On August 2, 2023 Schrödinger, Inc. (Nasdaq: SDGR), whose physics-based computational platform is transforming the way therapeutics and materials are discovered, reported financial results for the quarter ended on June 30, 2023 (Press release, Schrodinger, AUG 2, 2023, View Source [SID1234633656]).

Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:

Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing

                  Schedule Your 30 min Free Demo!

"This year, we’ve witnessed unprecedented interest in computational drug discovery and, as leaders in this field, we are excited by the growing recognition that computational approaches can transform pharmaceutical innovation," said Ramy Farid, Ph.D., chief executive officer of Schrödinger. "During the second quarter, we made progress across all aspects of our business, building new capabilities in our platform, delivering revenue in line with our expectations and advancing our proprietary pipeline. We are very excited about our outlook for the balance of the year."

"We are pleased to report FDA clearance of our IND application for SGR-2921, our CDC7 inhibitor, and expect to initiate a Phase 1 clinical study in patients with acute myeloid leukemia or myelodysplastic syndrome this year," said Karen Akinsanya, Ph.D., president of R&D therapeutics. "Our two SGR-1505 MALT1 inhibitor Phase 1 studies are progressing and we expect to share preliminary data from the healthy volunteer study later this year. In addition to these two clinical-stage programs, we continue to advance our discovery portfolio and look forward to providing updates on our pipeline later this year."

To support Schrödinger’s continued pipeline progress, Margaret Dugan, M.D., joined the company as chief medical officer effective July 31, 2023. In this role, Dr. Dugan will be responsible for clinical development and regulatory strategy for Schrödinger’s pipeline of wholly-owned programs. Dr. Dugan is a board certified medical oncologist and hematologist with more than 30 years of clinical, medical research, and drug development experience. Prior to joining Schrödinger, Dr. Dugan served as chief medical officer of Dracen Pharmaceuticals, an oncology company. During her career, she has held roles of increasing responsibility, including serving as a senior vice president at Novartis, where she led oncology-focused global strategic drug development, including several regulatory filings and approvals.

Today Schrödinger also announced that, for strategic reasons, Zai Lab has elected not to advance their discovery collaboration with Schrödinger to the next stage of development. In the two years of the collaboration, the joint team made substantial progress toward the technical goals for this complex target. The program is now wholly-owned by Schrödinger.

Second Quarter 2023 GAAP Financial Results
•Total revenue for the second quarter was $35.2 million compared to $38.5 million in the second quarter of 2022.
•Software revenue for the second quarter was $29.4 million compared to $30.0 million in the second quarter of 2022.
•Drug discovery revenue was $5.8 million for the second quarter compared to $8.5 million in the second quarter of 2022.
•Software gross margin was 77% for the second quarter compared to 76% in the second quarter of 2022.
•Operating expenses were $74.9 million for the second quarter compared to $60.6 million for the second quarter of 2022.
•Other income for the second quarter was $45.0 million compared to a loss of $4.2 million in the second quarter of 2022, driven by changes in the fair value of equity investments and interest income.
•Net income for the second quarter was $4.3 million, compared to net loss of $47.7 million in the second quarter of 2022. During the second quarter, the company reported $20.4 million in tax benefit, reducing the company’s tax liability recorded in the first quarter of 2023.
•At June 30, 2023, Schrödinger had cash, cash equivalents, restricted cash and marketable securities of approximately $554 million, compared to approximately $456 million at December 31, 2022.

Three Months Ended
June 30,
2023 2022 % Change
(in millions)
Total revenue $ 35.2 $ 38.5 -8.5%
Software revenue 29.4 30.0 -2.2%
Drug discovery revenue 5.8 8.5 -31.0%
Software gross margin 77 % 76 %
Operating expenses $ 74.9 $ 60.6 23.7%
Other income (expense) $ 45.0 $ (4.2) N/M
Net income (loss) $ 4.3 $ (47.7) N/M

For the three and six months ended June 30, 2023, Schrödinger reported non-GAAP net losses of $56.8 million and $84.4 million, respectively, compared to non-GAAP net losses of $43.8 million and $72.1 million for the three and six months ended June 30, 2022, respectively. See "Non-GAAP Information" below and the table at the end of this press release for a reconciliation of non-GAAP net income (loss) to GAAP net income (loss).

2023 Financial Outlook
As of August 2, 2023, Schrödinger provided the following updated expectations for the fiscal year ending December 31, 2023:
•Software revenue growth is expected to be in the range of 15 percent to 18 percent.
•Drug discovery revenue is now expected to range from $50 million to $70 million, compared to the prior expectation of $70 million to $90 million. This updated range reflects the company’s new expectations for the timing of collaboration milestones and for the completion of new business development activity.
•Software gross margin is expected to be similar to software gross margin for the full year 2022.
•Operating expense growth in 2023 is expected to be significantly lower than operating expense growth in 2022.
•Cash used for operating activities in 2023 is expected to be below cash used for operating activities in 2022.

For the third quarter of 2023, software revenue is expected to range from $27 million to $31 million.

Recent Company Highlights
Wholly-Owned Pipeline
•Schrödinger continues to advance its MALT1 inhibitor, SGR-1505, in Phase 1 clinical development. Enrollment is ongoing in the dose-escalation study in patients with relapsed or refractory B-cell malignancies, and the company is expanding the patient study to Europe to support enrollment. Schrödinger is also conducting a Phase 1 dose-escalation study in healthy volunteers. Emerging data from the healthy volunteer study support further development, and the company expects to share preliminary data from this study later this year.

•Today Schrödinger announced FDA clearance of its investigational new drug (IND) application for SGR-2921, the company’s investigational CDC7 inhibitor. SGR-2921 has exhibited strong anti-tumor activity as a monotherapy and in combination with standard of care agents in multiple preclinical tumor models. The company expects to initiate a Phase 1 clinical trial this year. The study is designed to evaluate the safety, pharmacokinetics, pharmacodynamics, and determine the recommended dose of SGR-2921 in patients with acute myeloid leukemia or myelodysplastic syndrome.

•Schrödinger continues to advance its Wee1 inhibitor, SGR-3515, through IND-enabling studies to support a potential IND submission in 2024.

•The company continues to progress a pipeline of early-stage wholly-owned programs with potential across a broad range of therapeutic areas. Schrödinger is planning to share updates during its Pipeline Day. Given the timing of data availability, abstract submission and embargo periods associated with conferences, this event is now planned for December 2023 rather than the previously communicated September 28 date.

Schrödinger Collaborators
•In July, Nimbus Therapeutics and Schrödinger published a paper highlighting the impact of computational physics-based predictions in the identification of TAK-279 (formerly NDI-034858), a TYK2 inhibitor currently in Phase 2 clinical trials for the treatment of psoriasis and psoriatic arthritis.

•In June, Structure Therapeutics presented encouraging preclinical and Phase I single ascending dose data from GSBR-1290, an oral GLP-1R in development for Type 2 diabetes and obesity at the American Diabetes Association Scientific Sessions. Structure Therapeutics reported that GSBR-1290 has demonstrated encouraging safety and tolerability as well as a dose-dependent pharmacokinetic and pharmacodynamic profile.

•In May, Morphic Therapeutic presented new biomarker data for MORF-057, an oral ɑ4ꞵ7 inhibitor in development for ulcerative colitis and Crohn’s disease at Digestive Disease Week 2023. Morphic Therapeutic reported that the preclinical data provide new support to mechanistic understanding of the activity of MORF-057 in ulcerative colitis.

Platform
•Schrödinger scientists published research showing how, in the hit identification stage of drug discovery, the use of absolute protein-ligand binding free-energy perturbation (ABFEP) can substantially improve the hit rate compared to docking scores or other methods like metadynamics. The research confirms ABFEP as a useful tool for improving hit rates in virtual screening and thus facilitating hit discovery.

•Schrödinger scientists published a paper describing a computational method to quantify protein reorganization free energy which is necessary to accurately predict binding free energies for ligands, a requirement to design ligands with stronger binding potency and selectivity. The use of two retrospective design case studies reinforces the method’s utility and potential for computer-aided drug design to better support complex protein targets.

Webcast and Conference Call Information
Schrödinger will host a conference call to discuss its second quarter 2023 financial results on Wednesday, August 2, 2023, at 4:30 p.m. ET. The live webcast can be accessed under "News & Events" in the investors section of Schrödinger’s website, View Source To access the call by phone, please dial 1-888-440-5983 (Toll-Free) or 1-646-960-0202 (Toll) and refer to conference ID 2440689. The archived webcast will be available on Schrödinger’s website for approximately 90 days following the event.

On August 2, 2023 Roivant (Nasdaq: ROIV) reported that it will redeem all of its outstanding public warrants (the "Public Warrants") and private placement warrants (the "Private Placement Warrants" and, together with the Public Warrants, the "Warrants") to purchase Roivant’s common shares (the "Common Shares") pursuant to its Warrant Agreement dated September 30, 2021 with Equiniti Trust Company, LLC (formerly American Stock Transfer & Trust Company, LLC) as successor warrant agent (the "Warrant Agent") (the "Warrant Agreement"), that remain outstanding following 5:00 p.m. New York City Time on September 1, 2023 (the "Redemption Date") for a redemption price of $0.10 per Warrant (the "Redemption Price") (Press release, Roivant Sciences, AUG 2, 2023, View Source [SID1234633655]).

Under the terms of the Warrant Agreement, Roivant is entitled to redeem the Public Warrants at a redemption price of $0.10 per Public Warrant if (i) the last reported sales price (the "Reference Value") of the Common Shares is at least $10.00 per share for any twenty (20) trading days within the thirty (30) trading-day period ending on the third trading day prior to the date on which a notice of redemption is given and (ii) if the Reference Value is less than $18.00 per share, the outstanding Private Placement Warrants are also concurrently called for redemption on the same terms as the outstanding Public Warrants. This share price performance requirement was satisfied as of July 28, 2023. The Warrant Agent has delivered the notice of redemption (the "Notice of Redemption") to each of the registered holders of the outstanding Warrants on behalf of Roivant.

At any time after the Notice of Redemption has been delivered and prior to 5:00 p.m. New York City Time on the Redemption Date, the Warrants may be: (1) exercised by the Warrant holders for cash, at an exercise price of $11.50 per Common Share, or (2) surrendered by the Warrant holders on a "cashless basis" (a "Make-Whole Exercise"), in which case the surrendering holder will receive a number of Common Shares determined in accordance with the terms of the Warrant Agreement and based on: (i) the period of time between the Redemption Date and the expiration of the Warrants, and (ii) the "redemption fair market value" (being the volume-weighted average price of the Common Shares for the ten trading days immediately following the date of the Notice of Redemption) (the "Redemption Fair Market Value"). Roivant will inform holders of Warrants of the Redemption Fair Market Value no later than one (1) business day after the ten (10) trading day period ends. In no event will the number of Common Shares issued in connection with a Make-Whole Exercise exceed 0.361 Common Shares per Warrant. If any holder of Warrants would, after taking into account all of such holder’s Warrants exercised at one time, be entitled to receive a fractional interest in a Common Share, the number of shares the holder is entitled to receive will be rounded down to the nearest whole number of shares. The Public Warrants are listed on Nasdaq under the symbol "ROIVW." The Public Warrants will cease trading on Nasdaq at 5:00 p.m. New York City Time on the Redemption Date.

The rights of the Warrant holders to exercise their Warrants will terminate at 5:00 p.m. New York City Time on the Redemption Date. Any Warrants that remain unexercised at 5:00 p.m. New York City Time on the Redemption Date will be delisted, void and no longer exercisable, and the holders of unexercised Warrants will have no rights with respect to those Warrants, except to receive the Redemption Price.

The Common Shares issuable upon exercise of the Warrants have been registered by Roivant under the Securities Act of 1933, as amended (the "Securities Act"), under a registration statement filed on Form S-3 with, and declared effective by, the Securities and Exchange Commission on October 3, 2023 (Registration No. 333-267503).

Questions concerning redemption and exercise of the Warrants can be directed to the Warrant Agent, Equiniti Trust Company, LLC (formerly American Stock Transfer & Trust Company, LLC), at 6201 15th Avenue Brooklyn, NY 11219 Attention: Relationship Management, telephone number (877) 248-6417.

For a copy of the Notice of Redemption, please visit our investor relations website at https://investor.roivant.com/.

None of the Company, its Board of Directors or employees has made or is making any representation or recommendation to any Warrant holder as to whether to exercise or refrain from exercising any Warrants.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any Roivant securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering, solicitation or sale would be unlawful.

Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:

Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing

                  Schedule Your 30 min Free Demo!

On August 2, 2023 Pacira BioSciences, Inc. (Nasdaq: PCRX), the industry leader in its commitment to non-opioid pain management and regenerative health solutions, reported financial results for the second quarter of 2023 (Press release, Pacira Pharmaceuticals, AUG 2, 2023, View Source;991.htm [SID1234633653]).

Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:

Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing

                  Schedule Your 30 min Free Demo!

Second Quarter 2023 Financial Highlights

•Total revenues of $169.5 million
•Net product sales of $135.1 million for EXPAREL, $29.3 million for ZILRETTA, and $4.4 million for iovera°
•Net income of $25.8 million, or $0.56 per share (basic) and $0.51 per share (diluted)
•Adjusted EBITDA of $54.3 million

See "Non-GAAP Financial Information" below.

"We were pleased to see EXPAREL year-over-year growth rates improve as the quarter progressed, with a meaningful uptick in June. Solid year-over-year growth continued in July, leaving us optimistic for a stronger second half of the year given improving market conditions and rising demand for joint replacements and other elective surgeries. We also expect to benefit from several ongoing growth initiatives in the second half of 2023, such as continued volume expansion for existing and new 340B customers, as well as new initiatives with oral and maxillofacial surgeons, Plastics, Outpatient, and Sports Management." said Dave Stack, chairman and chief executive officer of Pacira.
Second Quarter 2023 Financial Results
•Total revenues were $169.5 million in the second quarter of 2023, versus $169.4 million reported for the second quarter of 2022.
•EXPAREL net product sales were $135.1 million in the second quarter of 2023, versus $137.0 million reported for the second quarter of 2022. Second quarter volume growth of 4 percent was offset by a lower net selling price primarily due to the implementation of 340B Drug Pricing and other contracted relationships. There were 64 selling days in each of the second quarters of 2023 and 2022.
•ZILRETTA net product sales were $29.3 million in the second quarter of 2023, versus $27.4 million reported for the second quarter of 2022.

•Second quarter 2023 iovera° net product sales were $4.4 million, versus $3.2 million reported for the second quarter of 2022.
•Sales of bupivacaine liposome injectable suspension to third-party licensees were $0.7 million in the second quarter of 2023, versus $1.0 million reported for the second quarter of 2022.
•Total operating expenses were $129.6 million in the second quarter of 2023, versus $138.2 million reported for the second quarter of 2022.
•Research and development (R&D) expenses were $18.8 million in the second quarter of 2023, compared to $26.3 million in the second quarter of 2022. R&D expenses included $9.3 million and $5.1 million of product development and manufacturing capacity expansion costs in the second quarters of 2023 and 2022, respectively.
•Selling, general and administrative (SG&A) expenses were $64.9 million in the second quarter of 2023, compared to $65.0 million in the second quarter of 2022.
•GAAP net income was $25.8 million, or $0.56 per share (basic) and $0.51 per share (diluted) in the second quarter of 2023, compared to $19.9 million, or $0.44 per share (basic) and $0.40 per share (diluted), in the second quarter of 2022.
•Non-GAAP net income was $36.0 million, or $0.78 per share (basic and diluted) in the second quarter of 2023, compared to $24.0 million, or $0.53 per share (basic) and $0.51 per share (diluted), in the second quarter of 2022.
•Adjusted EBITDA was $54.3 million in the second quarter of 2023, compared to $44.9 million in the second quarter of 2022.
•Pacira ended the second quarter of 2023 with cash, cash equivalents and available-for-sale investments ("cash") of $220.8 million. Cash provided by operations was $43.5 million in the second quarter of 2023, compared to $29.8 million in the second quarter of 2022.
•Pacira had 46.1 million basic and 52.1 million diluted weighted average shares of common stock outstanding in the second quarter of 2023.
See "Non-GAAP Financial Information" below.
Financial Guidance
Pacira is revising the following full-year financial guidance:
•EXPAREL net product sales of $550 million to $560 million versus the company’s previously guided range of $570 million to $580 million;
•ZILRETTA net product sales of $110 million to $115 million versus the company’s previously guided range of $115 million to $125 million;
•Non-GAAP gross margin of 73% to 74% versus the company’s previously guided range of 76% to 78%; and
•Stock-based compensation of $46 million to $49 million versus the company’s previously guided range of $51 million to $54 million.
Pacira is reiterating the following full-year financial guidance:

•iovera° net product sales of $17 million to $20 million;
•Non-GAAP R&D expense of $70 million to $80 million; and
•Non-GAAP SG&A expense of $220 million to $230 million.
See "Non-GAAP Financial Information" below.

Today’s Conference Call and Webcast Reminder
The Pacira management team will host a conference call to discuss the company’s financial results and recent developments today, Wednesday, August 2, 2023, at 8:30 a.m. ET. For listeners who wish to participate in the question-and-answer session via telephone, please pre-register at investor.pacira.com/upcoming-events. All registrants will receive dial-in information and a PIN allowing them to access the live call. In addition, a live audio of the conference call will be available as a webcast. Interested parties can access the event through the "Events" page on the Pacira website at investor.pacira.com.

On August 2, 2023 Nymox Pharmaceutical Corporation [OTC Markets – NYMXF] (the "Company") reported an investment of US $2.0 million for 2 million shares at the price of $1.00 per share with 500,000 warrants priced at $2.00 (Press release, Nymox, AUG 2, 2023, View Source [SID1234633652]). The investment comes from James Robinson, a long-term shareholder of Nymox and a distinguished member of the Board of Directors of the Company. The funds will be used for general corporate purposes. The investment will close in the upcoming days after the customary formalities are completed.

Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:

Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing

                  Schedule Your 30 min Free Demo!

On August 2, 2023 McKesson Corporation (NYSE:MCK) reported results for the first quarter ended June 30, 2023 (Press release, McKesson, AUG 2, 2023, View Source [SID1234633651]).

Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:

Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing

                  Schedule Your 30 min Free Demo!

Fiscal 2024 First Quarter Result Summary
First Quarter
($ in millions, except per share amounts) FY24 FY23 Change
Revenues $ 74,483 $ 67,154 11 %
Income from Continuing Operations 2
958 766 25
Adjusted Earnings 2,3
993 851 17
Earnings per Diluted Share 2
7.02 5.25 34
Adjusted Earnings per Diluted Share 2,3
7.27 5.83 25
1 See below under "Fiscal 2024 Outlook" for full explanation
2 Reflects continuing operations attributable to McKesson, net of tax
3 Adjusted results in this earnings release are non-GAAP financial measures; refer to the accompanying definitions, reconciliation schedules, and schedule 2

"Our strong first quarter results reflect continued momentum across our business, led by the dedication and commitment of over 50,000 Team McKesson employees," said Brian Tyler, chief executive officer. "Our performance in the quarter further demonstrates operating execution and continued focus on our strategy. We remain confident in our ability to deliver sustainable growth. Based on the strong first quarter and our outlook for the remainder of the year, we are raising our guidance range for fiscal 2024 Adjusted Earnings per Diluted Share to $26.55 to $27.35."

First quarter revenues were $74.5 billion, an increase of 11% from a year ago, primarily driven by growth in the U.S. Pharmaceutical segment, resulting from increased prescription volumes, including higher volumes from retail national account customers and specialty and GLP-1 products, partially offset by lower revenues in the International segment as a result of the divestitures of McKesson’s European businesses.

First quarter earnings per diluted share from continuing operations was $7.02 compared to $5.25 a year ago, an increase of $1.77.

First quarter Adjusted Earnings per Diluted Share was $7.27 compared to $5.83 a year ago, an increase of 25%, driven by a lower tax rate, lower share count, and growth in the U.S. Pharmaceutical and Prescription Technology Solutions segments. First quarter Adjusted Earnings per Diluted Share also included pre-tax losses of approximately $7 million associated with McKesson Ventures’ equity investments, compared to pre-tax losses of approximately $22 million in the first quarter of fiscal 2023.

For the first three months of the fiscal year, McKesson returned $770 million of cash to shareholders, which included $696 million of common stock repurchases and $74 million of dividend payments. During the first three months of the fiscal year, McKesson used cash from operations of $1.1 billion, and invested $124 million in capital expenditures, resulting in negative Free Cash Flow of $1.2 billion.

Business Highlights
•McKesson maintains a disciplined approach to capital allocation, centered on delivering sustainable growth and long-term shareholder value. On July 21, 2023, the Board of Directors:
◦Declared a 15% increase to its quarterly dividend from $0.54 per share to $0.62 per share.
◦Approved the company to repurchase up to an additional $6.0 billion of its common shares to a total authorization of $8.9 billion as of July 2023, in a manner and timing deemed in the best interest of the company and its stockholders, considering factors such as other growth opportunities and prevailing business and market conditions.
•In July 2023, The US Oncology Network expanded its footprint with the addition of the Cancer Center of Kansas, strengthening its market leading position in community oncology practices and growing its total number of providers to over 2,400.
•McKesson released its latest Impact Report for fiscal years 2022 and 2023, showcasing its ongoing commitment to advancing health outcomes for all. The report describes McKesson’s continued efforts to track, measure, and communicate its progress in achieving its corporate purpose, with a focus on how the company is making an impact with its people, partners, community, and planet.

U.S. Pharmaceutical Segment
•Revenues were $67.2 billion, an increase of 18%, driven by increased prescription volumes, including higher volumes from retail national account customers and specialty and GLP-1 products, partially offset by branded to generic conversions.
•Segment Operating Profit was $827 million. Adjusted Segment Operating Profit was $771 million, an increase of 8%, driven by growth in the distribution of specialty products to providers and health systems and increased contributions from our generics program. Excluding the impact of COVID-19 vaccine distribution from fiscal 2023, the U.S. Pharmaceutical segment delivered Adjusted Segment Operating Profit growth of 14%.

Prescription Technology Solutions Segment
•Revenues were $1.2 billion, an increase of 17%, driven by growth in our third-party logistics and technology services businesses due to increased prescription volumes.
•Segment Operating Profit was $231 million. Adjusted Segment Operating Profit was $223 million, an increase of 35%, driven by increasing demand for access solutions, primarily related to prior authorization services due to increased prescription volumes.

Medical-Surgical Solutions Segment

•Revenues were $2.6 billion, an increase of 1%, driven by growth in the extended and primary care businesses, including growth in lab and equipment, and specialty pharmaceuticals, partially offset by lower sales of COVID-19 tests and lower contribution from kitting, storage, and distribution of ancillary supplies for the U.S. government’s COVID-19 vaccine program.
•Segment Operating Profit was $227 million. Adjusted Segment Operating Profit was $235 million, a decrease of 12%, driven by lower contribution from kitting, storage, and distribution of ancillary supplies for the U.S. government’s COVID-19 vaccine program. Excluding the impact of COVID-19 related items from fiscal 2023, the Medical-Surgical Solutions segment delivered Adjusted Segment Operating Profit growth of 7%, driven by growth in the extended and primary care businesses.

International Segment
•Revenues were $3.5 billion. On an FX-Adjusted basis, revenues were $3.7 billion, a decrease of 44%, driven by the divestitures of McKesson’s European businesses.
•Segment Operating Profit was $57 million. On an FX-Adjusted basis, Adjusted Segment Operating Profit was $95 million, a decrease of 31%, driven by the divestitures of McKesson’s European businesses.

Fiscal 2024 Outlook
McKesson does not provide forward-looking guidance on a GAAP basis as the Company is unable to provide a quantitative reconciliation of forward-looking Non-GAAP measures to the most directly comparable forward-looking GAAP measure, without unreasonable effort. McKesson cannot reliably forecast LIFO inventory-related adjustments, certain litigation loss and gain contingencies, restructuring, impairment and related charges, and other adjustments, which are difficult to predict and estimate. These items are generally uncertain and depend on various factors, many of which are beyond the company’s control, and as such, any associated estimate and its impact on GAAP performance could vary materially.

McKesson is raising fiscal 2024 Adjusted Earnings per Diluted Share guidance to $26.55 to $27.35 from the previous range of $26.10 to $26.90 to reflect strong first quarter performance and outlook in the North American businesses.

Fiscal 2024 Adjusted Earnings per Diluted Share guidance includes ($0.04) related to year-to-date losses associated with McKesson Ventures’ equity investments.

Fiscal 2024 Adjusted Earnings per Diluted Share Excluding Certain Items guidance indicates 13% to 16% forecasted growth compared to prior year.

Additional modeling considerations will be provided in the earnings call presentation.

Conference Call Details
McKesson has scheduled a conference call for today, Wednesday, August 2nd at 4:30 PM ET to discuss the company’s financial results. The audio webcast of the conference call will be available live and archived on McKesson’s Investor Relations website at investor.mckesson.com.

Upcoming Investor Events

McKesson management will be participating in the following investor conference:
•Morgan Stanley Healthcare Conference, September 12, 2023
•Baird Global Healthcare Conference, September 13, 2023
The audio webcast, and a complete listing of upcoming events for the investment community, including details and updates, will be available on McKesson’s Investor Relations website.