Businessweek

AmerisourceBergen Corporation operates as a pharmaceutical services company, which provides drug distribution and related services in the United States, Puerto Rico, Canada, and selected global markets. The company also provides pharmacy services to certain specialty drug patients. Additionally, it furnishes healthcare providers and pharmaceutical manufacturers with an assortment of related services, including pharmacy automation, inventory management, reimbursement and pharmaceutical consulting services, logistics services, and pharmacy management. Operations As of September 30, 2012, the company’s operations included the Pharmaceutical Distribution segment and Other segment. Pharmaceutical Distribution This segment includes two operating segments, such as the operations of AmerisourceBergen Drug Corporation (ABDC) and AmerisourceBergen Specialty Group (ABSG). ABDC distributes an offering of brand-name pharmaceuticals (including specialty pharmaceutical products (drugs used to treat complex diseases, such as cancer, diabetes, and multiple sclerosis)) and generic pharmaceuticals, over-the-counter healthcare products, home healthcare supplies and equipment, and related services to various healthcare providers, including acute care hospitals and health systems, independent and chain retail pharmacies, mail order pharmacies, medical clinics, long-term care and other alternate site pharmacies, and other customers. ABDC also provides pharmacy management, staffing, and other consulting services; scalable automated pharmacy dispensing equipment; medication and supply dispensing cabinets; and supply management software to various retail and institutional healthcare providers. Additionally, ABDC delivers packaging solutions to institutional and retail healthcare providers. ABSG, through various operating businesses, provides pharmaceutical distribution and other services primarily to physicians who specialize in various disease states, primarily oncology and to other healthcare providers, including dialysis clinics. ABSG also distributes plasma and other blood products, injectible pharmaceuticals, and vaccines. Additionally, ABSG provides third party logistics and other services for biotechnology and other pharmaceutical manufacturers. Other This segment includes AmerisourceBergen Consulting Services (ABCS) and World Courier Group, Inc. (World Courier) operating segments. ABCS, through various operating businesses, provides commercialization support services, including reimbursement support programs, outcomes research, contract field staffing, patient assistance and copay assistance programs, adherence programs, risk mitigation services, and other market access programs to pharmaceutical and biotechnology manufacturers. World Courier, which operates in approximately 50 countries, operates as a global specialty transportation and logistics provider for the biopharmaceutical industry. Customers The company has a customer base that includes institutional and retail healthcare providers, as well as pharmaceutical manufacturers. Institutional healthcare providers include the providers of pharmacy services to such facilities, and physicians and physician group practices. Retail healthcare providers include national and regional retail drugstore chains, independent community pharmacies, and pharmacy departments of supermarkets and mass merchandisers. The company’s manufacturing customers include branded, generic, and biotechnology manufacturers of prescription pharmaceuticals, as well as over-the-counter product, and health and beauty aid manufacturers. Its major customer includes Medco Health Solutions, Inc., which is acquired by Express Scripts, Inc. Sales and Marketing The company serves its customers through a network of distribution service centers and other operations. ABDC's sales and marketing organization also serves national account customers through close coordination with local distribution centers and ensures that its customers are receiving service offerings that meet their needs. The company’s other operating segments each has independent sales forces and marketing organizations that specialize in their respective product and service offerings. Acquisitions In 2011, the company acquired TheraCom, LLC, which provides commercialization support services to the biotechnology and pharmaceutical industry, including reimbursement and patient access support services. Dispositions As of September 30, 2012, the company divested its contract packaging and clinical trials services business, AndersonBrecon. Strategy The company’s business strategy is focused on the pharmaceutical supply channel where it provides value-added distribution and service solutions to healthcare providers (primarily pharmacies, health systems, medical and dialysis clinics, and physicians) and pharmaceutical manufacturers that increase channel efficiencies and improve patient outcomes. The primary elements of its business strategy are to optimize and improve its pharmaceutical distribution and service businesses; optimize and improve its specialty distribution and service businesses; optimize and improve its consulting and other services; and divestitures. Government Regulation The U.S. Drug Enforcement Administration, the U.S. Food and Drug Administration, and state regulatory authorities have enforcement powers, including the ability to suspend the company’s distribution centers from distributing controlled substances, seize or recall products, and impose criminal, civil, and administrative sanctions. Competition The company’s major competitors include Cardinal Health, Inc.; McKesson Corporation; FFF Enterprises; Henry Schein, Inc.; and UPS Logistics. History AmerisourceBergen Corporation was founded in 1985.