Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
Please consider a small donation if you think this website provides you with relevant information
| Statement |
|---|
| But we're very confident that we are on the right path organically for our long-term growth objectives of 4% to 6% growth for pharma |
| Debbie Weitzman specifically is the CEO of that segment, has done a fantastic job driving and leading the day-to-day activities of each and every one of those initiatives that you just highlighted |
| Our inventory health is fantastic |
| We have, you know, leading products with great margins and great growth, and we couldn't support that volume |
| We're confident in the strategy |
| In the other 60% of specialty where we have many advantaged positions, we feel very good about those ongoing organic investments |
| And so, but the basic premise behind this pillar of the plan is absolutely intact as well because we have really good visibility on the leading metrics |
| This is a good healthy place |
| The sector has fantastic cash flow, fantastic balance sheets |
| And that's why we have confidence, especially in the second-half of fiscal ‘24 that you're going to see us growing that business consistent with the market rates, because we do still think that you should anticipate, good utilization in this space that's what our assumptions are, again, that low-single-digit type of growth |
| At the highest level, the OI for the Medical business, we have guided it will be $400 million for the year, right? That is a dramatic improvement over fiscal year '23 when, of course, we lost money in fiscal -- in Q1 of fiscal '23 |
| But what we said last, less than a month ago, is we had a strong finish to a strong year in fiscal ’23 across the enterprise we performed very well as we exited the year |
| We were led, of course, by our strong performance in our pharma segment and in our medical business |
| You know, that's relevant, but the growth of this business is core, core business growing 2% to 3%, specialty growing double-digits driven by, just the secular trends in the space, but also our specific investments in areas like oncology, where we launched in the Navista Network, we're pleased with the reception we're seeing from customers, current customers, prospective customers |
| And then of course, over the course of the year, we also had strong cash flow performance, which helped to add additional fuel to that fire through share repurchases |
| The Theranostics business is fantastic, it’s a $1.2 billion of revenue, a little over $100 million of profit |
| Now that strength we anticipated continuing into fiscal ‘24, which is why we increased our guidance a little bit further last month with the strength of that pharma segment from what we had laid out in investor day |
| And we continue to expect strong cash flow this year to help do additional share repurchases, which then results in that 12% to 17% EPS growth for fiscal ‘24 |
| So with the Pharma business, very strong performing, very predictable business |
| That business has performed very well, both because of the secular trends, the things that we don't really control, but then even within that, we have performed very well and executed upon that and that's been a key driver of that success |
| We are going to be the best distributor of those products and services, in terms of the operational basis, customer service, having those service levels in place and the confidence in our customers that we're going to treat them really, really well |
| And that is through that continued earnings growth, the strong cash flow performance, but as important, that continued responsible return of capital to the shareholders |
| So really excited about all that, but probably most excited because even with our strong performance that we've had in fiscal ‘23, we still see significant opportunities in front of us, which is why we have confidence in that long-term target |
| Now that it's in the right direction, and we're benefiting from that strong, secular underlying growth that has been out there this past year, you know, I think it takes less change to continue to adjust path of that big vessel, that big business because it is large |
| With the cash flow that you highlighted, we are very pleased with our ability to generate that type of cash and we wanted to be real clear with that minimum level of repo that we would expect each year so that you can at least understand how we're thinking about that |
| And why we're so excited is that we fit that description perfectly |
| So we have that breadth, and that's what keeps us excited about where we go from here |
| And it's exciting for us because when you think about all these headlines, and all these new products and services, therapies, drugs for patients, potential evolution of the business models |
| So a great inflection of that business and performance improvements |
| So that remains the highest priority focusing on the core and doing everything that we do today really, really well |
| Statement |
|---|
| Go back a couple of years, we had significant service level challenges |
| And within that, we had -- the challenge has been our cost was too high |
| That was a significant pain point for us |
| It's come up a little bit, but it's still significantly below where it was at the peak |
| While that remains a turnaround story, we entered the year losing money in that business |
| We had a supply chain that was elongated, and we did not have enough resiliency in our own processes to be able to mitigate that |
| Volumes have come down as well, but that volume impact is much less meaningful to us now |
| Eric, putting travel challenges aside for the event |
| The one item that we delayed by a year was the Cardinal Health brand volume |
| I got a lot of feedback from the Street that maybe you sounded a little more cautious incrementally on Medical |
| And that started to come down about a year ago |
| And then the prices have come down over that same time period |
| We didn't want the Street to not realize some of the key drivers that we're carrying forward |
| So we've had to burn down that inventory over the last 18 months or so at a higher cost |
| It just -- it feels like this horse has been beaten 1,000 times over, but you did cite that once market fully stabilizes, which whenever that will be, that you're already back to somewhat of a normal margin across these categories |
| And so how seasonality plays out is -- has been masked by the business that we've been operating during the COVID environment, et cetera |
| And it's always been a lower margin product for us |
| We procured way too much product at the height of the pandemic when the supply chain was elongated |
| We care less about the volume because our margins are relatively low |
| So we've mitigated that and our service levels |
Please consider a small donation if you think this website provides you with relevant information