VALLEY FORGE, Pa.--(BUSINESS WIRE)--Oct. 13,
2006--AmerisourceBergen Corporation (NYSE:ABC) today announced that it
has completed the acquisition of all of the outstanding stock of
Health Advocates, Inc. of Tampa, Florida, for approximately $83
million in cash. Health Advocates is a leading provider of Medicare
set-aside cost containment services to insurance payors primarily
within the workers' compensation industry. The new business is
expected to be slightly accretive to the Company's fiscal 2007
earnings.
Health Advocates, with revenues of approximately $20 million over
the last 12 months, will be renamed PMSI MSA Services and will operate
under PMSI, AmerisourceBergen's workers' compensation services
business.
Medicare set-asides are required in certain worker's compensation
settlements. The set-asides are funds established to cover future
medical and prescription drug expenses incurred as a result of a
job-related injury that would have been paid by Medicare. The amount
of the set-aside is dependent on a number of complex factors, and
ultimately must take Medicare into consideration in order for a
workers compensation settlement to be finalized. The purpose of the
set-aside is to ensure that Medicare is not burdened with costs that
should be covered by the private workers' compensation insurer.
About AmerisourceBergen
AmerisourceBergen (NYSE:ABC) is one of the world's largest
pharmaceutical services companies serving the United States, Canada
and selected global markets. Servicing both pharmaceutical
manufacturers and healthcare providers in the pharmaceutical supply
channel, the Company provides drug distribution and related services
designed to reduce costs and improve patient outcomes.
AmerisourceBergen's service solutions range from pharmacy automation
and pharmaceutical packaging to pharmacy services for skilled nursing
and assisted living facilities, reimbursement and pharmaceutical
consulting services, and physician education. With nearly $60 billion
in annualized revenue, AmerisourceBergen is headquartered in Valley
Forge, PA, and employs more than 13,000 people. AmerisourceBergen is
ranked #27 on the Fortune 500 list. For more information, go to
www.amerisourcebergen.com.
FORWARD-LOOKING STATEMENTS
This news release may contain certain "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. These statements
are based on management's current expectations and are subject to
uncertainty and changes in circumstances. Actual results may vary
materially from the expectations contained in the forward-looking
statements. The forward-looking statements herein include statements
addressing management's views with respect to future financial and
operating results and the benefits, efficiencies and savings to be
derived from the Company's integration plan to consolidate its
distribution network. The following factors, among others, could cause
actual results to differ materially from those described in any
forward-looking statements: competitive pressures; the loss of one or
more key customer or supplier relationships; customer defaults or
insolvencies; changes in customer mix; supplier defaults or
insolvencies; changes in pharmaceutical manufacturers' pricing and
distribution policies or practices; adverse resolution of any contract
or other disputes with customers (including departments and agencies
of the U.S. Government) or suppliers; regulatory changes; changes in
U.S. government policies (including reimbursement changes arising from
the Medicare Modernization Act); declines in the amounts of market
share rebates offered by pharmaceutical manufacturers to the
PharMerica long-term care business, declines in the amounts of rebates
that the PharMerica Long-Term Care business can retain, and/or the
inability of the business to offset the rebate reductions that have
already occurred or any rebate reductions that may occur in the
future; fluctuations in market interest rates; operational or control
issues arising from the Company's outsourcing of information
technology activities; the Pharmaceutical Distribution segment's
ability to continue to successfully transition its business model to
fee-for-service; success of integration, restructuring or systems
initiatives; fluctuations in the U.S. dollar - Canadian dollar
exchange rate and other foreign exchange rates; economic, business,
competitive and/or regulatory developments in Canada, the United
Kingdom and elsewhere outside of the United States; acquisition of
businesses that do not perform as we expect or that are difficult for
us to integrate or control; and other economic, business, competitive,
legal, regulatory and/or operational factors affecting the business of
the Company 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 (i)
in Item 1 (Business) under the heading "Certain Risk Factors" in the
Company's Annual Report on Form 10-K for the fiscal year ended
September 30, 2005 and elsewhere in that report and (ii) in other
reports filed by the Company pursuant to the Securities Exchange Act
of 1934, including the Company's Quarterly Report on Form 10-Q for the
fiscal quarter ended June 30, 2006.
CONTACT: AmerisourceBergen Corporation
Michael N. Kilpatric, 610-727-7118
mkilpatric@amerisourcebergen.com
SOURCE: AmerisourceBergen Corporation