Jan 24 Pharmaceutical distributor
AmerisourceBergen Corp said on Thursday that quarterly
earnings rose as revenue was boosted after it won a contract
with giant pharmacy benefit manager Express Scripts earlier this
Net income totaled $168.6 million, or 71 cents per share, in
the fiscal first quarter ended Dec. 31, up from $162 million, or
62 cents per share, a year earlier.
Excluding items such as severance and discontinued
operations, the company earned 71 cents per share, up from 62
cents a year earlier. Analysts targeted 67 cents, according to
Thomson Reuters I/B/E/S.
AmerisourceBergen said in July it won a deal with Express
Scripts Holding Co, which moved from rival Cardinal
Health Inc after Express Scripts bought Medco Health
Solutions. Medco already had a deal with AmerisourceBergen.
Analysts said at the time they expected the deal for bulk
business to bring down AmerisourceBergen's operating margins. In
addition to Cardinal Health, the company competes with McKesson
AmerisourceBergen said operating income in its
pharmaceutical distribution business fell from a year earlier,
hurt by a shift among customers to lower-margin business and
disappointing performance in its Canadian business.
Overall operating income rose 2.1 percent, helped by its
acquisition of World Courier, a provider of transportation,
storage and distribution services for drug clinical trials.
Revenue was up 5.7 percent to $21.5 billion from $20.3
billion a year earlier. Pharmaceutical distribution revenue rose
5 percent to $21.1 billion. Other revenue came from World
Courier and TheraCom, a biotech and pharmaceuticals services
company it bought in 2011.
It reaffirmed its forecast for fiscal 2013 earnings of $3.06
to $3.16 per share. Analysts expect $3.13 per share, according
to Thomson Reuters I/B/E/S.