Jim Cleary: Yes. I’ll add one minor point in response to your question. There was growth in vaccines in Canada during the quarter, but it was a small part of the growth, really the growth was driven by the core part of the business, which performed very well during the quarter.
Operator: Our next question comes from Elizabeth Anderson with Evercore ISI. Your line is open. Please go ahead.
Elizabeth Anderson: Hi guys, thanks so much for the question. One thing that I wanted to explore a little bit more. You obviously said that you’re seeing nice performance from the PharmaLex business as it continues to integrate into the core business. One thing we’ve been hearing from the more the manufacturer side of the equation is just sort of maybe a little bit of reduced spending on the commercialization side. Can you talk about how you’re seeing the impact of that in the business? Is it something that you sort of maybe a headwind later in the year? Does it present additional opportunities as they seek to outsource additional services? Can you help us sort of think through that as we think about the rest of the year? Thank you.
Steve Collis: Yes. It’s a very good question. Certainly, I understand that. I mean, investment cycle, in life cycles, in the — in life sciences and the approval cycles, we’ve had experience with this through businesses like Lash and even in my early days, RCS, as we look at products getting approved or not getting approved, and as you look at the VC funding cycle and as you look at M&A from big pharma and just smaller pharma. And I’d say that the market has been a little bit softer than in the last year to year-and-a-half with some of the geopolitical and inflation and market pressures. But you are seeing a — I think there’s a real thesis of a tremendous investment in innovation, precision medicine, cell and gene therapies, which Cencora is uniquely positioned to capitalize on, and you’ll see us continue to benefit we spending just getting ready now for our March strategic plan presentations to the board, we spending a lot of time looking at our commercialization services capabilities, how do we become the best-in-class in all the various areas that we’re in, including the four main segments that PharmaLex is in, development, consulting, regulatory affairs, pharmacovigilance, quality management and compliance.
And we think that there’s a real role for Cencora globally in those launches, in those commercialization services. And you’ll see us continue to invest. We’re happy with the team we have in place. We’re happy with the U.S. presences we have there. And you’ll see us continue to benefit and we’ll be a little bit affected by the economic cycles. But there’s a global trend here, which is a long-term trend, which we intend to capitalize on.
Operator: We now turn to Allen Lutz with Bank of America. Your line is open. Please go ahead.
Allen Lutz: Good morning, and thanks for taking the questions. One for Jim. We’re about a month into the year, just wondering how are brand price increases coming in versus expectations? Is there anything to call out there? And then what’s embedded in the model for mid-year price increases? Thanks.
Jim Cleary: Yes. And so let me talk about brand price increases and what we’ve been seeing. The January price increase activity was broadly in line with our expectations. And I’ll also say that, as we’ve said in the past, that brand inflation is less important for Cencora than it once was since well over 95% of our brand buy side dollars are fee-for-service. And then what I’ll just say with regard to our kind of expectations and what’s in the model for the balance of the year with regard to brand pricing, we don’t have specific guidance metrics on drug pricing, but our expectations that we have in the model or that will be generally in line with the changes we’ve seen over the past couple of years. Thank you for the question.
Operator: We now turn to Erin Wright with Morgan Stanley. Your line is open. Please go ahead.
Erin Wright: Great. Thanks. I have two questions here, if that’s okay, but on GLP-1s, is there any way you can achieve better economics associated with GLP-1s, or is it just simply a function of the more complex logistics and there’s nothing more you can do there? And then on Animal Health, you called that out as strong. What are you seeing in terms of volume and pricing trends across both companion and production in animal, how’s the landscape evolving, for instance, in terms of alternative channels? Thanks.
Steve Collis: Yes. Thank you for the question, Erin. On GLP-1s, I would just say that in the long-term, some of the formulations are going to switch. It’s such a big category that as we look at renewals of contracts and we have on the sell side, we have somewhere usually around three to five years on those contracts. This is a different category that we would work with the customers to understand what our mutual requirements are. Certainly it’s a category that is having a weight on those contracts. It’s of such a serious top-line significance and has impacts on the different contractual requirements that we have including mix of products, et cetera. So it obviously will come up in any discussion. We also intend to do more work with manufacturers.
