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AmerisourceBergen Profit and Revenue Rise on Pharmaceutical Distribution Business Growth

DOW JONES & COMPANY, INC. 7:33 AM ET 10/30/14
Symbol Last Price Change

ABC 79.74up 0 (0%)
WAG 62.83down 0 (0%)
QUOTES AS OF 04:02:39 PM ET 10/29/2014

AmerisourceBergen Corp. (ABC) said its revenue increased 29% in the fourth quarter, driven by strong top-line gains in its pharmaceutical distribution business.

For the recently started fiscal year, the drug wholesaler expects earnings of $4.36 to $4.50 a share on revenue growth of 7% to 8%. Analysts polled by Thomson Reuters recently expected full-year earnings of $4.38 a share on revenue growth of 5%.

Drug wholesalers have been forming ventures and collaborations with other health-care-related companies to increase their bargaining power with pharmaceutical companies and expand internationally.

Last year, AmerisourceBergen(ABC) began an alliance with U.S. drugstore-chain operator Walgreen Co.(WAG) and European drug company Alliance Boots GmbH. The onboarding of all the new Walgreen(WAG)-branded pharmaceuticals business and a chunk of the generic pharmaceuticals business helped drive up revenue this quarter, the company said.

Earlier this year, the company launched its specialty drug-distribution joint venture with Profarma Distribuidora de Produtos Farmaceuticos SA, and completed its acquisition of a 19.9% stake in the Brazilian drug wholesaler.

For the period ended Sept. 30, revenue rose to $31.59 billion from $24.47 billion.

Pharmaceutical distribution revenue rose 29% to $31.02 billion.

Overall, AmerisourceBergen(ABC) reported a profit of $67.8 million, or 29 cents a share, compared with a profit of $51 million, or 22 cents a share, a year earlier. The company's cost of sales rose 29% to $30.72 billion, while its operating expenses increased 47% to $665.3 million.

Excluding special items, per-share earnings from continuing operations rose to $1.10 from 81 cents.

Analysts polled by Thomson Reuters expected per-share profit of $1.05 and revenue of $30.78 billion.

Write to Erin McCarthy at [e-mail]

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10-30-140733ET
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