Cencora

Cencora, Inc.

Company type	Public
Industry	Pharmaceutical wholesaling, Contract research
Predecessor	AmeriSource Health, Bergen Brunswig
Founded	2001
Headquarters	Philadelphia , United States
Key people	David Yost (former CEO), Steven Collis (CEO since 2011)
Products	Generic pharmaceuticals, branded pharmaceuticals, over-the-counter healthcare products, home healthcare supplies

Cencora, Inc., previously known as AmerisourceBergen, stands as a prominent American pharmaceutical wholesaler and contract research organization. Established in 2001 through the consolidation of AmeriSource Health and Bergen Brunswig, it is recognized as one of the largest pharmaceutical enterprises worldwide, distributing generic medications, over-the-counter healthcare items, and home care products.

Background

Cencora originated from the combination of AmeriSource Health Corporation and Bergen Brunswig Corporation, with David Yost remaining as CEO following the merger. The company maintains 26 pharmaceutical distribution facilities across the United States, nine in Canada, four specialized centers within the U.S., and more than 1 million square feet dedicated to packaging operations spanning both the U.S. and the United Kingdom. The acquisition of World Courier broadened its international presence, adding over 150 company-owned offices globally.

The organization’s structure is divided into four core divisions: AmerisourceBergen Drug Corporation (ABDC), AmerisourceBergen Specialty Group (ABSG), AmerisourceBergen Consulting Services (ABCS), and World Courier. In 2016, Walgreens Boots Alliance increased its ownership stake to 15%, reinforcing strategic collaboration between the entities.

By 2012, it had become Pennsylvania’s top revenue-generating company. The firm adopted the Cencora name on August 30, 2023, and now trades on the NYSE under the ticker symbol "COR." In May 2024, Cencora reported a cybersecurity breach affecting patient information, underscoring persistent security concerns within healthcare distribution.

Products

AmerisourceBergen delivers pharmaceutical distribution and consulting solutions that support medical operations and patient care. Its portfolio includes branded and generic pharmaceuticals, over-the-counter (OTC) health products, and home healthcare supplies distributed to a wide range of healthcare providers throughout the United States. These customers include hospitals, health systems, retail pharmacies, mail-order services, physicians’ offices, clinics, nursing homes, and assisted living facilities. The company also caters to markets such as long-term care, workers’ compensation, and specialty pharmaceuticals.

Managing around one-fifth of U.S. pharmaceutical distribution volume, AmerisourceBergen ranked tenth on the Fortune 500 list in 2020 with annual revenues exceeding $179 billion.

Good Neighbor Pharmacy

Good Neighbor Pharmacy represents a cooperative network comprising more than 3,400 independently owned pharmacies affiliated with AmerisourceBergen, which holds ownership of the brand. This network organizes "ThoughtSpot," an annual industry event hosted in Orlando and Las Vegas that supports retail partners and facilitates market expansion.

Acquisitions

• In 2011, AmerisourceBergen acquired IntrinsiQ for $35 million along with Premier Source (financial details undisclosed). Steven Collis was named CEO in July of that year.
• March 2012 saw the purchase of World Courier Group Inc., a provider specializing in biopharmaceutical logistics, for $520 million.
• In January 2015, MWI Veterinary was acquired for $2.5 billion. Later that year, PharMEDium—a compounding pharmacy—was purchased for $2.58 billion.
• On January 3, 2018, AmerisourceBergen finalized its acquisition of H. D. Smith, the largest privately held national pharmaceutical wholesaler in the United States.
• On June 2, 2021, Alliance Healthcare was acquired from Walgreens Boots Alliance for roughly $6.5 billion through a combination of cash and stock.

These key acquisitions have broadened AmerisourceBergen’s product offerings, improved logistics infrastructure, and reinforced its leadership position within pharmaceutical distribution and healthcare service sectors.

Distribution of Remdesivir

In June 2020, the U.S. Department of Health and Human Services (HHS) entered into an agreement with Gilead Sciences, the manufacturer of remdesivir, the first antiviral drug approved for COVID-19 treatment. Under this deal, HHS agreed to purchase the medication at Gilead’s wholesale acquisition cost and partnered with state authorities and AmerisourceBergen to manage the allocation of shipments to hospitals across the United States through September 2020. During this timeframe, more than 90% of Gilead’s anticipated production—exceeding 500,000 treatment courses—was delivered to American patients.

Financial Performance

For the fiscal year ending 2019, AmerisourceBergen reported net earnings amounting to US$1.11 billion on total revenues of US$179.58 billion. As of September 2019, its stock price was above $88 per share, resulting in a market capitalization surpassing US$19.2 billion.

Opioid Crisis Litigation

AmerisourceBergen has been implicated in numerous lawsuits initiated by states such as West Virginia and Michigan, which accuse the company of distributing excessive amounts of opioid medications amid the national opioid epidemic. In December 2019, Michigan filed a lawsuit under the Michigan Drug Dealer Liability Act, representing a novel legal strategy targeting pharmaceutical distributors.

The company also participated in a $260 million settlement involving two Ohio counties related to opioid distribution claims. In May 2020, Oklahoma pursued legal action alleging that AmerisourceBergen played a significant role in increasing local opioid availability.

In January 2022, AmerisourceBergen joined McKesson, Cardinal Health, and Johnson & Johnson in consenting to a $26 billion settlement that resolved most opioid-related claims brought by 46 states and numerous municipalities. This agreement substantially reduced potential liabilities that could have reached $95 billion. No admission of wrongdoing was made as part of this settlement.

Other Legal Matters

On October 1, 2018, AmerisourceBergen agreed to pay $625 million to settle allegations concerning the unlawful repackaging and distribution of injectable drugs supporting oncology care. This resolution addressed civil fraud accusations including distribution of adulterated and unapproved medications, double billing practices, and providing kickbacks to healthcare providers. Prior to this settlement, the company had been convicted of a misdemeanor for repackaging pre-filled syringes without FDA authorization. When combined with an earlier payment of $260 million, total settlements amounted to $885 million.

Investigations revealed that between 2001 and 2014, AmerisourceBergen’s subsidiary MII conducted a program that repackaged drugs by pooling excess product from multiple containers to create additional doses sold nationwide. Approximately 57% of these repackaged doses were supplied to beneficiaries of Federal Health Care Programs. This operation generated estimated annual profits ranging from $2.3 million to $14.4 million, accumulating at least $99.6 million over time. The practice also allowed for multiple billings on single vials and increased market share through discounted pricing while avoiding routine regulatory inspections.

Following proposals by AmerisourceBergen and other distributors for a $10 billion settlement related to national opioid litigation—which states rejected in favor of demands up to $45 billion—the company’s stock price experienced a significant decline. In 2022, the U.S. Department of Justice filed a lawsuit accusing AmerisourceBergen of distributing opioids that were subsequently resold illegally, thereby contributing to the worsening opioid crisis.