Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Lisa Gill – JP Morgan
Lisa Gill – JP Morgan
Can you maybe just talk about the underlying assumptions for RX growth in your guidance for the coming year? You hadn’t talked at all about cash flow, what are your expectations for cash flow guidance?
Jeff Henderson
As I stated in my remarks, I think we’ve taken a relatively conservative view of overall Pharma growth, probably largely in line with IMS is projecting over the 10 to 12 period IMS is projecting around the flattish growth I think for FY10 its up 1% to 2% I would say our overall revenue projections for Pharma are largely in line with that and as I described them modest and relatively conservative.
Regarding cash flow, don’t want to get into specifics yet on that but I will say that we did finish FY09 with very, very strong cash flow due to some excellent working capital management as I said about $1.6 billion. Clearly with the spinoff of CareFusion we wouldn’t expect anything near that in FY10 and I would expect our cash flow to be under $1 billion in FY10.
Lisa Gill – JP Morgan
When you talked about direct store sales obviously coming in better then what we were expecting, are you seeing any shift out of [inaudible] sources is just increased penetration existing accounts or accounts that you’re bringing on?
George Barrett
It’s primarily the later, I would say it’s not particularly a shift, I think its increased compliance for us, a little bit of recovery of some business that we struggled with during our anti-diversion period. I would say more of that then shift.
Operator
Your next question comes from Glen Santangelo – Credit Suisse
Glen Santangelo – Credit Suisse
On fiscal 2010, you talked about a fair amount about all the investment spending that you need to make to the infrastructure in that year. Could you give us a sense for maybe how much of that spending is kind of one time in nature. When I’m trying to reconcile this we think about fiscal ’10 as a transition year should we think about fiscal ’11 as a recovery year? If I thought I heard you correctly you’re talking about more generics in 2011, your anniversarying the Pfizer fee for service transition but yet at your analyst day you only talked about earnings growth beyond fiscal ’10 in the high single digit rate. How should I reconcile your thoughts on that?
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