Stelara Pricing
Q: How is Stelara pricing changing?
A: Management explained that with biosimilar competition and IRA negotiations, the spread is being rapidly compressed—a departure from historical trends, though details remain uncertain. "

Stelara Timing
Q: Is Stelara impacting Q4 or ’25?
A: They confirmed that the pricing impact will be felt in early 2025 with no material effect on Q4 results. "

Margin Impact
Q: When will gross profit be material impacted?
A: Management cautioned that while the gross profit pressure from Stelara will be material, they cannot yet provide exact ranges, expecting the impact to emerge in 2025. "

EBITDA Outlook
Q: Can EBITDA grow next year despite issues?
A: Guidance on EBITDA growth is being deferred to the February Q4 call, reflecting current uncertainties around near-term margins. "

Long-Term Growth
Q: Is biosimilar pricing altering long-term growth?
A: Despite short-term pricing pressures, they remain confident in achieving organic high single-digit top-line and low double-digit margin gains over the medium term. "

Capital Deployment
Q: Thoughts on M&A and capital spending?
A: With a robust balance sheet and low leverage, management is focused on disciplined capital allocation via share repurchases and selective acquisitions. "

Margin Recovery
Q: How will you recover the gross profit gap?
A: They are investing in operational efficiencies, technology, and clinical expansion to gradually restore margins from recent headwinds. "

IV Supply
Q: How is IV supply trending post-hurricane?
A: Immediate conservation measures and alternate sourcing have been put in place, with signs of improvement though full recovery timing is still uncertain. "

Acute Impact
Q: Are IV bag shortages affecting acute or chronic?
A: The shortage predominantly impacts acute therapies, particularly for antibiotics and nutrition support, while leaving chronic treatments less affected. "

Patient Collection
Q: What's the timeline for payment catch-up?
A: Despite earlier delays, patient collection processes have normalized, and strong cash flow continues as recovery efforts progress. "

Biosimilar Impact
Q: How will biosimilar partnerships affect Stelara?
A: Discussions are ongoing about patient conversion and margin dynamics, with clearer effects expected to be clarified in 2025. "

Rebate Dynamics
Q: How do rebates offset lost EBIT on biosimilars?
A: Management noted that while margin compression is evident with biosimilar introductions, specifics on rebate offsets were not detailed further. "

Price Range
Q: What net price range might we see?
A: They are not in a position to provide any net price range expectations at this time. "

Patient Details
Q: What's the Stelara administration mix?
A: Most patients on Stelara receive IV infusions due to clinical necessity rather than self-administration. "

Pharmacy Exits
Q: Can you address competitor pharmacy exits?
A: Their broad network and operational strength allow them to leverage competitor exits, making them attractive to referral sources. "

Revenue Split
Q: What’s the revenue split chronic vs acute?
A: The revenue mix is approximately 75% chronic and 25% acute, reflecting a strategic portfolio balance. "

Infusion Suites
Q: Any updates on adding infusion suites?
A: They recently added 3 new infusion suites, enhancing local access and overall operational efficiency. "