ABC - Earnings call transcript Q3 2020

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Operator

Hello and welcome to the AmerisourceBergen Q3 FY20 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note, today's event is being recorded. I would now like to turn the conference over to Bennett Murphy, Head of Investor Relations. Mr. ahead. go please Murphy,

Bennett Murphy

President, are morning, to conference you Fiscal Vice press and call I discussing Chairman, Senior Quarter Good today joining us Steve are Reconciliations measures. non-GAAP XXXX for Executive CFO. to Results. Collis, Vice Murphy, available GAAP Bennett the to provided am Relations. today's and you. And today's President all also measures me in thank President joining Third are Investor Thank discuss and and website CEO; Cleary, call, our On release financial of and Jim at we be on these will investor.amerisourcebergen.com. AmerisourceBergen's

to investor have a We press release accompany website. slide on our presentation posted today's

on call, During including, we to, per not basis, will earnings this limited financial but our operating taxes. conference expectations income adjusted income an and share, statements non-GAAP forward-looking about make business and

are Forward-looking uncertainty change. based current subject are management's to statements expectations and on and

of press and assumes expressed discussion to the a cannot XX-K. of key AmerisourceBergen any refer no assumptions, our we without rebroadcast be our call recent company. permission including statements, forward-looking and For filings, update release to most and today's this obligation risks the you SEC

opportunity to We call in your to the the With after You'll have participants possible to many you as turn for by questions that, will over management. within get hour. questions an us remarks ask to today's order one ask I participant limit that Steve. per to as

Steve Collis

business associates today's worked the AmerisourceBergen quarter by continued third ensure the of you, driven good Thank everyone and who access. strong delivered of Bennett, and our in results to to our call. diligently patient morning XXXX on resilience

support and and our and remarks topics: this continues and AmerisourceBergen's will collaborative deliver first, key solutions navigate protect of how as I morning the teams expertise they My scale, innovative leveraging culture center our to will two environment. associates. complexities the Our on highlight to current to partners are AmerisourceBergen services

clear second, on term. AmerisourceBergen and positioned focused through discuss why advantage; competitive culture development, advancing our talent a long remain to career over how growth how and I'll the initiatives is diversity Specifically, we value and deliver is this

our associates, customers, communities our serve. the we also shareholders For suppliers and for and

quarter, continues be well-being safety shared our and top the to health, our associates last priority. of we As

have to particularly We of a on number purpose value guided our at front steps every associates, by taken line, those support and turn. the our

We of have our safety the associates. prioritized

the our have challenging work navigating provider facilitate diligently We continued to undertaking as our all work areas across of and of remain are access, to as times. supporting these manufacturer well patient associates I proud our incredibly customer business.

As talent I earnings of last one our call advantages. discussed AmerisourceBergen's our biggest on competitive November, is

our Our our and purpose. associates culture driven power by are

futures, believe and promotion We experience their and they employer. LGBTQ associates And know prioritized in DiversityInc retention healthier as our minorities, focusing are a this with this organization. is AmerisourceBergen fourth due our and of initiatives. values on a May, create purposes of talent veterans. united women, for was named and consecutive diversity to our entire disabilities, year the the the we career growth the in We responsibility noteworthy people development, have In across when company by enhanced is hiring, and demonstrated to company, of people

and been to fostering has proud I'm and even workforce. committed While inclusion an diversity AmerisourceBergen for inclusive efforts, are that diverse we direct recognized our more

time and to necessary to discrimination by a having continuous we dealing inclusion a culture associate stakeholders is shaping bias. color personal mirrors to progress town as including leaders change. These their significant quarters facilitated difficult, intrinsic black topics, share all several of more of diversity and this we improvement. that created dialogue volunteered in foster injustice There We We sharing communities a approach and the somewhat our weeks forward I racism this diversity learning society ongoing to look racial committed come. systemic whole. our area about other and over in value all strong the social leaders though and the candid unconscious are workforce mind, discussions, racism. inequity for our with with and We to the took true for insights and to serve. are in are and making fostered discuss an discuss past we the recognize halls and growing, experiences to are dedicated effort, step we important a to this is in and to With betterment and

the results. the supply global turning invisible of The across the our as health Now through challenges innovation. business our successfully chain to resiliency The system. the demonstrated pillar become new has June we care medical of managed quarter

importance opportunity During COVID-XX to whole truly heightened of strategy. as awareness taking on expand of and channel we AmerisourceBergen serve pharmaceutical-centric to The as company continue security, what for for our with to and continued strategic our and are. as supply. sustainability deepen partners the our our we key become proposition understood pandemic, our four value relationship continue the execute value pillars creation. as has been position our industry that AmerisourceBergen us pharmaceutical a is on this of differentiators have data asset around A

meal system. lightning the ways, their members communities difficult independent have communities pharmacies highest combat tirelessly pharmacy their during to in the chaotic. relationships each jobs while they working speed to Independent supported key service. pharmacists, times. and continue those ensure and even pandemic inventive customers strategic packages delivering crisis. within most serve health They of at the stability all are new pharmacy the our things through their provides offering Thousands staff adapted of in demonstrated and when on need, of front and customer during lines to technicians at they play network whether this roles have immunocompromised care been level to broad getting their care care patients partnerships patients lost maintaining essential the good our who the a with Members this or have their the of First, segment and neighbor

these deliver partner need frontline care health it those care with to are We most. to providers to who proud

our Second, to build we on in services. leadership and position specialty continue distribution

distribution Our the have industry-leading key part AmerisourceBergen of our market. a and to positioned in relationships leverage businesses expertise specialty

increased overall. see particularly biosimilar the not patient for to business are but in is where access partners. our continue in the uptake provider manufacturer AmerisourceBergen, for The and biosimilars oncology, proposition We future, both only encouraging for care system U.S. utilization, value seeing for our our health growth and we ION customers differentiate

few been minimize practices are impacted care physician has continue have patient never last at have our operability. by never quarter a the the new implementing through safe, treating and negatively telehealth to specialty well-being Community-based adapted improve we with visits critically necessary screenings actions to safety On specialty have time provider clearer mentioned patients they take of treatment side, PPE order The in and In so further have access proposition to restrictive such to the working critical keenly cases and closely health role measures months, of treat acquired distribution for care past customers been necessary and things implemented I the value protocols important. that as provide community-based convenient protocols, enhanced distancing and providers patient the health practices' the as initial disruption, when controlled in of staff. procedures the effective practices have care been most treatment aware ill additional testing. office the new in office. to to vital environments. Patients of ability in illustrated patients cleaning

more the equipped complexities the to is continues country it the vital well-being of of navigate environment the operate the to health and is in care that As Providers this patients. deferred. current all are to pandemic, of benefit not

the solutions our system providing partners to times. in focused to AmerisourceBergen on providing services positioned current environment is them these important and to AmerisourceBergen innovative help focus is Third, navigate the care for associates customers with and our uniquely resources. challenging continue on health in

our distribution government channel capabilities provide expertise commercial are with manufacturing example, to our sourcing entities data For and analytics and insights. teams actionable and and leveraging

practices and time an help end markets, to pharmaceutical face supply into resource to which of focused may business, be is importantly, And informed practices chain stakeholders revenue, veterinarians better to are as manage care, just MWI achieve of provide provide the an focus certainty the uncertain The is routine long-term We we afford at find the Animal pharmaceutical challenges. financing supply the burden engagement be quality transparency they able and for client solutions-oriented economic most as data also and their offerings offering for significant our both pets patients. AmerisourceBergen struggling to ease important financial The of ways being while who their on landscape. or by consistent flexible on identify clients to chain. Health more helping and care new outcomes offerings COVID-XX. at related fully solutions designed for may emergency in heightened impact to new this allow particularly add value, we more pet two continuing announced seek financial to

differentiator. fourth our to turning Finally,

corporate all our to to for strong continue stakeholders. on We value focus order in stewardship create

improvement. In I justice society on and peers committed is than one partners AmerisourceBergen brought quarter, the address together resilience, some best to and equality, corporate collaboration, facilitate Foundation nonprofit pandemic and affecting community focused issues from virtual today, another. the the XX event strategies of citizenship earlier, developing of more AmerisourceBergen addition initiatives The share continuous during and to difficult and some to a practices mentioned to social health improvement. conference the racial strong most learn during including

leadership distribution create and culture, driven and United by futures. talent differentiated responsibility customer robust are and our specialty our services in healthier by We relationships and our to in

partnerships you, in-depth for AmerisourceBergen and of AmerisourceBergen. XXXX fiscal the all over to value With position I results. will Jim? our turn continue review to our of long-term third Jim stakeholders. your more for for a that, to quarter strategic values, Thank Our leadership call in create again, interest market

Jim Cleary

non-GAAP and year the quarter. everyone. focus remarks adjusted Steve, Growth My today good against will made our are financial comparisons morning, rates on unless results, otherwise prior and June stated. Thanks,

GAAP please earnings discussion For our a detailed of to our results, refer release.

as and actions leaders racism by systematic improve I the our and I year, work resilient fiscal make to we enter AmerisourceBergen and across have execution dedication been we commit our hesitation better equality and businesses As associates come we we I the we of and do. impressed of commitment more are diversity, of without even profoundly our patient address towards equity in AmerisourceBergen everything and company. will continue engagement fourth to even as to that say justice access. inclusion essential together the enabling can am have progressing taking by proud our quarter proven The an as

performance; segment Turning I our cover morning: our two adjusted will main areas revision XXXX second, discuss will our consolidated the will in now fiscal to commentary EPS I detail provide our to upward I guidance. quarter results. results quarterly this third adjusted first, and

Moving quarter now to share of our X%, the diluted solid rate due slightly primarily third an income a tax count. and with quarter adjusted year, finished lower to above a prior operating increase We effective results. of lower $X.XX, EPS

each I profit, were year-over-year items spending increases timing the in our than as time interest in incremental primarily the COVID-related interest million interest resulting investment decrease million, a gross from discussing income and expenses operating the a at quarter. in will rates instead rates. Net focus section. $X June up operating on revenue, in consolidated guidance only growth consolidated level, segment-level due small Rather slightly decline dampened to Our to expense principally and impacts the income, the of $XX color increased provide these

fourth interest net with current environment, the the in quarter. interest expense our to line we be quarter expect Given rate third

income Moving now taxes. to

in discrete Our a XX% benefit was from down tax prior effective a resulting tax the rate quarter income to from due item. year XX.X%,

shares, net Our to to XXX.X diluted repurchases, of share stock declined count X% share exercises. option million primarily due

$XXX Regarding free year-to-date, and was flow our balance, cash cash free adjusted flow cash million.

of the guidance fiscal $XXX quarter dollar-denominated will and in our is expect we as offshore This with cash, the Our which was results. completes U.S. cash fourth year flow. million ended the generate We consolidated for $X.X quarter meaningful cash in holdings. review generally held the of unchanged flow billion

COVID-XX, from million our segment revenue Distribution of operating slightly purchases Segment cover the three margin quarter. June and expenses operating as I'll was billion the to resulted $XXX $XX.X with in March points profit. quarter increased only results. income benefited customer in onset due associated Services. our about we increased purchases up higher to fewer Now Segment with Beginning X.X% Pharmaceutical which gross up administrative basis with lower income the

million As income a the reminder, segment's a the the exit to operating had PharMEDium business. tailwind $X of due

enabled segment, this numbers teams COVID-XX strategy, have associates leading of and of done the ensuring purpose our associates impacts. access for impact and the resilience. Services MWI COVID-XX-related Distribution Courier, or across that Animal the MWI distorts up our AmerisourceBergen Pharmaceutical manufacturer on The impacts secure Consulting growth While and due our and the for & and $X.X which pharmaceutical-centered XX% pharmaceuticals MWI. business. primarily relationships, our to create now million comparability in income COVID-XX it out volume total commendable is includes the associated May, quarter, by businesses called including of our that quarter, to pressure group Global timing businesses will safe partners. business was $XX clear somewhat to AmerisourceBergen's focus our Operating World complexity deep talented the In Commercialization other being work our at Consulting turn deliver we provider responsibility with due evolving patient and billion, Health, World Courier. and the declined and united supporting our on In have at group of our to revenue X% primarily to needs to healthier businesses futures, I from of abundantly expected

saw quarter, visits business companion well we rebound During as animals MWI's the vet very normalized. June

stepped guidance. MWI's to segment off. so to meaningfully in April continued stemming review the production now service animal down in production business will turn our XXXX May food leveled then decline completes fiscal of animal pressure in a from again I and business However, This demand. see our and results, The

range. guidance provided throughout quarter needs sales on decline manageable. morning's successfully fiscal quarter. forward of the range adjusted exceeded proven guidance $X.XX as guidance teams more our press and the We $X.XX raising range the of of due to than businesses our in our the we March XXXX expectations we As impacts pharmaceutical back our are had customers. COVID-XX EPS that incorporated $X.XX as businesses to expected EPS anticipated AmerisourceBergen's to negative previous disruption But even we new diligently would said When from own $X.XX to our our to our our COVID-XX-related business pull this May, and in from has worked characterized June we resilient we various release, into and meet stemming

both of We have the and seen stability a the quarter. as line channels full and in business return to our to specialty growth course saw our over return distribution growth

These from increase in us sales Our the set June we well distribution the businesses positive exited to weekly as trends based fourth saw for up June on sales May average each month. quarter.

adaptive business our Even of steady For them operating across allowing current pre-COVID a therapeutic areas. saw example, the specialty needs patients. to meet physician non-oncology has business proven resilient in levels their to practices return physician to as environment, the our

Services business the value volume to from Animal were seen In as as the in have for a World being base clinics a up month continued customer with hospitals prove has its globally. and to Global of Health provide businesses, Courier care June increased increased we adjusted complexity record demand time weights during Additionally, health our their operations have current systems environment. Commercialization our & and

now pharmaceutical to range be fiscal guidance the be and and allowing for XXXX. resilient updated returned is now to percent in our adherence metrics doctor-patient well-being, the expected patients quarter continued June on Turning utilization. and care focused interactions Revenue growth as to proved mid-single-digit as for financial

the low a the in single-digit our mid- fiscal to range raising for operating guidance digits instead in We operating and operating improved grow decline reflect Turning the a distribution income now range for percent to year. segment's result of as the our to single of grow now to other income same the to income. operating income expect to high expectation pharmaceutical

business, a for of exiting the distribution in of tailwind PharMEDium tailwind the and the million fiscal has $XX pharmaceutical to fourth segment quarter. As a the $XX reminder, million year due that is

the Regarding our rate. quarter to of tax XX%. guidance tax a are approximately guidance of Entering the to range from narrowing of we last XX% XX% year, rate

to CapEx million. from expectation lowering our slightly Lastly, we $XXX are million, down for approximately $XXX

our As process XXXX, planning it to remains unchanged. corporate fiscal pertains

unprecedented the fully and to at in by comprehensive to business of fiscal informed the embedded of capabilities provide execution our In culture. continue take part AmerisourceBergen, closing, and guidance the I guidance even our of will and on the end sincerity inspired solutions determination we commitment, for and by that the I'm allows approach We today current be for output resiliency great from focus pride The associates of financial the planning This innovative of are process. and time enhanced year. year-end being leverage AmerisourceBergen's us business AmerisourceBergen's emerge knowledge in makes health our to confident care system. this more will reach with that

strong committed value it for and all is for are and will we making your in accelerate positioned, better enable company interest you our AmerisourceBergen. well Our all Thank stakeholders. even associates, for and which to long-term

the will I turn Q&A. to start Operator? over operator Now our to call the

Operator

[Operator comes Barclays. with Instructions] from And question the first Steven Valiquette

Steven Valiquette

for was Thanks everyone. I guess, morning, of Good results. curious the on the the strength all just taking I question.

whether the side any factor ledger. to trends, better fiscal XXXX? the in any generic buy of profitability not of or just changes hear on is pricing increased there the and in notable outlook your remainder the for Is that Just particularly part

Jim Cleary

question. handle for Yes. that. I'll the Sure. Thanks Yes.

current year fiscal think We we've by manufacturers compared generic there's prior probably have supply previously, moderate to we focus indicated environment. As maintaining on years. XXXX, in in the deflation seen

And while has moderate, it past deflation, certainly are the so that overall, still seeing we and benefit to compared been seen generic we've years.

Steven Valiquette

as year XXXX, also on? profitability as is that far the gone of accelerated the then, fiscal kind within And has of also biosimilars Okay. as

Steve Collis

it's editorial two about We're towel for in pleased the We after was choice. the quite Yes. are it's have write patient that biosimilars. in biosimilars increased think role And all, and I new thanks innovative be progress. actually the to buy that it throw will question. that some too of years those. And of proven the make of for really for the role the early events subsequent ago, I with new couple progress saying way Steve, think very a a to proud

our services seeing that to provider has it's an and organization and and on important in impact been Thanks. very education are biosimilars, we ION especially physician base. of our had part provider about the community, their very really business having So influence contracting and in they've customer them a community very, profound our the

Operator

with Baird. from the Coldwell next Eric And question comes

Eric Coldwell

of Thanks very couple questions. morning. A much. Good

First one, much secondarily, response cost might of over How then months, we're actions efficiency COVID. quarters? I'm next curious And those of persist any that to in taking or the new few markets.

mentioned offerings new I'm it to accounts due other going with curious have if strategy investing new change in You've thinking MWI their their help market? to any where of Does long-term you've some have customers any how that seen on and market you're or opportunities challenges faced. COVID. to your arisen you're

Jim Cleary

add. to and sure start, I'll want Steve Yes. then I'm would

In had invested really additional cost associates in not heroic worked our during efforts costs efficiency, on were front-line terms cleaning distribution the on out in costs costs. our focused very we in in really, of had centers, sorts well. some that's environment in our distribution We've centers. really compensation who were June extra and of that we skimping their and those this quarter, We

also but other such had some we've as natural So we've down savings Travel were during additional really, quarter. well areas the in expenses travel. costs had

standpoint. each quarter quite the an and we So well operating And did expense large see can other. those during from extent, offset the you things, from

distancing what lot you it environment, rolling are been telehealth payment a or that has MWI things commented in tools like mentioned of we said that out parking There value-added Steve that or plans really off. customers a standpoint? services customer to talked drop the are number his help to from this digital on script. MWI social the that doing of whether Some be during Steve You

services are value-added same managing of to capacity is Courier types and these like value transport tools of put of So just Kind more able was in services provide type businesses air customers. more MWI this seen customers complexity World And of environment. limited, can provide. on that as the be Courier type thing. that providing to the even We've World

just couple providing. a the couple a samples additional of of are were So services of we those customer

Steve Collis

innovative Yes. thing The we've to only services looked this ways and environment. other be new that expand responsive our say is I'd and for to

the with So the is that the way communicate our internal, some of associates. innovation we really

been them, great we have online. So we do usually a has continuity we that environment meeting done and also to have done about transfer that's important I strong second lot things have X,XXX with lot been it, a X,XXX it's ION every of communicate. a Friday, they of And like ION companies but But very sense these able global calls, on and of opportunity again, to still then we've their earlier. to our customers. people talked to

I both in and been think The large manage appreciate customers very really that we've touching small And customers. been base, small connectivity. with digital able that's that to important. this environment

So, thank you.

Eric Coldwell

Yes. Thank you.

Operator

comes And JPMorgan. with from the Lisa question Gill next

Lisa Gill

to we Good practices as early What about fully I maybe moving in were into specialty morning. XXXX thinking the too of just do. XXXX for think the quarter little It's questions. And conservative maybe quarter. I were able given are I had so a we looks your you back fairly your as a volume It forward? Can And it's about what just going want even think the then if up? into know things July? about types to XXXX? And better-than-anticipated. fourth guidance moving your like don't how going pieces but go just couple to start so of you

Jim Cleary

Yes.

there which, the me say I you the looking on on first specialty, course, at is think that will address telecom. I will XXXX. address Steve Let then there were breaking follow-up Lisa of a is of we're that up part it. And there

caught but I question. the of I think so most And

we're year. planning always this into are midst we the the internal of at time So of heading in our like XXXX, process

have course, We're expectations. COVID planning, health things some looking might of recent XXXX, did again, our we year of the OpEx We our be benefits at all of units' to at like OpEx. hard the our which we're at year could fiscal benefit doing we're looking, to fiscal on things XXXX in impacts that We're costs COVID system. most look the OpEx impacts XXXX. be business reentry care as quarter, of get we're what that at level in looking Some in the as and particularly

talked generic Of fiscal and of this the and deflation we've happens XXXX. moderation some we've of pricing, course, there we're year generic looking year about at brand what that seen in and

was, So look income focused proposition, come when that our look growing at our at relationships we And we're XXXX really fiscal to growth, on value as expanding year deepening do you XXXX. with compared fiscal I fourth and thing is, is about operating year. we we as the in then important quarter, note guidance PharMEDium in also, year to out one a the for meaningful June did about quarter and $XX the prepared fiscal year year It $XX million expected million XXXX, benefit remarks, in have XXXX. $X fiscal the said in as as million fiscal

account. into And a I think thing on specialty. take had you follow-up another to then that's So

Lisa Gill

that me, that around but Yes. to hear helpful. the I'm understand the if marketplace, sorry you business on want any what recovery just would into July, going just specialty can't drivers the just the be I specialty,

Steve Collis

for have your to Yes. hope and I January, but you're see. guess question I we'll you. I in have going Lisa conference a

So but.

Lisa Gill

hope Well, well. -- I that as

Steve Collis

everybody good again. to it will chance see be a So yes,

to little April to back In So businesses, we we're specialty levels at well, different. and then had recovered off were business, and our look, bit was percent look you is in pre-COVID the biggest levels of we're a oncology, back of it a obviously, very other the some we if basically oncology. in we couple were

them July, have And stabilized. say Some but trends Besse-based of weaker, businesses we're the just seeing up. going the that into lift a they I'd now were really this bit

So there a pent-up demand. was

So up that. we like on like we and where to it's keep saw not it's strong high. going saw some numbers going you really It's not

proven, to specialty if you're and in return. feel again, have levels going are if lot for it's make as and services community I patients to I'm you you that I all very durable need they that very that think, to very muscular And chemotherapy One this safe, access the health that's those point system. think important have to physician's soon that's important. And that office as incredibly we've thing think a of if a back to. unique have the country, into I system what it's patients. in So trying safer for the this a distribution is at you patients went than it's can or MS, the care outpatient interesting into even a the lot where of is felt pre-COVID always, degeneration, treatments, they larger crisis, obviously, going you And

So it's health have example we good such system, that of a practices. of way resiliency care the the the community U.S. strong

So, thank you.

Lisa Gill

Thank you.

Operator

question George And Deutsche the comes Bank. from Hill with next

George Hill

guys. thanks Maybe taking morning, Good Hey. And for question. my two brief ones.

reflected the pharma in June. guys July you how trends at saw end the Given the business of you adjusted from the what guidance, that kind assume I core of

our has in any the maybe sites. that you interested you've strength the to trial comment it around be relates to then seen deliver So in ability business? Courier World good. samples quick clinical as just Would business products and been And what a July in commentary on to

Jim Cleary

This to be sure. Jim. happy that. answer is Sure, I'll

Before talking as about important really July, we saw notable distribution month of of was and to I June. month think really businesses the all what May grow the our from

what And then nice the to very growth the we in month May. stabilized in And consistent has June June. saw with so July, of we is really compared saw business

value remarks, of as Steve the a what of saw seeing. World of are World before, the we're had was more we've record indicated transport And we placing There really trends like prepared in Customers Courier July said month we World the really at month complexity was patient. said, stabilization. results. But service. a some managing direct that during Customers the strong pleased COVID-related so capacity opportunities value by and very just Courier, June, as said World Courier, service. And then in as air I've before, to excels on course, limited. as I were Courier's

mean, I overall, at just trends seeing saw that businesses, like July. And Courier other continued in June, we so it's and World and positive good growth in our

George Hill

helpful. Thank you. That's

Operator

next with And comes question Charles from Rhyee Cowen. the

Charles Rhyee

questions thanks Maybe for the taking Yes, hi two just questions. here.

but can You there shut us Obviously, that opioid Any for us And sort judge current kind guys the those been also the on the piece API what drugs mean or that could update things? do part, of some didn't there? of with. I thoughts on broadly either the and of plaintiff's from distribution might of market secondly, generics recently really would a kind drugs. touch had more you because for provide that some down talk your litigation. side specifically, request on there's like onshoring Any Can the attorneys. of us the recent in you you for lot give updates news it crisis, of production then more a what there about think of either provide generic on of the

Steve Collis

the of yes, on no substantive update. Yes. first all, there's opioids, Charles,

said we and on issue the the a that complexity So been. on the prepare involved, focused pandemic, think of given continue the of counterparties we've for parties and been to also number call obviously. of have last And the I we lot the trials,

the your work the remain merits framework. counterparties, to focused chain repeat a of see please? hope just the needs of then supply continue do on global potential part essential parties, we meet And in the during of the question, the second the the to that will we And other We patients pandemic. critical

Charles Rhyee

bringing about there's generic yes, some etcetera? was talks onshore It manufacturing yes, of APIs, Yes. been the

Steve Collis

Okay, sorry.

and discussion just there senators and with sorry. of API. the this who's week involved also I this, a infrastructure that is are do call company the even security they and one on of different reading in PPE, Washington essential and from some Yes, of parts that we is that PPE was but Yes. needs on were it's the the calls of in And maybe API this about talking are just Sorry. I country. And

work which offer There's So work taken with incredibly industry. become happen of cost offer global has with overnight. And of don't the of environmental The has issue, a chain policymakers, expertise also services seriously. very our There's course, think we course, lot things these our I also will as AmerisourceBergen always have, complex. the everyone supply and issues.

if would through then if So done statute. are to have to there any see are, it a changes. there be major And

to So legislative be through the it would process. have done

be in we would involved So that.

So, thank you.

Charles Rhyee

you. Thank

Operator

Morgan And from question next with Stanley. Ricky you. the Goldwasser comes Thank

Ricky Goldwasser

Yes.

like your we think of when about administrated relationships? some COVID last How administration comes Can you fit distribution does the So once working market. of talk you private kind it a there, your the And vaccines sector capability? that think the on on with the will available be about it about vaccines infrastructure with there are channel week to and capacity? where bit and headlines do government little

Steve Collis

Yes, Ricky. voice. to your good Hi, hear

in in are look, the We was And supply world, but of said speak the I involved mean, few can't the rest have supply in a we actually the a cold the I chain chain. World I U.S., months ago. I Forum on deeply for for panel Economic deep capabilities. the

of as needs the with we make that sure Now would in we manufacturers some where, but of are the the prominent what very significant. see countries. quite play in confident We'll final other the storage U.S. the role. requirements and work I'm requirements meet reported dosage the We market, to large that are, can probably wouldn't we a market share have course, temperature

should be AmerisourceBergen around and community as event galvanized citizens. with of just active would that discussions been be plan. very start of I You the smart part have probably, excited in we to course, It's health honest, and global to it's manufacturers involved that the we as care know, an think

health emergency-use there workers. for it care is, You whatever we for be And hear the candidate that authorization first capabilities. have could the

good where have are. into insights spots hot We the

capability to We together. those good data have blend sets a

confident AmerisourceBergen will do asked that. serve, positioned to be So able strongly to to if be I that feel

you. thank So,

Ricky Goldwasser

I'm could on of earlier be into year? from an vaccine. is year under a being seasonal normal your with flu this just And flu give this today that can normal one us follow-up normal a some with then, it discussion kind around And what in is season. of contribution on call a vaccine versus you guidance incorporated like guidance? a be may of year, what the the sort flu the vaccine How

Steve Collis

not than so much many products. example, they because so do products Ricky, physicians' more of vaccines offices, are other service, different use distributed for specialty there's points

they med-surg often. customers, products would vet access their not they're their So through distributor AmerisourceBergen typically and

vaccine that do a distribution. lot other peers two there's So besides companies known best of our

of it because responsibility I years country be and to the from ended. ASD material gets working literally know, some the add as have is on XX% the issues started we we with expect materiality the our responsible it's for year not material division, which managing or It's That's Jim, it was year, would that to we ABC. but it bookings and on season you also, not ABC. be anything a it could was on to in that as About this me. updates? to reported so. into do that XX% the hope to strains, product. manage. really And start very vaccine, of difficult the higher working the somewhat it the So as manufacturers vaccine, this manufacturing, flu do, not We direct. I It higher it the will expensive it. But is and

Jim Cleary

plan very relatively current of our small our part guidance. balance Yes. the a for It's the in year of

Steve Collis

could communities drive in pharmacies occulation our it they business in as at community our do Yes. [ph].

that to used it. have could into start getting been going to pharmacies, do patients way be back who So to reluctant for those good a to

this So that just an I that, year, could flu from vaccine be that's idea. positive a think but benefit

thanks, So, Ricky.

Operator

the comes Research. with Thank you. question And next Eric Nephron from Percher

Eric Percher

any discount been move cash XX- And those pharmacy Thank like cards of seen the you. tools discount the independent a within It the PSAO, Have cash do marketplace. particularly for offsetting, you health the to offer card and sounds pressures? pressure. A XX-day assets pressure? you on has question to and then your the

Steve Collis

Eric, look So, at if you -- hi.

grand scheme significant overall share there's you the look of not the the service. marketplace, very If market at

mail is scripts. course, well Of in quite it saw uptick March, XX-day and we significantly, increase there in our an was that the documented

value. our counterargument Good XX-day years the Neighbor cases scripts." you care have business. has would Pharmacy we your talked at I a is interested unique professional group, pharmacists certainly, I scripts. an one pharmacists said, I get in became and access that ago, then CEO independent again, generic most time. know. a and role most your common that in is that is literally things the mean, "You in the co-pay prescription the very And increase guys must when with But more it's of $X do at people the XX-day something And have I market, weren't first today say you XX to trusted as the I professionals and become to And can when good which that patient there for in good of adherence, community certainly one I and to remember the as would However, to as up and point accessible pharmacy. pick and go pay very health to

independent lot know service and with by We pharmacists we them. again, working approach of value that differentiating on think carry we we're the headwinds, So well add business. but some entrepreneurial the customer and will think that have the we themselves a they, Jim? to

Jim Cleary

to independent sales our comparable a then the one in the from add, with June. businesses in of over is in rebound of businesses, many with consistent March, Steve, in lower growing shape rebound was July, Yes. that month other the June April. Eric, the our to quarter of like kind pharmacy But forward distribution sales in and I'll thing the May pull other distribution stabilization our of then sales

Steve Collis

Thanks. you. Thank

Eric Percher

it that unemployment you in data. see Is the but Thank seen furloughs haven't if you, there's fair? and more things, could as concern cash, significant that to independent move that a deepen today, you we change see

Steve Collis

we Yes. no script at on might coverage think said was impact volumes it most, we've that accounted for many I implemented for that the always have having thought saw be insurance a patients. we important doubt years to X% Affordable said, there's when we Care mean, I is Act may the X%, because

between so have that they impact the we accessed in profound are assess don't all and seismic well have are often, their not they so know, and a been but retirement we set. there's aggregate. seniors, they And Medicaid, Medicaid as sometimes you supplemental to lot we trends the we're by employment differentiate on don't are selling and also insurance, it's Seniors But that really it's or a here. to employed hard prescriptions So of right?

and it So us would is, but coverage. the it doesn't that say that And access really in that patients continuity final with you very truly what is that proud this continue thing I to very it's matter important to I'll of agree coverage support businesses up assistance make stepped patient we're do our that Lash time programs, to like have which care sure patient work. manufacturers there's of

Eric Percher

Thank you.

Steve Collis

Thank you.

Operator

question next the Anderson with from And is Evercore. Elizabeth

Elizabeth Anderson

clarity morning, on on Animal outlook a Good guys. I for question far. all so Hi. Thanks Health. have the

But continuing are I you've gains July on quarter. of transition? do had go months? some during it sort share commentary from how seeing recent of for that the And obviously saw second you see you sort you as that forward, gave business think how consolidate the we to over you business like some

Jim Cleary

Yes.

are its impacted and during commented, fundamentals so But quite for quarter. operating Animal the we Health Animal Health COVID-XX income by really, MWI And as there had strong. the

was As we and commented, the we U.K. Animal had animal. impacted Production a good we quarter in in Where companion

at nice. but animal which were also fundamentals And the business business during impacted up has relatively our the animal a look food very quite The But actually looks It be health a production quarter during so was the in it was slowness animal, rebound just fast but for like will if for plants' which and due the some sales companion in you rebound the quarter. U.S., slower to strong, capacity, good while these by service. market. capacity, are been plant in in

there, on services. been really by execution are execution market as good has quite good, you value-added trends revenue good share, and the team commented, Our good

long about term. positive So the the business very we feel for

Elizabeth Anderson

Okay. Thank you.

Operator

I return as was to floor last comments. And would like management that to any the for question, the closing

Steve Collis

Yes.

a busy to give delivering know those roles, associates, a So day. our was all thanks in thank front participation associates the on health And care. morning. line, it you, our your want this to including all special but also essential role for serving to everyone, on of I who's I our for those

deepen are your We and with relationship today. Thanks for value proud the dedication our and time our of to really customers. innovation expand our proposition

Operator

you Thank concluded. for today's now presentation. has conference The you. attending Thank

lines. now may You your disconnect

Cencora (COR) 5 Aug 202020 Q3 Earnings call transcript