Daniel Grosslight: Hi. Thanks for taking the question. I just have one quick housekeeping question, and then I’ll ask my real question. There was a slight change in the language around your inflation mitigation efforts from your ID presentation to your current presentation. You went from fully mitigating by the end of ’24 to just mitigating. Curious if there’s been some change in how you’re thinking about things? Or if it was kind of a simplification of the language? And then my real question is around the generics business. It seems like you and your competitors have all benefited from a more favorable environment. And it seems like it might have accelerated towards the end of your fiscal year. So I’m just curious to get your thoughts on the generics market potential shortages and how you’re thinking about the benefit or tailwind of generics in your fiscal ’24 guidance vis-a-vis the strength you saw in fiscal ’23. Thanks.
Jason Hollar: Sure. So in terms of the language change for inflation mitigation, I think you said it best. It’s a simplification language. The one thing I would highlight is similar to our disclosures with COVID, over time, those became more difficult to precisely measure. So now we are — and this inflation mitigation was always focused on the incremental inflation because we had spikes, unusual dramatic spikes in inflation. Well, there’s normal inflation as well. So this is just a little bit broader language to recognize that over time, it’s becoming harder to differentiate between the two. We have a good understanding of the most significant impacts like the international freight. But when you get into labor, what’s normal, what’s incremental, it becomes more challenging.
And we just have a little bit broader language to recognize that it is going to be less precise than it was early on in our measurement. We’re still doing as deep of analytics as possible to get a reasonable understanding of it. As it relates to – I think – well, I think the key takeaway with that is we are on track, right, the ultimately, the strategy makes sense. It should be pushed down to the final customer, the final user of the products and services, given the business model. And so we believe that the basic tenets are absolutely unchanged. It’s just reflecting the level of precision. On your second question as it relates to generics, as I step back and think about performance for the Pharma segment this year, inclusive of generics, I think you can think about the overall segment as well as the generics business.
There’s a couple of things that have occurred. There is the overall market utilization has been very strong, and our performance has been very good within that. And it’s at levels that for all the reasons Aaron highlighted is that a growth rate is a bit higher than what normal is and certainly higher than what our long-term growth targets are. And as I think forward to fiscal ’24, we expect that to normalize. We expect it to still be favorable growth. We indicated during Investor Day in the 2% to 3% type of range from a unit volume growth, and we would expect to participate within that. And we expect our performance to continue with areas like Red Oak Sourcing to continue to drive both the cost as well as to your other related point, the product shortages.
They have a dual mandate to drive performance for both cost as well as service levels to customers. So while there are product shortages sporadic within the overall Pharmaceutical distribution supply chain, that’s not a new phenomenon. There’s various demand driven spikes and supply driven spikes. Our goal, of course, is to minimize those challenges within that to give our customers the best possible service. And what we saw, in fact, in fiscal ’23, it was a little bit of a benefit by being able to supply products as a second distributor as not the primary distributor, but we had some opportunities where we were able to provide when others were short on product. So overall, that was a slight positive for us this year as well. And we expect those types of things to be more normalized in fiscal ’24 and feel well-positioned to participate in that growth.
