Brightspring Health Services Inc Q3 2025 Earnings Call Transcript

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

Question: AJ Rice - UBS AG - Analyst : Just one question and a follow-up, maybe. On the discussion about the pacing of new drug launches, I know, for some time, you talked about 16 to 18 launches over an 18-month period. Earlier this year, you said that that pacing had -- you've seen that go in a year. I know, today, you made the comment that, looking ahead, you still see that 16 to 18 over the next 12 to 18 months. I'm just trying to understand: Is the pacing of new drug launches that are relevant to you accelerating? Is it about what it's always been? If it's accelerated, is the pipeline still pretty robust?

Question: AJ Rice - UBS AG - Analyst : Okay. And then, the follow-up question I was going to ask is, in your prepared comments about the pending transaction, I know you mentioned Amedisys and LHC branch acquisitions. It sounds like maybe what you're buying has changed a bit. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 28, 2025 / 8:30PM, BTSG.OQ - Q3 2025 Brightspring Health Services Inc Earnings Call Can you give us any specifics on, is it significantly bigger than what you were originally looking at? Or any other ways in which you ultimately are ending up buying has changed?

Question: AJ Rice - UBS AG - Analyst : Do you have any early read on whether it will be accretive to '26? I know you said it would be neutral this year. Is it meaning any significant accretion next year? Is it neutral? How should we think about it?

Question: David Larsen - BTIG LLC - Analyst : Congratulations on a great quarter. Can you talk about the sources of accretion for, like, the Amedisys transaction; or, quite frankly, any transaction, where do you drive the incremental margin and profit from, please?

Question: David Larsen - BTIG LLC - Analyst : Okay. That's very helpful. And then, I think I'm calculating an EBITDA per script increase of 32% year over year. Is that correct? That sounds high, which is good, obviously. Just any color around the sustainability of that growth rate and what some of the key drivers there would be.

Question: David Larsen - BTIG LLC - Analyst : Great. One more quick one. Can you just remind me, as a drug launches biosimilar or goes generic, how much of an earnings lift is there typically, in terms of margin per drug?

Question: Charles Rhyee - Cowen and Company LLC - Analyst : Jon and Jen, just wanted to ask, obviously, in -- one of the big competitors in community and pharmacy would be Omnicare and they declared bankruptcy. Just curious to what do you think of that as an opportunity to pick up incremental share? What overlap in the markets are you there? Is that an opportunity to enter into new markets? Or is skilled nursing really maybe not that attractive to keep expanding into first? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 28, 2025 / 8:30PM, BTSG.OQ - Q3 2025 Brightspring Health Services Inc Earnings Call

Question: Charles Rhyee - Cowen and Company LLC - Analyst : That's helpful. Just one follow-up on LDDs. Obviously, the FDA, I think there's been some concerns about the pace of drug approvals. I know that there were relatively fewer drug approvals in the first half of this year. Just curious what you're seeing, if you're starting to see that pick up, if that causes any concerns for you in terms of sort of the LDDs you have on deck in terms of timing.

Question: Kieran Ryan - Deutsche Bank AG - Analyst : This is Kieran Ryan, on for Pito. Apologies if I missed something on this but I was wondering if you could provide a little more color on the breakout of the pharmacy guidance between SEC and Infusion and Home and Community but with a focus on what it implies for SNF and Infusion. I just wanted to see if maybe a little bit of the potential slowdown there in 4Q, if that was related to your comments on how it's been a record year on the branded side; and maybe that's normalizing a little bit.

Question: Kieran Ryan - Deutsche Bank AG - Analyst : Got it. That's helpful. And then, if you could just provide maybe a quick update on what you're seeing within M&A pipeline and your priorities there. I know it's mostly focused on the tuck-in style deals but just a quick refresher there would be helpful.

Question: Ann Hynes - Mizuho Securities USA LLC - Analyst : Great. Just anything on the Washington front that we should be on the lookout in the next coming months, especially with a potential health care bill going through Congress at the end of December?

Question: Joanna Gajuk - Bofa Merrill Lynch Asset Holdings Inc - Analyst : A couple of follow-ups. First, I appreciate the comments around the acquisition of the assets from Amedisys and LHC will be accretive next year. But anything else we should be thinking about heading into next year in terms of any high-level tailwinds and headwinds? I'll stop here.

Question: Joanna Gajuk - Bofa Merrill Lynch Asset Holdings Inc - Analyst : If I may, a couple of follow-ups. On this comment about Infusion, right, you sound very excited about this. I guess you've been growing it nicely. But as we think about the Pharmacy segment, in totality; or maybe the Specialty Infusion -- but the Pharmacy segment, the revenue is going to grow more than 25% this year, right? So how should we think about your ability to grow on top of this fast growing into next year?

Question: Erin Wright - Morgan Stanley - Analyst : A couple of questions. First one is bigger picture. Just, can you speak to some of the future opportunities across Pharmacy Solutions and, specifically, Specialty Pharmacy. The focus has been on oncology but can you speak to rare disease or other areas; and, also, the opportunity around some of those value-added manufacturer biopharma services and the respective margins associated with some of those opportunities evolving over time?

Question: Erin Wright - Morgan Stanley - Analyst : Okay. Great. And then, can you speak to what percentage of the portfolio is now more directly tied to drug pricing dynamics with potential MFN pricing; as well as you spoke to IRA earlier, which we spoke to, I think, at length before. But what percentage of the book would be branded therapeutics that would be potentially exposed?

Question: Stephen Baxter - Wells Fargo Securities LLC - Analyst : Obviously, the sequential progress you made on margins in the Pharmacy business has been really notable. It sounds like you're expecting that to continue in the fourth quarter, based on the guidance that you've given. And then, broadly, you're describing the conditions around further progress on LDDs; and further, the generic dynamics continuing in 2026. How do you think about the trajectory of margins exiting this year and opportunity for further improvement in Fy26?

Question: Lawrence Solow - CJS Securities Inc - Analyst : Great. Congrats on another great quarter. Just from a high level, quickly -- I really appreciate all the color. Things sound really good. Just your visibility, as we look out -- Jon, I know maybe you'll share some of this too, coming up in March. But as we look out three to five years, maybe this 30% or even 40% volume growth this quarter, that's not sustainable. But from a high level -- I know you've spoken about double-digit growth in Pharmacy Solutions going forward. Clearly, that seems very attainable. But how do we -- can we continue to grow at these rapid 25%, 30% levels? Or directionally, do we -- the Street is coming down to low double digits as we look out over the next few years, where do we think we end up? Is it closer to that? Or clearly, maybe this 30% is not sustainable. But can we continue to grow at well over the low double-digit rate? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 28, 2025 / 8:30PM, BTSG.OQ - Q3 2025 Brightspring Health Services Inc Earnings Call Any color on that would be great.

Question: Lawrence Solow - CJS Securities Inc - Analyst : Great. I appreciate that color. Really helpful. Just, quickly, on the bankruptcy in Home and Community, is that actually a little bit of a drag on EBITDA in this quarter, maybe for the next couple?