Fitch Updates Industry Report on U.S. Drug Distributors

Wed Apr 24, 2013 1:01pm EDT

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(The following statement was released by the rating agency) CHICAGO, April 24 (Fitch) Fitch Ratings has updated its report 'Navigating the Drug Channel - Drug Distributors: A Deeper Dive.' The report is one of seven in a series analyzing the U.S. drug channel and its participants. The report focuses on the role of U.S. drug distributors, as well as the industry's headwinds and tailwinds and Fitch's take on certain considerations on the horizon. Content has been updated to reflect the most recent the most recent financial data and industry developments, including the strategic alignment among AmerisourceBergen Corp., Walgreen Co., and Alliance Boots GmbH. The three largest drug distributors in the U.S. - AmerisourceBergen Corp.; Cardinal Health, Inc.; and McKesson Corp. - together control roughly 95% of the market. Future industry growth and consolidation will likely center on the rapidly growing specialty drug market and future international integration and/or collaboration. Fitch expects the overall reimbursement environment to remain constrained; however, distributors are relatively insulated from these forces. The full report, 'Navigating the Drug channel - Drug Distributors: A Deeper Dive,' is available at 'www.fitchratings.com.' Contact: Jacob Bostwick, CPA Associate Director +1-312-368-3169 Fitch Ratings, Inc. 70 W. Madison St. Chicago, IL 60602 Bob Kirby, CFA Director +1-312-368-3147 Megan Neuburger Senior Director +1-212-908-0501 Media Relations: Brian Bertsch, New York, Tel: +1 212-908-0549, Email: brian.bertsch@fitchratings.com. Additional information is available at 'www.fitchratings.com'. Applicable Criteria and Related Research: Navigating the Drug Channel Report Series 'An Overview: Getting to the Other Side', Feb. 10, 2012' 'Pharmaceutical Manufacturing: At the Source', Feb. 28, 2012; 'Drug Distributors: A Deeper Dive', April 24, 2013 (updated); 'Pharmacy Benefit Managers (PBMs): In Flux', March 27, 2012; 'Long-Term Care Pharmacies: At the Mouth', April 20, 2012; 'Retail Pharmacies: The Last Link', May 11, 2012; 'The ABCs (and Ds) of Drug Pricing', July 25, 2012; 'Vital Signs: Currents in the Drug Channel', April 24, 2013; 'U.S. Healthcare Stats Quarterly - Fourth-Quarter 2012', April 12, 2013; 'Fitch: Walgreens Deal Likely Positive for AmerisourceBergen; No Immediate Ratings Impact', March 19, 2013; 'Fitch Affirms Cardinal Health at 'BBB+' on AssuraMed Acquisition Announcement', Feb. 14, 2013 'Fitch Affirms McKesson's Ratings at 'A-'; Outlook Stable', Dec. 5, 2012; 'Fitch: McKesson's Ratings Initially Unchanged by PSS World Acquisition Announcement', Oct. 25, 2012; 'Fitch Affirms AmerisourceBergen's Ratings at 'A-'; Outlook Stable', Sept. 24, 2012; 'Fitch: Express Scripts Contract has Moderate Effect on ABC and Cardinal's Credit Profiles', Aug. 1, 2012. Applicable Criteria and Related Research Navigating the Drug Channel -- Drug Distributors: A Deeper Dive here Navigating the Drug Channel — An Overview: Getting to the Other Side here Navigating the Drug Channel -- Pharmaceutical Manufacturers: At the Source here Navigating the Drug Channel -- Drug Distributors: A Deeper Dive here Navigating the Drug Channel: Pharmacy Benefit Managers (PBMs) in Flux here Navigating the Drug Channel: Long-Term Care Pharmacies: At the Mouth here Navigating the Drug Channel -- Retail Pharmacies: The Last Link here Navigating the Drug Channel -- The ABCs (and Ds) of Drug Pricing here U.S. Healthcare Stats Quarterly - Fourth-Quarter 2012 here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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