Option Care Health Inc Mid-Quarter Catch Up; Thoughts on STELARA and Share Repurchases

Research evidence excerpt

Option Care Health Inc Mid-Quarter Catch Up; Thoughts on STELARA and Share Repurchases

th EPS (UBS, diluted) (USD)

and share repurchases given the share price dislocation. The company called out that its 12/26E

acute business continues to outperform industry growth rates, growing HSDs in 1Q even UBS Cons.

after lapping the CVS exit, while its IG/Neuro business continues to perform well. Q1 0.29 0.40

Q2E 0.33 0.43

Q3E 0.38 0.48

Other Tidbits: IRA Drug Price Negotiations, Focusing on Growth, and Capital

Q4E 0.44 0.53

Deployment

12/26E 1.43 1.84

The company said it does not expect any impact from the latest CMS announcement 12/27E 1.64 2.06

around IRA drug pricing, but did remind us that there are a few drugs in its portfolio up 12/28E 1.97 2.31

for price negotiations in 2028 as part of the IRA, including Entyvio. However, OPCH does

not expect any of these drugs to see the same level of impact on its results as has AJ Rice

Analyst

occurred with STELARA, which management continues to view as a unique situation. In

aj.rice@ubs.com

addition, OPCH does not have any therapy in its portfolio that accounts for more than +1-212-713 4299

4% of gross profit. In terms of its focus on returning to growth, the company is looking

to improve its commercial resource sales capabilities across multiple therapies. This will James Kurek

ensure that the company is in front of prescribers with the right reach and frequency,

james.kurek@ubs.com

and looks for this to help in translating referrals into new patient starts. OPCH said it +1-212-713 3704

wants to be the convenient, reliable partner and is focusing on the needs of the specific

Joseph Overmanprescribers. OPCH is also looking at some cost savings initiatives and include things like

Associate Analyst

procurement savings.