ABC AmerisourceBergen Corp

AmerisourceBergen Corporation (ABC) recently announced that it has completed the acquisition of World Courier Group, Inc., for $520 million in cash. World Courier is a specialty transportation and logistics provider for the biopharmaceutical industry. The transaction is not expected to have any effect on the fiscal 2012 earnings, but the company expects it to contribute about 6 – 10 cents to fiscal 2013 earnings. 

AmerisourceBergen plans to make World Courier a new operating segment within the company. We note that World Courier’s customized solutions and customer-centric service model will expand AmerisourceBergen’s existing manufacturer services and commercialization support services.

We note that AmerisourceBergen has been pretty active on the acquisition front in order to supplement organic growth. Last year, the company acquired IntrinsiQ and Premier Source in September and CVS Caremark Corporation’s (CVS) subsidiary TheraCom in November.

Premier Source, which has been merged with AmerisourceBergen’s AmerisourceBergen Consulting Services (ABCS) segment, has strengthened the company’s focus on emerging diagnostic, biotech and device manufacturers. Further, following the acquisition of IntrinsiQ, the combination of IntrinsiQ’s software applications and AmerisourceBergen’s ION Solutions’ existing oncology technology platform has enhanced the company’s proprietary data offerings.

Moreover, the acquisition of TheraCom has complemented AmerisourceBergen’s existing services and expanded the group’s pharmacy benefit reimbursement capabilities as TheraCom used to provide a wide range of support to its pharmaceutical and biotechnology drug manufacturers including consulting and reimbursement services.

Our View

We currently have a long-term Neutral recommendation on AmerisourceBergen. The stock carries a Zacks #3 Rank (Hold rating) in the short-run.

 
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