VALLEY FORGE, Pa.--(BUSINESS WIRE)--June 22,
2007--AmerisourceBergen Corporation (NYSE:ABC) today signed an
agreement with the U.S. Drug Enforcement Administration (DEA) which is
expected to lead to the reinstatement of its Orlando Distribution
Center's suspended license to distribute controlled substances on
August 25, 2007 at 12:01 a.m. EDT. The reinstatement would allow the
Distribution Center to resume shipment of controlled substances to its
retail customers at that time.
The agreement requires the Company to implement an enhanced and
more sophisticated order monitoring program in all AmerisourceBergen
Drug Corporation distribution centers by June 30, 2007, after which
the Company must pass several DEA inspections of the new program for
the reinstatement to become effective on the August date. The Company
expects the new order monitoring program to quickly become the
industry standard.
The Orlando facility's license to distribute controlled substances
was suspended April 24, 2007, because DEA alleged that the Orlando
Distribution Center had not maintained effective controls against
diversion of controlled substances, specifically hydrocodone, by
retail internet pharmacies. The Orlando facility was given special
dispensation to continue to distribute controlled substances to
hospitals, clinics and U.S. Department of Defense facilities. As a
result, the suspension affects the facility's retail customers, who
during the suspension are provided controlled substances by the
Company's distribution center in Columbus, Ohio.
The new order monitoring program requires more rapid
identification and daily reporting of orders that may indicate
diversion of controlled substances, including in some instances,
halting the shipment of orders that require further investigation by
the Company. The program also requires a more rigorous examination
process before the delivery of controlled substances to newly signed
customers.
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 more than $64
billion in annual revenue, AmerisourceBergen is headquartered in
Valley Forge, PA, and employs more than 13,000 people.
AmerisourceBergen is ranked #29 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 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 (including
increased government regulation of the pharmaceutical supply channel);
government enforcement initiatives (including (i)the imposition of
increased obligations upon pharmaceutical distributors to detect and
prevent suspicious orders of controlled substances (ii) the
commencement of further administrative actions by the U. S. Drug
Enforcement Administration seeking to suspend or revoke the license of
any of the Company's distribution facilities to distribute controlled
substances, or (iii)the commencement of any enforcement actions by any
U.S. Attorney alleging violation of laws and regulations regarding
diversion of controlled substances and suspicious order
monitoring);changes in U.S. government policies (including
reimbursement changes arising from federal legislation, including the
Medicare Modernization Act and the Deficit Reduction Act of 2005);
changes in regulatory or clinical medical guidelines and/or
reimbursement practices for the pharmaceuticals we distribute; price
inflation in branded pharmaceuticals and price deflation in generics;
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; any disruption to
or other adverse effects upon the PharMerica Long-Term Care business
caused by the announcement of the Company's agreement to combine the
PharMerica Long-Term Care business with the institutional pharmacy
business of Kindred Healthcare, Inc. into a new public company that
will be owned 50% by the Company's shareholders (the "PharMerica LTC
Transaction"); the inability of the Company to successfully complete
the PharMerica LTC Transaction or any other transaction that the
Company may wish to pursue from time to time; fluctuations in market
interest rates; operational or control issues arising from the
Company's outsourcing of information technology activities; 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; changes in tax
legislation or adverse resolution of challenges to our tax positions;
and other economic, business, competitive, legal, tax, 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 1A
(Risk Factors) in the Company's Annual Report on Form 10-K for the
fiscal year ended September 30, 2006 and elsewhere in that report and
(ii) in other reports filed by the Company pursuant to the Securities
Exchange Act of 1934.
CONTACT: AmerisourceBergen Corporation
Michael N. Kilpatric, 610-727-7118
mkilpatric@amerisourcebergen.com
SOURCE: AmerisourceBergen Corporation