotal role in COVID therapies throughout the countries we serve, and we could not be more proud to do that.

Pivotal role in Covid therapies throughout the countries, we serve and we could not be more proud to do that so.

Speaker 5: Anything, Jim? Yes. I would add that in the U.S. for the government-owned emergency use authorization products, the process will be that the government will allocate to the states and then the states will allocate to the providers.

Anything Jim Yes.

I would add.

Yes.

In the U S for the government owned emergency use authorization products the process will be that the.

Government will allocate to the space and then the states will allocate to the providers.

Speaker 4: And, Jim, I'm going to do some closing comments now as we end our first quarter of Fiscal Year 22 call. We felt like this was a very strong result and we're off to a good start.

Yes.

Jim I'm going to do some closing comments now as we end our first quarter of fiscal year 'twenty. Two coal we felt like this was a very strong results and we're off to a good start.

Speaker 4: AmerisourceBergen is, as we often like to say, well-positioned with our pharmaceutical-centric strategy. We believe pharmaceuticals are the most efficient source of care, as shown by recent overall healthcare spending analysis.

<unk> Bergen is.

As we often like to say well positioned with our pharmaceutical centric strategy. We believe pharmaceuticals are the most efficient source of K as shown by recent overall health care spending analysis spot frequent misrepresentation of the public forums in terms of the inflation rates. If we experience we know at the <unk> pricing.

Speaker 4: Despite frequent misrepresentation of the public forums in terms of the inflation rates that we experience, we know at the net pricing level we are almost flat.

We almost flat we are very proud to be playing such an integral part in this community as a corporation.

Feel like we've made tremendous strides to the purpose that we've selected.

Leverage our own capabilities for the benefit of all the stakeholders we serve.

Made a strong contribution to our people culture expertise continues to grow we like to talk a lot about our intellectual confidence we feel that we've made leaps and balanced during the last few years and we are focused as always on creating long term stakeholder value. Thank you for your time and attention today.

Speaker 4: Thank you for your time and attention today.

Speaker 1: today. Thank you for joining today's call. You may now disconnect. Thank you for joining today's call. You may now disconnect.

Speaker 2: Thank you for joining today's call, you may now disconnect.

Thank you for joining <unk> co you may now disconnect.

Okay.