AmerisourceBergen set to pass $100bn sales mark for FY 2014

AmerisourceBergen has reported “outstanding operational and financial performance” for the third quarter 2014, and is set to pass the $100bn revenue mark for the fiscal year. 

For Q3 2014, the pharma sourcing and distribution services company reported total sales of $30bn (€22bn) up 39% on the same period last year, whilst its core Pharmaceutical Distribution segment rose 45%.

The growth was “driven primarily by the continued onboarding of the new business from Walgreens and strong sales of certain new, branded specialty products, largely distributed to specialty pharmacies,” CEO Steven Collis said in a conference call last week.

In March last year, the firm inked a ten year distribution deal with Walgreens and Boots Alliance, which began in September. Excluding this deal, revenue grew 9% year-on-year, Collis said, driven by overall market growth trends, new brand product introductions and pharmaceutical price inflation.

For the nine months ending June 30 in what Collis said was “one of the most dynamic and exciting years in AmerisourceBergen history,” total revenues stood at $88bn.

“Significantly, during the current quarter [Q4], we will not only celebrate the 13th anniversary of the creation of AmerisourceBergen, but we will also pass the $100 billion mark in revenues for the first time in our history.”

Collis also told the investors AmerisourceBergen had been investing in and expanding its infrastructure to support this growth, with a new Orlando, Florida distribution centre currently in the testing phase and the national distribution centre in Columbus, Ohio, scheduled to open in the next fiscal year.

Whilst the business saw improved results and margins across most sectors, one area the management team said it was looking to remain focused on is oncology.

“Nearly 40% of the health system distribution that we distribute is in oncology products,” said Collis, adding oncology remains a very important driver across all of AmerisourceBergen, high-lighting the acquisition of Brazil-based wholesaler Profarma in April, and its interest in oncology knowledge, as an example.