The Oncology Institute, Inc. Common Stock Wells Fargo 21st Annual Healthcare Conference

Sure. Absolutely. Well, thanks for having us today. I'm Dan Virnich, I'm the CEO of Starling Oncology. This is Rob Carter, our Chief Financial Officer. For those of you that don't know us, we're the largest value-based oncology platform in the U.S. We have a hybrid care delivery model, so we have both an employed physician group and a network of independent providers, and we currently operate across five states. We've been a public company now for five years, and we've been in operation for over 19.

How we're differentiated, we take Part B risk on oncology spend for over 2 million patients across those five states, and we've been showing for the last 19 years that you can do so delivering high quality outcomes for patients, better care in the community, through migration of high level services into the community in our clinic settings, and by doing the right thing in terms of making drug choice for patients drive significant savings. Really, our story over the last five years as a public company has been expanding into markets where we capitate with health plans, not just risk bearing medical groups.

We've shown predictably that because of our scale, both in terms of our proprietary utilization management model as well as our ability to buy drugs at scale and control networks in terms of setting the contracted rates that we pay providers around our employed clinics and our network drive better MLR performance.

Yeah. This year has definitely been an inflection point for us as a public company. It's our first fully profitable year that we've got into. We also just recently executed a balance sheet transaction and restructured our legacy convertible preferred note with Deerfield Management with a new note with OrbiMed. It felt like the time was right to rebrand. We'd been hearing feedback for many years that our legacy name, The Oncology Institute of Hope and Innovation, caused a lot of confusion, not just with investors, but also with patients and our payer partners. People sometimes confused us for a faith-based organization or a palliative and hospice organization or a research clinical trials organization. So we chose to really get a new name, which captured the value that we provide to patients and to our payer partners.

Starlings are a bird that fly in coordinated patterns, which we felt symbolized our coordinated care model. The star has a very positive connotation as an anchor part of the word. So we landed on Starling Oncology.

Yeah, absolutely. The first thing that is important to understand is oncology is the most expensive specialty that payers have to deal with in their network, and that is all driven by the costs of the drugs that are prescribed. While those drugs can be lifesaving, they can also be incredibly expensive. The way they are reimbursed for most oncology practices typically drives overutilization or off-label use of drugs. The legacy solution to that was really kind of a benefit manager model where there were platforms that implemented utilization management strategies to help control spend. The problem with those models is they had limited efficacy because they were not employing physicians, and they were not procuring the drugs.

Really the differentiator for us as a business is we have a state-of-the-art utilization management program, but we are also procuring the drugs that we take risk on at scale, and that gives us tremendous buying power and allows us to drive down the unit economics of those drugs that we are taking risk on. Then we are also employing providers that are part of the larger network of care delivery, and that gives us tremendous control over the care that is delivered, both in terms of the quality and the predictability that those providers have in terms of adhering to our value-based regimens. All that put together means that we have shown that we can drive an industry leading MLR, in the mid 80 range, which really stands out for oncology.

Yeah, I think a really nice aspect of the way we are growing is how we are able to do it so capital light. When we grow via our delegated market, excuse me, our delegated contracts, we are not going to set out by putting dots on the map. We are going to evaluate the market and then make strategic moves by putting clinics and doctors on the map where it makes sense for us and where it benefits our overall MLR on the contract. The second piece is we have seen significant growth in our pharmacy business. That also is a capital light business, one in which it does not require significant investment. Those two areas continue to be our primary areas of growth.

As we've laid out previously, we expect overall growth of over 20% over the next several years in top line, and that growth is being driven by those two segments. If we're able to maintain cost discipline, you're going to see direct contribution to overall adjusted EBITDA from those two segments.