AmerisourceBergen Inks 10 year Distribution Deal with Drugsellers

The long-term distribution deal with Walgreens and Alliance Boots is expected to add an incremental $28 billion in revenues, according to AmerisourceBergen.

The pharmaceutical services company has announced the deal will expand its existing relationships with the companies and includes a ten-year comprehensive primary pharmaceutical distribution contract with Walgreens and access to generic drugs and related pharmaceutical products through a joint venture between Walgreens and Boots Alliance.

CEO of AmerisourceBergen, Steven Collis, said in an official statement the company has “entered into a unique opportunity to unlock value in the pharmaceutical supply chain by collaborating to leverage all of our proven strengths.”

“This new relationship will significantly strengthen and grow our core business,” he continued, adding: “These agreements not only expand our U.S. business, but also provide opportunities to meaningfully grow our specialty and manufacturer services businesses internationally.”

The distribution contract will commence in September with branded pharmaceuticals and AmerisourceBergen is expected to takeover the distribution of Walgreen’s generics from 2014.

According to AmerisourceBergen - who last year purchased logistics company World Courier for $520m - this deal will utilize unused capacity in its current distribution network.