ABC
AmerisourceBergen Corp
Healthcare
10/12/2015
Presented
| Date | 10/09/2015 |
| Price | $92.84 |
| Market Cap | $22.30B |
| Ent Value | $26.74B |
| P/E Ratio | N/A |
| Book Value | $7.28 |
| Div Yield | 1.22% |
| Shares O/S | 240.24M |
| Ave Daily Vol | 2,173,923 |
| Short Int | 3.96% |
Current
| Price | $233.12 |
| Market Cap | $45.94B |
| AmerisourceBergen Corp. is a pharmaceutical services company. It serves as a healthcare providers and pharmaceutical manufacturers in the pharmaceutical supply channel, it also provides drug distribution and related services designed to reduce costs and improve patient outcomes. The company operates through two segments: Pharmaceutical Distribution and Other. The Pharmaceutical Distribution segment is comprised of AmerisourceBergen Drug Corp. and AmerisourceBergen Specialty Group. The AmerisourceBergen Specialty Group Corp. distributes a comprehensive offering of brand-name and generic pharmaceuticals, over-the-counter healthcare products, home healthcare supplies and equipment, and related services to a wide variety of healthcare providers, including acute care hospitals and health systems, independent and chain retail pharmacies, mail order pharmacies, medical clinics, long-term care and other alternate site pharmacies, and other customers. The AmerisourceBergen Specialty Group provides pharmaceutical distribution and other services primarily to physicians who specialize in a variety of disease states, especially oncology, and to other healthcare providers, including dialysis clinics. The Other segment consists of AmerisourceBergen Consulting Services, World Courier Group, Inc. and MWI Veterinary Supply, Inc. AmerisourceBergen was founded on August 28, 2001 and is headquartered in Chesterbrook, PA. |
Publicly traded companies mentioned herein: AmerisourceBergen Corp (ABC), Cardinal Health Inc (CAH), Express Scripts Holding Company (ESRX), Walgreens Boots Alliance (WBA)
Highlights
The presenter is short shares of AmerisourceBergen (ABC) and believes shares are overvalued at 18x and 16.5x expected fiscal 2015 and 2016 earnings, respectively. Generally speaking, drug distributors are facing headwinds from issues surrounding exhaustion of the generic wave, a slowing of price inflation for both branded and generic drugs, and an expectation that drug volumes will be flat this quarter (vs the recent trend of +3%, which appears to no longer be sustainable). In addition, the recently announced acquisition of PharMEDium for $2.6 billion will leave ABC with no leverage left to work with.
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