Glenn Santangelo

Glenn Santangelo asked about the expected EBITDA impact in 2027 from IRA and pricing changes, and in 2028 from LOE, seeking clarity on the EBITDA trajectory. He also followed up on the Bausch + Lomb monetization strategy, asking if a sale would be all-at-once or in pieces, given the extended maturity runway.

Answer

CFO JJ Charhon reiterated previous guidance that the average EBITDA for 2026 and 2027 would be similar to 2025, implying a dip in 2027, partially offset by other growth platforms. CEO Thomas Appio emphasized that the refinancing provides flexibility for business development, with a focus on acquiring assets that leverage the company's commercial capabilities. JJ Charhon added that all options are on the table for BNL monetization, guided by shareholder value creation, with the extended runway allowing for patience and flexibility in the approach.

Glenn Santangelo, VP and Equity Research Analyst at Barclays, asked about the expected cadence of Zoetis's four quarters for 2026, specifically if Q1 would show the strongest growth or if it would be comparable due to restated numbers.

Answer

CFO Wetteny Joseph stated that Zoetis does not provide quarterly guidance, only full-year guidance of 3-5% top-line and 3-6% bottom-line growth. He mentioned that recast financials would be provided when Q1 2026 is reported, and offered context on macro shifts and competitive launches affecting growth rates without giving specific quarterly projections.

Glenn Santangelo from Barclays inquired about the expected quarterly cadence for 2026, specifically asking if Q1 would exhibit the strongest growth due to restated numbers, or if it would be comparable against restated Q1 2025 figures.

Answer

Wetteny Joseph, CFO, stated that Zoetis does not provide quarterly guidance, only a full-year outlook of 3%-5% top-line and 3%-6% bottom-line growth. He reiterated that when Q1 2026 is reported, financials will be recast for comparability, and the full-year guidance already considers macro shifts and competitive launches.

Glenn Santangelo asked Jeff Tangney for his perspective on the public markets punishing companies with perceived AI disruption, Doximity's valuation, and whether Doximity needs to remain a public company given its strong balance sheet.

Answer

Jeff Tangney, Co-founder and CEO, viewed AI as a tailwind and a significant opportunity to transform healthcare. He emphasized that the core problem with AI for doctors is trust, and Doximity's Peer Check program, with 10,000 noted authors, addresses this by providing expert-reviewed answers. Regarding public market trading, he stated he tries not to focus on it, acknowledging investor questions but reiterating pride in serving doctors and generating attractive cash flows.

Glenn Santangelo sought clarification on Doximity's fiscal 2027 growth expectations, specifically the projection to end calendar year 2026 with significantly better growth than the 4% Q4 forecast. He also asked for Jeff Tangney's perspective on the public market's perceived AI disruption, Doximity's valuation, and whether the company needs to remain public given its strong balance sheet.

Answer

Perry Gold, VP of Investor Relations, affirmed expectations for Doximity to exit calendar year 2026 as a double-digit grower, citing the anticipated release of client funds, Doximity's high ROI, and the upcoming commercial AI product. Jeff Tangney, CEO and Co-Founder, viewed AI as a significant tailwind for healthcare, emphasizing Doximity's unique Peer Check program as a solution to the critical trust issue in medical AI. He stated he tries not to focus on public market trading but acknowledged investor questions, expressing pride in Doximity's mission and attractive cash flows.

Glenn Santangelo followed up on North American pharmaceutical segment operating profit, noting the implied full-year growth range is wider than normal, and asked if there are any positive or negative trends heading into fiscal Q4 and FY27 that should be closely monitored.

Answer

Britt Vitalone, CFO, clarified that the full-year adjusted operating profit growth guidance for North American Pharma was raised from 5%-9% to 8%-12%, maintaining the same width but increasing the range due to strong Q3 performance and confidence in the business trajectory. He reiterated strong specialty distribution growth, continued focus on operational excellence, and stable utilization trends as key drivers, noting positive trends across retail pharmacy and health systems.

Glenn Santangelo inquired about the expected operating income growth for the remainder of the fiscal year, specifically addressing the deceleration observed in the U.S. segment's performance from the September to December quarter and any anticipated headwinds or tailwinds.

Answer

Jim Cleary, Executive VP and CFO, Cencora, explained that the U.S. segment's adjusted operating income grew 21% in the December quarter. He clarified that even excluding the strong performance from RCA, the U.S. segment's growth was at the higher end of their 7%-10% long-term guidance, despite headwinds from a lost oncology customer. Cleary attributed this to strong utilization trends, specialty performance, and broad-based U.S. segment strength, leading to an increased full-year U.S. guidance of 14%-16%.