Option Care Health, Inc. Common Stock Morgan Stanley 24th Annual Global Healthcare Conference

Yeah. Thank you for coming today. Great seeing you again. As we exited the second quarter, just wanted to reinforce really the momentum that we feel within the business, the execution of the team. As we had called out, first quarter certainly had a step down in performance as our expectations, and we really wanted to look at the second quarter to identify how to stabilize and then more importantly, start to build the momentum and move forward. As we reported in the second quarter, that momentum not only has stabilized. Expectations were we needed to really understand the dynamics and the shifting dynamics that were different than we expected, especially in that chronic inflammatory portfolio as we were moving that ahead. We wanted to see how that patterned into the second quarter.

Again, we are pleased to be able to report the stabilization and the momentum that we felt out of that. From our perspective, we see that there are vectors of growth as we are looking at that forward view that we are excited about. We continue to drive extreme amount of value in the acute therapies in helping to manage patients safely and effectively to transition out of an inpatient setting into the home and manage them effectively through that process. The product portfolio within the specialty space continues to expand. There are great opportunities for us to capture more of that market share as we are deploying additional resources on that. Our capability set, when you look at a national network of highly advanced pharmacies, as well as the clinical capabilities with our nursing network, is unique in the marketplace.

To be able to partner with pharma, to be able to introduce new products and support that through its journey, we feel we are really well positioned to do that. The conversations that we have been having with payers around helping them manage the total cost of care and their medical loss ratios around utilizing our capabilities, those site of care initiatives, again, continue to pick up momentum through that standpoint. I would say, at a whole, across those dimensions of where we see and where we play today, we think there are opportunities for us to continue to drive that growth and utilize our national scale, but our local responsiveness in ways that captures more of the demand that is in the marketplace. I will put it around that, Erin, to contextualize our confidence in this model, our confidence in this business remains intact.

Trying to understand some of the implications of the chronic inflammatory disease, we just want to be very thoughtful in the way that we approach it.

Yeah, as we start thinking about getting into 2027, we, like other companies that have a December 31st year-end, we're finalizing the long-range plan, and that then nicely tends to dovetail into the budgeting process. It's a little early for us at this point to get into what that looks like for 2027 and beyond. But in the coming months, as we find the right timeframe, we'll definitely be providing more color, both on '27, but with some of the aspects that John just talked about as we think about that longer term as well.

Yeah. We start with the breadth of the portfolio. When you look at how broad the portfolio is in the expansion of bringing new products in, that is front and center, like the focus of the enterprise. We like the fact that we can provide everything from the acute, short duration antibiotics through the most sophisticated specialty drugs. That shows not only the breadth but the depth of the clinical team and our capabilities in order to do that. As you're looking forward around just the diversity of the portfolio and you called out, there is no product that is more than 4% of the revenue, and so that just demonstrates the breadth of the portfolio.

As we move that forward, I think we called out in previous conversations, we have over 600 products that are part of our portfolio, and that's growing every day as our team looks at those opportunities. The opportunity to support from a specialty pharmacy standpoint, we are a specialty pharmacy. We're URAC accredited. We maintain patients that move from IV induction dose onto subcutaneous. It's part of our normal flow. There's different dynamics associated with that, with the economics, when, again, you don't have nursing and other components involved. But we are a full-spectrum pharmacy, and we do have that specialty pharmacy capability to continue to support patients on their journey and then wrap around that the clinical competencies of the enterprise. So sitting here today, there's nothing that we're looking forward that is a significant disruption over that midterm horizon.

The products we're watching have dynamics of having a competitive environment today anyways around alternatives in the marketplace. A lot of our focus is around the new products that are being developed that are moving through the product pipeline and making certain that we are a partner of choice for pharma to introduce those products as being part of our formulary. Whether it's in a limited distribution network or in a full spectrum network, we want to be part of that pharmacy solution for them, and care team to expand the portfolio broadly.

You want to talk about the model first, and I'll talk more broadly?