Option Care Health (OPCH) 8 May 212021 Q1 Earnings call transcript

Company Profile

Participants

John Rademacher	CEO
Michael Shapiro	CFO
David MacDonald	Truist Securities
Matthew Larew	William Blair & Company
Brooks O'Neil	Lake Street Capital Markets
Michael Petusky	Barrington Research Associates
Jamie Perse	Goldman Sachs

Call transcript

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Operator

Hello, and welcome to the Option Care Health First Quarter 2021 Earnings Conference Call. My name is Michelle, and I will be the operator for today's conference. [Operator Instructions] I will now turn the call over to Mike Shapiro, Chief Financial Officer. Sir, you may begin.

Michael Shapiro

Good morning, and thank you for joining us for the Option Care Health's first quarter earnings call.

future note statements this views that our financial please make we related begin, and future forward-looking industry certain reflect performance, we that call, during will to market Before conditions. and events our current and are results cause materially our risks differ that comments. could These forward-looking to uncertainties statements from subject actual to We file uncertainties. regarding SEC risks and with to the the in information review you the encourage the we reports specific

in should also section the morning's You release. entitled Forward-looking this press Statements review

use financial measures will about we company's performance condition. talking call, financial the the During non-GAAP when and

additional in call website. the find the With release can Investor information morning's on Officer. turn I'll over You on to these measures posted our that, this John non-GAAP Relations Rademacher, of portion Executive press Chief

John Rademacher

everyone. morning, good and Mike, Thanks,

very The for yet quarter team. Health quarter the Care was another productive Option first

team environment the turned to to well-being hurdles receive disruption. entrusting continued a away We the or and we payer navigate due supply clinical most pandemic, one ensure our Option chain consistently related the patients patients. Despite labor haven't to importantly, their to health And partners, referring exceptional has continued to supported physicians care. referral our us challenging Care

as care. national quarter the a our in delivering fronts. partner extraordinary many on We solidified performance in have I'm position of proud first very dependable team's the

are most which line results addition expectations to of In our us and integration relentless care, point. we with our in milestones, to focus strong financial at patient delivered on continued this achieve behind

we growth more the model, through XX%. a In forward, I'll delivered and in which growth continue revenue our moment. to going of of lay quarter, first EBITDA touch We for foundation X% scalable growth sustained also than the on generated

therapies unpack our generation, modest grow we cash will generally portfolio And another on of we in approaching few well. to ahead quarter product continues referrals seeing in chronic on pre-COVID therapies yet at many first pre-COVID in a are that of you growth pace, the also acute our the year-over-year a minutes. levels. We flow financial And But drove and as quarter Mike we our front. level. are focused volume portfolio, while know, relentlessly seeing strong was as terms results referral in patterns are strong

our increased X.X since we our $XX increased in have on cash ratio our balances We merger. times, leverage million X And well to quarter goal cash the drove every times our our way year-end. QX, by being and below of to balances

To in year. and additional initiatives. press recently small saw frees services. acquiring chronic acquisition to throughout consists milestones technology continued to to platform technology milestones the synergy-related certain have and integration is therapy morning's this harmonization network focus essentially on effectiveness. all growth and up end, This on the complete workflow you to we of Again, optimization opportunities release, regional of this front, We this our provider harvested achieve we cost as expect infusion BioCureRx, as a point opportunities resources of significant also several pharmacy our primarily it that which one at remaining assets made improve

acquire While financial integrate the ability limited our illustrates assets attractive our it on our platform. to and in impact scalable enterprise, overall into quickly

forward. we activity on more we and more and front anticipate discerning on inorganic spending capacity, we Given will efforts, time And opportunities. our our financial operational evaluating identifying in while this are going be

launched our portfolio limited also therapies XX more adding quarter, than therapies. in to the new of We two distribution

and collaboration patients a neuromuscular focus dystrophy, XX conditions, Given confirmed Sarepta mutation. expanded we with for Therapeutics Amondys muscular launched with our specifically more on and our

I revised portfolio for the upfront, We as scale results, our therapy quarter dedication delivered populations quarter, respect further country clinical Reflecting of first very a which full-year of we the and We of a to Health review future in future to very Care on to the also across raised over guidance very limited the an to we protocols to focused this detail. range. by Health, groundwork sustainable strong ability encouraged more our morning, results on team. with progress lay to financial which the spectrum I'm launched at in strengthen EBITDA high which Mike never for proud the strong With we the therapy the broadens for same Option the the been optica keep eye more and year. disorder. neuromyelitis And that, the in time, demonstrates Uplizna, in more bit start call the a aimed for I've I'm optimistic gives financial continue Option platform patient and turn and focused said in and at the neuromuscular Care growth. therapy a our I'll is communicated confidence quickly Mike? the tightened degree space. a we Uplizna where us

Michael Shapiro

everyone. morning, good Thanks, John. And

therapies, after impact certain mentioned, year-over-year quarter quite first growth, ASP million for X.X% us normal. well we therapies deliver are MS, John flat and certain and of growth declines to the the double-digit returning gravis driven therapies. the $XXX encouraging, And for in for year-over-year, are conditions. low position by therapy results Revenue of in inflammatory are chronic The many patterns our relatively including results of and seeing full-year. chronic first as financial revenue strong Overall grew quarter acute referral to myasthenia chronic solid growth

XX.X% our balance continue profit quarter. ASP in are grew sustain in incorporated which revenue on mentioned we the are for full again which the strong we with with our more cash pleased of the quarter results $XXX And with on profit our of as quarter of than X.X% that pandemic. of XX% so scalable call, from first leveraged clearly down expansion, expectations a XXXX. was are into us our growth but X% seeing over margin by reflects represented of million driving comp spending to quarter well typically balance QX That of generated over in of operations, little infrastructure. for quarter. in Again, Note year Adjusted results antibiotics, we flow. softest year million including in and quarter in X.X% we've the response of for the categories, year-over-year. on first progress mix, by to up harvest generation. million of spending SG&A the of impacted free Nonetheless, to drive we EBITDA anticipate serve versus cash year. revenue year-over-year. revolver. in into year QX the XXXX. million margins handful we was of down consistently driving growth a no as million communicated, and In points translated revenue, from top very Gross were consistent expanded from spending our as of to affected prior was the And quarter, cash revenue $XX in headwinds prior overall in improvement $XX Gross EBITDA year and over therapy that over the ramping And chronic last the with I basis borrowings the the and impact the XX% up still the We and and as helped the of XXX dropped a line represented $XX.X with the the in in spending margin is and savings year. the terms $XXX of nonetheless XX.X% guidance, under actions quarter million flow post-merger efforts some to growth foundation $XXX a we the X.X% synergies, margin dollar The the As point the quarter. first finished the

dramatically & profile progress capital extinguishment stated of cash points. At from our affirmation and we of times. with X the we've spread both recent XXX and refinancing XXXX all our well As maintains talked call, first maturity our a debt in encouraged improved times, covenant-light leverage our our second tranche the goal last quarter, lien down the X.X to on end on Moody's less made. was while also upgrades our This year-end simplifies our as X.X terms of profile also our of and first the basis credit of favorable quarter, by structure, larger leverage and interest by about reducing rating independent at lien the we than profile We're the of net way burden. an Standard the Poor's debt times

the and over certain We We the infusion the disclosures, quarter so assets EBITDA quick a also QX announced quarter. acquire multiple months. more and and active BioCureRX. commercial first the going improve integration and our efficient resources $XX.X high to We and Tack effectively on And certain relationships, this the obviously thoughtful to transaction become given appetite access our in generation further comments, inorganic capital. to concurrent M&A intentional while limited more we few our BioCure on forward. in our are And we M&A size, time flow morning all acquired a subsequent in second to expect efforts anticipate strategy I integration from And front. and signifies that the be that enterprise's execute assets confident cash to to can rate we will profile, single-digit million on seamless our at referral of the be the investing acquired are John's invested we we from run next efforts leverage excluded opportunities. financial

Q&A. reaffirmed year the impact have full-year to throughout guidance, the million will of after that, the for update for with partial Finally, the first range up previous assess we call in to adjusted $XXX the open release, and Operator? year, increased of morning's year. $XXX Consistent we BioCure guidance of a we with expectation our full-year which our our with raised have we'll million this And the and for confidence quarter. the our press exception reflecting acquisition years, EBITDA to continue

Operator

in the David the from comes question Please queue [Operator Instructions] And first proceed. MacDonald.

David MacDonald

Good quick questions. of A couple morning, guys.

off have patterns guys quarter, you mentioned X% of growth hit? was a referral just first seen from know the I in base. about the if there one? levels. some of roughly pull forward larger there? I the as Just COVID headwind additional also, number quarter guys expansion you was XXXX First referrals, growth of a I remember detail all, a guess, the any ASP. that But wondering, approaching I of And nice revenue you Is pre-pandemic referral on secondly, of then John for talked correctly,

John Rademacher

good Dave, John. morning, Yes. it's

On to our continue the teams patients And the broader patterns, question see we getting upticked. to specialty return to their beginning again, in That access. to the see were were marketplaces as area. first on referral open, began physicians

continue a territory-by-territory on to monitor we So, basis.

increase. of I now we it And open. to those vaccinated to feel We to good into many dependent. teams them continue we're to the begins see will and get out to patterns marketplace that market our starting that activate are market caution again as referral is the continue

than those to that there are those see direction. And areas implications we But perspective. opening we're Some others. from feel volumes see faster trends overall, and starting where that spikes, good certainly in And moving the right lot realignment and we we as we're our getting really into the the right training a a feel them, and team, we the to invested increased in and demand. both like resources through capture good of commercial went position in are education

Michael Shapiro

referrals you're its of wrapping XXXX, the forward, by the a of good the clear remember by, months with bit in, the quarter little call up we're couple comps Dave, really Mike. the second throughout on volume acute as coming out the was for again last and the revenue a year, year right. QX see I are started of census. the encouraged ago robust as our comments results, I from COVID well of a growth. lot morning end the in a March in going a did we're good Yes half to mentioned of little first the very some as one growth and our But including just fourth call quarter be to look, year ago. on prepared memory, the bumpy a hockey of that I hospitals really when mean mentioned clinics stick outpatient though impact. we at of things chronic the the given absolutely going the encouraged remarks, Yes, mentioned I Even And as of of is

very quarter So, growth finish what from was first very, strong encouraging XXXX a the on perspective. the our is very to of revenue

David MacDonald

guys. I ones, guess quick two just other

in you and of what kind back hopefully examines you more payers side As seeing terms we result networks? of like well what everyone that here of to conversations around and COVID guys are driven being with to things in acceleration And went get just the conversations over likely volume didn't, incremental narrow any time?

John Rademacher

all We have strong the network. to of conversations continue across payer

those. team cultivate access market Our to continues

of the that relationships. narrowing of the are and deepening management, network the of them alignment We seeing

in comments, market the team, has being I I we stable the well high to respond of provider with as quickly performance to the consistent as community. sources our said as think think, referral prepared the and marks gained and us ability a conditions the payer the

that new siting to and been expect to forward. ramp now of care back the begin care, of bit to to -- to back that a to little see site we on right to may focus do we COVID as some due to So, initiatives expect move there, the get have We up continue continued delayed response of the normal. needs so

David MacDonald

And and correct? access just BioCure, then quick nice And additional just referrals nice Orlando. taking a It stream? kind just products? of like a is is Houston they're Or any A, looks tuck-in Okay. a then, to question that geographic and in outside this one peek. just on last

John Rademacher

say I probably it's would Yes. latter. the

that of gives yes, IG, it's there but to a I strong call our opportunity let's patient census an and chronic book little states. other to us platform a into a good, fullest. utilize the southeast-based, deepen was mean So, its area. continue to areas it geography really But the in focusing smattering from

So, on it's use again the on flexing the about again, work ability the start that the nice M&A integration. to to start and excited creates. to team that behind think opportunity to ability muscles the the again the And and activity knowledge of about it

Michael Shapiro

I'd thing think this aspects in I limited size, only again of we're access. of is mentioned, as launched that access neuromuscular breadth two expanding And recently team the and taking one Dave, while the have which a distribution therapies to for but John attractive payer that, didn't patient more add, not the of Yes. payers. enterprise limited transaction, this populations But only emerging we've limited have

putting So, more the and bag it's really in products payers. more accessing

it. about excited we're So,

David MacDonald

much Okay. very Thanks,

Operator

queue the And Larew. the question next Matt in comes from

line open please Your proceed. is

Matthew Larew

guys. wanted I Good gross Yes. margins. morning, just on Mike, up follow to

you expansion a You it expected that the down year-over-year quarter, on first bit mentioned on fourth a year-over-year. call quarter in And basis. was

internally? expecting anything on the the there the of Maybe or the anything onetime mix year going in And was shift, still rest of are us expansion? bridge first product So, about there. just year-over-year then to help nature kind you quarter

Michael Shapiro

margin. with give said clarify, that, bet. fact we've distinct guidance is you given in specific again the Matt, just And Sure Yes. past the look, to chronic have we headwinds while spending that outpacing some acute, challenges, don't margin consistently gross on and What two we very product the expect to EBITDA time; growth we still margins, ability expect leveraging in leverage. the our that expand we gross really the confident would mix over portfolios, we're

property and chronic we as were of the of now, again growth So, we profiles. transit forward, with we separated, XX/XX Right go a approaching portfolios at acute we're XX/XX, when just split. different the that's

kind line. modeling at it growing Again, how is to very, we close gross the about the point But think we very we are of we gross every way we the fight out. for it that gross infrastructure how the and in below. those basis again, are margin leveraging margin came So, dollars, again, really margin were

again real coming So, year, margin maintain what -- back we're vital going that as going which gross we're margin for Thanks. we're to increase we overall, but is stake the not the to see or make going the not claim to expansion. EBITDA the to metric,

Matthew Larew

census. March quite the hospitals a of end that clear Okay. looking out in on well to you then referral at mentioned And follow-up you obviously did sources, just of terms

back potentially pull this as Option that hospitals what maybe back, you've with online, April, that call and working those right realizing gone, potentially been how the to have terms coming have trying was like even for into in seen curious hospitals relationships of patient maybe Care then Just quarter or someone volume population.

John Rademacher

John. it's Matt, Yes

we're in is kind I increase think far as that the that referral thus of we is, we've what seen volume. reported, seeing

felt amount have significant back opportunities not of of we a into the pullback So, hospitals. the

modest the as And we we we're get participate payers again growth, I chronic seeing relationships, again to of in needs delivery hospitals population. muted think which of the in because as are on and opening additional side, that initiatives, good indicative highlighted, the with again is either their care patient a acute then partner think with in. starting with see headwinds, continue just of care the their site aspects there's back more robust to ASP of we continue we As our of which also continued well and as is deepening to of growth routine some and and we little to but meeting specialists bit hospitals up opportunity volumes, certainly

haven't demonstrate of care pullback. the patients So, a look, to the high-quality much really pandemic. consistent partner seen and throughout it those and value try of the monitor But we received that have

Matthew Larew

Alright, thank you.

Operator

The Peter next queue in Chickering. from question comes

Your line proceed. is please open

Unidentified Analyst

Hi, This maybe Ryan could And on assumptions embedded you have or just cadence? guidance? changes if recovery on refresh here, there for back start acute could you your is to XQ that in Peter. there. us flat the how I off volumes If on Kieran view within what going around

Michael Shapiro

really been it with the very we therapies. portfolio the portfolio, a I'd is a about Sure, some as consistent that of X% over a ASP Kieran were which volume volume how accurately a the relatively the say volumes had low are. single-digit the our as The is and its antibiotics, there for balance our the remarks, quarter, my Yes a acute portfolio longer-term open look, definitely expectations expectations with is around generic consistent. also And are of first Mike. in couple about had what growth mentioned reasonable the impact. we've therapies, which headwinds mature is, predicted, think caveat I year. of one is would the we I I thing of expectation think that's And prepared very that in

bit relatively little an But that of flat our increase was again, a So, expectations. consistent with ASP, very offset so in reported revenue by volume growth.

Unidentified Analyst

at follow-up, Okay, cool. And obviously quick SG&A then looking the this so a as leverage strong. quarter, very

we what want out the other Just through that line? able that in think call any to are year, costs COVID-type rest there you're the one-offs you'd that as to were or generate about of

Michael Shapiro

have we in No. I SG&A spending relatively clean actually an last mode. in think still in were easy year Again, because of synergy we the harvest comp quarter a first little is comp, bit the metric. a

And the lot we tightened so our like challenges and around every you controllables, travel additional like and given belt obviously going quarter, COVID other a other efficiencies. during pandemic the we've things to at it's base, SG&A look into And about, when situation. learned fixed. We've as enterprise, opportunities on second roughly of the the uncertainty talked XX% the drive

with And drive is leverage QX to relatively confidence a high. continuing so off going clean our in forward metric SG&A very

Unidentified Analyst

[Indiscernible]

Operator

And from the the comes Brooks question queue in next O'Neil.

line is open. Your

Brooks O'Neil

morning just marketplace activities, there in the more kind for terms little you a of the us more Good guys your give about size Could of of a the little focus bit geographic the bit little color terms of a M&A you maybe BioCure the of in now? set, you on expansion out capabilities talked see targets acquisition. type and in additional

John Rademacher

Yes. its John. Brooks,

fact look us disciplined be I to current discerning XX% population, reach, that the ability you that I'll can in to When of cover outlined we're the thoughtful opportunities. be approach. way think at the our start looking look, footprint those as at we've gives and our and very we saying, very given in we're the with it U.S. before, our going

platform out value that can with a also, comes we with to real we technology put also that structure. cost continue based synergies, volume a on We variable versus that across to really have squeezing drive scalable rails by but model the more the costs fixed we those our have, the with that know efficiencies

we for. that tuck-ins we'll that chronic side. drive to look. that And where a we're bring can there. continue the capabilities There look that are we'll capacity, if efficiency, So, to operating census us certainly for take look do we'll have a we may There would transaction for, to in-kind look patient going to and populations are help that to continue continue

the that deleveraging. more to around today. to opportunities goals the our to I we for are our we through, the there to infrastructure more patients And value plenty So, look have think focused go of to around for those ability infrastructure. we think focus and ability We're to will serve to us that maximize achieve leverage drive committed be to really

Michael Shapiro

commercial The for Mike. coverage. thing BioCure add its and a their not payer you talked of of code we're we've can But and broad successful fighting with think was our above good is bag national the additional where as a engine ZIP that as take about, class, example admittedly Brooks, look, I'd you commercial looking without only neuromuscular a therapies. know without I weight relationships is

engine, really throwing what with so three. plus And it Option one commercial it was taking at that commercial chronic Care, in and successful effective very team is field a already a equals one

Brooks O'Neil

Right.

of the in expect do more out You one-off called Or opening investment? the U.S.? the Is around such Chicago. a that open centers care management you guys to center

John Rademacher

clean ability center serve into et And for is center, as say, Brooks. we the as managed the as us we that and really and compounding twofold. one well, the cetera. Chicago that really we excited utilize facility care about room which a excellence are made we ability specialty that around of a of market the to facility manage centers scale. have really our is operations, like to really so leverage the Yes, to also effectively within regional That It marketplace. Look, investment focuses

Ohio we and continue that Chicago as kind reaches an excited And the Hudson, at it expenditure we got say this beyond -- disciplined well. the investment that we're looking new from really patient process with market in about northern Look, on Chicago standpoint. for serve we've that can the that. capital market a market as going use facility. grow, And we're to So, Ohio to just we're made for a big is capital land facility is with also a pretty us. in needless where of And population to

network, we at fleet as we to are the market. on the to what our continue evaluate continue So, of the take needs a look

We build of capacity we part just to will where investments upgrade need smart update, and/or a out of continue to need course business. either That's normal where make additional to we facilities.

opportunity So, we fits that, going out the to CapEx. needs it around allows to the needs centers to sets every of have look, And of that we're cash. we deploying within to investments. us as also that do be about that's market And deploying this just make investment really here, excellence. going the we're piece we're brings and only put of within the and those one live that not guidelines the excited But our it reevaluate the national capability way region that but that for

Brooks O'Neil

more. Great, just one

the at of or change and and full in from do to new or kind Medicare legal environment, opportunity at of the you perspective, With friends fair administration get regulatory changes your CMS a reimbursement either see administratively a for any from all, patients?

John Rademacher

that the continue standpoint. Infrastructure some agenda the to with looking or Home looking bill Brooks, on right now, to hard forward. mean see from But of into are move get We're look early Family both always into they bit key those little tell. legislation National calling waiting to positions. to the we're Association, what way some that to independently some and that. made reintroduce I it's Infusion We're the of we're they're appointments upcoming a that working working

or the fair support. to believe bipartisan side possible to we're we're we've get And yell on had vigorously And the from that. vigorously going We quality so equation. mountaintop cost communicate every fight look, reimbursement continue to of on right and

of reimbursement lower a think get administration until has we continue that articulate outcomes Medicare talked effectively we're both optimistic. Obamacare a what the better healthcare well solution and that as cautiously an for of and part we is to better big going can So, looking look, drive help we're as net, expansion And cost, least to a about we for within Certainly, safety approach. the that have at beneficiaries clearly rates. at real as

Brooks O'Neil

lot, Yes, taking absolutely. a Thanks question. my

Operator

question next the from Kevin Fishback. And in comes the queue

line Your proceed. please open, is

Unidentified Analyst

To at to Adam preferred they'd on be them pay have opportunity? providers seems it above what their the all direct fee-for-service rates. actually that include for reimbursement, is This that like contracting looked into point on at Kevin. able Because you network is and from

fee-for-service kind adequate So, of backdoor a like on population? be would that the into reimbursement

John Rademacher

There bring we're that we with it to with at ways value from set that that be that. are our looking the and can every There beneficiaries. look potentially things the are demonstration demonstrate can CMMI center we continue additional can Look, angle projects. to innovation that to we capabilities do could would

monoclonal So, we're created patients Warp all the Operation looking across Speed, in COVID. in with as antibodies We going work of CMS work dimensions. goodwill being at a our those believe our we with with therapy for that have

path and across trying all there. multiple to a influence we're going multiple government. And directions better reimbursement do find right the help path we So, to get again, to to to we're better the decision from continuing can forward dimensions,

Unidentified Analyst

it And the a high it then, adds little use beat raised estimates the adds single-digit little if on that guidance further sequestration for more it And a that talked quarter, digging million, and for five estimate by extension than our into then multiple million. like year. of then the the EBITDA deal, least our And at two another seems you Okay. two million. like the add the you around about you three by on it quarters, bit seems for then

conservative. little guidance Is just like versus And conservatism? seems how bit that quarter come just was it a So, did your in the the expectation?

Michael Shapiro

at We've if as we mentioned impact so to more in And range But give again, of we've us, quarter of to were good generation, Sure confidence year quarterly to BioCureRx guidance, the But the to confidence terms think out we've than outlined as of about come we tighten lightest throughout in bit after And that it for thinking assess the the quarter that in the year. way degree partial within Adam, very And XX by back relatively year. but putting a the morning. the first which of were the a its right Mike. And the Again we articulated for a where came a anything, added it we'll tightened, in, half. the merger, for had articulate million about wind we And of think very, my again is the little close. ago. as the is year. ahead we very dollar continue I the we or sails about throughout I days I we typically don't I range couple quarter came expecting John a think and folks continue into that level numbers going I is mentioned, our try us think maybe slightly externally. first of credibility again, intention team's in. have to that maintain this high gives in we'll

Unidentified Analyst

good, shifted fair you but you kind kind the Not down a close Or that went following am But previously beat facilities in mentioned mine's the onboard that on? that now communicated since wanting misinterpreting mean of I you to of does Because for the just it existing overlap of it's quickly to down that's dead public, it? I patients, Okay, guys suites accretive. and, the assets, seems talking guess, that, I focused acquiring acquire how to something and you are were guess you that enough. but on geographies? horse not us the opportunity deal, a execution like story your

John Rademacher

No.

question, Adam. a very it's think good I a pushback, good

hit inbox thought roll we've And think for not books of very a it's it's folks. add looking for I with up lack that mortar to it. bricks to consistent and just opportunities. Look, our local not about how we're

One MAG, without was effectiveness the portfolio we fighting onion, a unique nimble we've really about intriguing of where but commercial neuromuscular portfolio, payer broadened space, which primarily peeled therapy they and and again above those NMOSD, their the as their group, really things things again admittedly therapies. neuro created were weight MS, broader again of extremely an relationships really without class had like engine, relationships, in the was back this the the referral that one they of effective commercial small highly were

And commercial them team would a was I have our quickly resources, the and so we what highly opportunity unique consider complement in integrate could effective field. again existing this where

think very we that pass on this again. like ones yes, say, So, deal every again, it's one I for respectfully consistent we where

team strategic or and the ask And pursuits? about unique is it The is special what's that asset? both economic John long-term and and first question this I our always in

Unidentified Analyst

Okay. That makes to sense operate. Thanks.

Operator

next Petusky. in comes Mike the The question from queue

open is proceed. line please Your

Michael Petusky

said. Good Yes. I may CapEx the the missed morning, guys. you have may What for that quarter? have was

Michael Shapiro

over little million. a just was CapEx $X

you. yes. It's the Let number me this million, disclosures morning. get the $X.X exact for in

Michael Petusky

this may again fact missed, have Have from all change cash guidance been something Okay. your you're the the your moving have did of you for light but flow and I guidance full-year all that up in guidance? you either CapEx you or EBITDA ops

Michael Shapiro

for least said we've which least." guidance cash the flow as our No. "at we generation, our sure We've from flow into would cash second flow We've Again, make going ops. have inventory maintained confident early $XXX especially we've in cash the confidence you've quarter. strategic But more the was guidance, of some seen, the in feel we it's at the million of investments also to reiterate tenuous situations, supply some nonetheless I chain very year. made levels. also

Michael Petusky

is the still CapEx XX around And guidance? Okay.

Michael Shapiro

yes. case. Correct, the to heat we the year. up little of slow to bit, projects into key That's a typically expect a some to the quarter. start Yes, the But going little second the would

Michael Petusky

revenue down it And you acute? I comp couldn't relatively was flat. acute What on revenue I was the Okay. -- in then quarter, the the in slightly? -- what's said quite know actual

Michael Shapiro

Yes.

year-over-year favorable a So, and an again don't actually quarter The report which we into just going of separate bit again fourth first year And because walking acute line, We little the were headwind, unpacking revenue on was prior of year. the fine we it, to a last year. just had ASP highlighted segments. to quarter relative effectively and Mike, call. volumes that we had anticipated the flat

Michael Petusky

Okay.

hear something So, mean like plus relative, that? when I minus I or X%,

Michael Shapiro

Yes, you got it.

Michael Petusky

you Thank Alright. appreciated. guys,

Operator

more the one queue Jamie have Thanks, And question I from do Perse. in Mike.

Your line is open, say again. it

Jamie Perse

Mike. chain. wanted to morning. and I John to Yes, supply the Good go

about that that you inventory all disruption of guys, for Have patients you I to yourself now? of Has comments been suppliers and step-up the built And been that What or potentially, solid related the You quarter. quarter. ID you that seeing to so to unrelated? was with related in or kind risk that's made in some how from your are million reduced? accepted XX saw inventory of de-risk the

Michael Shapiro

of Jamie. been trend that raw category, is as in unique supply us Obviously, fact IG, remarks, given pre-COVID levels. collections IG advantageous source a where it's an away prepared position. therapy think we've the Again, continue position we're in referral. question, gives from strong plasma chain direct we still I our material the given mentioned below all No, plasma And and Look, both to human haven't turned John Yes. one great fact we subcu very that open for around key over therapies the IG manufacturers, intravenous. [indiscernible] the our the

health times one working are levels. efficiency. around us we We're ability Our in maintaining reason, up is and given strategic up that's scale this. relentless capital capital the our inventory gives like of for consciously working the because to more And that

So, I able enterprise we're we quarter. the would say were and our IG in grow to optimistic, cautiously

quarter IG support ability continues an the only census very to you therapy of a your that on for expand existing the supply to to which period can into are that broader confident And lot You our a in folks serve the while if are folks again confidence patient think I again, we're class. of of on, patients, most one these increasingly time. market your going second extended in keeping be eye have

on as So, very therapy-by-therapy I basis. from comfortable, to decline or we again on weekly basis would a here a inventory watch it and level expect

Jamie Perse

the just like And color. the in it launched great That's products on some sounds you quarter. pipeline, new Okay.

us comment XXXX you to EBITDA those talk And First, just revenue terms from new ramps. broadly, on the and in more year can you, see you through just about XXXX. that for growth? then Maybe the products talk contribute how in quickly launch opportunities how new and of a drug typical

John Rademacher

our is to with coast area we collaborating coast team with record and And at for quickly an none. protocols that and focus love to biopharmaceutical the to is question, Yes. this better Thanks manufacturers. on. of a consistently second than Look, track clinical anybody launching is have we

therapy. since love when Sarepta has distribution surprise, been they in has the therapies, DMD have, an first that portfolio limited One we therapy. Exons, to muscular in been think them distribution and these their with them was that we've of partner, No exceptional that about is really nobody the and foxholes launched third us we're and limited we which dystrophy to their things neuromuscular with a space. The truly out about that therapy for building we especially the portfolio. There's value these very

no years So, the there with distribution were autoimmune like three, which of NMOSD, we're which practices, can neuromuscular when are ago, Both dystrophy, are broader provide limited couple. our From a that a muscular therapies this where four us now one gate, be ALS, gate, gets very therapy. a of network, is these move an the and whether over really bucket. them means we impact, approach within And going therapy and there I but financial out only our a frankly to it's robust. most, biopharm can conditions emerging you with the continue excited. to one tell conversations bucket it's what They're in fill, not to complementary. that's that the Jamie, out The lot drops starts these time year of of the are needle MS,

Jamie Perse

you could sense the even in Okay. a or wondering you the for then on versus like think market. just And of give XX-months, was us period a you that something time, market longer last if how guys quarter, did share, I

sustainable give a any share much sense taking? is? of to Just you're And how you think market color on how that guys

John Rademacher

still is. about continue John. little I bit of a pace We the for this but we range. hard its the listening think post clear of, let's continue sight, to get alignment. down in what marketplace line the talked our X% growth say, And to before, estimates Jamie, to Yes around try guess are infusion industry to home the that in as we've X% have

believe worked really So, hard. results. on based took we quarterly therefore the we share we've And

has team, focused Our and the frequency. from commercial around reach been really standpoint,

on think targeting. and highlighted we've before work segmentation we've I been the doing that

efficient and Our making be fair information to teams get demand. of very identifying our that to we is demand share of our more than that capture marketplace from the allows parties, that the that, disciplined that approach based on can certain on we where third in

investment -- to feel team. think as continue -- that and that that of be we're think we as we're look, reach as that frequency always to So, and improve our our I are and But we're based working standpoint that the we building. forward harder, our the a expectations we've be we, always got would team. there's as looking we commercial well have going look market leading from opportunity momentum of And the on to at efficiency growth we we if is as effectiveness

Jamie Perse

ASP Okay, quarter. that just you one back last the great. One the could, me for decline to I if in going saw

year? then gross impact you could about going was exposure I of or talk surprise, this part to regular business. just if very your much First, generics to this your and branded how -- expected margin? on generics know a And a that's

the this there. visibility any there. for pipeline got on what's year in But You've color

Michael Shapiro

teams this have basis. of Jamie, on mean we not by I surprised a its Mike. were thousands And ASPs that Yes, we one. watch. we Look, bill daily

to from -- was is going that very don't be this we bit them ASP a open unless it. headwind an of there were call notable they we ASP And about So, anticipated a we impact. year, typically a out have again,

on we cost. it it had the perfect So, while there's hedge, a an top procurement between and but as don't line, high again moves ASP correlation impact describe a our

to earnings we are and is on today. portfolio the that. topline. able to generics very side, that than for were muted incorporated robust on impact Which Again, post acute line anticipate. on there watch part continue a growth not we that so additional to gross would despite that, events Overall there's the most continue generic a margin And we'll of again and the we the lot more

can where constantly anytime side, preference add we offer payers the where and by biosimilar a therapy with a generic broader have typically On biosimilars formulary event. that you value a not But we're which is chronic we truly are more can emergence really more range. around preferred competitive class watching

a results see we when modestly of biosimilars. emergence perspective So, from helpful financial the

Jamie Perse

[Indiscernible].

Operator

final And sir. Do any no remarks? you further have we questions, have

John Rademacher

Look, the to to look momentum year. the strong look the Michelle. with continued in start quarter we Thanks, of first we're Yes. as pleased forward very closing, And we the forward.

will We the home what organization, as you more the think our as team we're we that And the way market shift is importantly making. progress our with challenge way, of couldn't of keep and that the our has be to utilizing more continue a every to really thrilled I an again capitalize responded with the on apprised center to positive come has ability care. in

Stay joining forward So with morning. for talking us Take care. you this soon. to we you to and safe, that, look thank

Operator

conclude you teleconference. ladies this and will today’s Thank Thank gentlemen participating. you for

now may disconnect. You

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