Fitch Updates Industry Report on U.S. Drug Distributors

CHICAGO--()--Fitch Ratings has updated its report 'Navigating the Drug Channel - Drug Distributors: A Deeper Dive.' The report is one of seven in a series analyzing the U.S. drug channel and its participants.

The report focuses on the role of U.S. drug distributors, as well as the industry's headwinds and tailwinds and Fitch's take on certain considerations on the horizon. Content has been updated to reflect the most recent the most recent financial data and industry developments, including the strategic alignment among AmerisourceBergen Corp., Walgreen Co., and Alliance Boots GmbH.

The three largest drug distributors in the U.S. - AmerisourceBergen Corp.; Cardinal Health, Inc.; and McKesson Corp. - together control roughly 95% of the market.

Future industry growth and consolidation will likely center on the rapidly growing specialty drug market and future international integration and/or collaboration. Fitch expects the overall reimbursement environment to remain constrained; however, distributors are relatively insulated from these forces.

The full report, 'Navigating the Drug channel - Drug Distributors: A Deeper Dive,' is available at 'www.fitchratings.com.'

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

Navigating the Drug Channel Report Series

'An Overview: Getting to the Other Side', Feb. 10, 2012'

'Pharmaceutical Manufacturing: At the Source', Feb. 28, 2012;

'Drug Distributors: A Deeper Dive', April 24, 2013 (updated);

'Pharmacy Benefit Managers (PBMs): In Flux', March 27, 2012;

'Long-Term Care Pharmacies: At the Mouth', April 20, 2012;

'Retail Pharmacies: The Last Link', May 11, 2012;

'The ABCs (and Ds) of Drug Pricing', July 25, 2012;

'Vital Signs: Currents in the Drug Channel', April 24, 2013;

'U.S. Healthcare Stats Quarterly - Fourth-Quarter 2012', April 12, 2013;

'Fitch: Walgreens Deal Likely Positive for AmerisourceBergen; No Immediate Ratings Impact', March 19, 2013;

'Fitch Affirms Cardinal Health at 'BBB+' on AssuraMed Acquisition Announcement', Feb. 14, 2013

'Fitch Affirms McKesson's Ratings at 'A-'; Outlook Stable', Dec. 5, 2012;

'Fitch: McKesson's Ratings Initially Unchanged by PSS World Acquisition Announcement', Oct. 25, 2012;

'Fitch Affirms AmerisourceBergen's Ratings at 'A-'; Outlook Stable', Sept. 24, 2012;

'Fitch: Express Scripts Contract has Moderate Effect on ABC and Cardinal's Credit Profiles', Aug. 1, 2012.

Applicable Criteria and Related Research Navigating the Drug Channel -- Drug Distributors: A Deeper Dive

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=706690

Navigating the Drug Channel -- An Overview: Getting to the Other Side

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=670255

Navigating the Drug Channel -- Pharmaceutical Manufacturers: At the Source

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=672591

Navigating the Drug Channel -- Drug Distributors: A Deeper Dive

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=673889

Navigating the Drug Channel: Pharmacy Benefit Managers (PBMs) in Flux

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=674982

Navigating the Drug Channel: Long-Term Care Pharmacies: At the Mouth

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=676255

Navigating the Drug Channel -- Retail Pharmacies: The Last Link

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=678756

Navigating the Drug Channel -- The ABCs (and Ds) of Drug Pricing

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=685135

U.S. Healthcare Stats Quarterly -- Fourth-Quarter 2012

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=704745

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Contacts

Fitch Ratings
Jacob Bostwick, CPA, +1 312-368-3169
Associate Director
Fitch Ratings, Inc.
70 W. Madison St.
Chicago, IL 60602
or
Bob Kirby, CFA, +1 312-368-3147
Director
or
Megan Neuburger, +1 212-908-0501
Senior Director
or
Media Relations:
Brian Bertsch, +1 212-908-0549
brian.bertsch@fitchratings.com

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Contacts

Fitch Ratings
Jacob Bostwick, CPA, +1 312-368-3169
Associate Director
Fitch Ratings, Inc.
70 W. Madison St.
Chicago, IL 60602
or
Bob Kirby, CFA, +1 312-368-3147
Director
or
Megan Neuburger, +1 212-908-0501
Senior Director
or
Media Relations:
Brian Bertsch, +1 212-908-0549
brian.bertsch@fitchratings.com