AmerisourceBergen 2007 Annual Report Download - page 11

to come to market and continually increasing costs and
reimbursement challenges, demand for ABSG’s services are
expected to continue to grow.
Specialty distribution and services will continue to be an
important growth driver for AmerisourceBergen. We continue to
expand our service offerings in this space, and we have extended
our specialty services across the border into Canada. While top line
growth in this business will be affected in FY2008 by the decline
in sales of products that treat anemia and the loss of a customer
that was acquired by a competitor, we expect that this business
will return to strong revenue growth in the mid-teens in FY2009.
As the pharmaceutical market grows and costs increase,
pharmaceutical manufacturers of all types seek ways to outsource
non-core functions, including packaging. AmerisourceBergen
Packaging Group (ABPG) is well positioned to take advantage of
those opportunities, with over 1.5 million square feet of packaging
facilities in the U.S. and the United Kingdom. ABPG serves the top
branded pharmaceutical manufacturers as well as a significant
number ofgeneric manufacturers throughout the world. Our packaging
operationshave strong regulatory compliance profiles and the
capability to tailor production lines to highly specialized and
proprietary needs. ABPG provides both contract packaging services
to branded manufacturers as well as custom packaging for the
generic and healthcare provider markets. ABPG serves North American
andEuropean markets and continually strives to help manufacturers
differentiate their products in the marketplace.
In addition to these services to healthcare providers and
manufacturers, AmerisourceBergen provides pharmacy and medical
equipment-related services to workers’ compensation insurance payors,
state workers’ compensation funds, employers, and third-party
administrators through its PMSI
business. PMSI’s proprietary systems
integrate comprehensive services and
products that mitigate risks, contain
costs, and achieve greater efficiencies
for both patients and payors. PMSI
holds a market leading position in
this growing industry.
As the pharmaceutical market
grows and medications become
an increasingly important part
of healthcare, AmerisourceBergen is well positioned to provide
essential services all along the supply channel, and deliver value
to shareholders. We pride ourselves on continually striving to
increase the efficiency of the supply channel and to take costs
out of the healthcare system. As drug therapies become more
sophisticated and healthcare costs are scrutinized, we will
continue to invest in our business to meet the demands of the
future.We are currently rolling out an enterprise resource planning
program that will further integrate both our operations and our
service offerings. Our balanced customer and supplier base
combined with our financial flexibility gives AmerisourceBergen
the ability to meet future challenges and to take advantage of
opportunities along the supply channel for many years to come.
2:15 pm BIRMINGHAM, AL
A hospital nurse verifies that thecorrect medication
is about to be administered to the correct patient
6:35 pm SEATTLE, WA
Apatient opens a customized
packet containing the medications
she needs to take with dinner
9
FY02 FY03 FY04 FY05 FY06 FY07
Operating Revenue
(in Billions)
Fiscal Year Ended September 30
$40.2
$45.5
$48.8
$50.0
$56.7
$61.7
CAGR 9.0%