EMBC - Earnings call transcript Q2 2024

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Operator

Welcome, ladies and gentlemen, to the Fiscal Second Quarter 2024 Embecta Earnings Conference Call. [Operator Instructions] Please note that this conference call is being recorded, and the recording will be available on the company's website for replay following the completion of this call.

I would now like to hand the conference call over to your host today, Mr. Pravesh Khandelwal, Vice President of Investor Relations. Please go ahead.

Pravesh Khandelwal

operator. you, Thank and Earnings everyone, Embecta's Second Fiscal Good Call. welcome XXXX Conference Quarter morning, to

The slides Investor release details the press and website are webcast call company's available replay and on www.embecta.com. the at Relations of to section accompany today's

Dev Financial With Chief and Chief Elguicze, Embecta's Executive me Kurdikar, President and Officer; today Jake are Officer. our

include, in will fact, some our statements events discussed in matters we I like would the to future wish begin, We are, risks nature regarding to conference slides. of are contain call caution Before as such statements subject to events on cause filings outlined limited to, remind forward-looking you that but and that and actual or forward-looking the you in in accessed uncertainties, press could may factors referenced factors actual in differ and our today our events materially. as website. can our as or well which be that materially are The results release with not results differ SEC, the to

we substitute In reconciliation to a call, call a not and will on these prepared A GAAP accordance measures comparable supplement included is of press measures our release to with be and this non-GAAP financial which in GAAP. should measures financial the considered addition, in presentation. measures for certain non-GAAP discuss conference

as overall XXXX agenda of of our as call by the strategic as follows. the second priorities. is remarks of for our quarter on performance today's providing business Our Dev an will some begin fiscal overview during well

guidance for as in-depth Jake will financial as our well provide our review QX of year. updated results more a then the financial

call the then will open questions. for We

our Dev Dev? like over With that to the Kurdikar. turn call said, CEO, to now would I

Devdatt Kurdikar

thank time us. for you to and join the morning, Good taking

leadership independent category priorities are: and of on investing Slide an Let's start and to remaining our long-term These strategic strengthening on basis program around our position M&A injection parent partnership the former and of us position remain for X. We growth, same actions, independent in patch maintaining priorities finally, the our well in they and base have most to developed ourselves decisions business for our as separating our service the our insulin success guided since the as global of seeking established company. form devices; while notably trio strategic that we is additional insulin as a as that committed company; mitigate in our with manner thoughtful focused opportunities. an risk X us and from type being market priorities pump

we made of significant within progress goals. During quarter, these this each past

second quarter Turning to some highlights.

The second X.X% quarter an was basis. for a and million X.X% in an revenue, represented as-reported of Embecta, we one constant which $XXX approximately on basis which strong on a quarter in currency generated increase

capability in network centers, X services comprising of in customers. standing generate to that manufacturing as occurred operationalizing markets our to sales products simultaneously over nondiabetes former own XXX When new we based currency system, while including up expectations of serving the ERP revenue transient parent, new revenue period. normalizing year approximately our the solid our countries contract and our XX% our performance grew our distribution compared This prior and exceeded X.X% constant and distribution X,XXX for on shared implementing revenue

implemented processes manufacturing also third We our these systems and plant. in

and ERP Asia parts revenue at and U.S., in Canada, quarter, our of end of across China. approximately shared distribution system EMEA the have implementation at capability and we manufacturing completed servicing Thus, customers service the the network X operationalized of and our second and all of our in plants the our base, of Ireland U.S., XX%

for steps ownership in its from transitioned BD Embecta. the demerger legal remaining Additionally, our we to entity process successfully have manufacturing China in the completed and

in customers facility this at to our China. We have manufacturing resumed also products for supply for

have this facility the to is commented markets, We other for was that fully export operational. now producing plant goods so previously

timelines. restarting ownership project completion our a of production in with our alignment date. domestic transfer that The marks since Embecta achieved has of prior the meticulously of and separation were of of these China from to our significant this accomplishments been the working All projected team BD important to spin-off on plant

Lastly, in services extension, granted relates We as in by and goal early TSAs us implementations of services agreements our facilitate ERP to which and from deferred in to XXXX. fiscal system ERP completing an markets manner associated it capabilities. implement requested allowed had solution, and shared for network of we limited certain the except extension year implementation certain and distribution BD. that BD has phased our with activities, limited all these separation the capabilities phased related distribution jurisdictions a shared closing

It near that for these highly saying goes and team these implementations projects to completion. proud are without complex our I'm intricate, bringing of

care insulin with familiar diabetes. X It type in care for the with highlights the Delivery titled, Insulin our This Enhanced pumps to in like Overcome Type we insulin of delivery physicians Opportunities inform systems and improving of Diabetes: glycemic Narrative the about paper those A Related with objective of pump technologies and of people providers, less publication primary Review. innovative Underutilization entering safety technology to aims X health a particularly infusion sponsored People Technologies outcomes. benefits effectiveness to of paper the market,

primary the settings. can and often technology overlooked these challenges devices explains delivery how review delivery traditional economic associated tubeless care technologies of clinical proven insulin in address common insulin Despite are this explores methods. and efficacy, with advantages The the

of that these about insulin And speaking more developed. the being in we of share I'll in following continue patch slide. pumps accomplishments insulin pumps, progress are to make patch terms

on range operational exceeded that which second results, our tightening discussing the expectations, quarter, based led will our strong during and these internal are Jake to and summarize, for results metrics, raising financial we execution key To later. be guidance

made advancements patch insulin our to program. of in the Turning terms pump we

FDA review, to and we loop under FDA. Our patch be the open dialogue XXX(k) ongoing pump have application for of continue insulin our to with the version continues

application XXX(k) our submitted late calendar we the in XXXX. FDA year reminder, to a As

during have including towards algorithm in used who Tidepool into type second closed-loop development that of also collaborating adaptation insulin parallel, diabetes, with we be X the In continued individuals pump a type FDA-approved X is a that patch could system. concerning their closed-loop our algorithm type those X patch of quarter, the insulin the targeted further pump

As we we continue closed-loop to regarding as this time community will we review type of appropriate FDA's at the year, continue X regarding provide to patch progress to well our throughout investment progress made as the pump. the updates status

like performance to provide would bit revenue more our quarter a second I in Lastly, detail. review a of

the revenue sell mentioned represented on basis which of outset, as-reported at I a of revenue changes of we when an normalizing BD. currency and the contract nondiabetes constant of basis X.X% million, increase the As to during X.X% $XXX.X of in an year-over-year an increase and generated products manufacture on impact for that or QX, X.X% we

primarily and revenue communicated U.S. geographic increase focused expectations, and to of orders from previously benefited capabilities associated QX in our timing Our product a parts exceeded customer of also advance of ERP EMEA advance Asia due and QX the in better-than-expected in of the price mix. implementations revenue system aforementioned and our a

by of approximately We the unwind results fiscal will our orders quarter customer QX. during estimate the impacted timing that timing positively expect we $XX benefit currently that million and second

contract U.S., a constant currency constant represented X.X% revenues, year-over-year approximately $XXX.X year-over-year on basis. growth the a normalizing of Within our revenue the during which for underlying quarter, When Part contributor currency revenue growth manufacturing plans top wins XXXX. X.X%. going the was million, totaled the in aided primary with Volume by D approximately within contract the Medicare X was U.S. the effect of quarter, January into in growth our QX

quarter previously unwinding have noted, Medicare of by in preferred or on us plan certain fiscal benefited the preferred earnings call. these our formularies brand D were somewhat volumes quarter dual These for customer orders additional the our discussed was first we are As as on the we offset plans. that Part first

as was the year in to the quarter ago period, Pricing expected. was which flat compared

international implementations timing Pricing relatively be QX, year-over-year of to orders remained X.X%. growth constant ERP in our approximately totaled our can which business in international the quarter. volumes capabilities that advance occurred and customer During to of $XXX.X of and flat. was previously associated within largely our currency attributed within business certain increased Growth mentioned due to the international revenue million, equated

that, my the turn our full as completes more over you take prepared financial updated through to Jake? And Jake let me as our in to well guidance call That remarks. financial results with year quarter second detail.

Jake Elguicze

good everyone. Thank you, morning, Dev, and

second the Given I performance my that gross regarding profit the will revenue, at review discussion quarter Embecta's has start line. of the for already financial occurred

XX.X% GAAP second million $XXX.X million totaled quarter gross XX.X%, $XXX.X compared and the of in margin This fiscal period. to prior year the and XXXX and respectively. profit for

to compared prior adjusted an totaled gross in XX.X%. basis, margin adjusted $XXX.X XX.X% This and on XXXX While year $XXX.X profit million QX million the and period. and our

and raw temporary translation, materials, the dollar. attributable Chinese shutdown the inflation impact the domestic of market quarter; margin for impact relates The in certain was production profit the variances the to direct freight planned manufacturing of China and year-over-year negative on decrease part year-over-year Suzhou, the currency as overhead. to our for of foreign The strengthening negative U.S. it labor, primarily the due adjusted to to facility and of of primarily of the impact gross cost of due

referred due higher compared and prior as earlier to quarter than geographic revenue outlook, second well the favorable expected, mix. margin that was previously the better anticipated adjusted gross during and Dev As our we to our was than as this to product

margin. GAAP income to Turning operating and

$XX.X This compared in the period. million the and they prior and million were second year quarter, XX.X% XX.X%. $XX.X During to

totaled and in XX.X%. year basis, our period. margin to prior an on and adjusted XXXX While million million adjusted income This $XX.X the operating and compared QX XX.X% $XX.X

algorithm TSA reduction primarily just in adjusted SG&A were the The as expense, made increase R&D profit adjusted additional connection with year-over-year to is collaboration year the in associated offset prior to and period operating a payment in with discussed costs in Tidepool by costs standing gross an due well income as in as somewhat upfront a year-over-year the up in changes well the expenses. an reduction agreement primarily margin organization. I decrease due These as

performance income margin the better to spending previously margin of during QX gross of with and the timing due R&D we the within was overachievement quarter. operating line, adjusted expected, primarily the than The coupled

which during line. $X.XX to were million quarter the of fiscal diluted and income in period. $XX.X Turning $XX GAAP XXXX, and net to year per the earnings $X.XX compared second bottom million and the prior share

were $X.XX adjusted during and the and fiscal million of on prior earnings and net While $X.XX to $XX.X compared This million period. quarter an XXXX. second per income basis, year share the $XX.X in

net income and year-over-year profit operating due per in adjusted just is I diluted earnings drivers decrease the discussed. The primarily to adjusted share

a in reduction an rate approximately of rise with had QX XXXX. and as increase variable the approximately our of QX debt. our the in in SOFR to by interest tax in impact somewhat well This was As XXXX in expense that year-over-year XX% associated adjusted offset interest from rate on XX.X%

due was year-over-year The reduction was tax adjusted during occurred our rate that expected in discrete items to certain the tax quarter. and

the expectations. was rate in our For XXXX, our tax approximately adjusted X rate first months annual line XX%, with is tax which adjusted of

P&L a perspective. from Lastly,

of totaled XX.X%. million For the EBITDA in second and quarter million compared year $XX.X XX.X% XXXX, adjusted approximately This $XX.X margin the and prior to our and period.

flow. months the approximately sheet balance our stood net the Turning cash facility at our XX while leverage, second last X.Xx. agreement, cash credit quarter, defined to as $XXX.X and balance under totaled our of the million, end At

As requires to stay a covenant reminder, below our X.XXx. us net leverage

implementations. that trademark work, associated $XX used onetime tax, months and resources, global and temporary during first year as approximately ERP Legal than warehousing cash is flow the been activities, XX related finance, lower of cash and activities. From our attributed business costs resources integration costs, our has IT-related cash estimate September accounting, balance March patents with costs, X registration XX, which the of with separation of within a IT and as million and existed of human fiscal this to and largely million include that distribution used the product and count perspective, we head associated costs. regulatory XXXX, separation-related primarily labeling approximately to is We balance towards setup that cash $XX

an compares estimate a that for fiscal activities. towards of we the end expectation roughly we balance use cash we $XXX the approximately approximately fiscal year, for cash year of forward, that existed quarter. second million we look This will activities $XXX the used to the during full As with balance at includes year cash $XXX XXXX. XXXX This of and between will currently that end separation separation million to million comparable

XXXX our the improvement Given flexibility capital fiscal be allow and in that debt would with expect beyond, most allocation, cash us we fiscal projects repayment. an see terms this including year, to complete expect which separation to additional end in by year balances we in of of would

we our our sheet implementations mentioned given BD. show and exit balance agreements Additionally, previously trade receivables our globally with on of ERP factoring now the

system receivables more have in to America. pleased functionality a of within following typical report service of North North implementation and cash collections the XXXX that the November returned with those that levels in and receivable this America, I'm within continued a our direction that ERP accounts positive to to trend of associated has shared

This as Asia, us is to March ERP shared cash service in and newly our XXXX receivable into on exists within those of EMEA regions. important receivables and capabilities allow will generated attention focus following it accounts our turning and the those that implementations

That QX completes my fiscal comments on results. our

on update XXXX full year our an provide financial guidance. will I Next,

with revenue. Beginning

compares full increase midpoint. to This which year as as down tightening range, called to approximately to constant down XX now at to prior full we year, compared range Given compared X.X% of the points year constant currency our as our year X% currency flat flat we our revenue basis prior be performance constant XXXX. are during guidance the to currency to or to an for the of guidance XXXX calling for revenue the be half first revenue are

revenue to The is nondiabetes end revenue now injection flat with constant constant underlying headwinds prior diabetes of low as currency assumed contract range guidance. of compared driven expect our products. a we prior end reduced our by product decline as the while guidance, in X% our manufacturing revenues associated our entirely our is updated guidance core to unchanged growth range revenue be to compared currency high of year-over-year

Turning to FX.

versus These that X.X% existence updated XXX $X.XX. On a guidance, April million late compared FX of basis, prior resulting including the be our as on down rate rates in a to foreign previously XXXX, revenue to which in to are X.X% exchange of U.S. euro and provided the combined revenue foreign currency a were $X, reported be guide a assumptions dollar range reaffirming between are $X,XXX We frame, approximately for for guidance our calls exchange between of as and calls time year. based updated million. an to X.X% headwind during approximately

margins. to Turning

operating the and basis raising our are We midpoint by of margin EBITDA adjusted XXX adjusted adjusted each. points guidance gross,

XX.XX%, margin XX% and As gross of we expect EBITDA XX.XX% between adjusted and of XX%, adjusted operating now of margin margin between and XX.X% between and adjusted XX.X%.

our combination of margin and guidance $X.XX Finally, a outlook, midpoint between we earnings from due revenue $X.XX. $X.XX adjusted of the to increasing per an a new share a $X.XX range and to increase are between improved at range of or and of $X.XX

diluted guidance be $XXX assume interest $XX.X that that be annual will our adjusted that our expense weighted be will and approximately annual tax XX%, net updated continues approximately range to our outstanding million, will average shares Our million. rate approximately

the call at This Operator? completes my to turn questions. the operator for And remarks. I prepared like over this would time, to

Operator

Steed Securities. Bank line first with question from of [Operator of Travis the Our Instructions] comes America

Unknown Analyst

the beat and on year looks I full the $XX guide start about like wanted by [indiscernible] then It Caroline million. Travis. with guidance. is out first $X.X to you raised full by million for expectations This year

I'm impacts XX if can I speak the onetime and any a So forward believe was was in said manufacturing wondering pulled million previously bps then to that you contract about you headwind. $XX quarter?

see and else for if And consideration we here. wanted year one to that be full have that taking should into then confirm there's just that got I follow-up. right I guidance I So anything the

Jake Elguicze

Thanks, Caroline. Yes.

about million well about in did to we internal We we to million refer I not expectations. you $XX think I'm timing. expectations quarter, the just did transposed. that by had beat think the the $XX going necessarily and But in our consensus refer have I being own to did of numbers might quarter. very to attributed

in saw volumes in April in order normal the in to we ERP a simply U.S., saw and our of additional timing markets, we of And advance price our by quarter. benefit million some in advance [ quarter. be about that of customers in the So increase, the ] $XX then about probably estimate the U.S. implementations, X $X we product the some international million in additional

$XX quite U.S. sort had QX. what underlying into to largely expected, than reverse So business effect internally million we of from would well, did better to the we million, the about did QX previously due then $X But

to think to relation half full U.S. the of occurred midpoint, the second guide. In in prior in commissional relation which the favorability of midpoint the the the raising $X.X we line we're EMEA year, of and affecting top the we're by on our year million about guidance at the in But obviously, range quarter. in $X million

a for the think occur when implementations. about So related very to that you particularly all ERP had I work the think quarter, strong us, to

Unknown Analyst

appreciate needles. an on entering trend. Yes, that there. GLP-X can market. it market the entering the if provide I an a I sure there's say can for outlook got update looks then recently, approval question, anything you there on you for your Kwikpen. second plans GLP-X correction for I'm Lilly like the And more again not pen just with know your

Devdatt Kurdikar

most Dev. the used delivery, leading Yes, that. as take for used get pen you correctly I'll and markets and world. Caroline, for insulin deals share. We Yes, approval our insulin have typically Kwikpen. that's pen Kwikpen, delivery pointed this the Lilly [ for you around use out, is same know, as the ] did in do

with become GLP needles pens, as to them can available Our used and expectation certainly, evolve forms is our more and it. be in pen continue presentation more of

pen likely it. in it's our a of Admittedly, GLP-X will But is potential version will the their including away. the players form pen are needles present more GLP-X and applicable for We market, them hypothesis be multidose our continue years [indiscernible]. to they that entrants as the many into of space, have discussions other enter with GLP-X

these as in certainly, with expand cases, work can manufacturers also used syringes well. using as they're vials. approval, regulatory And Now our capacity, some the to be

more more GLPs available pen needles more So the become pens market, will can those enter as certainly pens. our and be used and with

Operator

comes Marie BTIG. question line of Thibault next from with Our the

Marie Thibault

ERP questions a the still I for happening. guidance now some accounts very those want transition this about I'll of others. 'XX. plan I Congrats receivables, of is the responsible bit little fiscal more was on with quarter some Embecta know I the a work to nice receivables. leave here. in to But know collecting ask did down to

Just wanted expect bit, up look that the can fiscal ticked receivables understand we year? number of why to to for a that how little try to rest the

Jake Elguicze

Yes.

receivable factoring So the the agreements fiscal with we're essentially with had All we receivables on let's we behalf, on went BD where it, those are the factor responsible. has fact live to change that place now in And Marie, implementation, X/XX/XXXX and previously balance that year-end, from, balance our ERP our with our they do call would went away. the now sheet. now where to those in receivables appear entirely

this And at all ceased. the now have of point, factoring agreements

So the additional what There's is for that our balance XXX% the need of like. look are we no you Embecta sheet would receivables AR that our sheet. to receivables representative see balance put on balance on to

due EMEA those the as ERP quarter, Asia QX to fiscal or sheet our From did QX coming and increase an entirely balance now to in a implementations. of are we we right our the AR, now, result see to receivables last on again, from where

total you balance should I QX forward, $XXX remarks sort cash our be that cash somewhere this about from ending think we now we to like in to million very XXXX we're where that stand-up with of the moving to cash would think again, we that down and just for think We kind And fiscal said overall from That's has our way a do were standpoint, $XX prepared close for year-end. that million-ish standpoint, I expect right really the use potential to that XXXX at from separation mark. that entirely related used of of will, this where $XXX the And it so is real if the a activities. this somewhere is million about around estimate we're company. past year free true on million beyond, distorting, move one I flow $XXX cash And prior between year. really think now that's all the you you're sort as and That that capabilities -- that about into of going top to of of of the the organization. of in we comes $XXX free we're to of million things separation. I separation And using and going cash fiscal going see work, think to almost flow cash maybe

Marie Thibault

Jake, to competitive bit dynamics. I helpful. market question wanted little dynamics, And the a Okay, some of ask about that's then a

another think its near sell second fiscal end I blood business to pen off your and quarter, transfer we a meter glucose the of and saw needle competitor company.

I that some was current in here if And quarter? disruption wanted some or seen share very those to on thoughts to existing any in competitor take you've make regions maybe ability hear market any now where efforts the active.

Devdatt Kurdikar

on So the we haven't with as transaction disruption our respect our really focus sales respect continue that mean referring certainly gain vigor share, as ensuring seen that were to you thirdly, present force I much continue. perspective products to from with we and possible to to. will any our with And

well that -- products we with compete these are very We products certainly that think positioned. that competitors' our find

even the referred through to. We we demonstrated notably supply, continuity transitions that ERP of have

we'll leave so at that continue to it And But I'll make that. efforts area. in

Operator

the Kallum Titchmarsh question comes line next with Morgan Stanley. from of Our

Kallum Titchmarsh

the On I'm some to the consider ramping to wondering the here we're in consensus seems the you've time I begin the stages pump just that patch implications. infrastructure the behind next project? more early eyeballing flattish few years. know commercial expect when to across It still OpEx there's program, about had but you the now support costs

thinking changes follow-up. I And then have should we about there? how one be So just curious on midterm

Devdatt Kurdikar

Yes, Kallum.

XXX(k) as focus late is -- completing submitted you just XXXX, in the calendar our our know. review. We undergoing now right look, So FDA

just work our remaining the a FDA. I XXXX. outcome and focus certainly And and completing closing that out is the want the decision to would on expect FY now from so either when separation timing comment candidly, we completing And review don't right or the of

expenses considering and we we the talking and from about beyond. certainly, from as But So decisions closer refrain we I'll 'XX definitive that get more and are FDA. get more

We respect Day beyond, provide 'XX -- it FY and are relates the potential call a as patch thoughts to pump. a as our particularly thinking about or event Investor better on it to

Kallum Titchmarsh

And got then to know fair our I any we've on M&A? enough. keep eyes your for change but That's in leverage, appetite

Devdatt Kurdikar

center improve leverage is pretty and our our debt the pay we here. referred in certainly to fact well. and down be about free beyond. think to I debt Jake minds and 'XX cash thinking front of expect to that And we going are as strongly

something We will investment again, closed a up there. the company will be the have update once to from free the the So AR we'll this available priorities forward that expect just rest is that projects. we sense on of have going of and better and XXXX finished the normalized community allocation out capital certainly about talk to separation cash our we've and

Jake Elguicze

on as to prior Thankfully, referred on sort we went very, keep a in cash gone of wrong. ERP through hand wanting these everything has of think case implementations something went balance to I Kallum, we larger calls, And very well. some

team the to that's for we been into so is as as have which concerned. the a into flexibility more that, of a to potentially go tremendous with is doing off XXXX, pay lot addition that the I the going we think paying just of in as done year And certainly think each down amortization the far, and really half year term provide second of material us job all far just I X% to more that what loan base. order amounts in has

Operator

] Instructions] next of Wolfe LLC. [Operator from Our [ line Schiller question Ryan Research, the comes with

Unknown Analyst

to patch pump. could all It that, ] on for the to revenue to Schiller wanted [ Mike I is This according Ryan product up Polark. seems really if drive a growth. on be follow goes plan,

be you to algo what to Tidepool us give to it Can type FDA? fit get expectation this to timing made to the latest to your pipeline X? on the changes So need

Devdatt Kurdikar

Yes.

that of you obviously, for to, that approved a approved look, aspect, referred Ryan, type was was technical X. So for from type -- algorithm,

know, FDA. adapted The loop, are the way are you is needs as X. with We for be it evaluating this how with to proceeding we under review our open type is

with from are we and ready, is algorithm is certainly FDA we'll anticipation And -- working We after about the about trial for are and a open concurrently get get clearance, we we again, talk adapting this type we loop, clearance when for Tidepool little our for assuming something that can on more talk X. FDA clinical that will timing clinical be of X from type to and because algorithm required closed loop a X of the adapted that's pump. submitting of the here type the patient tested taking in perspective, eventual really FDA data trial then our very and having for that use the element critical for a Tidepool of all the clearance the and

the open and once clarity on on on loop. FDA's more So finish we 'XX timing post -- decision FY have after we

Unknown Analyst

start confidence And of insulin. gives continue companies and have looking this? scale grow to to in get major up That's major about be what that lot to the in the launch And are geographies? approval been A able How you to guys basal follow-up. then will thinking one Embecta the helpful. [indiscernible] weekly you

Devdatt Kurdikar

Ryan. Yes,

we very certainly, well. So is watching something insulin are weekly as closely

insulin, of certainly one are will Europe months. folks in weekly in think expecting the I get form approved coming

clearly a possibly From before, pen be a be. won't mentioned our it's It used needles most quite available with pen, in at widely be And it. with what packaged can seem as pen indications that's we will now, I form. but understand pen it in right or it's if and needle, to least not what be geographies, a

over obviously weekly right? Some of the years. costs factors dramatically insulin adoption that is need to come have the down cost, be Insulin, think last considered few regular when about of you insulin the

to so there with going trade-off a if cost you and insulin. weekly versus be And insulin there's daily increased will. be needing efficacy, efficacy to Is across

the dollars, weekly pharma selling it will to biopharma on where insulin. be companies matter their GLP-Xs and or spend will focus Promotional decide

A are of dosing reluctant is weekly obviously, lot patients who insulin be physicians of the prescribe basal primary to insulin seen because tricky. care by may

in fear believe remain. sort be concerned will they in X, hypoglycemia. potential hypoglycemia so of but X, potentially I type the the with greater type maybe And might higher there for is potentially

People anyway. because multiple daily insulin, to want every injections injections that just of stay are using day they daily take they multiple might

our are mean, folks to rather these So likely patients the these with weekly might be gets that is new look, switching thinking But adopted, I extent are all insulin that -- than basal over. it enough on hypothesis, or mean right? be I real insulin sort more have of precisely in us. impact the patients able of don't all of perhaps use determine to weekly to we accurately data

of time out. that all to weekly are introduced And the that factors out are gets to some figure certainly the so here, I it's But as as into to things world. of it we those insulin take watch going considering Ryan, laid

Operator

no this showing currently Kurdikar I'd the hand closing Dev for at like call over remarks. to to time. I'm back questions further

Devdatt Kurdikar

Thank you, Shannon.

life has priorities, people my providing appreciation of across living As separation-related at strategic Embecta make solutions last our colleagues I globe. In team extend we our up worked wavering for mission and nonstop on that executing while from with better our including diabetes. our since spin-off, the never programs developing major want wrap my the the X call, all to years heartfelt to of

interest your all our the and business. in for for you Thank attending call

Operator

participation. call. This Thank your concludes you today's conference for

now may disconnect. You

Embecta (EMBC) 9 May 242024 Q2 Earnings call transcript