BrightSpring Health Services (BTSG) Bank of America Home Care Conference summary

Pharmacy segment performance and growth drivers

• Specialty pharmacy, especially oncology, is experiencing strong momentum, with 40% growth expected this year after 30% last year, driven by new therapies, exclusive contracts, and high service levels.

• Net Promoter Scores reached record highs, supporting strong manufacturer partnerships and the launch of about 15 new therapies this year.

• Market share gains are primarily from being selected for new drug launches and focusing on generics as brands go off-patent.

• Growth is expected to continue over the next five to seven years, supported by a robust oncology pipeline and generic conversions.

• Impact from policy changes like IRA is positive but incremental, with most growth driven by innovation and market share focus.

Infusion and biosimilars outlook

• Infusion business, about 10% of EBITDA, is diversified and focused on both chronic and acute therapies, with operational improvements underway.

• Growth in infusion is expected to accelerate in 2025–2027 after a year of operational focus and investment.

• Biosimilar impact is minimal, with Stelara representing less than 1% of business and no significant near-term biosimilar risk.

• Infusion is expected to return to double-digit growth as operational updates are completed.

Policy, regulatory, and reimbursement environment

• Lower patient out-of-pocket costs under IRA are increasing therapy utilization, with further volume growth expected in 2025.

• The organization receives bipartisan support for its services, with little concern over potential changes from administration shifts.

• Medicaid exposure is stable, with 20% of revenue from Medicaid and no anticipated risk from proposed federal changes.

• IDD and behavioral health services are stable, with 30 years of rate increases and strong state support.