OPCH - Earnings call 3 2023 | Option Care Health, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and thank you for standing by. Welcome to the Option Care Health Third Quarter 2023 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Mike Shapiro. Please go ahead.

Michael Shapiro

morning. Good industry today's assumptions certain related and future performance that reflect statements to will financial current conditions. our expectations, and discussion note forward-looking include that our Please market and including those forward-looking actual to cause are that expectations. from results to and differ risks These uncertainties statements could our materially subject

do our duty the specific with filed the update regarding the We review today's statements, required release XX-K information encourage except you any as by Form press and not uncertainties. any forward-looking law. We risks in to to well undertake as in as SEC

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

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

John Rademacher

to Mike, ability quarter good Care of X,XXX third focused quite dedicated Thanks, members patients our our and expand pleased home I'm infusion of was on personally market, serve. remain a continue the that everyone. the the Option team morning, objectives performance, and and and alternate key over set census with and we at our site to pace in Overall, strong Health,

to everything that Patient that to continues And provide and on is changes better, that extraordinary a basis. lives the care fulfill center our at team of the care do. daily we purpose is for the

and our the is best one quality end infusion that loved that every for on oversee, dispense receiving we driving experience. the relentless there team a is believe Given and we patient of in highest I dose

Promoter a XX. of XX%, third quarter, the our In over exceeded satisfaction score Score and achieved we Net patient

care continue for deliver continued our we deliver team to for to continue and patients. our to our we to shareholders, referral the In our results partners while quarter, care So in stakeholders convenient support our of unsurpassed service one also patients their of deliver our across biopharma, to homes physicians infusion the our health and systems with and to or spectrum key centers. collaborate solid payers,

in in results We our were for patients transitioning ongoing the of have in for XX%. the balanced portfolio growth strong There's receiving overall, billion, million This setting including financial care performance in but revenue with broad another an approximately EBITDA EBITDA in adjusted $XXX adjusted and quarter of performance resulted impact double-digit expectations. and across to on lot of line the from a hospital resulting generated patients adjusted an to chronic a acute $X.XX earnings condition. therapies margin

generate the been has revenue collections and cash has The been stronger of been improve enterprise. In ability outstanding, solid the of drive capital our and structure continue the focus and my velocity we to the cycle never management better. never our opinion, profile to cash has leverage flows of team

our second we Year-to-date, share quarter. pleased our stock breakup equal related in drive continuing repurchased in call, million million while will stock I'm well that have gross in before to that we profile fees quarter repurchase million that Xx. Roughly to the recall $XXX near-term. to to the On $XXX you effort repurchasing and transaction. completed Amedisys to the we below the taxes fee $XXX committed third in leverage

year. of gears earlier shift our on to want few strategy, this call share M&A I from Mike thoughts the before a developments the over some to handing to given

favorable The our capital this to a support of as As we deployment create value strong perform capital very our base structure. and of consistently foundation for cornerstone view shareholders. of have strategy well continues business articulated, to has M&A a we in with

site patients strategic to setting. in presence evaluate capabilities to or or increase be our deepen continue capital we to our serve well alternate market deployment this, positioned opportunities to Given for the intended home

efforts. quarter on considered continue and from seek our we shareholders value-creating mentioned our M&A thoughtfully the opportunities As to focus call, identify we second to feedback as have

we point, and given in From to we foundation, and vantage be continue strengthen array see my targets. will thoughtful an our evaluating of potential opportunities disciplined strong our to offering

on focus evaluate home continues be deployment primary infusion platform our value maximizing strategy. Our to the on and as our executing core of we business, capital

would we assets or near-term capital from focus opportunistically to anticipate I and position our cash closer are business would While balances details to to leverage as we capacity. anticipate not our out on efforts in lay a M&A specifics, core mentioned, and deploying

to net As Mike Xx a and I range. profile to comfortable up the at operating leverage consistently have Xx are conveyed, we

disciplined Having that delivering given increase market strategy said capital confident are a our that continue and positioned be each we and seriously key very to for we attractiveness opportunity. our of the we strategically will is economically of to take shareholders by facet value well structure, quite that, position in both our our evaluating efforts This stakeholders. to I'm and value M&A our

continue I strong finish which setting. will is performance will started, on site care I in to I the reiterate of the where patient unparalleled our With that, Mike the to Mike? in express color alternate and providing and business team our the have And results. provide confidence additional home

Michael Shapiro

adjusted were to double-digit John. we record flow cash track the continue growth strong year Thanks, of shareholders. expect for solid results and strong quite the quarter another Overall, EBITDA from our and with deliver generation, third our

continue as over therapy up patients transition to growth balanced as we've John portfolio. single to with was of Revenue acute partner from anniversaried a seen systems health the the care X% digits competitive $X.XXX study. We've solid from as but stabilized to gains the acute we mentioned, the ago, year be volumes our across billion year, lower in portfolio prior and was

QX gross we growth with gross collectively strong line. be represented Gross earlier the consolidated continues dollar to quarter. to on the portfolio revenue basis Chronic XX.X% of points that outpaced therapies top chronic roughly margin a strong as basis headwind and in continue recall that across this a year of exited XXX margins the be X profit

ability well tailwinds. procurement shift mix offset chronic margins operational relentless was towards driven the some our and expand as by Our efficiency focus on to as

call, mentioned I with second procurement dynamic, environment direct with and see every constantly puts our as the is our believe on procurement collaborating we quarter and our is is takes the As of industry and quite are team efforts best year. the We biopharma procurement in majority our manufacturers.

benefited to benefit approximately able resulted $XX the benefit this we to that QX. favorable a gross million million $X for to that third which number considerably. margin $XX to $XX codes In line were Earlier was an year, margin dynamics drive in million quarter, approximate in of margins the million,

as conviction the is morning, figure volume while XXXX a of payer we morning. in and position in Again, provide and procurement this similar expect guidance an I'm high we XXXX. there the shared We are are not subside the incorporated exact into dynamics a a play. in many dynamics And therapy that's degree this that early we thoughts revised quarter, not will benefit fourth at this referring that preliminary with favorable to on that any to see

mid-teens approximate Even the the $XXX million grew benefit, year. $XX million XX% represented over prior EBITDA Adjusted in of still revenue quarter. million procurement adjusted $XX to delivered the we XX% excluding and growth EBITDA of

$XXX we completed share John in the effort As quarter. the repurchase million mentioned,

X.Xx. quarter You'll this on million $XXX quarter and $XXX the million we year have to for in deployed We $XXX our million recall, announced first exited of first date. authorization with the ever cash the of repurchase quarter settling related net fees taxes profile the and a leverage and balance we all the the even after Amedisys sheet share at and efforts transaction, to finished

So very pleased exiting the with quarter. and financial profile progress the third

press release, $XXX cash our full million revenue EBITDA morning. billion updated you to And million Finally, now we've from guidance $X.XX $X.XX billion, to this to generate $XXX in of as year, for million. $XXX we saw at operations the least adjusted of and flow our expect of

for very the we're up with shaping team. your Care to Option And to happy be that, So Operator? Health another questions. year take productive

Operator

Our comes Truist. David Instructions] with first [Operator question from MacDonald

David MacDonald

suites. And figure couple terms are that installed secondly, number to give a nursing could we to higher questions drift us meaningfully kind continuing see should relative you just patients of visits percentage continue time. base, of on higher so in you ambulatory amongst if was Just wondering infusion newer I quarter. the uptake to that of over in of see the the

Michael Shapiro

the Mike. progress the opened it's good Yes, infusion in In we an quarter, additional quarter. Dave, X suites. new

XXX across country, suites So XXX infusion right the we're about at right chairs. around now,

The continues So good expansion progress. team to those areas. identify strategic

around growth with in a that given seen the line percent of XX% still relatively visits number even the infusion nursing, second it's in the although as of visits, suite, growth, solid We're our the actually XX%, we total consistent top though really of quarter. have total

I'd And is indicators we traction. mentioned, by patient of are And onboards. encouraged say new so leading you penetrating one we're as how the those well highly the

rolling those infusion it is part patient down have snowball hill the suites located cohorts. near chronic is part And the of again, those strategically this of because we making densities the sure of

David MacDonald

site redirection hospital few conversations XX around could footprint Mike, hospital expand, drop that then, continues And there? more JVs XX these you to about of annual about And payers more the a of kind where even of aggressively either is to basis? system? as right anything number big service Just pushing or with to update on to an like any think meaningful things

John Rademacher

range. is David, XX think to John. Yes, XX I it's right that the probably the

there is up that forward. know before, in then a don't takes different with of at the But this And and We start-up believe percentages. will facilities, it more adding drags always the push cap we've as that it continue happens And down near-term, that we those some I we're just time. that to talked about as point. ramp

whether certainly systems are that with with some patient with would their in ways capitalize or care conversations to better working needs we needs the how utilizing it's We better order very our and patients, around of partner flow. meet of can leading site to thinking continue on health that existing productive of the their payers have about we through We around infrastructure initiatives. them

around and also in those a site to encouraged cost So those care with around receive patients it. about which and want at encouraged of setting thoughtfulness providing an care appropriate thinking the just in conversations high-quality

David MacDonald

And more allocation of just about should company flows think of we guys. Okay. also balance, a on and When cash think a capital about others, basis? couple go-forward then the we the the becoming allocation, of the part consistent a buybacks given just capital cash

Michael Shapiro

Yes.

Dave, think, to balanced. we're I to continue going be

been given cash of and we've a -- multifaceted as that the balance I right have to think the flow, has established strategy. think I the strength sheet the allocation we've open, capital

think upfront we to appropriate was think, the quickly comments, due part the made look, good breakup receipt in as we the John redeploy. to I progress thought much in of against I authorization, that mentioned his fee

a is see near-term, I attractive structure because, And quite think deployment. we improve opportunity capital John think we're of while in M&A to the a I going to think said, front. I going I think both the skewed strategies, continue I priority towards more we'll to those M&A landscape be on the to continue as balance think frankly, multiple

David MacDonald

a bit looks the I I we out think how Okay. benefits couple jumping the that XXXX. And One, upper kind would then, of $XX back giving 'XX, like little about kind guess some correct questions. and bridge just kind the guys, not towards we I you of just about assume move is question. that [indiscernible], a know as think last off Mike, million. the but you when in over of you're procurement of of point it

that cash 'XX? couple other everything point impact the being flows, relative to then about a XXX the basis of I questions terms had roughly in guess expected I the for of think talked on you AMED kind line, And the on -- breakup is products those you then top of to Is fee? about think year. And 'XX

Michael Shapiro

to 'XX, Yes, expect around remarks, you were legal provide my procurement these yes, exact from million a look, Number with I'll couple is QX my tailwinds not in start $XX numbers, range. one, QX that to of is in we're and a million aren't estimate and things. position in $XX somewhere with but the our -- what the would qualification guidance best

We it, million to QX. for range $XX somewhere in million expect that, $XX call

are So going high think a way the yes, in about very high it is, and confidence, early those QX. to degree I level, away think with of

been mostly $XX well, procurement, which transparent, So we've think been which of million it's of transitionary. we've very

million $XX not into likely so And year. will next continue

flow million focus for basis, yes, relentless our guidance we we than -- flow mean, cash on flow break million normalizing receipt, the the would more demonstrated cash the On cash $XXX the of $XXX to high although efficiency. Amedisys I continue generation fee, includes expect and our

Makena and headwinds. therapies, quarter, X represented basis And the Radicava XXX of a in points the exited little over

and of So QX QX. there was a little in early bit that

to this Dave, first obviously little impact So with headwind. We'll think year year we'll anniversary. into will that bit going but a more a I of in of muted be extent February, next a greater of the part unpack

Operator

comes from William Blair. question next Matt Our with Larew

Unknown Analyst

of This specific talked Madelin M&A on sort specific Matt. deal? Are shareholder post listening like or criteria that you're evaluating deal? at -- deals before there quarters have about is how actually in to you've things you about last the Amedisys M&A changed the you I that any for know feedback. were thinking about look of when couple Amedisys maybe compared the Thinking to

John Rademacher

John. it's Madelin,

about we As I call. and said in in second I even think talked the earnings my quarter prepared comments,

home Amedisys core some process, infusion, don't on want in the site again, be based we on to and that. I through to business. too box much and infusion of alternate closer from feedback that the Our we'll the got focus, us shareholders

going ensure key our capability to prescribers and with our we take of look remain payers, the biopharma, to our stakeholders our marketplace expand to always relevance of in the increase set We're opportunities for a across marketplace. partners the of that in our

lot we there's set those in of there. for presence, there's opportunities to and all to clinical increase We both if market be us economic outcomes about that strategic, provide fit for it for patients needing to to talk and better capability our increase a opportunities So so a our the serve. us components if

patients for care Option basis. receive from to If those at our looking all criteria. there's kind that capabilities convenient into to expand a more fit Care of Health, We're to opportunities on of always be for us it cash-on-cash

the and through for to create said, set more and M&A shareholders way, a over in capability around of is our process. in good believe expand the use focused on through really are as response, We And that creating importantly, last Mike we value that multi-faceted capital for the mid- shareholders value capital our a deployment deployment on but of long-term. our

Unknown Analyst

Great. infusion on the And one then more suites.

seeing as a ramped. not productivity like you're talk I suites XX% uplift about up? so add think as you're but talked they been that more thinking suites, have productivity about suite fully the nursing and about Can how uplift you've forward To capacity? you the you ramp far in going full

Michael Shapiro

old. this talked question late expansion great and hear in Madelin, about great you reality, years fuse we -- on in Look, We is Yes, as the to it's AIS a strategy really from morning. about this let our X XXXX.

have and infrastructure. by around And utilities, productivity that paying nurse so i.e., a as model quite the project insurance rent the we've the disciplined would facility talked anniversary is cost first and to about, these even, the XX, we month breaking the that are of

opening. tranches these We've and said we're seeing We're based anniversary productivity of by that uplift, that a -- opening great which the of helps are these because some that is helps the about again, -- of service It's on adding earlier second resource. is the these expansion. XX% and sites additional think hours, also a enabler our margin as with a #X, nursing our perspectives because we're X growth scarce us which of it from cost of

because We capacity have the would tested operating centers enabler none to to nor that assume to candidly, us. it's ops ultimate a And of are XX%. well them bounds growth with of productivity have uplift. close for expect not teams upper be be margin what for to anywhere a investment our I full And north we accretive of productivity in safe they the and our do yet that to ultimately field, that think

Operator

from Gill line the next JPMorgan. with of question comes Lisa Our

Lisa Gill

Mike. John,

that to the start. on year quarter And we've fourth to fourth up and Mike, there is, look if few on follow want historically? the Historically, seen revenue. implied deceleration the last one quarter. shifting between this that's a anything at see I versus back Is years, don't thing third Just you what

Michael Shapiro

only guidance, dynamics comments quarter, it's look the you of given on third into some down our second low I single-digit, a be think will the would that at that subside The the business, the expect, with the we've things Lisa. a we we that would No. flat on I I if say revised made the mean, consistent into number thing back quarter. acute -- seen bit relative of where little to first

have of fourth the to We There's headwind. be patients still does of well. involved and expect competitors a when as would take last patient solid transitionary volumes a a did still number pricing couple some year see still the flood of bit we of going did little which into quarter. create overall, we a But year-over-year exited, transfers,

Lisa Gill

then care my And managed around question Great. second Okay. is contracting.

happened Is renewal, contracts think you of would your like more different you your can go-forward with care on working just that we earlier should year, you an call time one on anything if care? talking basis is with comments, as of have this have to And kind of would So infusion annual relationship? And contracting? managed of remind managed up something that about is back there how a across X-year about I into getting come Is those relationships going about type a the suites. this us say think this basis? managed you that care, people you out

John Rademacher

Lisa, our it's John. contracts evergreen. of Most Yes, are

So they'll an have automatic within renewal them.

larger national programs, there'll on be our Some that. X-year of a

So the flow They edge on process. to see the every much we for really to we don't continue not to or come year that. roll that drum through if up waiting renew pretty

largest with smallest help plans the across cost bend We us to the health looking the for ways them for working to have been trends. spectrum the

that certainly regular on that care basis. they're are at having we're have focusing of on looking initiatives different that site focusing cohorts some patients a conversations things happen around that And they of the of

their once only don't year, they happen our undertaking the team a partner, are types them, quarterly only of those a that demonstrate happen value the dedicated to We're on satisfaction members, area. a the necessarily market through professionals in doing with that bringing reviews we're of our of pretty and consistent business things. as that other aspects basis And they access we not

initiative the been talking I'd certain specific with that of trying that and/or of site really on conversations been contracts some have depending around that, increases some about allow have the renegotiation focus, at make certainly adjustments the can, on them care looking of areas living of cost payer. cost to of We of say us with rate getting some nursing and we are where will where to process. we focusing in

And I retaining on and think health environment. some providers that of pressures clinical today's recruiting care folks talent in understand in the

So it's back base increases to focusing demonstrate I'm conversations and care say those ability again, I it everybody you us see put saying not some have the going high-quality behind board. we're to having and is that across remind can when a pay can continually Mike they that you to one's and on. us no strong And I those want more. to coming that easy, think the something the that we are and conversations that providing, rate But

Lisa Gill

And John, just it as more one in if sneak I to staffing. could pertains

perspective. at this you nursing, about else to Can number as talked equilibrium? cost side? there you et like retaining a from that you think would a out staffing -- like continues environment? the But it Do I about feel about Do for just pressure know call mean, from feel to of you wage us anything like you feel we're the we I challenged obviously, You better. years. be it's Do like really current talk was around cetera.

John Rademacher

certain ways make proposition we a to to And every not for to would in got other of by looking incentives appropriate provide put stretch and team team. value It's for that are remind employer programs we that day. I high the recruit easy place stabilized. imagination. an Yes. that our team I'd single we're aspects choice any and our the it to And we've say of has have

ability its that doing as we expand it that that has Option that with its to part continues at us Health Maven, to nurses to The we're ability as has nurses into of Care for Maven in its us recruiting roster our environment. tap within and allowed of network. the continue as full-time The have for grow to length well

ago challenges Lisa, easy, not was, but say it's health everyone crazy care. of peak XX as So is the the of at feeling not as I'd it's some say, that in months it

Operator

question next with from Our comes Bank of America. Joanna Gajuk

Joanna Gajuk

last follow-ups. you point there? smaller you new So were a introducing a Can couple and give on a was recently integration an I system the us I added of you guess to guess the very Naven. asset there on update third on platform.

and the, you when a staffing give labs flavor comes I stand whatnot. system, new are can guess, with us So especially on where getting you this and biopharma traction their we clinical to also it

Michael Shapiro

Yes, Mike. both pleased got look, been fully been national stack. on in We're the And The Jersey platforms with be gaining more We one couldn't a mean, team are that -- it's Joanna, recruiting really around fantastic the just Naven's and technology one a John national I integrated. the made. one platform. traction presence headline. have I we've We've jersey, we Naven now. now progress has

that say having every John a that in great traction. we As nurses our day. is as the I'd new is nurses on Both and terms both as continue for And degree to platform and the as again, -- platform recruit importantly, existing single well said, Option independent support to of But Health maintain growth Option Naven a continuing separation wall operate to we purposes. Care Naven side. Care between an most

pick did integrated And we the is the small platform. staffing traction in frankly biopharma acquisition clients, at very agency clinical quarter, third industry great small yes, make things Naven Naven up, cetera. with programs, And a et including a look they as into had that as across trials, they've already like manufacturer did other the nursing you

the ability small, that but quite to was It attractive. quite about scale is And now platform, complementary. think as it we

Joanna Gajuk

more haven't you repeated home I months or in activity the X assets, assets, on just point near-term, the we in seen the last focused much infusion in And to terms spending will guess on ago infusion close comments of core so terms quarter. be this core the from of adding this but

So year some pace up flavor other things or next of -- pick later timing should those? into of terms sort of in the Or we year? the of deals in and any of expect the is there things? more this And closing

John Rademacher

Yes, Joanna, it's John.

We continue take right? a and around that the as we're value. available matter disciplined understand we to assets available a we approach engage around in a really and conversations. marketplace in what's And put focused don't that time or box look we in different come can we're certain is, making It's when of add our where that

and reinforce -- said and just we have that I to capital you -- is structure is to by comments operating today to with us of the well, core way. have the we we extremely that The the saw generate to as also But in we that that. to results don't deployment like to for business And the we in ability that confidence my we anything. opportunities that enjoy shareholders feel do in kind our quarter, of value continue understand can capital multifaceted that with cash a find increase do to

move ahead. capital in the multifaceted us we of we as part as best strategy, of M&A certainly, use that think But looking that is

and the that do payers, And our to we so complementary feel look near-term, we're box going we what shot for there's wouldn't something don't I I in increase are a the the great have as assets do patients. if to with prescribers, with clock it. relevance the with time to and

will of capital types the right are those And and deploy that to assets if strategically we then find opportunities. look economically for we aligned,

Michael Shapiro

opportunity to I I'd has there's economic well. returns as thing room opportunities of to Joanna, generate it a as lot there's and edit headline, the driven dozens discipline assets, strategically every that cash floor on represent attractive that is a that for John it on cash attractive only die think likely we've add, a very look, makes The because but reiterated,

Joanna Gajuk

And That I next that. guess, sense. if makes the I the No, may XXXX. ask commentary appreciate I year follow-up, in on

not guess, a year, comment the giving so I easier headwind exits So year the to I this next procurement year, therapy, year. also for on and I understand appreciate you're And headwind complement guidance. creating benefit the guess, next there this

can big some I headwinds Ocrevus other next with guess, that should thinking that any in of the and some subcutaneous formulations maybe Entyvio, be few like point for the years? at we may main tailwinds But be And about? next any you we flavor guess, coming drugs plans head you I And rollout? more seeing as a be MA guess I Alzheimer's if covering give the we us thinking about things, So of should for other year. are drugs it? into

Michael Shapiro

share we're February Sure, will in be which And of not Joanna. we're in is the in in again, which XX and Look, say still our obviously is to my granularity. eager to -- to the expectations, I'll reality disclaimer, legal of position reiterate a on provide 'XX. process budget working XXXX

a of would couple I think I things. underscore

very and constantly puts environment. a that, both are a dynamics, have we this dynamics. John that the in takes, said one, a platform. this growth portfolio, Having reiterated from technology, I Number don't in of There dynamic conviction profile We operate disruptive of our static environment. this payer therapy and maintain procurement is

And definitely as we finalize so and circle our formulate we'll thoughts, back.

But rest I since of we number X there that. John, assured, variables be, there's have going comments any you the tremendous last always on to over a are that the know, merger, don't been if consummated have as years moving.

John Rademacher

we medical it's Alzheimer's. as are the we're as everyone in slow move is the add which specific payers Yes. understand around uptake the still would in utilize to policies other are only the Again, aware, the what to thing question I think The been going forward. I working to

to that has the patients that from but capabilities aspects about believe platform well a for track of continue process. positioned and that the there's so again, talked before have it still clinical much through these to standpoint diagnostic develop the are those We've patients, the as challenges that us. We, support well to we of as

around payers value. as with biopharma listening we're as appropriate and to from where look we partner working participate so feedback be where everything that can and we add well And to can to or working both are doing a the

Operator

Our next question comes Jefferies. from Brian with Tanquilut

Brian Tanquilut

administration. about as you if think for maybe drug of pending neutrality the John, providers hospital you are such potential site implemented, How infusion I legislation that, for the as guys? downstream around thinking impact about

John Rademacher

Yes.

with -- just are well, the I'll We start general.

expansion alternate well to of receive the across in to Medicare benefits for today. and continue of try discussed, that home documents board kind have site of the they access and limited well beneficiaries able to coverage and to We access infusion be work full Washington for to again, the And expansion look services. of

the As to other where a We being dispense alternate Again, at the and opportunity we pharmacies of look that moving. home nursing our to and at we and take talk suites distribute our for way an allows that. We can infusion potentially extremely us. us of about areas is and within the delivery look efficiency model the aspects site of our and as effectively product. efficiency that compound infusion they that the legislation the operated continue know

be to have some one in able the going or need our in those beneficiaries But there to opportunity with the cost open again, fix additional elements be we So legislative of if to dynamics might economic to us service infusion providers, and/or changes other the to for or think that us allow to lower to we're this participate. opportunities an that home starts suites. up Medicare be it more aligned

Brian Tanquilut

therapy puts revenue, That to of about of with takes about some I Mike, thinking drugs the makes and parts some it How the moving And drives of think you the there. exits then, and exiting offset you're pipeline on sense. it. of the maybe contemplating? that Got here are as some therapies drivers the as

Michael Shapiro

Yes.

we've that's and team development in. think key constantly Obviously, pipeline a rail the procurement know a we're has They've business with variable filing I We everything dialed watching. an got BLAs. that in from manufacturers. got our the to the through preclinical team ear all the

account. take And something so that that's absolutely we into

of assets think bring lens good is you I the do are part and clinical up we country. of our think a also under looking discerning because pharmacy across the what how we leverage I point

say, really a at oversight. let's care that biosimilars administration might of that labels intravenous subcutaneous look require health out, or vital that self-administered HCP a the are to because an still going oversight from, migrate professional as Even things subcutaneous a or things with lot you it's injectables require coming or

couple key end horizon open those keeping on they so, the with all variables a the as of These of before has going There's the that we're STELARA, all in certain And are one very biosimilar of participation front that XXXX. of been infliximab subcu. us. variables. are things that Janssen are expect things obviously,

talked an area is of and the our In of thing terms earlier we've frankly, that's where, to excel. demonstrated therapies, just about new-to-world exercised topical One ability phenomenal therapy, we pipeline folks this VYJUVEK, collaboration a a about things off probably not Crystal would the that commercialize we're with thinking tongue somebody's which roll commercializing. is the gene therapy at to first year that

the the infrastructure, industry But care we've it's when you that It's administration, look and definitely pharmacy to established. launch to technology at it of given us the growth efficient of not the requires that again, infrastructure and of profile it's complementary clinical veil change for platform. professional the our going health something well,

well continue over of evolve. look dynamics what choice and we can we'll both to those be structural therapies last will of have a therapy evolving as at orphan so some are years partner as And some those to continue that the of trusted been collaborate and couple where

Brian Tanquilut

can makes squeeze if more in. That Maybe sense. I one

the are exiting you are certain So grabs? you've from are situations acute of business. therapy exits you some thinking touched share the some that competitors How had the of remaining of buckets? up up market where from there coming competitors of guys are share market these more Or likely that for on gains about your

John Rademacher

make think local We've our I hazard others the different Look, continue to Yes, from to and decisions. about happen at going everyone therapies is Can't really to choreograph these that position. strategic that their to to are evaluate level. not has talked of guess happen work perspective, in some to going Brian. the or as whether a has the

a and were our us take if We have to built on to that additional would network volume, dynamic way. patient that resilient come allow

to day, And of every we're try it out other demand competitors. exists our capture actions of hustle as in regardless to market

given the we And think and we're approached capacity way positioned network. our the the well always I existing we've within resilience So have it. that's

Operator

with Jamie Sachs. from question Goldman next Perse comes Our

Jamie Perse

points on you pressure you I Makena XXX think wanted to and a basis year, that's guys point I base. Radicava XXX Radicava, the been start gave Makena from said with clarification ASP specifically. basis this the know of EBITDA I basis and and XXXX points XXX a actually so headwind far

a sort year. then you year? headwind ASP, So expecting just that to question of just has this a we whether as similar to be and the on what out wanted I expected next And played be that's should that, confirm

Michael Shapiro

Yes.

So referred the to, Jamie, I quarter. in the XXX points basis was

Again, don't to started that, QX, really, to think year in down. again, in unpack a we I don't but start be position Radicava talking of It's So 'XX last I see early to about a Yes, ramp basis. the not some was year-over-year revenue going on Makena a to some in in 'XX. XXXX. think headline early we're be Radicava not going to and there

We into specifically year, have and antibiotics thought chronic on for how on infliximab seen some some further ASP erosion some coming we inflammatory. with of consistent the the

consistent that going it played we year. relatively how out So the projected has with into

not away The into thing a XX of of neighborhood other -- year, respiratory of I QX topic headwind going this we all late somewhere obviously, that to of again, therapy a and we had, a represent exit as bps the goes to think did in last this year, XX well. of which think, about XX 'XX against business I bps but static XX backdrop is in platform, is, for

Jamie Perse

the was with Okay. And expected on in in then Were benefits procurement your secondly, than little higher the a line I quarter. expectations, quarter. it just the third

business expectations. So performance underlying just then that. on a if your line want was to the in get And relatedly, with read

Michael Shapiro

I'd manifested brought were with $X.XX science. of they third drifting the the candidly, quarter. of late And how That's fact, hand-grenade were better the a some not the did. end reason, up the developed we the towards going $X.XX level, to consistent is Yes. overall, those It's into with they range. bottom we expecting the articulated higher of end why higher a this at frankly, again, an in than was say bit $X.XX, we quarter benefits, part our in procurement range slightly benefits exact little July if, procurement which, to expected. we a of $X.XX nudge on to Look,

so $XX shaping is obviously, their And realize into QX to our -- benefits, it, highlight and of want to our But how incorporated 'XX to that's day, -- million and it's million muscle that, to, implied procurement look, next we to team. of off won't $XX procurement to way this. that up guide. real end are At the which the which into hats something continue They folks year. call

Jamie Perse

X John, then, for And Perfect. you. Okay.

spend and specific First, categories sometimes what's a talk the minute you therapy growth, flavor where for classes. in at giving just of us driving key their therapy drivers are life through you us those this growth a Can cycle? point

John Rademacher

Yes.

the that. of a support we So we products, and of reach those stages that right, work their commercial high, in life certain make nutrition coming continue remains and and kind see sense acute team the are capture they're closely to later to cycles, our continue the frequency out antibiotics in those utility to of demand to our well of of And with we setting. positioned

in digits But low a the as before, that's we've the lower single profile growth acute. disclosed on

side, continue On we in see strength to immunotherapy. chronic the

strength We chronic in the inflammatories. to continue see

within aware spectrum We continue of certain around that. neurologists to make of our focus full are they and capabilities gastros to

and refine ability does continues the team prescribers. Our to focus really a its around to target and good job

expand And have responding give can are therapy. or prescribing patients capability to the in that to the surveillance the the how we're set provide those to we around feedback we we physicians looking always can

grow pace a new the So are that acute, good some have. faster chronic of feel position in. expect about we given innovative than the we the products we fully that the to that entering Again, at is going

the said we're Alzheimer's And require outcome. areas pipeline new products certainly looking at a that as some the to there in whether to of oncology ensure are oversee best the compound the our as and/or that injection will of number of infusion nurses companies the to the infusion dispense in in in it's development, or significant I clinical and approval for comments, are my previous space space,

Jamie Perse

And if John, then Great. one. Okay. you impossible-to-answer question. Admittedly, have this last one But [indiscernible]. the any is

John Rademacher

I'll one that give Mike to then.

Jamie Perse

perspective going. potential know be this helpful. Just reduction you have would GLP-X, Yes, within there's are in to any is categories obese early But for your the and you that think business on exposure -- your obesity perspective just if where across U.S.? populations any

John Rademacher

within impact we that of we products or point the Jamie. the lot the dispense Yes, this seeing At marketplace. in a we're time, on see don't that demand

to least a that we see midterm, benefits of on at under Over around the the products but we yet long-term the the longer-term, provide. impact be determined or this, don't or services that near dispense the we significant

Operator

from with comes Deutsche Bank. Our next question Pito Chickering

Pito Chickering

question A just in here. actually [indiscernible] question Jamie's is on there.

Does pressure XXXX. all fourth ASP Was revenue at about and into sort you're about basis think in you points that on basis of XX looking continue XXX guidance, continue from implied said of So Maybe fourth doesn't XXX, the XX year? quarter takeaway don't that of that facing revenue in into to it points you're is impact the XXX those I sort the divestitures? quarter pressure. therapies next saying that XXX like

Michael Shapiro

right. that's Yes, about I think

you're right. thinking think I that about

Pito Chickering

procurement fourth of EBITDA on procurement in the benefit, back the of you million XQ, excluding $X And quarter, of X% million XQ about guidance, margins. sort the pull $XX sort your then to million and in gets Perfect. Awesome. half out of of if $XX the

Okay, is launch think XXXX? right pad that the about just to for

Michael Shapiro

Yes.

will X And of XX% adjust Unfortunately, celebrating I perspective, that's should you our think point while as the savings, absolutely team Pito. EBITDA I much jump-off what for think from unfortunately. achieve now as us and commending quarters margins. And procurement subside. a that procurement margins EBITDA real we're are

Operator

Our Research. next question Petusky comes Michael with from Barrington

Michael Petusky

obviously, me didn't to wondering, answered, over GLP through deal let I'm to go was guess just but switch asked Amedisys and I question My M&A. completion.

current could you potentially and that place how guys? that going makes a on assets health sense for forward thoughts still home be Your

John Rademacher

Yes. Michael, it's John.

and ratings some the convey, Contessa its of to really other with the some additional was tried the -- of we asset well as aspects we with reach the in capabilities certainly think set, capability of I in that. Star unique thought its as as Amedisys its

home are not assets on that. equal So health all created

of meaningful in the researches to nursing We we for that a we us that the role to better care home, ways that is the with and for there find still believe have patients have coordination opportunity play serve.

home think I our but looking in we be looking in health prepared will my outlined the near-term, closer I are both we think we core as that through activity standpoint. M&A the broadly commentary, to than in comments, into the as expanding forward, in

closely to there's But and to to work continue innovate continue to us that through an for opportunity process.

and So are continue where We're that certain to look things relationships are happening to to economically evaluate we'll continues trends make health and ahead at ecosystem marketplace going We'll foster both we as the continue that in opportunities evolve. to appropriate. of strategically, to continue are available. that the the care

Operator

for today's this And the would management to to back I session. like closing. call question-and-answer concludes turn

John Rademacher

again you on morning Thank joining us and participating for this the for call.

our to care quarter against As and initiatives We Health make to we updates next outlined, providers. look call. it Option for another passionate our Care our was continuing strong providing of team and on key progress forward you

Thank everyone. Take care, great day. have you, a and

Operator

Thank you conference call. for concludes participating. This today's

now disconnect. may You

Option Care Health (OPCH) 25 Oct 232023 Q3 Earnings call transcript