AmerisourceBergen execs recently told investors that they were aware of FDA issues ahead of the $2.6 billion deal to buy PharMEDium Healthcare Holdings and that the wholesaler will work with the FDA to resolve any concerns and intends to make quality PharMEDium's distinguishing feature.
The FDA issued a warning letter last year to PharMEDium Healthcare Holdings, the large compounding pharmacy operation that AmerisourceBergen said last week it would buy for $2.6 billion. But it turns out that FDA inspectors were back at the compounder's Cleveland center more recently and found that some problems with sanitation have yet to be resolved, while noting new issues.
AmerisourceBergen is set to do its second $2.5 billion deal this year, and again taking a turn into a new arena. The drug sourcing and distribution giant says it has a deal to buy PharMEDium, a sterile drug compounding specialist that has a client list of more than 3,000 acute care hospitals for which it produces specialized products from four centers.
Drug sourcing and distribution behemoth AmerisourceBergen figures that the best way to source compounded drugs for its hospital clients is to manufacture them itself. To do that, company will shell out more than $2.5 billion to buy one of the largest sterile drug compounders in the U.S.
Drug distributor AmerisourceBergen, which forged an alliance with Walgreens two years ago, continues to surprise Wall Street with its performance.
Walgreens Boots Alliance has been so pleased with its relationship with AmerisourceBergen that it might just look for another drug distributor with which to hook up. That was the suggestion made by Walgreens CEO Stefano Pessina this week.
Hilary Kramer is a high-profile lawyer, stock picker and television commentator who has filed more than 40 class-action lawsuits against companies planning mergers or acquisitions, mostly on the grounds that the deals are unfair to shareholders. Among her targets: Animal Health International, a maker of drugs for livestock that was acquired by rival Lextron in 2011 for $251 million.
MWI Veterinary Supply has proven once again why it was such a hot target for drug wholesaler AmerisourceBergen, which is in the process of acquiring the animal-health distributor for $2.5 billion. MWI announced Thursday that its revenues in its fiscal first quarter jumped 16% to $798.5 million, and its net income grew 9% to $20.1 million.
Drug distributor AmerisourceBergen has again reported big quarterly increases in sales and profits as a relationship forged with Walgreens in 2013 continues to pay off big time. And without saying it directly, the company pointed to the phenomenal success of Gilead Sciences' hep C drugs, Sovaldi and Harvoni, as also playing a part in its earnings jump, saying its revenues were powered in part by sales of drugs for treating hepatitis C.
Drug distributor AmerisourceBergen, which has been doing deals to expand its scope geographically, has decided its next step will be to move into distributing veterinary drugs.