Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

AmerisourceBergen Corp. (ABC - Analyst Report) recently announced that it has inked a definitive agreement to sell its contract packaging unit, AndersonBrecon, to a conglomerate of an investor group led by Frazier Healthcare VI, L.P for approximately $308 million in cash.

The conglomerate includes affiliates of Greenspring Associates, QIC Global Private Equity and Thomas McNerney & Partners and has been formed solely for the acquisition of AndersonBrecon.

The results of AndersonBrecon are reported as discontinued operations.  Consequently, the sale of this business therefore will not impact AmerisourceBergen’s guidance for fiscal 2013.

We note that AmerisourceBergen has been streamlining its portfolio in recent times. The company reportedly sold its Canadian pharmaceutical distribution business, AmerisourceBergen Canada Corporation (ABCC) to Kohl & Frisch Limited for approximately $80 million – $100 million. AmerisourceBergen will however retain its specialty business unit in Canada.

Following the announcement to sell its Canadian Pharmaceutical Distribution Business on Mar 28, 2013, AmerisourceBergen revised its guidance for 2013.

AmerisourceBergen now expects revenues in 2013 to grow by roughly 8% to 10% compared to the previous guidance of 8% – 11% growth.

AmerisourceBergen increased its earnings guidance for fiscal 2013 to $3.04 – $3.14 from the earlier projected range of $2.96 – $3.06.

We believe the company is well positioned for growth given the strong performance of its generics business. In Mar 2013, the company struck a 10-year deal with Walgreens (WAG - Analyst Report) which is expected to add approximately $2 billion to top line in fiscal 2013.

We note that Walgreens chose AmerisourceBergen over peer Cardinal Health (CAH - Analyst Report) with whom it already had a pharmaceutical distribution contract but decided not to renew the same.

AmerisourceBergen carries a Zacks Rank #3 (Hold). Right now, CVS Caremark Corporation (CVS - Analyst Report) looks well placed with a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
KNIGHTSBRIDG VLCCF 14.32 +14.19%
E*TRADE FINA ETFC 22.55 +4.88%
QUESTCOR PHA QCOR 83.22 +3.93%
BNC BANCORP BNCN 17.81 +2.77%
LAKE SHORE G LSG 0.79 +2.46%