Cencora (COR) Morgan Stanley 22nd Annual Global Healthcare Conference summary

Leadership transition and strategic vision

• Incoming CEO Bob Mauch will assume the role on October 1, with the current CEO transitioning to executive chair, ensuring continuity in strategy and execution.

• The leadership team emphasizes a continued focus on a pharmaceutical-centered strategy, supply chain efficiency, customer focus, and innovation.

Financial guidance and performance

• Fiscal 2024 Adjusted EPS guidance was raised to $13.60–$13.70 per share due to strong U.S. business performance and favorable net interest expense.

• Fiscal 2025 Adjusted Operating Income and EPS growth are expected at the bottom end of long-term guidance (5–8% and 8–12%, respectively), mainly due to normalization of COVID-related earnings and the expiration of an oncology contract.

• A major pharmaceutical supply agreement with Evernorth Health Services (Express Scripts) was extended through September 2029.

Business drivers and market trends

• Strong utilization trends in specialty areas like oncology and ophthalmology continue to drive core business growth, supported by an aging population and pharmaceutical innovation.

• Generic drug deflation has moderated, reducing headwinds, while branded pricing remains stable and in line with expectations.

• Specialty market growth is a key focus, with significant investments in OneOncology and MSO services to attract independent practices.