Morningstar Rating

Stock Research and Analysis

by Vishnu Lekraj

Bulls Say

AmerisourceBergen is one of the three major pharmaceutical distributors with close to $100 billion in annual revenues. Its size makes the firm a favored partner with both major drug manufacturers and retail pharmacy customers.
Pharmaceutical spending will see robust growth over the next several years given demographic shifts and the expansion of medical insurance coverage to the currently uninsured.
As specialty drug spending continues to increase, we believe distributors have an opportunity to capture value from this nice market and grow both top- and bottom-line results. Read more 

Bears Say

Profit margins for AmerisourceBergen are razor-thin, making any significant pricing pressure detrimental.
In an effort to procure a cheaper supply of generic product, AmerisourceBergen has partnered with Walgreen in order to enhance its negotiating power and fixed-cost scale. If this partnership fails, the outlook for future revenue and profit growth will take a hit.
If branded manufacturers move to a direct drug distribution model, AmerisourceBergen’s results could be negatively affected. Read more 

Management

We believe stewardship at AmerisourceBergen has been solid, as operational execution and capital management have been beneficial to shareholders. The firm recently signed a significant distribution and generic sourcing partnership agreement with Walgreen.  Read more 

Profile

AmerisourceBergen is one of three national pharmaceutical distributors. The company's activities include procurement, inventory management, reimbursement consulting, physician   Read more 

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