Brightspring Health Services Inc Q2 2025 Earnings Call Transcript

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

Question: Whit Mayo - Leerink Partners LLC - Analyst : Yes. Jon, maybe to just start with the infusion performance in the quarter. I think you've referenced some leadership changes in the past. And just any expectations for growth over the next few years and how you're positioning the business for growth within, I guess, specifically within the acute market?

Question: Whit Mayo - Leerink Partners LLC - Analyst : Great. And maybe just the follow-up on just the gross profit per script was up a good bit. And just any comments around trying to square that performance to be helpful in the context of maybe what to expect for the rest of the year?

Question: AJ Rice - UBS AG - Analyst : You beat at least relative to consensus by about $5 million in the second quarter and you're raising the full year guidance by $20 million. So clearly, there's some uplift in the back half numbers. I know you had assumptions about a lot of positives coming into the year, coming into this quarter. What specifically is improved resulting in that raise in the back half of the year that's different than coming into maybe the quarterly release?

Question: AJ Rice - UBS AG - Analyst : Okay. Great. And maybe my follow-up, just to drill down a little bit on the development in M&A. Usually, you do about $100 million in annual spend. Obviously, this year, you've got the Amedisys divestiture deal pending. Hopefully, that goes through. And you've got some priority on debt reduction, although most of that is coming from your home divestiture. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 01, 2025 / 12:30PM, BTSG.OQ - Q2 2025 Brightspring Health Services Inc Earnings Call Any updated thoughts on the pipeline or deals away from the Amedisys transaction that you might be looking at?

Question: David Larsen - BTIG LLC - Analyst : Congratulations on the good quarter. Jon, can you talk a little bit about the growth in the home health business? And I don't view the rule as being that material. I mean, it's less than 2% of total revenue, but I have been getting any questions on it. I think I heard you mentioned in your prepared comments that in 2017, there could be a 500-basis point lift because part of that proposed reduction is actually temporary. Just any color on growth and that rule.

Question: Joanna Gajuk - Bank of America - Analyst : So maybe first question on the specialty pharmacy, right? Keeps, I guess, surprising to the upside, I'm not complaining. But just a question, how much longer can you grow at this pace? Would you refer to assume 30% growth in specialty pharmacy to continue next year?

Question: Joanna Gajuk - Bank of America - Analyst : And if I may, staying on pharmacy. The recent proposal for Medicare for outpatient hospitals includes provision right to equalize rates for some of the drugs provided by doctors at the hospitals to get paid on the fee schedule. So I don't know, is there some opportunity for you guys from changes like that? Would you be willing to comment on that?

Question: Charles Rhyee - TD Cowen - Analyst : Jon, I wanted to drill down on some of your prepared comments. I know we -- a lot of people have asked about the LDDs. But obviously, when you look at some of the data from like IQVIA, we saw improving, also generics as well. Just maybe anything that you're seeing there? We saw generic unit penetration rates improving for oncology as well. Anything that you'd specifically call out in the quarter? And it seems like when you look at the script growth and the revenue growth as well, maybe it's mostly LDD launches, but just curious if how much generics might have had played a part in sort of the upside in the quarter.

Question: Charles Rhyee - TD Cowen - Analyst : Yes. Appreciate that. Just maybe as a follow-up. Obviously, the other day, the President announced or apparently wrote some letters to pharma to kind of revive sort of the discussion around most-favored-nation pricing. Obviously, that's really aimed at the drug industry, but I know that folks have thought through maybe potential indirect effects that it might have downstream. Just curious, as you may be evaluated in the past, whether that's the executive order that was signed back in May or just thinking through potential unintended consequences of some of these measures. Maybe you can kind of opine on sort of your thoughts on how this might affect BrightSpring or -- and/or just pharmacy -- the pharmacy world in general?

Question: Erin Wright - Morgan Stanley - Analyst : So in terms of underlying market share gains and competitors getting out of the market, we've known about that for some time. It's been going on for some time, whether it's quorum or otherwise. But how do you think about that as a driver going forward? Maybe in going to what you were just saying in terms of like M&A opportunities on the back of any sort of regulatory type of disruption, too, across the market, could that bring opportunities for you? And yes, how do you think about kind of organic opportunities as well as we think about others kind of getting out of the market and how long of a tail you have there?

Question: Erin Wright - Morgan Stanley - Analyst : And one quick one just on your mix on the specialty pharmacy side. Have you given -- and maybe I've missed it in my notes or in your remarks in the past, but have you given a generic penetration rate?

Question: Matthew Dale Gillmor - KeyBanc Capital Markets Inc - Analyst : I wanted to see if you could provide some details on the procurement efforts that you've mentioned. I appreciate it's probably a normal part of managing the business. Is there anything in particular happening this year that makes procurement more of an opportunity maybe in terms of your scale or in terms of just contracts that are up?

Question: Larry Solow - CJS Securities Inc - Analyst : Great. I guess, just first question, anything -- any update on just bundling the services and your value-based contract efforts with ACOs that you can provide?

Question: Larry Solow - CJS Securities Inc - Analyst : And you had thrown out like a $100 million potential target in five-years for EBITDA. Is that still something that you're comfortable with?

Question: Larry Solow - CJS Securities Inc - Analyst : Great. And then just secondly, just a quick follow-up, just on your build-out -- your hospice efforts build-out. Just a quick question just on haven hospice. I think it's about a year now since you bought that one. How is that progressing?