Jason Hollar: Yes. Thanks, Erin. It’s very consistent to the prior messages. So we’re not seeing any change in the underlying market. And so my comments are going to be very similar to what it’s been in the past. So let me just start with just underlying utilization continues to be strong. We’ve seen – in our commentary this morning, we made a number of comments around just the broad-based utilization being strong in the pharma industry. So we generally benefited from that. So volume is absolutely a key component of that. The consistent market dynamics that Aaron just referenced again is an indication that the buy and sell side continues to be very balanced. So overall, as in the past, I’m not going to break apart all the different pieces.
We think it’s best to look at them on a net basis. And within that, what I will say, though, is we continue to have very strong performance with our Red Oak Sourcing joint venture. So we continue to have that team, very focused on the dual mandate of, of course, driving down the best cost. But also as important and their mandate is to ensure that service levels are optimized as much as possible as well. So we feel very good about their progress, both in controlling costs, but also in driving great service for our customers. So again, those should be very similar words what we’ve said in the past. So that’s why we used the phrase consistent market dynamics because we’re not seeing any significant change in the underlying dynamics of this part of our business.
Matt Sims: Next question, please.
Operator: George Hill of Deutsche Bank. Please go ahead. Your line is open.
George Hill: Good morning guys. And thanks for taking the question. I think like a lot of the other people on the line here, I’m really intrigued by what seems to be going on in the generic drug business. You guys called out Red Oak, GLP-1s were really strong in the quarter, but they have to be significantly margin dilutive. I guess, Jason, I’d love if you could talk about like if anything is changing on the contracting side? Are you seeing like increased rebates for purchasing compliance or supply compliance? Just kind of interesting, any more color that you can provide on what’s going on in the generic drug space as it relates to profitability would be super helpful.
Jason Hollar: Yes, so it’s a fair question, George. And there’s always going to be an evolution customer to customer, contract to contract. The balance of brand versus generic and then within brand and within generic, the mix always is ever evolving. And so over time, I would expect there to be more and more separation between some of these elements as the weighting of the products change. So it’s – even though this volume has been dramatic for the GLP-1s, it’s also been over a pretty short period of time and probably still early in this journey. So you used the phrase, and I think it was used earlier is significantly margin dilutive. I’m not sure – I’m sure we’ve never said words like that because it’s very rare you hear us talking about margin rates, which you hear us talking about is margin dollars, and I even joked about this at Investor Day.
I’m not sure I’ve ever said the words out loud in my career about the margin rate not being the most important or a significant metric for us. And it’s because of products like the GLP-1s, products that are incredibly important to that underlying patient, which means it’s important to our customers, which means it’s important to us. It is not the most profitable class of progress today, but it’s important for our patients and important for the industry what we value more than anything else is innovation in the distribution channel in the industry. Innovation brings good things for us. Maybe not in the short-term and maybe not for every single product, but innovation ultimately brings opportunities, whether it’s services or whether it’s – when these products become other opportunities to contract or other opportunities over time for them to go generic, there’s just lots of different ways in which you can create economic value on a particular transaction, particular product.
