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AmerisourceBergen and Publix Announce Distribution Agreement

02/04/16

Relationship extends beyond traditional distribution to include specialty pharmacy services and inventory management solutions

VALLEY FORGE, Pa. & LAKELAND, Fla.--(BUSINESS WIRE)--Feb. 4, 2016-- AmerisourceBergen Corporation (NYSE: ABC) and Publix today announced a long-term agreement encompassing the distribution of branded, generic and over-the-counter health and pharmaceutical products. The agreement also enables Publix’s network of more than 980 pharmacy locations across the southeast to expand patient access to specialty medications.

“Publix continues to push the boundaries of how our pharmacy business operates in order to improve the experience and health outcomes we create for our customers,” said Fred Ottolino, Publix Vice President of Pharmacy. “With AmerisourceBergen we’ve found a partner who shares our passion for patient care and who has the knowledge and capability we need to execute our strategies.”

The agreement, which includes direct delivery to all Publix pharmacies as well as warehouse and central fill facilities, extends beyond traditional distribution and includes access to AmerisourceBergen’s Cubixx® inventory management solution. This radio frequency identification (RFID) enabled technology will be used by Publix to facilitate the dispensing of a range of specialty medications in their community pharmacies. Publix will also benefit from technological solutions designed to support overall inventory efficiency and will have access to consultative services from AmerisourceBergen as they continue to evolve their specialty pharmacy services.

“Innovative pharmacy leaders are simplifying and improving the patient experience of getting needed medications,” said Steven H. Collis, President and Chief Executive Officer of AmerisourceBergen. “Publix is doing just that and we are thrilled to have the solutions and expertise in place to support their mission and to help them unlock additional value in their pharmacy operation.”

About AmerisourceBergen

AmerisourceBergen is one of the largest global pharmaceutical sourcing and distribution services companies, helping both healthcare providers and pharmaceutical and biotech manufacturers improve patient access to products and enhance patient care. With services ranging from drug distribution and niche premium logistics to reimbursement and pharmaceutical consulting services, AmerisourceBergen delivers innovative programs and solutions across the pharmaceutical supply channel in human and animal health. With over $135 billion in annual revenue, AmerisourceBergen is headquartered in Valley Forge, PA, and employs approximately 18,000 people. AmerisourceBergen is ranked #16 on the Fortune 500 list. For more information, go to www.amerisourcebergen.com.

About Publix

Publix is privately owned and operated by its 179,000 employees, with 2014 sales of $30.6 billion. Currently Publix has 1,114 stores in Florida, Georgia, Alabama, Tennessee, South Carolina and North Carolina. The company has been named one of FORTUNE’s “100 Best Companies to Work For in America” for 18 consecutive years. In addition, Publix’s dedication to superior quality and customer service is recognized among the top in the grocery business. For more information, visit the company’s website, corporate.publix.com.

Cautionary Note Regarding Forward-Looking Statements

Certain of the statements contained in this release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Words such as “expect,” “likely,” “outlook,” “forecast,” “would,” “could,” “should,” “can,” “will,” “project,” “intend,” “plan,” “continue,” “sustain,” “synergy,” “on track,” “believe,” “seek,” “estimate,” “anticipate,” “may,” “possible,” “assume,” variations of such words, and similar expressions are intended to identify such forward-looking statements. These statements are based on management's current expectations and are subject to uncertainty and change in circumstances. These statements are not guarantees of future performance and are based on assumptions that could prove incorrect or could cause actual results to vary materially from those indicated. Among the factors that could cause actual results to differ materially from those projected, anticipated, or implied are the following: competition; industry consolidation of both customers and suppliers resulting in increasing pressure to reduce prices for our products and services; changes in pharmaceutical market growth rates; price inflation in branded and generic pharmaceuticals, and price deflation in generics; declining economic conditions in the United States and abroad; financial market volatility and disruption; substantial defaults in payment, material reduction in purchases by or the loss, bankruptcy or insolvency of a major customer; the loss, bankruptcy or insolvency of a major supplier; changes to the customer or supplier mix; the retention of key customer or supplier relationships under less favorable economics or the adverse resolution of any contract or other dispute with customers or suppliers; changes in any of the economic models used by any of our suppliers to set pricing and/or other terms for the purchase of pharmaceuticals; interest rate and foreign currency exchange rate fluctuations; the disruption of AmerisourceBergen's cash flow and ability to return value to its stockholders in accordance with its past practices; risks associated with the strategic, long-term relationship between Walgreen Boots Alliance, Inc. and AmerisourceBergen, including with respect to the pharmaceutical distribution agreement and/or the global sourcing arrangement; risks associated with the potential impact on AmerisourceBergen's earnings per share resulting from the issuance of the warrants to subsidiaries of Walgreen Boots Alliance, Inc. (the “Warrants”); AmerisourceBergen's inability to fully implement its hedging strategy to mitigate the potentially dilutive effect of the issuance of its common stock in accordance with the Warrants under its special share repurchase program due to its financial performance, the current and future share price of its common stock, its expected cash flows, competing priorities for capital, and overall market conditions; changes in the United States healthcare and regulatory environment; increasing governmental regulations regarding the pharmaceutical supply channel and pharmaceutical compounding; federal and state government enforcement initiatives to detect and prevent suspicious orders of controlled substances and the diversion of controlled substances; federal and state prosecution of alleged violations of related laws and regulations, and any related litigation, including shareholder derivative lawsuits or other disputes relating to our distribution of controlled substances; increased federal scrutiny and qui tam litigation for alleged violations of fraud and abuse laws and regulations and/or any other laws and regulations governing the marketing, sale, purchase and/or dispensing of pharmaceutical products or services and any related litigation; material adverse resolution of pending legal proceedings; declining reimbursement rates for pharmaceuticals; the acquisition of businesses that do not perform as expected, or that are difficult to integrate or control, including the integration of MWI and PharMEDium, or the inability to capture all of the anticipated synergies related thereto; managing foreign expansion, including non-compliance with the U.S. Foreign Corrupt Practices Act, anti-bribery laws and economic sanctions and import laws and regulations; malfunction, failure or breach of sophisticated information systems to operate as designed; risks generally associated with data privacy regulation and the international transfer of personal data; changes in tax laws or legislative initiatives that could adversely affect AmerisourceBergen's tax positions and/or AmerisourceBergen's tax liabilities or adverse resolution of challenges to AmerisourceBergen's tax positions; natural disasters or other unexpected events that affect AmerisourceBergen's operations; the impairment of goodwill or other intangible assets, resulting in a charge to earnings; errors in the production, labeling or packaging of products compounded by our compounded sterile preparations (CSP) business; and other economic, business, competitive, legal, tax, regulatory and/or operational factors affecting AmerisourceBergen's business generally. Certain additional factors that management believes could cause actual outcomes and results to differ materially from those described in forward-looking statements are set forth in Item 1A (Risk Factors) and Item 1 (Business) in AmerisourceBergen’s Annual Report on Form 10-K for the fiscal year ended September 30, 2015 and elsewhere in that report and (ii) in other reports filed or furnished with the Securities and Exchange Commission (SEC). You are cautioned not to place any undue reliance on any such forward-looking statements. AmerisourceBergen’s SEC reports are available at www.amerisourcebergen.com under the “Investors” tab. Except to the extent required by law, AmerisourceBergen undertakes no obligation to publicly release the result of any revisions to these forward looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events.

Source: AmerisourceBergen Corporation

AmerisourceBergen Corporation
Lauren Moyer, 215-460-6981 – Cell
lmoyer@amerisourcebergen.com
or
Tierney
Kate McDevitt, 215-790-4346
kmcdevitt@tierneyagency.com

Corporate Overview

AmerisourceBergen is one of the largest global pharmaceutical sourcing and distribution services companies, helping both healthcare providers and pharmaceutical and biotech manufacturers improve patient access to products and enhance patient care. With services ranging from drug distribution and niche premium logistics to reimbursement and pharmaceutical consulting services, AmerisourceBergen delivers innovative programs and solutions across the pharmaceutical supply channel..

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