AmerisourceBergen Corp. deal with Walgreens boosts revenue.
AmerisourceBergen Corp. (ABC) signed a long-term supply deal with Walgreens in 2013 and this deal has been responsible for significant gains in revenue for the company over the past decade. In the first year of the deal, the company experienced a 36.0% increase in pharmaceutical distribution revenue. This deal was enormously beneficial for ABC, as Walgreens accounted for a minimal amount of revenue prior to the deal and accounted for more than 34.0% of company revenue in fiscal 2021. In fiscal 2021, revenue growth was partially attributable to $2.8 billion in additional sales to Walgreens.
Structural|M&AIn response to volatile demand in the wake of the first COVID-19 surge, the company undertook a comprehensive cost reduction program, aimed at shoring up labor and supply costs.
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