AmerisourceBergen attributes growth to specialty biz
VALLEY FORGE, Pa. — AmerisourceBergen on Thursday reported revenue of $20.1 billion, up 1.6%, for its second quarter ended March 31.
"I am pleased to report very solid results for our second fiscal quarter and for the first half of our fiscal year," stated Steven Collis, AmerisourceBergen president and CEO. "We overcame a challenging comparison with the prior year, we continued to demonstrate tremendous expense and working capital discipline, and our balance sheet remains strong, giving us outstanding financial flexibility," he said. "The integration of our recent acquisitions is progressing well, and we are on track to meet our objectives for the year. We expect to complete our $520 million acquisition of World Courier Group by the end of April."
Collis attributed ABC's revenue growth to a 6% increase in AmerisourceBergen Specialty Group revenue. While strong performance in third-party logistics and the wholesaler's vaccine and physician office distribution business and solid performance in the institutional segment was offset by the loss of Medco as a customer to its merger with Express Scripts.
Following the closing of the merger between Express Scripts and Medco Health Solutions, AmerisourceBergen amended its existing Medco agreement to provide for the contract to end upon the award and implementation of one or more new pharmaceutical distribution agreements for the newly combined business. Express Scripts has issued a request for proposal for the combined business, and anticipates that the new contract or contracts will begin on Oct. 1, 2012. "We will participate fully in the competitive RFP process, and it is our intent to pursue the opportunity to retain or grow the business under a new contract," Collis stated.