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AmerisourceBergen (ABC) to Buy Germany's PharmaLex for $1.3B
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AmerisourceBergen Corporation announced that it has signed a definitive agreement to acquire Germany-based PharmaLex Holding GmbH for €1.28 billion (approximately $1.3 billion) in cash.
PharmaLex is a leading provider of specialized services for the life sciences industry that is owned by funds advised by AUCTUS Capital Partners AG. The company consists of a global team of scientific, regulatory, and safety and compliance experts who provide strategic guidance and regulatory support to biopharma companies throughout a product’s lifecycle. It has a global reach, with a significant footprint in Europe and the United States and a growing presence in other parts of the world. The acquisition of this Germany-based company will enhance AmerisourceBergen’s global portfolio of solutions to support manufacturer partners across the pharmaceutical development and commercialization journey.
AmerisourceBergen believes that PharmaLex’s highly complementary business and strong market reputation will help it deepen its partnerships with manufacturers. The deal will likely help advancing ABC’s role as a strategic partner of choice as it supports end-to-end clinical and commercial enablement solutions for its pharma customers. The acquisition will also help the company to expand its global platform of biopharma services.
AmerisourceBergen expects to complete the acquisition of PharmaLex in March 2023. Following the completion of the deal, ABC expects PharmaLex to be approximately 15 cents accretive to its adjusted earnings per share during the last seven months of its fiscal 2023.
Shares of AmerisourceBergen have gained 11.2% so far this year against the industry’s decline of 10.2%. The broader S&P 500 index has declined 15.3% in the same time period.
Image Source: Zacks Investment Research
Notable Developments
In April 2022, AmerisourceBergen introduced AB Health Ventures, a dedicated corporate venture capital fund, focused on investing in and collaborating with emerging healthcare startup companies involved in transforming healthcare for people and animals worldwide. This venture capital fund will build on AmerisourceBergen’s continued commitment to offering innovation to its customers. It is worth mentioning that AB Health Ventures is a wholly-owned subsidiary of AmerisourceBergen that will utilize its depth of expertise, global presence and solid relationships with stakeholders throughout the pharmaceutical supply chain to boost value for entrepreneurs who are searching for partners to aid business growth.
In January 2022, ABC collaborated with TrakCel, the leading innovator of cellular orchestration solutions, to launch an integrated technology platform to accelerate patient access to prescribed cell and gene therapies and provide complete visibility throughout the treatment process.
AmerisourceBergen acquired Alliance Healthcare in 2021 that expanded its international presence. The company’s international segment recorded whopping 120% sales growth in the fiscal third quarter, mainly driven by the addition of Alliance Healthcare’s business. The addition of PharmaLex will likely boost the growth rate further going forward.
Currently, AmerisourceBergen carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , ShockWave Medical, Inc. (SWAV - Free Report) and McKesson Corporation (MCK - Free Report) .
AMN Healthcare, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 3.2%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 15.7%.
AMN Healthcare has lost 12.3% compared with the industry’s 26.8% fall so far this year.
ShockWave Medical, sporting a Zacks Rank #1 at present, has an estimated growth rate of 33.1% for 2023. SWAV’s earnings surpassed estimates in all the trailing four quarters, the average beat being 180.1%.
ShockWave Medical has gained 60.9% against the industry’s 27.6% fall so far this year.
McKesson, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 9.9%. MCK’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average beat being 13%.
McKesson has gained 46.3% against the industry’s 10.2% fall so far this year.
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AmerisourceBergen (ABC) to Buy Germany's PharmaLex for $1.3B
AmerisourceBergen Corporation announced that it has signed a definitive agreement to acquire Germany-based PharmaLex Holding GmbH for €1.28 billion (approximately $1.3 billion) in cash.
PharmaLex is a leading provider of specialized services for the life sciences industry that is owned by funds advised by AUCTUS Capital Partners AG. The company consists of a global team of scientific, regulatory, and safety and compliance experts who provide strategic guidance and regulatory support to biopharma companies throughout a product’s lifecycle. It has a global reach, with a significant footprint in Europe and the United States and a growing presence in other parts of the world. The acquisition of this Germany-based company will enhance AmerisourceBergen’s global portfolio of solutions to support manufacturer partners across the pharmaceutical development and commercialization journey.
AmerisourceBergen believes that PharmaLex’s highly complementary business and strong market reputation will help it deepen its partnerships with manufacturers. The deal will likely help advancing ABC’s role as a strategic partner of choice as it supports end-to-end clinical and commercial enablement solutions for its pharma customers. The acquisition will also help the company to expand its global platform of biopharma services.
AmerisourceBergen expects to complete the acquisition of PharmaLex in March 2023. Following the completion of the deal, ABC expects PharmaLex to be approximately 15 cents accretive to its adjusted earnings per share during the last seven months of its fiscal 2023.
Shares of AmerisourceBergen have gained 11.2% so far this year against the industry’s decline of 10.2%. The broader S&P 500 index has declined 15.3% in the same time period.
Image Source: Zacks Investment Research
Notable Developments
In April 2022, AmerisourceBergen introduced AB Health Ventures, a dedicated corporate venture capital fund, focused on investing in and collaborating with emerging healthcare startup companies involved in transforming healthcare for people and animals worldwide. This venture capital fund will build on AmerisourceBergen’s continued commitment to offering innovation to its customers. It is worth mentioning that AB Health Ventures is a wholly-owned subsidiary of AmerisourceBergen that will utilize its depth of expertise, global presence and solid relationships with stakeholders throughout the pharmaceutical supply chain to boost value for entrepreneurs who are searching for partners to aid business growth.
In January 2022, ABC collaborated with TrakCel, the leading innovator of cellular orchestration solutions, to launch an integrated technology platform to accelerate patient access to prescribed cell and gene therapies and provide complete visibility throughout the treatment process.
AmerisourceBergen acquired Alliance Healthcare in 2021 that expanded its international presence. The company’s international segment recorded whopping 120% sales growth in the fiscal third quarter, mainly driven by the addition of Alliance Healthcare’s business. The addition of PharmaLex will likely boost the growth rate further going forward.
AmerisourceBergen Corporation Price
AmerisourceBergen Corporation price | AmerisourceBergen Corporation Quote
Zacks Rank & Stocks to Consider
Currently, AmerisourceBergen carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , ShockWave Medical, Inc. (SWAV - Free Report) and McKesson Corporation (MCK - Free Report) .
AMN Healthcare, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 3.2%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 15.7%.
You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare has lost 12.3% compared with the industry’s 26.8% fall so far this year.
ShockWave Medical, sporting a Zacks Rank #1 at present, has an estimated growth rate of 33.1% for 2023. SWAV’s earnings surpassed estimates in all the trailing four quarters, the average beat being 180.1%.
ShockWave Medical has gained 60.9% against the industry’s 27.6% fall so far this year.
McKesson, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 9.9%. MCK’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average beat being 13%.
McKesson has gained 46.3% against the industry’s 10.2% fall so far this year.