AmerisourceBergen 2014 Annual Report Download - page 5

This challenging project was
completed ahead of schedule and on
budget, and was done without
disrupting our existing business. On
behalf of the entire management team,
I applaud and appreciate their efforts.
We are also pleased with the
progress we have made improving our
sourcing of generic pharmaceuticals
by working with the Walgreen Boots
Alliance Development joint venture.
We began to recognize financial benefits
from the joint venture ahead of schedule
in March of 2014, and the contribution
increased over the remainder of the
year. We expect the benefits to continue
to ramp over the course of the first half
of fiscal 2015.
Throughout fiscal 2014 we
continued to invest in the next generation
of programs and services for our
suppliers and customers. We introduced
key enhancements to our Good Neighbor
Pharmacy®program, and successfully
launched a new pharmaceutical private
label program called BluePoint
Laboratories®. Through the BluePoint
Laboratories private label program,
we bring a number of products to our
customers at a compelling value. These
and other programs demonstrate our
ongoing commitment to community
pharmacy, and driving value for all
of our customers and the patients
they serve.
In December of 2014, we opened
our new national distribution center
in Columbus, Ohio, which will drive
increased supply chain efficiency for
both drug manufacturers and for our
own distribution network. This new
facility will streamline certain brand
manufacturer contracts by providing
a single ship-to point for products for
suppliers who wish to utilize the service.
Through integration with our SAP
infrastructure and other advanced
warehouse management and materials
handling tools, it also enables us to
redistribute products within our
network and support our future growth
more efficiently. We have also made
important investments in a multi-year
effort to enhance supply chain security.
Our innovative solutions efficiently link
our supply chain partners and effectively
track products as they move through
the marketplace.
AmerisourceBergen Specialty
Group (ABSG) also had solid results
in fiscal 2014 as strong performance
in our plasma, vaccine, and specialty
pharmaceutical business offset modest
performance in our community oncology
business. While reimbursement issues
persist for community oncologists, we
believe the provider market has stabilized.
We believe that oncology care will
continue to be provided across different
sites of care and we are investing in new
technology and services to ensure that
our customers remain in the forefront
of the evolution of cancer treatment.
Our expertise extends far beyond
oncology, as ABSG is very well positioned
to benefit from new specialty drug
launches in virtually any disease state,
whether they are new brands, generics,
or biosimilars. The services we provide
across the entire lifecycle of a product,
from discovery and clinical trials through
commercialization and eventually patent
expiration give us a strong base upon
which to continue to grow our business
with both healthcare providers and
pharmaceutical manufacturers. The
extensive network of providers we serve
enables us to drive patient access in
unparalleled ways. From third party
logistics to fully customized inventory
management and shipping to physician
practices, hospitals, and other providers,
ABSG offers unmatched expertise
in supporting the most advanced,
and often the most expensive and
life-changing therapies.
Our manufacturer services
businesses performed well in fiscal 2014,
with World Courier coming in especially
strong. Since being acquired in 2012,
World Courier has brought tremendous
value to AmerisourceBergen. It has
meaningfully expanded our global
footprint, strengthened our relationships
with pharmaceutical manufacturers,
and increased our exposure to future
products early in their lifecycle. World
Courier has continued to invest in its
infrastructure, and remains the premier
provider of premium logistics services
world-wide. In addition, it gives us
knowledge of local healthcare markets
across the globe, and provides a platform
through which we can expand our
specialty offerings into new markets.
The unrivaled service offerings
in our consulting businesses are a clear
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