Tags: AmerisourceBergen | pharma | growth | ABC

AmerisourceBergen: Pharma Growth Bet

By    |   Thursday, 15 Dec 2011 10:38 PM

As one of the big three U.S. drug distributors, AmerisourceBergen (ABC) is at the center of the pharmaceutical infrastructure and a bet on drug demand growth. The other two pharma distribution players are Cardinal Health (CAH) and McKesson (MCK).

AmerisourceBergen acts as a middleman between medicine manufacturers and drug retailers such as pharmacies. The company provides purchasing power, stores and repackages pharmaceuticals, manages inventories, and deals with logistics.

AmerisourceBergen is the country’s leader in distributing cancer drugs, which should stand it in good stead as more and more of them come to market. AmerisourceBergen also benefits from a wider range of customers than its competitors, including hospitals, pharmacies of all sizes, clinics, and doctors’ offices

The company recently ramped up acquisition activity, agreeing to purchase three small consulting and information services companies. And it appears to be ready to fry bigger fish on the merger front.

AmerisourceBergen’s profit rose 4 percent in the quarter ended Sept. 30 to $147.3 million from a year earlier. Revenue gained 4 percent to $20.41 billion.

Market share

Standard & Poor’s analyst Herman Saftlas gives AmerisourceBergen shares a four-star buy rating. “We believe ABC has shown the resiliency to manage through this period of economic weakness, and we expect the company, like its peers, to benefit from healthcare reform,” he writes.

“We also believe it has the wherewithal to hold its own and likely gain share in the competitive drug distribution market over the long term. The company controls costs tightly, and we remain positive about its focus on generic and oncology drugs, which we view as among the fastest-growing and most profitable revenue drivers in the pharmaceutical market.”

Saftlas also believes AmerisourceBergen has the ability to complete acquisitions that will help fuel its growth.

The company next reports earnings Jan. 26.

© 2017 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
Companies
As one of the big three U.S. drug distributors, AmerisourceBergen (ABC) is at the center of the pharmaceutical infrastructure and a bet on drug demand growth. The other two pharma distribution players are Cardinal Health (CAH) and McKesson (MCK). AmerisourceBergen acts as...
AmerisourceBergen,pharma,growth,ABC
298
2011-38-15
Thursday, 15 Dec 2011 10:38 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved