Cardinal Health at Baird Conference Notes

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This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

“we’re probably looking at a society that today is going to go from having 11 million or 12 million people over the age of 80 in the United States to probably over 20 million”

“care is going to be increasingly delivered in the home.”

“83% roughly of prescriptions are now generically penetrated remains a very important driver for us.”

“What is less well understood is the lifecycle of a generic drug, and they can be very long. We have drugs that probably went generic in the late ‘90s that are still contributing very nicely to our business. And so what is happening is we’re getting larger, we’re getting more, I would say skillful and strategic around how we source products on a global basis and we’re able to capture value during that very long lifecycle of that drug.”

“we have a little bit of a bifurcated system now in which we have an incredibly high number of products that are generically available, right? So, the percentage of generic penetration in the system is incredibly high.

And then in the other end, you have enormous innovation research work being done in the specialty areas. And the word “specialty”, as you guys know, probably means different things to everybody, but we tend to think of these products – products that have unique characteristics or very specialized disease areas that require sort of high touch; often very unique handling.”

” We desperately need innovation in the system and we’ll continue to drive it and you know medical device companies that are heavily focused on innovation, but there has been a lot of sort of product proliferation that wasn’t innovative, and I think we see these opportunities now and the health system is now ready to explore that.”