AmerisourceBergen

AmerisourceBergen Corporation is an American drug wholesale company that was formed by the merger of Bergen Brunswig and AmeriSource in 2001. They provide drug distribution and consulting related to medical business operations and patient services. 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 handles about 20% of all of the pharmaceuticals sold and distributed throughout the United States and ranked 10th on the Fortune 500 list for 2020 with over $179 billion in annual revenue. In 2012, the firm was the largest by revenue based in Pennsylvania.

History

AmerisourceBergen was formed in 2001 following the merger of AmeriSource Health Corporation and Bergen Brunswig Corporation. David Yost was CEO of Amerisource prior to the merger and remained in the position after the companies merged.

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, the largest specialty courier company in the world, over 150 company-owned offices around the globe were added to the company.

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.

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.

Acquisitions

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

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

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

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

*On June 2, 2021, AmerisourceBergen acquired Alliance Healthcare from Walgreens Boots Alliance for approximately $6.5 billion, made up of $6.275 billion in cash and 2 million shares of AmerisourceBergen common stock.

In June 2020, the U.S. Department of Health and Human Services (HHS) announced an unusual agreement for the distribution of remdesivir, the first coronavirus drug. HHS agreed to manufacturer Gilead's wholesale acquisition price, while HHS would continue to work together with state governments and AmerisourceBergen to allocate shipments of remdesivir vials to American hospitals through the end of September 2020, and in exchange, during that time-frame American patients would be allocated over 90% of Gilead's projected remdesivir output of more than 500,000 treatment courses.

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.

Controversies

Opioid epidemic

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.

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. The lawsuit is filed under the Michigan Drug Dealer Liability Act. AmerisourceBergen was among four companies who, because of their role in the addiction crisis, agreed to pay $260 million to two Ohio counties.

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."

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.

In January 2022, AmerisourceBergen, McKesson, Cardinal Health, and Johnson & Johnson agreed to pay $26 billion to settle with all but five of the states suing them. Had the states gone to court, the companies could have faced up to $95 billion in penalties.

Illegal distribution

On October 1 2018, Amerisourcebergen agreed to pay $625M to resolve allegations that it had illegally repackaged and distributed oncology-supportive injectable drugs.

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. 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. States countered with $45 billion.

References

External links

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{{DEFAULTSORT:Amerisourcebergen
Companies based in Chester County, Pennsylvania
Companies listed on the New York Stock Exchange
Pharmaceutical companies established in 2001
Pharmaceutical companies of the United States
American companies established in 2001
Companies based in Philadelphia
Health care companies based in Pennsylvania