Steve Collis: No, no. Thanks, Jim. Well said, certainly, I think if you look at where manufacturers are investing their dollars, of course, there’s been a very robust sector in the GLP-1 category in the diabetes and weight loss category. But oncology is one where so many manufacturers are focused. We still feel that we have significant opportunities with biosimilars with some of the other new categories of drugs in this area. Cell and gene therapy are going to be important business drivers for us. Cencora plays an important role in those products. And then on the practice management side, the data, value-based care side, so robust, the sector, and our role in it is so integral to those practices that it’s just still a very exciting place to be and one way where Cencora will continue to be the leader. And hopefully, we also look to do more oncology in Europe over time as well. Thank you.
Operator: Our next question comes from Kevin Caliendo with UBS.
Andrea Alfonso: It’s Andrea Alfonso, in for Kevin. I wanted to switch gears a little bit and ask about the international front and given your expectations for 7% to 10% ex-FX and ex-COVID, which is above the LRP targets you’ve outlined. Could you maybe discuss some of your expectations there a little bit? I assume maybe PharmaLex accretion is improving. But we also are comping against pretty strong growth in World Courier and sort of the volumes per shipment and mix basis. And then maybe what your expectations are for commodities as well?
Jim Cleary: Sure. So yes, we feel very good about our growth opportunity this year in International. One of the things that’s driving the growth rate though, I want to make sure you know, is we do have an extra quarter of PharmaLex in fiscal year ’24. We had 3 quarters in fiscal year ’23, and we’ll have 4 quarters in ’24. Also we’ll really benefit for the fact that we’ve recently divested the Egyptian business. And that was a headwind in our fiscal year ’23, and it will no longer be a headwind in our fiscal year ’24. But overall, we also continue to benefit just from the very strong Global Specialty Logistics business, the World Courier business, which has been an excellent performer. And then also solid execution from the Alliance Healthcare team and the Alliance business. And so those are some of the things that drive our growth rate in International in fiscal year ’24.
Operator: Our next question comes from Charles Rhyee with TD Cowen.
Charles Rhyee: Great. Just wanted to follow up a little bit on that, as we think about the acquisition of PharmaLex and you’ve been moving more into sort of pharma services, are there other areas when you think about serving your biopharma manufacturer partners, areas that you’re — maybe you’re not in that you think are sort of strategically, kind of — tangential to things that you’re doing now that could be interesting for you as you think about capital deployment going forward?
Steve Collis: Yes. PharmaLex is a strategic asset that’s very complementary to our existing services. They, as you know, provide a platform with services in the U.S. as well as a high level of service for a differentiated level of service than we’ve historically been providing in Europe. We already had a commercialization service category-type businesses with companies like other well-known like Lash and Xcenda. World Courier, in a way, has many aspects of it that are more like a commercial or a commercialization services, but also strong distribution and supply chain expertise in our ultra niche market. So these are areas that are very intriguing to us. We’ve always had a view that our customers are both up and down the supply chain.
And we want to carry on providing those best-in-class services. We have opportunities also for geographic expansion. So where else does it make sense for us to be. And PharmaLex has been very adept at getting into new markets and is present in many, many countries. So some of these compendia works we’re doing, we’ve been talking about them. And business reviews are really truly global in nature to the extent of very few projects that we’ve worked on in the past. So exciting opportunities for us, strong management team. We focus on the integration. And I think you’ll see potential add-on investments and to — and including geographic, potentially. But at the moment, we’re just focused on rolling it in to the extent that we would want with key integration goals.
So — but thank you for the question.
Operator: Our next question comes from Erin Wright with Morgan Stanley.
Erin Wright: Great. So a lot of my questions have been asked. But just a quick question on Animal Health. What are you currently seeing in the companion and production animal markets? And how do you see that playing out over the next year, just in light of some that still sluggish vet office visit environment that we’re seeing? And then a separate question just on the 2024 guide. I think you mentioned the Walgreens relationship earlier, but any other contract changes or material renewals that we should be thinking about that may be embedded in your guidance here?
Jim Cleary: Okay. Yes, sure. I’ll start off with the Animal Health business there, Erin, and thanks a lot for the question. And I’ll really focus my answer on our business. And as I mentioned during my prepared remarks, our Animal Health business had a great quarter. Both our companion and production animal businesses grew very nicely during the quarter. And despite the companion market having some headline issues with vet visits, we’ve continued to see good sales growth. And in the production market, the herd count remains near record lows. But given the high price of cattle producers want to make sure they keep their cattle healthy. And so we have seen very good results there, and it’s probably been driven by, I think, just really good execution by our Animal Health team the last few quarters. And then with regard to your other question on major contracts coming up for renewal, we don’t have any large upcoming renewals in the near term.
Steve Collis: Thank you. That concludes our questions. I’ll just make a closing statement. Cencora is proud to finish our first quarter as Cencora, and we move into fiscal year ’24 with strong momentum. We are executing, as we always have, to deliver results. We are investing in our business to differentiate our capabilities and deliver long-term growth. We are at the center of health care and the care of the supply chain, the core of the supply chain, including — very closely tied to these innovative products that we’re so proud to represent in the marketplace. Our fundamentals are strong, and our strategy is sound as we are well positioned to continue delivering value for our stakeholders in fiscal year ’24 and beyond. Thanks for your time and attention today.
Operator: Thank you, everyone, for joining us today. This concludes our call, and you may now disconnect your lines.
