Guardian Pharmacy Services (GRDN) Stephens Annual Investment Conference summary

Business model and market focus

• Focuses on assisted living and memory care, serving over 50 pharmacy operations nationwide with a 13% national market share and a goal to reach 20-30% over time.

• Differentiates through a clinician-led, tech-enabled service model tailored to the unique needs of assisted living residents, leveraging data analytics and national sales relationships.

• Assisted living is the core market due to its significant growth and increasing resident acuity, with the average resident aged 85+ and taking 14 prescriptions.

• Organic growth is driven by expanding within current markets, contiguous greenfield startups, and deepening relationships with large and regional accounts.

• Market consolidation is increasing, with a growing share of residents coming from large and regional accounts as the industry shifts from a real estate to a healthcare focus.

Growth strategy and competitive landscape

• Organic growth pillars include contiguous market expansion, increasing resident adoption within facilities, and targeting large/regional accounts.

• New pharmacy launches are triggered when existing operations reach a three-hour service radius, ensuring high service quality and local presence.

• Acquisitions are driven by both partner demand and market attractiveness, with integration timelines typically around four years to reach average profitability.

• Recent acquisitions in the Pacific Northwest benefited from existing systems and strong local teams, accelerating integration and growth.

• Main competition comes from independent operators with strong service but limited scale; national competitors are present but the market remains fragmented.

Operational excellence and value proposition

• Provides a tech-enabled medication management platform, robotic dispensing, and data analytics to improve adherence and reduce errors.

• Analytics tools support both internal efficiency and customer operations, including new programs like falls risk assessment.

• Resident adoption rates average 89-90%, with growth potential in new facilities and an upper limit in the mid-90% due to external factors like VA benefits.

• Service model reduces medication errors and resident complaints about drug costs by ensuring formulary alignment and proactive therapeutic interchange.

• Pharmacies expand physical footprint as they grow, with average size doubling from initial setup.