Brightspring Health Services Inc at Morgan Stanley Global Healthcare Conference Transcript

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

Question: Erin Wright - Morgan Stanley - Analyst : Okay. And can you talk a little bit about the growth algorithm across your business and what we should expect in the coming years, just bigger picture M&A as a component of that as well as some organic growth opportunities, can you describe a little bit of that. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 06, 2024 / 4:20PM, BTSG.OQ - Brightspring Health Services Inc at Morgan Stanley Global Healthcare Conference

Question: Erin Wright - Morgan Stanley - Analyst : And M&A, you did recently close a more sizable deal for you. And how do you think about the pipeline here? And can you talk a little bit about your most recent transaction as well as -- yeah, where you see the greatest opportunities in your relatively agnostic across the different segments. But yeah, where does the pipeline stand today?

Question: Erin Wright - Morgan Stanley - Analyst : And then de novo expansion there are also a key part of the company's network expansion strategy organically. I guess within your latest guidance, what's embedded, I guess, near term or what are your plans from a de novo perspective?

Question: Erin Wright - Morgan Stanley - Analyst : And then thinking about like in our long-term model, we had that high-single digit EBITDA margin in perpetuity. But when we dive deeper into the two businesses, pharmacy segment inherently lower margins, obviously, but you have the provider business that's higher-margin. So how do we think about that mix dynamic in across the two segments and how that will evolve, I guess, given some of the strength in pharmacy as well, and are there other levers that -- from a margin perspective?

Question: Erin Wright - Morgan Stanley - Analyst : Anything -- any nuances we should be thinking about this is more of a short-term question, so apologies second time into the second half or early 2025 that we should be aware of?

Question: Erin Wright - Morgan Stanley - Analyst : Okay, so I'll delve into the pharmacy solutions segment a little bit more, it's limited distribution drugs, I guess LDDs, I think last time you disclosed at [118] plus or minus in terms of what you've won, I guess, data over the past 12 to 18 months, about 80 or so, how meaningful I guess is that for you in terms of your positioning and competitive positioning in the market and how do we think about the cadence of that going forward?

Question: Erin Wright - Morgan Stanley - Analyst : Since you mentioned generics, biosimilars, coming to the fold but do you have that embedded in your expectations. Like do you have a forward -- is that embedded in your forward outlook in terms of certain generic or biosimilar launches across specialty?

Question: Erin Wright - Morgan Stanley - Analyst : And then can you just step back and break out where the focus is on specialty and infusion versus home and community across that segment? What's the mix now? Or where does that go over time? Because obviously seeing outsized growth -- mostly specialty oncology, it sounds like, but other areas, I guess that you would call out.

Question: Erin Wright - Morgan Stanley - Analyst : And then home and community I guess is that -- so you can see growth across that segment? I guess it's inherently slower growth given the nature of innovation across it. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 06, 2024 / 4:20PM, BTSG.OQ - Brightspring Health Services Inc at Morgan Stanley Global Healthcare Conference

Question: Erin Wright - Morgan Stanley - Analyst : It has been very nice growth across the overall pharmacy business in general. And can you just remind us about how much of that is truly organic? And is that you mentioned a whole bunch of drivers there, whether it's innovation, but how much of it would be like market share gains versus innovation versus other drivers at play.

Question: Erin Wright - Morgan Stanley - Analyst : And then on the -- since you mentioned moving to the provider segment, as we think about growth across the different subsegments in the longer term growth, I guess, where do you see an opportunity for more accelerated growth? I know you've mentioned [rehab] an area that's been faster growing, but you have the home health component and versus the community --

Question: Erin Wright - Morgan Stanley - Analyst : In terms of labor, how our staffing levels as the contractors, wage investments like those retention, how is that trending relative to --

Question: Erin Wright - Morgan Stanley - Analyst : And value-based care as a potential area of upside potential $100 million opportunity for you. How do you think about implementing that and how that works across your business?

Question: Erin Wright - Morgan Stanley - Analyst : Okay. Great. And I have to ask just into an election cycle and it's a dynamic regulatory environment right now. Anything you're paying attention to whether it's on the reimbursement side or broader bigger picture regulatory dynamics that you're -- that we should be aware of?

Question: Erin Wright - Morgan Stanley - Analyst : Okay, great. Lastly, if I could just ask you hopefully we will be speaking again next year, what you think is underappreciated today that hopefully everyone will understand even better as we head into next year. We talked a lot about the bigger picture stuff, but are there anything that sticks out that we haven't spoken to?

Question: Erin Wright - Morgan Stanley - Analyst : Great. We're excited for what's to come. Thank you so much.