Option Care Health (OPCH) The 44th Annual William Blair Growth Stock Conference summary

Business overview and market position

• Operates in all 50 states with over 7,500 team members and 4,500+ clinicians, reaching 96% of the U.S. population.

• Provides home and alternate site infusion services through 95 pharmacies, 170+ infusion suites, and 170+ locations.

• Maintains over 800 payer relationships and 1,400 contracts, in-network with all top 10 national payers, with the largest payer representing ~14%.

• Focuses on both acute and chronic therapies, serving diverse patient needs in a fragmented $100B U.S. infusion market.

• Recognized for workplace excellence and diversity, including Gallup and DiversityInc awards.

Product portfolio and operational strategy

• Acute therapies are typically lower-priced generics with higher gross profit but lower dollar volume.

• Chronic therapies involve higher-priced branded drugs, lower gross margin, but higher total revenue and longer patient duration.

• Manages a diverse portfolio of hundreds of drugs at various lifecycle stages, balancing growth and decline.

• Consistency in clinical quality and outcomes is a key differentiator across all locations.

• Investments in people, process, technology, and facilities have built a scalable, durable infrastructure.

Financial performance and capital deployment

• Net revenue reached $4.3B and adjusted EBITDA $425M in 2023, with a 12% three-year CAGR in revenue and 24% in adjusted EBITDA.

• Q1 2024 net revenue was $1.2B (up 12.8%) and adjusted EBITDA $98.3M (up 4.8%), with strong execution despite disruptions.

• Revenue cycle management improvements reduced bad debt from 4-5% to below 2%.

• Over $290M deployed for share repurchases since January 2023, with $40M repurchased in Q1 2024 before disruptions.

• Reduced leverage from 6.2x in 2019 to about 2x in Q1 2024, with consistent M&A and capital deployment.