Charles Rhyee

Coleman said the tax headwind relates to proposed Mauritius legislation expected to be confirmed imminently; if it does not happen there would be EPS upside.

Coleman clarified Q4 will be the highest DSA margin (not revenue) quarter on lower NHP costs, guiding about 200bps sequential margin improvement in Q3 and about 300bps in Q4.

Birgit said go-to-market strategy is balanced across pharma and biotech with customized client-centric approach. Pricing environment described as stable with no meaningful changes. Investing in technology tools, training, and Apollo platform to deepen share of wallet.

Mike Nau outlined three drivers of sequential margin improvement: continued cost savings and efficiency initiatives, lower NHP sourcing costs from KF acquisition, and improving demand trends converting Q4 bookings to revenue.

Mike confirmed it is a combination: KF will provide meaningful cost relief in H2 2026, and the company has had more time to plan for increased demand. Q1 stock comp headwind from CEO transition is also temporary.

Pease confirmed the three H2 margin headwinds: DSA hiring, CDMO commercial revenue non-recurrence, and July 1 merit increases (approximately 3.5% salary increase). No other material factors.

Pease explained the NHP inventory write-off was non-GAAPed; now that animals can be used, costs will flow through as normal operating expense, essentially unwinding the prior non-GAAP treatment.

Foster said FDA engagement on the 483 is going well, with ongoing back-and-forth on improvements, giving confidence that facilities will be ready for future commercial clients.

Foster explained cancellation decline is a positive stability indicator; backlogs are sufficient but not over-extended like the 18-month peak when clients saved slots without corresponding studies. Does not see a return to elevated cancellations.

Bob said clinical trials are a driver of MSO profitability and growth; RCA is in the later innings of its build-out and mature, while OneOncology is in earlier innings with significant runway. Community oncology offers cost-effective, accessible trial access, aiding both patients and manufacturer trial accrual.

Bob acknowledged faster-than-expected Part D brand-to-biosimilar conversion at large mail order customer. Impact is revenue not profit. Jim confirmed no other material customer losses beyond oncology and grocery. Smaller customer movements contemplated in guidance.

Jim confirmed UUG below-the-line items are ongoing. OneOncology ownership now 92%, with practices/management retaining 8%. Share repurchases paused for deleveraging, but long-term capital deployment priorities unchanged.

Jim confirmed FY26 US OI guidance ex the net RCA/customer-loss headwind is 10-12%. Capital deployment priorities unchanged, OneOncology full ownership is highly likely and included in long-term guidance. Law of large numbers acknowledged.

Bob noted project lead times are variable by size, market, and type of work. Confirmed they have good visibility on future growth tracking but did not provide specific timeframes.

Jim acknowledged clinical trial softness pressuring specialty logistics and consulting, with rebound slower than expected. Reduced international OI guidance but expressed confidence in end-to-end positioning for eventual demand recovery.

Bob highlighted healthy market dynamics with continuous innovation plus biosimilars. Noted Part B biosimilar adoption is faster than Part D based on oncology experience.

Bob expressed respect for governmental review process and framed MSO model as enhancing patient access, cost effectiveness, and supporting community providers.

Brian called IDR impact manageable within CHC pricing while flagging $15B of industry-wide abuse; Ann explained the biosimilar economic shift from PBS to Specialty and said stop-loss is tracking in line. Direct.

Brian detailed HUMIRA and STELARA $0 out-of-pocket programs driving biosimilar adoption, plus generic Revlimid upcoming. David emphasized AI-driven personalized conversion strategies with high NPS.

Brian confirmed launch plan unchanged by FTC agreement. David clarified no liability if adoption falls short of targets; model will be standard offering but choice remains. GPO relocation is separate from rebate-free model transition.

David outlined three categories of action: public-private partnership (prior auth reform, fertility access), sustained innovation (GLP-1 programs, Encircle with 10M+ individuals), and step-function transformation (rebate-free model). Emphasized nonpartisan, fact-based engagement.

Brian explained CuraScript doesn't compete with traditional wholesalers, focused on medical benefit specialty. Stelara biosimilar launched in May with $0 patient OOP, early returns encouraging. CuraScript is also distribution vehicle for Quallent biosimilars.

David outlined five approaches: fact-based engagement, client voice advocacy, transparency, continued innovation, and regulatory/legal action as last resort.

Brian clarified stop loss pressure from specialty injectables like Keytruda and Ocrevus, not GLP-1s. Evernorth 2025 normalized growth within 5-8% after adjusting for VillageMD, stranded overhead, and investments.

Britt explained above-LRP performance driven by specialty pharma growth and operating efficiency, with OpEx as percentage of gross profit down 293 basis points in FY26.

Brian attributed outperformance to clear long-standing strategy, focused management team, good capital deployment with Prism Vision and Florida Cancer additions, and day-to-day execution with continuous improvement mindset.

Britt explained full-year tax guidance narrowed from 17-19% to 18-19% due to slightly higher second half rate. Provided specific Q3 guidance of 23-25% with Q4 expected lower from discrete timing.

Brian noted one payer shifted preferred product but McKesson benefits from serving both programs, maintaining overall prior auth volumes. No material behavior changes observed.

Britt attributed the year-over-year decline to timing effects from quarter-end day and minor non-operational items, emphasizing the guidance remains historically strong.

Brian described the growth playbook (anchor sites, recruiting, MSAs) but did not give a specific market-share figure.

Aaron confirmed H2 laps $10B new customers and ION/GIA acquisitions. Internal forecast now incorporates stronger demand than originally anticipated for H2 but still not outsized. Solaris distribution not assumed. If outsized demand persists, that's upside opportunity.

Aaron confirmed Q4 items were NOT the Investor Day investments, they were ordinary course items (bad debt, contractual resolutions) in last weeks of quarter. On liability classification, directed to the $0.20 raise framework (half liability, half underlying) and noted GIA closed in February.

Aaron described double-digit FY26 EPS growth driven by Pharma momentum, Other business secular tailwinds, M&A contributions, with GMPD at least consistent with FY25.

Jason noted FDA approval constraints limit reshoring speed. Even at 50% tariffs, commoditized products may not return to US due to cost differentials.

Jason clarified no meaningful hurricane impact on GMPD. Forward guidance assumes normal utilization environment, more consistent with long-term targets.

Paul reaffirmed only 4 decisions remain and they expect to win the majority, declining to predict before decisions are final.

Peter said there are area-specific competitors but no one attempting a full Development Cloud. Core platform commonality and first-mover advantage from 2012. Must compete with themselves through excellence and humility.

Peter said penetration varies by product: eTMF has 20 of top 20, but RTSM, eCOA, and safety have none or few enterprise standard selections yet. First LIMS early adopter at top 20. Still surprisingly early with more applications being added.

Peter said Development Cloud has played a small part in the shift to functional outsourcing by enabling more efficient integrated tech stacks for large pharma.

Peter said Veeva has the strongest data network in the industry, powering both Compass and Crossix with patient-first data and accurate multi-source matching.