Eric Coldwell

CFO said FY2027 assumes the same percent IRA impact plus lapping of FY2026 WAC changes and new January 2027 changes; CEO added that normalized for tariff-related customer payables, Cardinal Health brand grew at or slightly above the mid-single-digit rate, consistent with the last six quarters.

CEO declined to disclose the specific nature of the multiyear tax planning benefit, noting company policy against disclosing individual tax positions.

CEO confirmed the impairment is entirely Cardinal-specific related to prioritizing equity vs nonequity MSO model. Broader oncology and Specialty strategy remains unchanged.

Jason noted biosimilars already factored as tailwind. Washington actions to reduce development barriers conceptually positive but too early to quantify impact. Requires industry investment response. Important to access and affordability goals.

Aaron confirmed existing Nairobi protocol protections covering hundreds of product SKUs. Jason added it's been used for last couple of years, not new to them.

Jason acknowledged med-surg opportunity but emphasized physician-first approach. GI Alliance selected as best partner for non-oncology 60% of specialty market.

Aaron confirmed GMPD would have been mid-$20M profit ex-health costs. Manufacturing cost impact was similar dollar amount to health/welfare in Q1.

Birgit declined to provide 2026 NHP demand outlook citing it was too early. Confirmed 2025 saw higher NHP study volume versus 2024 and linked it to the KF Cambodia acquisition rationale.

Birgit explained the disconnect between RMS volume declines and DSA sourcing cost pressure as primarily timing-related, with Asian vs Mauritian sourcing mix and open market purchases driving higher DSA costs.

Foster said clients are not raising BIOSECURE Act concerns and CRL has seen no impact; either clients are managing it routinely or do not consider it significant.

Foster outlined positive factors: pharma done restructuring, 4 months of improving biotech access to capital, book-to-bill improving for 3-4 months, proposals up, cancellations down. But stopped short of predicting 2026 numbers.

Knell said still in planning process and too early to quantify flow-through, but cost savings are specifically designed to expand earnings in 2026 while offsetting inflationary pressures.

Foster said NHP clearing provides enormous flexibility for both existing animals and future Cambodian imports. Pease confirmed CDMO margin was boosted by wind-down revenue plus a one-time payment in Q2 that was not quantified.

Foster highlighted proprietary toxicology databases as underrepresented opportunity, discussed M&A interest in validated NAMs technologies, and referenced Retrogenix acquisition, virtual control groups, and AI partnerships.

Bousbib addressed each element directly: pass-throughs and cancellations in normal range, good mix of large, mid and EBP, FSP low to mid double-digits.

Bousbib confirmed ~1.15x book-to-bill if pass-throughs were normal, and noted it would be even higher if RDS revenue had been planned rather than the strong upside. Organic growth: RDS 3% (reported 6.2% less ~2pp FX, ~1pp M&A), Commercial 5% (reported 11.6% less ~3pp FX, ~3pp M&A), enterprise ~4%.

Bousbib said Cedar Gate had ~$125M revenue and ~$33M adjusted EBITDA in 2024, growing to ~$140M in 2025. Transforms payer data into insights for 4 payers covering ~60M lives. Expands IQVIA's payer-provider analytics business which was previously only a few percent of total revenue, mostly in EMEA.

Fedock confirmed TAS full-year CFX growth of 5-6%, no change from prior guide. Both mega trials fully pushed out of 2025, no revenue burn in Q4 guidance, slight change from prior expectation. Phase I involvement expanding, especially oncology (NEXT Oncology acquisition), as part of see more win more strategy.

Bruehlman confirmed EBITDA is largely FX-independent. M&A contributed about 200 bps in Q1, approximately 150 bps for the full year, majority in TAS. Organic TAS was low-to-mid-single-digits.

Adam clarified flat is inclusive of $50M impact, suggesting underlying improvement. Julia confirmed BLS margin expansion expected to exceed Diagnostics in 2026, driven by ED streamlining and Central Labs top line growth. Declined to provide ED-specific margin but confirmed meaningful profitability improvement.

Adam declined to give a specific number but characterized the impact as relatively small given 80% of spend under contract and US-sourced. Planning for worst likely scenario.

Adam quantified: $18M COVID revenue in Q1 2024 (near-zero in Q1 2025), remaining $18M spread over Q2-Q4 2024. Minimal remaining headwind.

Adam quantified the COVID trial cancellation at slightly over $100 million, but book-to-bill still came in strong at 1.13.

Eva said GLP-1s were up 25%, generally in line with expectations, and that the majority of the Other segment growth was driven by MWI held-for-sale accounting, with underlying MWI up about 10%. She did not separately quantify the held-for-sale benefit.

Jim noted cell and gene therapy not yet material to bottom line. Pipeline visibility supports improvement later in FY25. Acknowledged competitive market but plans to remain leader through innovation.

Bennett confirmed leadership position in retina/ophthalmology distribution but did not provide specific market share figures.

Jim explained OIG report found 10 tests drove majority of 5% Medicare lab spend increase. 7 of 10 were proprietary PLA codes Quest has no participation in, 3 were genetic/molecular with de minimis Quest billing. Applauded fraud efforts. Noted routine wellness tests were actually down, which is concerning for preventative health.

Sam detailed $30M planned: ~$10M for QARA (mostly spent), ~$20M for Nova (mostly shifted to Q4). Total Nova program $250-310M over 6-7 years. Can pace investments depending on PAMA.