So that is certainly a key component of it. What I would say about all the other commodities or all the other inflation, specifically the commodity impacts, whether it’s the oil-based products polypropylene, polyethylene or unwovens and other types of inputs, which are varied. I would say that they are generally remain elevated a little bit volatile here and there, but generally elevated and not real different than what we had anticipated. So certainly noise, but how I think about it going forward and what my anticipation is we’re just not seeing the volatility that we did back 18 months ago. So there is volatility, no doubt. There will always be volatility, but it’s to a much lesser degree and much more balanced and kind of in a normal environment right now.
And that’s why you don’t hear us talking about it is because it’s just not meaningful in the context of everything else that we have going on.
Operator: Next question from Kevin Caliendo, UBS. Please go ahead. Your line is open.
Kevin Caliendo: Hi. Thanks. I guess, what we’re trying to figure out is in the change in the pharma guidance, how much of it was incrementally coming from the vaccine incremental versus what you had originally expected if you don’t want to give us that number specifically, maybe explain there was a 5 basis point improvement in the pharma margin year-over-year. How much of that was coming from vaccines? Or maybe you can just break out where the benefits came from. I assume GLP-1s were negative on the margin. So something had to be better on a year-over-year basis. I’d love to explore that?
Aaron Alt: We’re happy to provide a little more context. Look, it was a strong start to the year, and we remain very encouraged about the runway for the pharma business. And we did raise the guidance to 7% to 9%. It’s really a result of three factors. First was just the strong Q1. And as Jason alluded to, we did have a contribution from the COVID vaccine distribution. And it was higher – that contribution was higher than what we had assumed in our original plans, just based on the timing of when the approvals came through. And frankly, our team’s ability to jump on it and execute the way they did. Third element, though, was just the ongoing strength of the business under – other than the COVID vaccines, which is really consistent from an outlook perspective with the 4% to 6% guidance that we gave previously on a normalized basis.
And just to remind you on that, what we had guided previously is that we expected low single-digit growth – profit growth from the core pharma business. We’re expecting stability from the generics business, consistent market dynamics you often hear us say. We are expecting double-digit growth in the Specialty and Nuclear business, and Jason highlighted that progress in his comments earlier. And importantly, we are expecting brand inflation more in line with fiscal 2022, not the modest benefit that we saw in fiscal 2023, right? So look, we are early in the year. As we have done, we’ll continue to update as we push ahead, but we’re pleased with the results so far and the raise to the guidance.
Operator: The next question comes from Erin Wright from Morgan Stanley. Please go ahead.
Erin Wright: Hi. Thanks. Another question on the pharma business. You mentioned the consistent generics environment, but can you elaborate on that a little bit? I guess, can you speak to the generic drug pricing environment? Are you seeing any easing deflationary dynamics across generics? And how material is that for you in terms of your guidance raise across that segment? And does consistent mean essentially a continuation of those favorable pricing trends going forward I guess, throughout the rest of the year?
