Cencora, Inc. earnings call

Thanks. Yeah, thanks for the question. For fiscal quarter Q2 to Q3, really the driver of the acceleration was the underlying strength in the utilization as we called out. relative to the prior quarter. I would also note, you know, as you look forward to Q4, our Q4 implied guidance also implies strong double-digit growth across our reportable segments. And as you think about that in the U.S., we'll have fully lapped the one oncology customer loss and we'll have an easier expense comp. But when excluding one oncology, we expect to see the strongest organic growth of the year at the midpoint of our guidance. So just underlying continued momentum of the business strength and international as well. And I'll turn it over to Bob for the 340B. Yeah.

… and it is important on a lot of levels and I appreciate the opportunity to explain. So we absolutely did call out the acceleration of the businesses in RCA and 1onc and the market absolutely performed well and we have these amazing platforms in RCA and 1oncology that certainly were meeting the needs of patients through that market acceleration, and we believe we'll continue to do so. And Eva can spend a little bit more time on kind of expectations and kind of where we were relative to those. But I do want to spend a minute on the biosimilar part of your question and the kind of Part D versus Part T, because I do think it's important for everyone to understand how we think about it. I'll start with Part D and, you know, well, maybe I'll start with biosimilars are good. Biosimilars are good for patients. They're good for cost. They're good for patient access. And so anywhere in our business, it's an incremental positive from a profit standpoint. In Part D, it's less so because we provide less services, less wraparound services in the Part DeSpace when a product goes from a innovator brand to a biosimilar. And as we saw last quarter with our large mail order customer, that may be insourced. And so then we have the revenue decrease, but not a meaningful profit increase. So when we think about the Part D space, biosimilars are good, incrementally positive. For Part B, it's much more important, as you alluded to, and that is because the Part B buy-and-bill infusion space, which is where our MSOs, where our distribution and GPOs have such a long history of supporting physicians. And within that history, and I talked about distribution, GPO and the MSO, and when we talk about wraparound services, those are all the things that we do to support those products coming to market from a physician perspective, I mean, from a manufacturer perspective, and then support the physicians in understanding how they may choose to use those products. So that's, therefore, there's a larger profit opportunity because we play a bigger role in how they're assessed and utilized. So we should think, again, kind of all the way back, biosimilars are good for Sankora. Part D, much less so, but still good, even though we'll have a revenue pressure from time to time with those switches. But Part B will always be good, and we feel very confident about the durability of that over the long term.