Brightspring Health Services Inc at Bank of America Home Care Conference (Virtual) Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Joanna Gajuk - Bofa Merrill Lynch Asset Holdings Inc - Analyst : So thanks, Jon and Jen, for joining us. So maybe just let's start with specialty pharma. Clearly, that business continues to surprise to the upside, right? The most recent guidance, when you compare to the initial guidance for the Pharmacy segment, right, the biggest segment, is almost like 9% or so higher than the initial guidance. So can you walk us through the sources of upside there in terms of what drove this outperformance? Is this any specific therapies that came in better or just more of these new contracts coming in? So just kind of shed some light on that outperformance.

Question: Joanna Gajuk - Bofa Merrill Lynch Asset Holdings Inc - Analyst : There's a lot of things to unpack there. But I guess the interesting comment around the fee-for-service business and such. So would you say that that's -- there was another kind of acceleration this year that you've seen that would explain maybe some of it? I mean it sounds like there was maybe more than usual in terms of new launches and things in generic conversions, but it sounds like maybe this fee-for-service business is growing also pretty rapidly. So is there some new push that you did this year?

Question: Joanna Gajuk - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Right. And to that point, the specialty pharmacy revenue has been growing, like you said, 40% or so year-to-date, and on top of 40% last year and 30% in '23. So essentially, the question is like, how much longer can you grow at these levels, at these percentages, I guess?

Question: Joanna Gajuk - Bofa Merrill Lynch Asset Holdings Inc - Analyst : And I guess when it comes to, like you said, growing faster than some of these end markets, so is there any speculation who you're taking share from? I mean it's highly likely the smaller guys. But any kind of indications of where are you, I guess, taking share from? And I guess to that point, there's obviously interest in oncology from others too, and I guess the question is, would you be interested in, say, owning oncology clinics at all?

Question: Joanna Gajuk - Bofa Merrill Lynch Asset Holdings Inc - Analyst : And maybe, you mentioned the pipeline of new drugs, the $90 billion or so, so kind of -- can you help us also understand the two forces that you said? There's the new pipeline of drugs, but there's the generic conversion. So kind of when you put those things together, how should we think about the revenue, I guess, squaring those two forces, right? And also, can you here maybe talk a little bit more about these generic conversions? It sounds like you're thinking that kind of the dollars in terms of the branded conversions are kind of maybe smaller than maybe what you experienced the last couple of years.

Question: Joanna Gajuk - Bofa Merrill Lynch Asset Holdings Inc - Analyst : And I guess when we talk about these generic conversions as such, we can see the other metric, you mentioned the OpEx per script. But gross profit per script, right, has been growing very nicely. So it sounds like that's benefiting from the generic conversions you alluded to. So can you walk us through how quickly gross margin percentages improve after a conversion? And any other dynamics around these conversions in terms of how we think about the timing of when those things flow through into your economics?

Question: Joanna Gajuk - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Yes. And part, I guess, of your specialty is also infusion, right? It sounds like that's the next area of outsized growth. Did you expect -- I mean, I guess you're starting with a smaller base, right? Can you walk us through kind of how you envision that? And does this require more investments to really execute on the 20% growth that you alluded to that you expect in EBITDA in that piece?

Question: Joanna Gajuk - Bofa Merrill Lynch Asset Holdings Inc - Analyst : And I guess in order to do that, I mean, it sounds like you have a nice footprint when it comes to pharmacies, so do you anticipate the need to acquire more assets? Or will this be more de novos? And I guess on labor, is your model in terms of employing the nurses that go into homes or you use the third-party staffing? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 08, 2025 / 3:00PM, BTSG.OQ - Brightspring Health Services Inc at Bank of America Home Care Conference (Virtual)

Question: Joanna Gajuk - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Terrific. That's helpful. And I guess on the other piece of your Pharmacy business, the home community pharmacy, a couple of headwinds, I guess, this year from the bankruptcy of Genesis and such. But should we expect a little bit of overhang into next year from that? And also, can you talk about the core growth in that business?

Question: Joanna Gajuk - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Okay. That was my follow-up question whether you expect to grow despite the IRA. But it sounds like, yes, I guess.

Question: Joanna Gajuk - Bofa Merrill Lynch Asset Holdings Inc - Analyst : I guess we have only a few minutes left. But on the Provider segment, right, so hospice is the biggest piece there, right? And business there has been pretty stable. And I want to say in the past, you talked about the end market, hospice market growing 5% to 10%. So how do you expect the company, the BrightSpring hospice business to grow relative to the industry? And also, is there something to be said about acquisitions?

Question: Joanna Gajuk - Bofa Merrill Lynch Asset Holdings Inc - Analyst : That's interesting. Okay. So there's some other things you're doing there. But if I may, on the home health piece, right? So we got the final reg out, right, that looks better, much better than proposal. But still it's a negative net update, right? So that's not great. So does that change kind of how you're thinking about that business at all? And does it change your appetite to do more acquisitions there? Because I guess now there's still something that's pending, right, in terms of the closure, but kind of after that, how you're thinking about that business and growing that.

Question: Joanna Gajuk - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Great. I think this is all the time we had. There's other things we would like to cover, but thank you so much, Jen and Jon, for joining us today. And thanks, everyone. And please stick around for next session.