Sector: Health Care | Focus: Health Care Distributors
HQ: Conshohocken, Pennsylvania
Financial Risks
Cencora faces significant risks from opioid litigation ($4.9B), potential customer losses (WBA accounts for 26% of revenue), supplier failures, and macroeconomic volatility (inflation, currency fluctuations). Acquisitions (PharmaLex, OneOncology, RCA) may not meet expectations, and integration challenges are possible. Litigation, regulatory changes (e.g., drug pricing regulations), and cybersecurity threats also pose risks. The company's reliance on key customers and suppliers creates vulnerability.
Financial Upside
Cencora's revenue increased 12.1% in fiscal 2024, driven by growth in the U.S. Healthcare Solutions segment. GLP-1 product sales and COVID-19 vaccine sales contributed significantly. Acquisitions (PharmaLex, OneOncology, RCA) and investments in international markets (Europe, Canada) are expected to generate future growth. The company also has share repurchase programs and dividend increases.