Summary
Overwhelmed by negative headlines and headwinds, AmerisourceBergen has tumbled 17% this month compared to a 10% decline for the healthcare sector.
At its current share price, shares are pricing in numerous fears coming to fruition.
Continued growth in prescriptions and a turnaround later in 2019 at one of its subsidiaries should boost shares in the New Year.
Introduction
AmerisourceBergen (ABC) is organized into two primary divisions, namely, Pharmaceutical Distribution Services ("PDS") and other. PDS garners most of its revenue from the distribution of pharmaceutical products. Other activities the company engages in within this division include:
- Data analytics and outcomes research
- Pharmacy management and consulting services
- Supply management software
- Packaging solutions
- Compound manufacturing
The company's other segment includes the following:
- AmerisourceBergen Consulting Services ("ABCS") - Provides manufacturer services including clinical trial support and commercialization services
- World Courier - specialty transportation and logistics
- MWI - Sells pharmaceuticals, vaccines, diagnostics, and other products to consumers in the animal health market
