View source for Cencora

{{short description|American healthcare company}}

{{Multiple issues|
{{cleanup-PR|1=article|date=February 2018}}
{{Undisclosed paid|date=December 2020}}
}} {{Use American English|date=February 2016}} {{Use mdy dates|date=February 2016}} {{Infobox company|
| name = Cencora, Inc.
| logo = Cencora logo.png
| former_name = AmerisourceBergen Corporation (2001–2023)
| type = [[Public company|Public]]
| traded_as = {{ubl|{{NYSE|COR}}|[[S&P 500]] component}}
| founded = {{Start date and age|2001}} (merger between AmeriSource Health and Bergen Brunswig)
| hq_location = {{nowrap|[[Conshohocken, Pennsylvania]], U.S.}}
| area_served = {{ubl|[[North America]]|[[United Kingdom]]}}
| key_people = {{ubl| [[Steven H. Collis]] ([[chairman]]) |Robert Mauch ([[president (corporate title)|President]] & [[CEO]])}}
| revenue = {{nowrap|{{increase}} {{US$|294 billion|link=yes}} (2024)}}
| operating_income = {{decrease}} {{US$|2.18 billion}} (2024)
| net_income = {{decrease}} {{US$|1.51 billion}} (2024)
| assets = {{nowrap|{{increase}} {{US$|67.1 billion}} (2024)}}
| equity = {{nowrap|{{increase}} {{US$|646 million}} (2024)}}
| owner = [[Walgreens Boots Alliance]] (10%)
| num_employees = {{circa|46,000}} (2024)
| products = [[Pharmaceutical]]s and [[pharmacy]] services
| industry = [[Pharmaceutical]]
| website = {{url|https://cencora.com/}}
| footnotes = Financials {{as of|2024|09|30|lc=y|df=US}}.<ref name='xbrlus_1'>{{cite web|url=https://www.sec.gov/ix?doc=/Archives/edgar/data/1140859/000114085924000177/cor-20240930.htm|title=US SEC: Form 10-K AmerisourceBergen|publisher=[[United States Securities and Exchange Commission]]|date=26 November 2024}}</ref>
}} '''Cencora, Inc.''', formerly known as '''AmerisourceBergen''', is an American [[Wholesale|drug wholesale]] company and a [[contract research organization]] that was formed by the merger of Bergen Brunswig and AmeriSource in 2001.<ref name="AmerisourceBergen-Aug-2001-8-K">{{cite web|url=http://edgar.secdatabase.com/607/94787101500695/filing-main.htm |title=AmerisourceBergen, Form 8-K, Current Report, Filing Date Aug 30, 2001 |publisher=secdatabase.com |access-date =January 7, 2013}}</ref> It is considered one of the largest pharmaceutical companies in the world and distributes generic pharmaceuticals, over-the-counter healthcare products as well as home healthcare supplies and equipment.<ref>{{Cite book |last=Wankel |first=Charles |title=Encyclopedia of Business in Today's World: A - C |publisher=SAGE |year=2009 |isbn=978-1-4129-6427-2 |location=Thousand Oaks, CA |pages=52 |language=en}}</ref>
==Background==
AmerisourceBergen was formed in 2001 following the merger of AmeriSource Health Corporation and Bergen Brunswig Corporation.<ref>{{cite web|title=AmerisourceBergen Added to S&P 500 index|url=http://www.amerisourcebergen.com/investor/phoenix.zhtml?c=61181&p=irol-newsArticle&ID=203110|access-date=12 July 2017|archive-url=https://web.archive.org/web/20160322190042/http://amerisourcebergen.com/investor/phoenix.zhtml?c=61181&p=irol-newsArticle&ID=203110|archive-date=March 22, 2016|url-status=dead}}</ref> David Yost was CEO of Amerisource prior to the merger and remained in the position after the companies merged.<ref name=":1">{{Cite news|date=2011-03-14|title=UPDATE 2-Amerisource CEO Yost to retire, Collis to succeed|language=en|work=Reuters|url=https://www.reuters.com/article/amerisourcebergen-idUSN1417590020110314|access-date=2020-07-17}}</ref>

AmerisourceBergen has 26 pharmaceutical distribution centers in the US, nine distribution centers in Canada, four specialty distribution centers in the US, and over 1 million square feet of packaging production capacity in the US and the UK. With the addition of World Courier,<ref>{{Cite web|title=AmerisourceBergen Acquires World Courier|url=https://www.worldcourier.com/news-and-events/press-releases/amerisourcebergen-acquires-world-courier|access-date=2019-08-16|website=World Courier|language=en}}</ref> the largest specialty courier company in the world, over 150 company-owned offices around the globe were added to the company.

AmerisourceBergen operates its pharmaceutical distribution business under four primary units: AmerisourceBergen Drug Corporation (ABDC), AmerisourceBergen Specialty Group (ABSG), AmerisourceBergen Consulting Services (ABCS) and World Courier. In March 2016 [[Walgreens Boots Alliance]] Inc. announced it would exercise an option to purchase 22.7 million shares of AmerisourceBergen stock and thereby control 15% of the company.<ref>{{cite news|url=http://www.dailyherald.com/article/20160318/business/160318688/|agency=Associated Press|access-date=2016-09-25|date=2016-03-18|title=Walgreens Boots buys bigger stake in AmerisourceBergen|first1=George|last1=Leeclaire}}</ref>

In 2012, the firm was the largest by revenue based in [[Pennsylvania]].<ref>AmerisourceBergen: The biggest Pennsylvania company you never heard of, by David Sell, Philadelphia Inquirer, July 15, 2012</ref><ref>{{cite news |date=May 28, 2013 |title=Eight area companies make Fortune 500 |newspaper=[[Philadelphia Business Journal]] |url=http://www.bizjournals.com/philadelphia/news/2013/05/08/seven-area-companies-made-fortune-500.html |access-date=June 24, 2013}}</ref>

The company changed its name to Cencora as of August 30, 2023 and began trading on the New York Stock Exchange under the new ticker symbol "COR".<ref>{{Cite web |date=2023-08-30 |title=AmerisourceBergen becomes Cencora |url=https://investor.cencora.com/news/news-details/2023/Cencora-Announces-Common-Share-Repurchase-From-Walgreens-Boots-Alliance/default.aspx |access-date=2024-09-23 |language=en}}</ref>

In May 2024, Cencora disclosed it had been the subject of a cyber incident in which patient information was exposed.<ref>{{Cite web |last=Whittaker |first=Zack |date=May 24, 2024 |title=US pharma giant Cencora says Americans’ health information stolen in data breach |url=https://techcrunch.com/2024/05/24/cencora-americans-health-data-stolen-breach-cyberattack/ |website=TechCrunch}}</ref>
===Products===
They provide drug distribution and consulting related to medical business operations and patient services. They also distribute a line of brand name and generic [[pharmaceuticals]], [[Over-the-counter drug|over-the-counter]] (OTC) health care products and home health care supplies and equipment to health care providers throughout the [[United States]], including acute care [[hospitals]] and [[health systems]], independent and chain retail [[pharmacies]], mail-order facilities, [[physicians]], clinics and other alternate site facilities, as well as nursing and [[assisted living]] centers. They also provide pharmaceuticals and pharmacy services to long-term care, workers' compensation and specialty drug patients.

AmerisourceBergen handles about 20% of all of the pharmaceuticals sold and distributed throughout the United States and ranked 10th on the [[Fortune 500]] list for 2020 with over $179 billion in annual revenue.<ref>{{Cite web |title=AmerisourceBergen {{!}} 2020 Fortune 500 |url=https://fortune.com/company/amerisourcebergen/fortune500/ |access-date=2021-01-12 |website=Fortune |language=en}}</ref>
===Good Neighbor Pharmacy===
[[Good Neighbor Pharmacy]] is an American retailers' cooperative network of more than 3,400 independently owned and operated pharmacies. It has a business affiliation with AmerisourceBergen, which sponsors the network and owns the name "Good Neighbor Pharmacy." Good Neighbor Pharmacy is the sponsor for "ThoughtSpot," the annual trade show held in both Orlando and [[Las Vegas Valley|Las Vegas]].
===Acquisitions===
*In 2011, the company acquired IntrinsiQ for $35 million and Premier Source for an undisclosed amount.<ref>{{Cite web|date=6 September 2011|title=AmerisourceBergen buys IntrinsiQ|url=https://www.bizjournals.com/philadelphia/news/2011/09/06/amerisourcebergen-buys-intrinsiq.html|website=Philadelphia Business Journal}}</ref><ref>{{Cite web|date=2011-09-02|title=AmerisourceBergen buys Premier Source|url=https://oklahoman.com/article/feed/291805/amerisourcebergen-buys-premier-source/|access-date=2020-07-17|website=The Oklahoman|language=en-US|archive-date=July 17, 2020|archive-url=https://web.archive.org/web/20200717171313/http://oklahoman.com/article/feed/291805/amerisourcebergen-buys-premier-source|url-status=dead}}</ref> In July, [[Steven H. Collis|Steven Collis]] replaced Yost as CEO of the company.<ref name=":1" />

*In March 2012, AmerisourceBergen agreed to acquire World Courier Group Inc, a transportation and logistics provider for the biopharmaceutical industry, for $520 million.<ref>{{Cite web|last=Sell|first=David|date=6 March 2012|title=AmerisourceBergen to acquire World Courier Group|url=https://www.inquirer.com/philly/blogs/phillypharma/AmerisourceBergen-to-Acquire-World-Courier-Group-Inc.html|access-date=2020-07-17|website=The Philadelphia Inquirer|language=en-US}}</ref>

*In January 2015, the company bought MWI Veterinary for $2.5 billion. In October,<ref name=":0">{{Cite news|date=2015-10-06|title=AmerisourceBergen to buy PharMEDium for $2.58 billion|language=en|work=Reuters|url=https://www.reuters.com/article/us-pharmedium-m-a-amerisourcebergn-idUSKCN0S019P20151006|access-date=2020-07-17}}</ref> they agreed to buy PharMEDium, a compounding drug company, for $2.58 billion.<ref name=":0" />

*On January 3, 2018, AmerisourceBergen acquired H. D. Smith, the largest privately-held national pharmaceutical [[wholesaler]] in the U.S.<ref>{{Cite web|title=AmerisourceBergen Completes Acquisition of HD Smith|url=https://www.amerisourcebergen.com/abcnew/newsroom/press-releases/amerisourcebergen-completes-acquisition-of-hd-smith|access-date=2018-09-25|website=AmerisourceBergen|language=en|archive-date=September 26, 2018|archive-url=https://web.archive.org/web/20180926052007/https://www.amerisourcebergen.com/abcnew/newsroom/press-releases/amerisourcebergen-completes-acquisition-of-hd-smith|url-status=dead}}</ref><ref>{{Cite web|last=Olsen|first=Dean|title=Former H.D. Smith workforce reducing to 25 locally|url=https://www.sj-r.com/news/20190404/former-hd-smith-workforce-reducing-to-25-locally|access-date=2020-07-17|website=The State Journal-Register|language=en|archive-date=July 17, 2020|archive-url=https://web.archive.org/web/20200717172332/https://www.sj-r.com/news/20190404/former-hd-smith-workforce-reducing-to-25-locally|url-status=dead}}</ref>

*On June 2, 2021, AmerisourceBergen acquired Alliance Healthcare from [[Walgreens Boots Alliance]] for approximately $6.5 billion, made up of $6.275 billion in cash and 2 million shares of AmerisourceBergen common stock.<ref>{{Cite press release|title=Walgreens Boots Alliance Completes Strategic Transaction with AmerisourceBergen Divesting Alliance Healthcare Businesses|url=https://www.businesswire.com/news/home/20210602005360/en/Walgreens-Boots-Alliance-Completes-Strategic-Transaction-with-AmerisourceBergen-Divesting-Alliance-Healthcare-Businesses|website=Businesswire|language=en}}</ref>
In June 2020, the [[United States Department of Health and Human Services|U.S. Department of Health and Human Services (HHS)]] announced an unusual agreement for the distribution of [[remdesivir]], the first coronavirus drug. HHS agreed to manufacturer [[Gilead Sciences |Gilead]]'s [[Wholesale acquisition cost|wholesale acquisition price]], while HHS would continue to work together with state governments and AmerisourceBergen to allocate shipments of remdesivir vials to American hospitals through the end of September 2020, and in exchange, during that time-frame American patients would be allocated over 90% of Gilead's projected remdesivir output of more than 500,000 treatment courses.<ref name="Kolata">{{cite news |last1=Kolata |first1=Gina | name-list-style = vanc |title=Remdesivir, the First Coronavirus Drug, Gets a Price Tag |url=https://www.nytimes.com/2020/06/29/health/coronavirus-remdesivir-gilead.html |work=The New York Times |date=29 June 2020 |access-date=29 June 2020}}</ref><ref name="HHSPressRelease_29June2020">{{cite press release |title=Trump Administration Secures New Supplies of Remdesivir for the United States |url=https://www.hhs.gov/about/news/2020/06/29/trump-administration-secures-new-supplies-remdesivir-united-states.html |publisher=[[U.S. Department of Health and Human Services]] (HHS) |date=29 June 2020 |access-date=29 June 2020 |archive-date=June 29, 2020 |archive-url=https://web.archive.org/web/20200629144040/https://www.hhs.gov/about/news/2020/06/29/trump-administration-secures-new-supplies-remdesivir-united-states.html |url-status=dead }}</ref>
==Finances==
For the fiscal year 2019, AmerisourceBergen reported earnings of US$1.11 billion, with an annual revenue of US$179.58 billion. AmerisourceBergen's shares traded at over $88 per share, and its market capitalization was valued at over US$19.2 billion in September 2019.<ref>{{Cite web|url=http://investor.amerisourcebergen.com/financial-information/annual-reports|title=Financial Reports {{!}} AmerisourceBergen Corporation|website=AmerisourceBergen Corporation|language=en|access-date=2018-11-07}}</ref>
==Controversies==
===Opioid epidemic===
AmerisourceBergen is among several distributors that have been sued by [[West Virginia]]n governments for contributing to the [[Opioid epidemic]], by shipping inordinate amounts of pain medication into the state.<ref name="Higham">{{Cite news|last1=Higham|first1=Scott|last2=Bernstein|first2=Lenny|date=2017-03-09|title=Opioid distributors sued by West Virginia counties hit by drug crisis|language=en-US|newspaper=Washington Post|url=https://www.washingtonpost.com/national/health-science/lawsuits-filed-against-drug-distributors-in-west-virginia/2017/03/09/f9e3165e-0501-11e7-b1e9-a05d3c21f7cf_story.html|access-date=2018-02-13|issn=0190-8286}}</ref><ref name="Jon Kamp">{{cite web|author=Jon Kamp|date=27 June 2012|title=West Virginia Sues Drug Distributors in Pill-Abuse Fight|url=https://www.wsj.com/articles/SB10001424052702304058404577492853204473294|access-date=23 January 2016|work=WSJ}}</ref><ref name="ReferenceB">{{cite web|title=Drug firms shipped 40M pain pills a year to WV|url=http://www.wvgazette.com/article/20150517/GZ01/150519456/1419|access-date=23 January 2016|work=Charleston Gazette-Mail|date=May 17, 2015 }}</ref>

In December 2019, [[Michigan]] became the first state to sue AmerisourceBergen and three other opioid distributors as [[drug dealers]] for their role in the state's [[opioid]] crisis.<ref>{{Cite news|last=Herman|first=Bob|date=December 18, 2019|title=Major health care companies keep getting taken to court|work=Axios|url=https://www.axios.com/health-care-companies-lawsuits-court-cvs-health-6dd7de92-6e4f-4ddb-9eff-6375bd7990b8.html|access-date=June 25, 2020}}</ref><ref>{{Cite web|last=Rossman-Mckinney|first=Kelly|date=December 17, 2019|title=Michigan Goes After Opioid Distributors; Files Lawsuit Under Michigan Drug Dealer Liability Act|url=https://www.michigan.gov/ag/0,4534,7-359-92297_92299-514835--,00.html|website=Michigan Department of the Attorney General}}</ref> The lawsuit is filed under the Michigan Drug Dealer Liability Act.<ref>{{Cite web|title=Michigan Legislature - Section 691.1605|url=http://www.legislature.mi.gov/(S(ab1ud3wfoc4obqa5ic4o31rc))/mileg.aspx?page=getObject&objectName=mcl-691-1605|access-date=2020-06-25|website=www.legislature.mi.gov}}</ref> AmerisourceBergen was among four companies who, because of their role in the addiction crisis, agreed to pay $260 million to two Ohio counties.<ref>{{Cite web|last=Ghose|first=Carrie|date=21 October 2019|title=Cardinal Health, McKesson, AmerisourceBergen, Teva agree to $260M opioid settlement with Cuyahoga, Summit counties|url=https://www.bizjournals.com/columbus/news/2019/10/21/cardinal-health-mckesson-amerisourcebergen-teva.html|access-date=2020-06-25|website=Columbus Business First}}</ref>

In May 2020, [[Oklahoma Attorney General]] [[Michael J. Hunter|Mike Hunter]] sued AmerisourceBergen in Bryan County District Court, Oklahoma. The lawsuit alleged that the company's actions helped fuel Oklahoma's opioid crisis. The suit was filed along with lawsuits against [[Cardinal Health]] and [[McKesson Corporation|McKesson]], and the three lawsuits allege that the three companies provided "enough opioids to [[Bryan County, Oklahoma|Bryan County]] that every adult resident there could have had 144 [[hydrocodone]] tablets."<ref>{{Cite web |title=Attorney General Hunter Refiles Lawsuits against Three Leading Opioid Distributors {{!}} Oklahoma Attorney General |url=https://oag.ok.gov/articles/attorney-general-hunter-refiles-lawsuits-against-three-leading-opioid-distributors |access-date=2022-03-12 |website=oag.ok.gov}}</ref>

In January 2022, AmerisourceBergen, McKesson, Cardinal Health, and Johnson & Johnson agreed to pay $26 billion to settle with all but five of the states suing them.<ref>{{Cite news|last=Raymond|first=Nate|date=2022-01-27|title=Most U.S. local governments opt to join $26 bln opioid settlement|language=en|work=Reuters|url=https://www.reuters.com/world/us/most-us-local-governments-opt-join-26-bln-opioid-settlement-2022-01-26/|access-date=2022-02-21}}</ref> The deal covered the bulk of the grievances against these four companies, including 90 percent of municipal governments, 46 states, and Washington, DC.<ref name=":3">{{Cite web |last=Mann |first=Brian |date=February 25, 2022 |title=4 US companies will pay $26 billion to settle claims they fueled the opioid crisis |url=https://www.npr.org/2022/02/25/1082901958/opioid-settlement-johnson-26-billion |access-date=October 31, 2024 |website=NPR}}</ref> Had the states gone to court, the companies could have faced up to $95 billion in penalties.<ref>{{Cite news|last=Raymond|first=Nate|date=2021-11-16|title=Washington state, in $95 billion opioid trial, blames drug distributors for crisis|language=en|work=Reuters|url=https://www.reuters.com/world/us/mckesson-drug-distributors-face-95-billion-opioid-trial-washington-state-2021-11-15/|access-date=2022-02-21}}</ref> AmeriSource Bergen and the three other companies did not admit wrongdoings.<ref name=":3" />
===Legal issues===
On October 1, 2018, Amerisourcebergen agreed to pay $625M to resolve allegations that it had illegally repackaged and distributed oncology-supportive injectable drugs.<ref>{{Cite web|date=2018-10-01|title=AmerisourceBergen Corporation Agrees to Pay $625 Million to Resolve Allegations That it Illegally Repackaged Cancer–Supportive Injectable Drugs to Profit From Overfill|url=https://www.justice.gov/opa/pr/amerisourcebergen-corporation-agrees-pay-625-million-resolve-allegations-it-illegally|access-date=2022-02-22|website=www.justice.gov|language=en}}</ref>

In October 2018, AmerisourceBergen agreed to pay $625 million to settle civil fraud allegations resulting from its repackaging and sale of [[Adulterant|adulterated drugs]] and [[New Drug Application|unapproved new drugs]], [[double billing]] and [[Health care fraud|providing kickbacks to physicians]].<ref name=":2">{{Cite web |date=2018-10-01 |title=AmerisourceBergen Corp. To Pay $625 Million To Settle Civil Fraud Allegations Resulting From Its Repackaging And Sale Of Adulterated Drugs And Unapproved New Drugs, Double Billing And Providing Kickbacks |url=https://www.justice.gov/usao-edny/pr/amerisourcebergen-corp-pay-625-million-settle-civil-fraud-allegations-resulting-its |access-date=2020-06-26 |website=www.justice.gov |language=en}}{{PD-notice}}</ref>

As part of the civil settlement, ABC admitted that between January 2001 and January 2014, MII and OSC operated a program that created, packed and shipped millions of pre-filled syringes (PFS) to oncology practices for administration to vulnerable cancer patients (the PFS Program).  At MII, an ABC subsidiary located in Alabama, the drug product was removed from the original glass vials and multiple vials of the product were pooled in untested plastic containers.  Then the drug, including the overfill, was extracted and repackaged into syringes.  By harvesting the overfill, ABC was able to create more doses than it bought from the original vial manufacturers and avoid opening some of the vials.  ABC retained the unopened vials and sold them to other customers and to its subsidiary ABDC for resale.  During the 13 years the PFS Program was in operation, MII manufactured thousands of syringes daily, and eventually over one million syringes per year.  These syringes were sold throughout the United States.  Approximately 57% of the patients who were injected with the PFS were Federal Health Care Program beneficiaries.  The profit from the PFS Program was between $2.3 and $14.4 million annually for a total profit of at least $99.6 million.<ref name=":2" />

ABC’s scheme enabled it to bill multiple health care providers for the same vial of drug, causing some of those providers to bill the Federal Health Care Programs for the same vial more than once.  The scheme also enabled ABC to increase its market share by offering various product discounts, which it leveraged to obtain new customers and to keep existing customers who purchased its entire portfolio of oncology drugs.  ABC excluded the entire PFS Program from its standard regulatory audit and pedigree compliance programs.<ref name=":2" /><ref>{{Cite web|title=AmerisourceBergen to pay $625M to settle whistleblower case for selling cancer vial overfills|url=https://www.fiercepharma.com/pharma/amerisourcebergen-to-pay-625m-to-settle-whistle-blower-case-over-selling-cancer-vial|access-date=2020-06-26|website=FiercePharma|language=en}}</ref>  AmerisourceBergen's stock price reportedly plummeted after they were among other drug distributors who offered $10 billion to settle their portion of the [[Opioid epidemic in the United States|national opioids lawsuit]].<ref>{{Cite web|last=Herman|first=Bob|title=Wall Street's fear of an opioids settlement|url=https://www.axios.com/opioids-settlement-lawsuit-mckesson-distributors-fcd1fe9a-5757-4463-b8aa-a8d0f2ac101c.html|access-date=2020-06-26|website=Axios|language=en}}</ref><ref>{{Cite web|date=2019-08-06|title=Opioid Distributors Propose $10 Billion to End State Claims|url=https://www.bloomberg.com/news/articles/2019-08-06/opioid-distributors-propose-10-billion-to-end-state-lawsuits|access-date=2020-06-26|website=Bloomberg.com}}</ref> States countered with $45 billion.<ref>{{Cite web|last=Herman|first=Bob|title=McKesson, Cardinal, AmerisourceBergen offer $10 billion opioid settlement|url=https://www.axios.com/opioid-settlement-mckesson-cardinal-amerisourcebergen-5f9bbd01-2cc4-49c4-86e9-cc913d044233.html|access-date=2020-06-26|website=Axios|language=en}}</ref>
==References==
{{reflist|2}}
==External links==
{{Portal|Companies}}
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{{Official|https://www.cencora.com}}
{{Finance links
| name = Cencora, Inc.
| symbol = COR
| reuters = COR.N
| bloomberg = COR:US
| sec_cik = 1140859
| yahoo = COR
| google = COR:NYSE
}}

{{Contract research organization}} {{Authority control}}