AmerisourceBergen

AmerisourceBergen Corporation is an American drug wholesale company that was formed by the merger of Bergen Brunswig and AmeriSource in 2001.[2] They provide drug distribution and related services designed to reduce costs and improve patient outcomes. They also distribute a line of brand name and generic pharmaceuticals, over-the-counter (OTC) health care products and home health care supplies and equipment to health care providers throughout the United States, including acute care hospitals and health systems, independent and chain retail pharmacies, mail-order facilities, physicians, clinics and other alternate site facilities, as well as nursing and assisted living centers. They also provide pharmaceuticals and pharmacy services to long-term care, workers' compensation and specialty drug patients.

AmerisourceBergen Corporation
TypePublic
NYSE: ABC
S&P 500 Component
IndustryPharmaceutical
FoundedMerger between AmeriSource Health and Bergen Brunswig in 2001
HeadquartersChesterbrook, Pennsylvania, U.S.
Area served
North America
United Kingdom
Key people
Richard C. Gozon
(Chairman)
Steven H. Collis
(President), (CEO) & (Director)
ProductsPharmaceuticals and pharmacy services
Revenue US$179.58 billion (2019)[1]
US$1.11 billion (2019)[1]
US$855 million (2019)[1]
Total assets US$39.17 billion (2019)[1]
Total equity US$2.99 billion (2019)[1]
Number of employees
22,000 (2019)[1]
Websitewww.amerisourcebergen.com
Footnotes / references
[1]

AmerisourceBergen is a market leader in pharmaceutical distribution handling about 20% of all of the pharmaceuticals sold and distributed throughout the country and ranked 10th on the Fortune 500 list for 2020 with over $179 billion in annual revenue.[3] In 2012, the firm was the largest by revenue based in Pennsylvania.[4][5]

History

AmerisourceBergen was formed in 2001 following the merger of AmeriSource Health Corporation and Bergen Brunswig Corporation.[6]

David Yost was CEO of Amerisource prior to the merger and remained in the position after the companies merged.[7]

AmerisourceBergen has 26 pharmaceutical distribution centers in the US, nine distribution centers in Canada, four specialty distribution centers in the US, and over 1 million square feet of packaging production capacity in the US and the UK. With the addition of World Courier,[8] the largest specialty courier company in the world, over 150 company-owned offices around the globe were added to the company.

In 2011, the company acquired IntrinsiQ for $35 million and Premier Source for an undisclosed amount.[9][10] In July, Steven Collis replaced Yost as CEO of the company.[7]

In March 2012, AmerisourceBergen agreed to acquire World Courier Group Inc, a transportation and logistics provider for the biopharmaceutical industry, for $520 million.[11]

In January 2015, the company bought MWI Veterinary for $2.5 billion. In October,[12] they agreed to buy PharMEDium, a compounding drug company, for $2.58 billion.[12]

On January 3, 2018, AmerisourceBergen acquired H. D. Smith, the largest privately-held national pharmaceutical wholesaler in the U.S.[13][14]

AmerisourceBergen is among several distributors that have been sued by West Virginian governments for contributing to the Opioid epidemic, by shipping inordinate amounts of pain medication into the state.[15][16][17]

On 29 June, U.S. Department of Health and Human Services (HHS) announced an unusual agreement with Gilead in which HHS agreed to Gilead's wholesale acquisition price, HHS would continue to work together with state governments and drug wholesaler AmerisourceBergen to allocate shipments of remdesivir vials to American hospitals through the end of September 2020, and in exchange, during that three-month timeframe (July, August, and September), American patients would be allocated over 90% of Gilead's projected remdesivir output of more than 500,000 treatment courses.[18][19]

Finances

For the fiscal year 2019, AmerisourceBergen reported earnings of US$1.11 billion, with an annual revenue of US$179.58 billion. AmerisourceBergen's shares traded at over $88 per share, and its market capitalization was valued at over US$19.2 billion in September 2019.[20]

Year Revenue
in mil. USD$		 Net income
in mil. USD$		 Total Assets
in mil. USD$		 Employees
2005 54,577 265 11,381
2006 60,812 468 12,784
2007 65,672 469 12,310
2008 70,190 251 12,218
2009 71,760 503 13,573
2010 77,776 637 14,435
2011 78,696 707 14,983
2012 78,081 719 15,442
2013 87,959 434 18,919 13,000
2014 119,569 274 21,532 14,000
2015 135,962 −138 27,963 17,500
2016 146,850 1,428 33,638 19,000
2017 153,144 364 35,316 20,000
2018 167.93 1.61 37.66 20,000
2019 179.58 1.11 39.17 22,000

In October 2018, AmerisourceBergen agreed to pay $625 million to settle civil fraud allegations resulting from its repackaging and sale of adulterated drugs and unapproved new drugs, double billing and providing kickbacks to physicians.[21][22] AmerisourceBergen's stock price reportedly plummeted after they were among other drug distributors who offered $10 billion to settle their portion of the national opioids lawsuit.[23][24] States countered with $45 billion.[25]

Corporate structure

AmerisourceBergen operates its pharmaceutical distribution business under four primary units: AmerisourceBergen Drug Corporation (ABDC), AmerisourceBergen Specialty Group (ABSG), AmerisourceBergen Consulting Services (ABCS) and World Courier. In March 2016 Walgreens Boots Alliance Inc. announced it would exercise an option to purchase 22.7 million shares of AmerisourceBergen stock and thereby control 15% of the company.[26]

Good Neighbor Pharmacy

Good Neighbor Pharmacy is an American retailers' cooperative network of more than 3,400 independently owned and operated pharmacies. It has a business affiliation with AmerisourceBergen, which sponsors the network and owns the name "Good Neighbor Pharmacy." Good Neighbor Pharmacy is the sponsor for "Thought Spot" the annual trade show held in Las Vegas.

ThoughtSpot

ThoughtSpot is a four-day trade show put on by Good Neighbor Pharmacy held in or around July in Las Vegas aimed for and limited to community and independent pharmacies.[27][28] The event is advertised as "your yearly opportunity to get away from the grind for a few days to recharge and refocus on the past, present and future of your pharmacy."[29]

Exhibitors are represented throughout the healthcare industry including, brand name, generic and over the counter products. ThoughtSpot 2013 was hosted at the MGM Grand, Las Vegas from July 24 to July 27. Special guest musical performance by Bret Michaels capped off the week on July 27 at a special attendee-only closing event.[30]

Opioid epidemic

In December 2019, Michigan became the first state to sue AmerisourceBergen and three other opioid distributors as drug dealers for their role in the state's opioid crisis.[31][32] The lawsuit is filed under the Michigan Drug Dealer Liability Act.[33] AmerisourceBergen was among four companies who, because of their role in the addiction crisis, agreed to pay $260 million to two Ohio counties.[34]

In May 2020, Oklahoma Attorney General Mike Hunter sued AmerisourceBergen in Bryan County District Court, Oklahoma. The lawsuit alleged that the company's actions helped fuel Oklahoma's opioid crisis. The suit was filed along with lawsuits against Cardinal Health and McKesson, and the three lawsuits allege that the three companies provided "enough opioids to Bryan County that every adult resident there could have had 144 hydrocodone tablets."[35]

AmerisourceBergen is among several distributors that have been sued by West Virginian governments for contributing to the Opioid epidemic, by shipping inordinate amounts of pain medication into the state.[15][16][17]

References
  1. "US SEC: Form 10-K AmerisourceBergen". United States Securities and Exchange Commission. Archived from the original (PDF) on May 12, 2019. Retrieved March 28, 2018.
  2. "AmerisourceBergen, Form 8-K, Current Report, Filing Date Aug 30, 2001". secdatabase.com. Retrieved January 7, 2013.
  3. "AmerisourceBergen | 2020 Fortune 500". Fortune. Retrieved January 12, 2021.
  4. AmerisourceBergen: The biggest Pennsylvania company you never heard of, by David Sell, Philadelphia Inquirer, July 15, 2012
  5. "Eight area companies make Fortune 500". Philadelphia Business Journal. May 28, 2013. Retrieved June 24, 2013.
  6. "AmerisourceBergen Added to S&P 500 index". Archived from the original on March 22, 2016. Retrieved July 12, 2017.
  7. "UPDATE 2-Amerisource CEO Yost to retire, Collis to succeed". Reuters. March 14, 2011. Retrieved July 17, 2020.
  8. "AmerisourceBergen Acquires World Courier". World Courier. Retrieved August 16, 2019.
  9. "AmerisourceBergen buys IntrinsiQ". Philadelphia Business Journal. September 6, 2011.
  10. "AmerisourceBergen buys Premier Source". The Oklahoman. September 2, 2011. Retrieved July 17, 2020.
  11. Sell, David (March 6, 2012). "AmerisourceBergen to acquire World Courier Group". The Philadelphia Inquirer. Retrieved July 17, 2020.
  12. "AmerisourceBergen to buy PharMEDium for $2.58 billion". Reuters. October 6, 2015. Retrieved July 17, 2020.
  13. "AmerisourceBergen Completes Acquisition of HD Smith". AmerisourceBergen. Retrieved September 25, 2018.
  14. Olsen, Dean. "Former H.D. Smith workforce reducing to 25 locally". The State Journal-Register. Retrieved July 17, 2020.
  15. Higham, Scott; Bernstein, Lenny (March 9, 2017). "Opioid distributors sued by West Virginia counties hit by drug crisis". Washington Post. ISSN 0190-8286. Retrieved February 13, 2018.
  16. Jon Kamp (June 27, 2012). "West Virginia Sues Drug Distributors in Pill-Abuse Fight". WSJ. Retrieved January 23, 2016.
  17. "Drug firms shipped 40M pain pills a year to WV". Charleston Gazette-Mail. Retrieved January 23, 2016.
  18. Kolata G (June 29, 2020). "Remdesivir, the First Coronavirus Drug, Gets a Price Tag". The New York Times. Retrieved June 29, 2020.
  19. "Trump Administration Secures New Supplies of Remdesivir for the United States" (Press release). U.S. Department of Health and Human Services (HHS). June 29, 2020. Retrieved June 29, 2020.
  20. "Financial Reports | AmerisourceBergen Corporation". AmerisourceBergen Corporation. Retrieved November 7, 2018.
  21. "AmerisourceBergen Corp. To Pay $625 Million To Settle Civil Fraud Allegations Resulting From Its Repackaging And Sale Of Adulterated Drugs And Unapproved New Drugs, Double Billing And Providing Kickbacks". www.justice.gov. October 1, 2018. Retrieved June 26, 2020.
  22. "AmerisourceBergen to pay $625M to settle whistleblower case for selling cancer vial overfills". FiercePharma. Retrieved June 26, 2020.
  23. Herman, Bob. "Wall Street's fear of an opioids settlement". Axios. Retrieved June 26, 2020.
  24. "Opioid Distributors Propose $10 Billion to End State Claims". Bloomberg.com. August 6, 2019. Retrieved June 26, 2020.
  25. Herman, Bob. "McKesson, Cardinal, AmerisourceBergen offer $10 billion opioid settlement". Axios. Retrieved June 26, 2020.
  26. Leeclaire, George (March 18, 2016). "Walgreens Boots buys bigger stake in AmerisourceBergen". Associated Press. Retrieved September 25, 2016.
  27. "Events". AmerisourceBergen. Archived from the original on May 25, 2016. Retrieved May 11, 2016.
  28. "Retail Management Solutions to Attend The AmerisourceBergen ThoughtSpot 2015 Conference and Trade Show". PRWeb. Retrieved March 24, 2017.
  29. "ThoughtSpot 2021". www.wearegnp.com. Retrieved June 26, 2020.
  30. "Archived copy". Archived from the original on March 4, 2016. Retrieved 2013-06-11.CS1 maint: archived copy as title (link)
  31. Herman, Bob (December 18, 2019). "Major health care companies keep getting taken to court". Axios. Retrieved June 25, 2020.
  32. Rossman-Mckinney, Kelly (December 17, 2019). "Michigan Goes After Opioid Distributors; Files Lawsuit Under Michigan Drug Dealer Liability Act". Michigan Department of the Attorney General.
  33. "Michigan Legislature - Section 691.1605". www.legislature.mi.gov. Retrieved June 25, 2020.
  34. Ghose, Carrie (October 21, 2019). "Cardinal Health, McKesson, AmerisourceBergen, Teva agree to $260M opioid settlement with Cuyahoga, Summit counties". Columbus Business First. Retrieved June 25, 2020.
  35. Carey, Liz (May 5, 2020). "Oklahoma Attorney General refiles opioid lawsuit against three distributors". Health Crisis Alert. Retrieved May 5, 2020.
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