J.P. Morgan Dives Deep Into AmerisourceBergen Corporation

For Day 3 of AmerisourceBergen Corporation ABC week “we are taking a deeper dive into the AmerisourceBergen Specialty Group (ABSG), the company's specialty pharmaceutical distribution segment. ABSG's dominant position in the specialty market will be a key earnings driver for ABC going forward as the higher margin specialty business is projected to grow faster than the overall pharmaceutical market,” J.P. Morgan reports. “As management has discussed, specialty generic oncologics— oxaliplatin (generic Eloxatin), gemcitabine (generic Gemzar), and docetaxel (generic Taxotere)—have contributed ~$0.22 to EPS in 1H11 and are projected to contribute $0.14-0.18 in 2H11,” J.P. Morgan writes. “Of these three drugs we estimate oxaliplatin accounts for 55% of the overall contribution while gemcitabine and docetaxel account for 20-25% each.” AmerisourceBergen Corporation closed Tuesday at $41.24.