Thank you so much. I appreciate that.
All right, great. We're going to get started. Good afternoon, everyone. My name is Lisa Gill, and I head healthcare services here at J.P. Morgan. It is with great pleasure that I have Cencora with us this afternoon. CEO Bob Mauch is going to make the opening comments, and then he will join myself and CFO Jim Cleary for the Q&A portion. So with that, let me turn it over to Bob.
Bob.
Hi, everyone. Thank you very much, Lisa. It's a sincere pleasure for me to be here today representing Cencora. As some of you may know, this is my fourth month, the beginning of my fourth month as the President and CEO of Cencora, and I'm just thrilled to have this opportunity to take over from Steve Collis and talk to you all today, so those of you who are investors, thank you very much. Those of you who are not, I hope within the next 40 minutes or so, we'll show you why Cencora is a good long-term place for your investment. We have the cautionary forward-looking statements, so just a minute on who we are. Cencora is a leading global pharmaceutical solutions organization with a foundation in pharmaceutical distribution and differentiated capabilities, so many of you who know us will think of us as a distributor.
We like to think of ourselves as a global pharmaceutical services provider. We're executing a pharmaceutical-centric strategy, and I should say, what I'm excited about continuing as the newest CEO of Sencora is continuing to execute our pharmaceutical-centric strategy to create differentiated value for all our stakeholders, driving our long-term vision, expanding our higher growth, higher margin businesses, and building on those strengths by making key investments. We have most recently made an investment in OneOncology and closed on our acquisition of RCA on January 2nd of this year, so I mentioned we're creating differentiated value for our stakeholders, and that starts with our purpose. We're united in our responsibility to create healthier futures. We bring that to work with us every single day. We know that there's a patient on the end of every decision that we make, and it guides our strategy, and it guides our practice.
We're disciplined about our focus areas, so specialty, medicines, and services. I hope when you think of Cencora, you think of leadership and specialty. Focus on and support of community providers, something that we've done for decades, whether those are independent community pharmacies, community physicians, oncologists, retinologists that we've talked about, as well as community veterinarians. Customer partnerships are critical to everything we do, and I'll address that a bit more as we go forward and we're always looking for enhanced global access and opportunity. Our long-term guidance is 8%-12% EPS growth, adjusted EPS growth, and we have a scale of 46,000 team members across the globe. Some stats from fiscal 2024. We'll be excited to report our Q1 fiscal 2025 results in the beginning of February.
But in fiscal 24, 12% year-over-year growth in revenue, 11% year-over-year growth in adjusted operating income, $3.1 billion in adjusted free cash flow, and a 15% year-over-year growth in adjusted diluted EPS. So this is what makes us special. We have an incredible position within the ecosystem of biopharma, specialty physicians, health systems, pharmacy, animal health providers, and we do that in many markets across the globe. So when you think about Cencora, you should think about an amazing portfolio of customers, an incredible suite of services that help manufacturers bring products to market and patients to access those products, and a portfolio of geographies where we can implement that. So when we're thinking about innovating and being creative and driving new business, we think about that combination of the customer, the service, and the geography where we can provide that.
So we're very proud of these relationships. I mentioned earlier our customer partnerships are critical to us. And as we think about whether it's a manufacturer partner or a provider partner, everyone at Cencora is very focused on making sure that we understand their strategy and we bring all of the resources of Cencora to make sure that they can execute that strategy. We report out in two segments. The U.S. healthcare segment I'll go through first. We have strong strategic relationships with market-leading customers. Our specialty distribution capabilities and services are second to none. We benefit from favorable market trends. So we've very actively positioned ourselves to be in the areas where the market is growing, in particular specialty pharmaceuticals, and we have a significant leadership position in animal health. Our international healthcare solutions segment, we're a leading pan-European wholesaler.
We have significantly invested in diversifying those services beyond wholesale. So a lot of the profits that we have in our international segment come from manufacturer services. So they're enhanced by the wholesale distribution, but also manufacturer services, including 3PL. We have a premier global logistics provider in our World Courier business and a robust portfolio of downstream services as well as upstream services. So I mentioned our recent investment in OneOncology and acquisition in retina Consultants of America. This is instructive of our strategy. It's also instructive of our capital deployment. And the MSO space is something that we're very excited about at Cencora. So we have strong multi-decade relationships with specialty physicians in distribution, also within the GPO services. And the managed services organization really is the next natural step. Some people will ask, well, why are you diversifying in this area?
It's a simple answer, because if you think about our business, if you think about Cencora, think about our industry, what we've done over a long period of time is built services and solutions that support community providers. At Cencora, we do that at Good Neighbor Pharmacy. We do that with our veterinary customers. We've done it for a long time with our specialty physicians. And the MSO is just an extension of that. And what we love about it is the MSO is actually a growing, profitable standalone business. So as we make those investments, we're not only helping the physicians, helping patients access those physicians, but we're adding a growing and profitable pillar to Cencora. So these are charts that we're very proud of, and I won't spend a lot of time here.
Over a five-year period, 14% adjusted EPS growth, adjusted operating income growth of 12% on a five-year CAGR, and our capital deployment has been significant and in the right areas, which we're very proud of. As I wrap and as we move over to the interesting Q&A portion with Lisa, I just want to reinforce a couple of things. One, we are positioned well to continue our track record of driving long-term shareholder value. We're advancing global healthcare system growth opportunities with a significant leadership in specialty. We're innovating within the markets that we play. We have this strong foundation in pharmaceutical distribution with differentiated commercialization services, a strong financial profile with a legacy of strong ROIC performance, strong free cash flow generation, and executing on our long-term guidance of 8%-12% adjusted EPS growth.
So with that, I thank you all very much for your time. And Lisa, I will join you for Q&A.
Sounds great. Great job on your first J.P. Morgan Healthcare Conference as a CEO.
I was nervous. Hopefully, it didn't show too much.
No, it did not at all. So in that vein, maybe just talk about what you think are the top priorities. So you've been now in the job for a couple of months. What are your biggest opportunities really in the next coming of years, not just in the next several months or even this fiscal year?
Yeah. Thanks, Lisa. It's a great question. What I just really talked about is just the strength of Cencora. So it's interesting. You could be a new CEO, and you could be coming into a situation where you have to turn something around. You have to fix a lot of things. And that comes with challenges and opportunities. And in my case, it's, I think, even more challenging because you're looking at an amazingly strong company and trying to figure out where we can add value. And so the first part of your question is what we need to do over the next five years is not change too much. We have the right strategy. We have an amazing culture. We have incredible team members. We execute really well. But there are areas that we can enhance.
And that's what we're really focused on, is amplifying the areas that we're good, but we could be better. And I'll give you one that kind of intersects productivity and digital transformation. So one of the things that we're working on is really increasing our capabilities of driving efficiency and value to our customers through digital transformation across a number of areas, but also a multi-year productivity program. So as we're thinking about the marketplace and the challenges in healthcare, we feel like we have a responsibility as a healthcare company to become more efficient every single day. And this is one of the ways that we can do it. So that's something we can amplify. But the most important part of your question, Lisa, is that we stay focused on our pharmaceutical-centric strategy. We stay focused on leading in specialty.
We continue to expand our higher growth, higher margin businesses. And we do it in a way that makes sense across geographies.
You talk a little bit about specialty, and we look at the volumes for both specialty as well as your traditional business has been incredibly strong throughout 2024. When we think about the U.S., let's talk about U.S. to start with. But when we think about U.S. utilization, is there any key themes you would call out? I mean, obviously, we've seen GLP-1s. We've seen strength in specialty. So that would be the first part of the question. And then secondly, as we move into calendar 2025, under the Inflation Reduction Act, the out-of-pocket costs will be lowered for grandma. Do you think that drives incremental utilization as well?
Yeah, Jim, I'm going to have you jump in here. But actually, you want to start and then I'll jump in?
Sure. I'll handle the first part, Bob. Hi, everyone. I'm Jim Cleary, CFO of Sencora. Great to see you all today. And so, Lisa, when we announced the RCA acquisition, we increased our guidance by $0.35 at the low end of our guidance range and by $0.35 at the high end of our guidance range. And we really attributed that to two things. One is the RCA acquisition, and the second is, of course, what you were just asking about, kind of the strong utilization trends that we've been seeing. And so of the $0.35 increase in guidance, about $0.26 of that was due to the RCA acquisition, and about $0.09 of that is due to the continued momentum that we're seeing in our U.S. business.
And of that $0.26 of RCA, we had said would be $0.35 for the full year net of interest. And so $0.26 is a nine-month contribution. And to get to your question, the $0.09 we're seeing from continued momentum in the U.S. business, it's really the things that we've been talking about for quite some time. We're seeing solid utilization trends, and they're really broad-based utilization trends that we've been calling out for some time in our business. And then also, we're seeing continued strong sales of specialty products to physician practices and health systems. And that growth that we're seeing there is greater than the overall market growth. And so those are kind of two of the things that we're seeing in the U.S. segment, which are driving our results and causing us to increase guidance when we did that update.
Yeah. And Lisa, on IRA and the out-of-pocket costs, anything that we see in benefit design, whether it's government or commercial, that increases access to pharmaceuticals is going to be a good thing for our business. It's going to be a good thing for patient outcomes. So I hope certainly that we see increased utilization from that. It's not something that we would necessarily see in our numbers or see as a driver, but it certainly would be a positive.
Just kind of shifting to generics. Generic pricing has been pretty stable the last couple of years. One of your partners from a generic procurement perspective, Walgreens, talked about perhaps seeing better procurement of certain products, and I would assume they're talking about generic. Can you maybe talk about those dynamics right now in the marketplace around procurement? There's been NADAC pricing, and that's now shifted to where CMS will put that out quarterly, right? So we'll have less fluctuation. But in general, what are we seeing on the generic procurement side and what opportunities or incremental opportunities do you see?
Yeah. I think most importantly, we're seeing a real stabilization in the generics industry, which is such an important part of the entire supply chain. So that's a positive, and we're seeing that in less deflation. We're seeing that in less shortages in many cases. So that's important. And when it comes to procurement, it's really a matter of just making sure that partners are working together to get the highest quality products for the lowest price. I don't think that's something that's ever one and done. So I think that's something you always have to work at. You have to make sure you have the right partners. Again, highest quality that can provide the supply at the right price. So it's something that we work hard at Sencora, and we also work, obviously, with WBAD and others on that.
When I think about, you just closed the RCA deal. You did United Urology, so moving a little bit away from oncology, which is where you started in specialty, when I think about the other ologies, what other incremental opportunities do you see? And how do I think about those MSO agreements going forward?
Yeah. Okay. That's a great question. So oncology is definitely the largest and a significant focus for us over a long period of time. And OneOncology is a fantastic platform. They're doing really well and growing. Also, retina has been a big part of our business. We haven't talked about it as much, but we also have a long-term significant GPO and distribution relationship with physicians and manufacturers in retina. We like those two spaces because they're pharmaceutical-centric, they're physician-administered, they're Part B, and there's significant innovation in the space as well as biosimilar introduction in the space. The urology tuck-in at OneOncology is an area where we just saw that as being really synergistic. So as cancer rates increase in the urology space, that partnership between a urology practice and an oncology practice is very natural. So there's synergy there.
Having said that, we don't see other specialties that have the same makeup as Retina and oncology. So that's where we will continue to focus. Now, as we look forward, there could be other specialties. There could be other innovations in the pharma industry that create something in another area. But right now, that will be our focus. We'll continue to look forward, and as those opportunities present themselves, we'll assess them. But as of right now, oncology and Retina are the focus.
You mentioned I already touched on biosimilars. And I think a lot of times investors are trying to figure out, how do we think about biosimilars compared to a generic type of margin? And maybe this question's for you, Jim. When we think about biosimilars and we think about that shift towards a biosimilar versus a traditional branded product, especially on the specialty side where you have maybe more of an opportunity to influence what drug the doctor's using in their private practice, is there a rule of thumb as to how to think about the margin on a competitive drug like a biosimilar versus a traditional brand?
Sure. Let me generally talk about that. Lisa, in biosimilars, have certainly been a tailwind for us in the Part B space, in the specialty physician practice space, and we've been calling it out for quite some time that it's been a tailwind in the oncology market, and now, with the investment in RCA and through our Retina distribution business, we'll also start to see biosimilars be a tailwind in the Retina space, and it is an attractive business for us because we do see margins that are higher than they are on branded products, of course, and of course, the prices are higher than they are on generic products.
So it certainly has been a good business for us and one where we can provide a lot of value to specialty physician practices because not only, of course, do we have the distribution business, but we have the GPO business also.
Yeah, and I think just dovetailing on that, I know you have a lot more services that you provide to those physician offices than just GPO and procurement and distribution, but maybe just spend a minute talking about some of that, and many of you may have seen that the nice sign that you had up across from Union Square around the opportunities with Cencora.
Yeah. That's right. Yeah. It's a big area for us, Lisa, not only with the physicians, but also with the biopharma manufacturers, and we have a significant presence in helping manufacturers get products to market, so it could be understanding the cost-effectiveness of the product before they try to have formulary placement. It could be your reimbursement program, certainly the pharmacovigilance program that they will need, so we're continually investing and building those types of businesses that are higher growth, higher margin, needed by pharma, valued by the providers, and we think that will be a continuing opportunity for us as we go forward.
Is there a way to size that business today, Jim? If I think about it's X% today and can go to Y?
When we do our segment reporting, of course, we do it on a U.S. basis and an international basis. U.S. is about 80% of our operating income. International is about 20% of our operating income. We don't specifically break out the global pharma services businesses, but what I will say is they definitely fall into the group of businesses that we refer to as higher margin, higher growth, and so we do expect those businesses to have nice growth over time, as Bob was talking about.
Beyond the Q1 comp impact for COVID vaccines, is there anything else we should consider as we think about the cadence of earnings throughout fiscal 2025?
Sure. Yeah. We feel very good about our fiscal year 2025. A couple of the things that I'll talk about, as you've started to mention, Lisa, is we were very successful in helping bring COVID vaccines to market. COVID vaccines will be a headwind for us in the first half of fiscal year 2025. The way that we sized that is when we gave our initial guidance, we said that our operating income growth in the U.S. in fiscal year 2025 would be 5%-6.5% growth. Without the COVID commercial vaccine headwind, that would have been 5%-8% growth. That's a bit of an impact on us. We're lapping our final quarter of exclusive COVID therapies.
We realized $0.06 from exclusive COVID therapies in the first quarter of fiscal year 2024, and we'll no longer have that operating income from exclusive COVID therapies. So there'll be a $0.06 headwind there. And then also, we'll have a potential headwind in the last quarter of our fiscal year because of the potential sale of an oncology customer that is going through an M&A transaction. But I'll say all of that is reflected in our guidance, and all of that is fully offset by the momentum that we're seeing, particularly in the U.S. business that I talked about earlier.
Great. 2024 was a year where we did see some switching of drug distribution relationships, although they're very minimal, right? I mean, when we think about that. But when we think about that, there's always questions that we get about the competitive marketplace. And could we have a new entrant come in and get into the drug distribution world? Or even when we see large contracts that come up from time to time, is there anything you would call out specifically around the competitiveness of the marketplace and if there's been any changes?
Yeah, there really haven't been changes. Lisa, I think your point. It's minimal. They're headlines, certainly, but it's minimal. Our industry, and I would like to think Cencora took a leadership role in this, has really worked to modify the business model in a way that it makes switching less attractive, honestly. So we've talked a lot with folks in the room and you and others about how we've rebalanced our pricing, and there's less variability there. One of the things that we talk less about is that there was a time when you got a new contract, the margin was very low.
It expanded over time.
And then it expanded. So at that time period, there was an opportunity for someone to come in and really undercut you. Well, we have really smoothed that out. So the profitability and cost for a customer is going to be similar on day one at the end. So there's less opportunity to come in and undercut. The margins are low already. So I think what we see is people making strategic decisions. So when we're working with a customer, price is part of it. We'd like to think most of it is making sure they understand that Cencora is the right strategic partner for them, that we deeply understand their strategy, we understand where they want to go, and that we bring all of the resources of Cencora to make sure that they do that. We found that to be very successful in continuing to maintain customers.
Now, it's not cost and price are always part of that, but it's not the biggest, and I believe when you see people, when you see entities switch, I think that's a strategic decision, not necessarily a cost decision.
I would agree with that from what we've seen historically. When I think about some of your large strategic relationships, Walgreens has talked about closing 1,200 stores. Is that enough to move the needle for you? And they've said publicly that they expect to maintain a large portion of the scripts but haven't given a specific number. So how do I think about those store closings and the potential impact to maybe volumes on your side?
Yeah. I think the place to start, Lisa, is that prescription utilization is increasing. So prescription utilization is increasing. So store closing doesn't necessarily correlate with lower volume. And so to your point, to the extent that stores are closing and volume are moving into.
Other places.
Another place, which we believe will be the case for the most part, then it's minimal impact, and we are concerned overall that as the community pharmacy footprint rationalizes, so if there become less, we do have the risk of pharmacy deserts. We have places where that's the only healthcare destination, and it may close, whether that's a chain or an independent, but beyond that, putting more volume into a store with increasing growth is actually more efficient, so it's a good thing as long as we don't go too far and we create these access issues.
We haven't seen that thus far, right? I mean, even with CVS closing roughly 1,000 stores and hundreds of stores closed. I think that that's a good segue to talk about the independent market because I think there's been concerns for years and years now, right, that the independent market was going to shrink to nothing. A lot of you in this audience, I know Steve has heard me say this many times, but when I first started many, many years ago at J.P. Morgan, my job was to figure out how many independent pharmacies would stand five, 10 years later. That was in 1998. I predicted that within 10 years, less than half of the independent pharmacies would still be standing. Back then, there were roughly 20,000 independent pharmacies. Today, there's still 20,000 independent pharmacies.
So as we think about the pressures of healthcare, we think about competition, we hear the large players closing. Maybe spend a minute talking about Good Neighbor Pharmacy, talking about what you do for the independent pharmacies and your outlook for independent pharmacies going forward because I know they're an important partner.
Yeah, they absolutely are. And they're an important partner for all of us. Community pharmacy, chain or independent, are important for all of us in terms of access to care. So yeah, we spend a lot of time and effort making sure that we support those independent pharmacies. So Good Neighbor Pharmacy is a network that they can join, and we support them with marketing materials, with branding materials. Very importantly, social media marketing. So if you type in pharmacy near me, you're likely to see a Good Neighbor Pharmacy come up high on that list in Google search. So we do a lot of work there to help support them, but also in innovating within their business. So what we're seeing the independents do is be scrappy.
They're out there, they're meeting with physicians, they're noticing that there's a specialist in their town, they go and they meet with that specialist, and they're building a niche clinical support practice with that specialist. That attracts patients. And importantly, it attracts patients who are likely comorbid or the higher utilization patients. And they do really well. Now, the concern that we have for all community pharmacies is reimbursement. And our Elevate Provider Network is working diligently.
To help negotiate better rates, right?
That's right. So we work with the PBMs and the payers to make sure that the pharmacies have contracts. We try to get the best rates that we possibly can. And we've been successful in that. And so we have volume going into the stores, they have the right services, and they're also getting a reimbursement rate that is helping. Now, I'll also say, Lisa, that there's a subset of pharmacies who want it to be the way it used to be, and they may not make it, right? They may sell or they may close. But where they sell or close, they're selling to entrepreneurs who are highly motivated and are utilizing our services, and therefore they're growing. Many more multi-store owners today than in 1998.
Right. In 1998, I think the average was 2.3 stores, and it's double that today, right?
Yeah.
So Jim, let me turn back to you for a minute. You saw a benefit in 2023 and 2024 from some expense actions that you took to manage your costs. How should we think about the opportunity within SG&A going forward? Are there specific things where you see opportunities to get more leverage or operating leverage in your business?
Yeah. Thank you very much for asking that question. And a number of you, of course, have followed our company for many years. And in fiscal year 2023, we felt that our operating expenses were growing at too fast a pace. And so we took some cost reduction actions in April of 2023, which we benefited from in the second half of 2023. In the first half of 2024, we had some good OpEx comps. Well, I'm really pleased to say that I'm hopeful that we'll never need to do that sort of thing again. And the reason is that we're really focused on ongoing productivity initiatives. And these won't be kind of one-time interim sorts of things, but they'll be ongoing productivity initiatives that the company is always doing.
And I could give you many examples, but I'll just give you one example of Cencora Business Services, which is our shared service business model, which will have a lot of expense savings and a lot of productivity benefits. And that's just one of many things. And that's something that Bob and the rest of our leadership team is really focused on, having these ongoing productivity initiatives that then we can take a portion of that savings and reinvest it back into innovation and all those sorts of things. And so that's something that we're just very excited about as we look at the balance of this year and future years.
GLP-1s were a big area of focus in the last couple of years, and the growth continues in that area. There's hope for innovation for us to see an oral GLP-1 at some point in the market. Can you talk about both revenue growth, and you've talked historically that the profit is not as good for GLP-1s as we've seen for some of the branded products, so maybe just talk about that to begin with, but then secondly, if we see an oral product, would that be a better margin product for Sencora?
Sure. Sure. I'll comment on that. I'll start out by saying that, of course, we have had terrific top-line growth from GLP-1s, and we've really called this out on a quarterly basis. And if we look at our fiscal year 2024, our increased sales, our growth in sales from GLP-1s in the fiscal year was $8.6 billion or 43% growth in that product category. We've also been consistent in saying that the products are minimally profitable for us. We do make a small profit, but it's minimally profitable for us. And as we look at our fiscal year 2025 guidance, for instance, we don't expect any change there. We expect it to be a minimally profitable product category for us.
As we look to the future and look at the intermediate to longer term, there is a potential that they might become more profitable for us over time as we see things like potentially perhaps more competitors on the market over the longer term or as supply catches up with demand. There could be a more normalized fee for service. But we certainly don't have anything like that in our fiscal year 2025 guidance or in our short-term expectations. You asked about the oral product. And of course, we're really excited about that from a patient standpoint. And that may and probably would have incrementally lower operating expenses for us because it would be easier for us to handle. And so that would make it a little bit better from an operating margin standpoint. But I certainly wouldn't expect that to be a needle mover in the short term.
Bob, we've spent more than 80% of our time talking about the U.S. Let's talk about the international business. What do you view as some of the biggest opportunities and challenges in the international market today?
Yeah. I think from an opportunity standpoint, Lisa, where we're focused is on expanding our services and following specialty. So we have a business that is leading, providing a broad series of services, including wholesale distribution. We have to execute on that very, very well. The growth in Europe, like the growth in the U.S., will be through specialty. And therefore, we're very focused on our World Courier business, our very.
Pharmalex, right?
Yep, Pharmalex, and expanding our 3PL business that had been functioning as a country-by-country business that we're now creating a pan-European offering, which we believe will be more attractive to the manufacturers, and then making sure that we're in all the countries where we need to be. So we're adding to the services that we believe will be the higher growth, higher margin, and follow the specialty.
And I think, Jim, I've heard you mention or talk about the strong dollar and kind of the impact on the international business from that perspective.
Yeah.
When we think about FX, right?
Yeah, right. As I'm sure everyone in the room knows, the dollar really has strengthened. And when we report our international results, of course, we'll report both on an as-reported basis and on a constant current currency basis.
Great. I know we only have more minutes left, so let me try to get through these last few ones. Let's talk about M&A, right? So you've done a number of transactions. When I think about, we talked about specifics around MSOs and other opportunities, sticking to oncology and kind of one-off areas. Are there other things or deals that you think would fit within Sencora beyond what we've talked about today?
Yeah, I'll start, and Jim will take it. I'll go back to where we started, which is we have the right strategy, and we're going to continue to execute on that strategy. I think the investments and acquisitions that we've made recently are instructive of the things that we'll continue to assess. So you mentioned the MSO space, but also you mentioned Pharmalex and the kind of the higher growth, higher margin pharma services businesses is also an area that we'll continue to explore.
Do you see big opportunities there to make acquisitions in the pharma services area?
First, I'll say that I would expect to continue to see balanced capital deployment from Cencora. And in the pharma services area, I'd expect more kind of bolt-on and tuck-in and not the kind of same sort of magnitude that we've been doing in the MSO space. But I would expect to continue to see us every year. We'll be investing back in the business in CapEx, which always has a good return for us. And we've been investing, say, $450 million-$600 million a year in CapEx. I'd expect to continue to see strategic M&A. And a lot of that is really spoken for at this point in time because, of course, the RCA acquisition was large and will be likely to buy the other 65% of OneOncology during the put-call time period.
I'd expect to continue to see opportunistic share repurchases over time, which I think we've been very successful in doing. And then we'll continue to grow the dividend on the stock. And we had been growing it at 5% a year. This most recent year, we increased the dividend growth rate to 8%. And of course, our long-term guidance on our EPS growth is 8%-12%. So we wanted to make that dividend growth in line with the low end of our EPS growth.
Makes sense. We have two minutes left. Bob, when we're sitting here together next year, what do you really hope that this investor community will appreciate about Cencora that maybe they don't today?
Yeah. I hope the investor community really has confidence that we've built a business that is positioned well in the right geographies with the right services with the right customers and that the performance is durable, right? We've rebuilt our business model. We're with the right customers, and we are going to continue to benefit from the growth in this market. We get a lot of questions about what's going to go wrong, like how's this going to not work, which we ask ourselves those questions every day in the office as well. But this is a business that's positioned to continue to grow based on the amazing trends and innovation that we see within healthcare and in pharmaceuticals specifically.
And hopefully more innovation as we're here this week, right?
That's right.
So with that, I want to thank everyone for joining us this afternoon. Thank you, Bob and Jim. I really appreciate the time. Thanks so much.