AmerisourceBergen reports solid Q2

VALLEY FORGE, Pa. — AmerisourceBergen on Thursday reported a lift in second-quarter revenue of 14.8% to $32.7 billion. That growth was fueled by a 13% increase in AmerisourceBergen Drug Corp. revenue, and a 25% increase in AmerisourceBergen Specialty Group revenue.

 

“We have had excellent results in the first half of fiscal 2015, with tremendous financial performance and important progress made against our strategic objectives,” said Steven Collis, AmerisourceBergen president and CEO. “During the March quarter, we completed the acquisition of MWI Veterinary Supply, and in April, we extended our contract with our large pharmacy benefit management customer for an additional year. The performance of our core businesses has driven outstanding cash generation, and the strength of our positions in key growing markets gives me great confidence that we will continue to take advantage of the many opportunities that lie ahead in the remainder of the fiscal year and beyond.”

 

The company also announced that its board of directors has authorized a new special $1 billion share repurchase program as part of the Company’s previously announced warrant hedging strategy. The special program will be used to mitigate the potentially dilutive effect on the ownership interests of the  company’s then-existing stockholders that may result from the issuance of common stock upon the exercise of the warrants held by affiliates of Walgreens Boots Alliance.

 

In the second fiscal quarter of 2015, Pharmaceutical Distribution revenues were $31.8 billion, an increase of 14% compared to the same quarter in the prior year. ABDC revenues increased 13%, due primarily to the onboarding of the new Walgreens generic pharmaceuticals business, strong sales of products that treat hepatitis C and solid organic sales growth in the company's independent pharmacy, alternate site and health systems customers. 

 

ABSG revenues increased 25%, which was driven by strong performance in ABC's blood products, vaccine and physician office distribution businesses, the impact of manufacturer shifts of certain oncology products from full line distribution to specialty distribution, strong performance in our third party logistics business, and an increase in sales to community oncology practices.