For the quarter, sales stood at $28.5bn (€20.6bn) – mostly from the firm’s Pharmaceutical Distribution services - up 39% on the same period 2013, and the bottom line also fared well, sitting at just over $180m, or four times that of last year.
The company attributed this partly to the 46% growth in its drug corporation service, thanks primarily to the ten-year distribution contract with Walgreens for its branded and generics drugs signed last March and commencing in September, but also the strong performance of World Courier which drove sales in the company’s ‘Other’ business segment up 11% to $573m for the quarter.
Expanded relationships with existing customers pushed this growth, CFO Tim Guttman told investors in a conference call last week, helping to “offset seasonality that World Courier has historically experienced in the March quarter.”
CEO Steven Collis added World Courier - the trial supply and distribution firm acquired in March 2012 for $520m – had achieved growth in its existing markets and the company was pursuing opportunities to expand its specialty and manufacturer services offerings into other markets.
“[World Courier] has really enhanced our global capabilities as we essentially learn to operate in 52 new countries,” he told stakeholders (see transcript here). “This has added experience and knowledge, not only into our business operations but importantly, into our corporate capabilities -for example, in areas such as treasury, tax, HR and legal/regulatory.”
Profarma Acquisition
Strategy to expand AmerisourceBergen’s global presence was also cited as a reason behind the acquisition of a $100m minority stake in Brazilian pharma wholesaler Profarma Distribuidora de Produtos Farmacêuticos last month.
The deal is set to go through in June, and will add a one of the “top three wholesalers in Brazil, serving the core distribution and specialty markets and chain and independent retail,” Collis said, which would benefit from AmerisourceBergen’s distribution and manufacturing services.
“As we evaluate Profarma and other international expansion opportunities, these capabilities will set us apart as we look to create an expanded global presence,” Collis said.