September 27, 2016 10:41 AM ET

Healthcare Providers and Services

Company Overview of AmerisourceBergen Drug Corporation

Company Overview

AmerisourceBergen Drug Corporation provides pharmaceutical distribution and pharmacy management solutions. The company provides global product sourcing and distribution/commercialization, generic purchasing programs, technology solutions, pharmacy network and programs, global specialty logistics and pharmaceutical packaging solutions, and strategic and business consulting services to institutional healthcare providers and retail pharmacies. It serves healthcare providers; independent retail, chain, and hospital pharmacies; and pharmaceutical and biotech manufacturers in the United States, Canada, and selected global markets. AmerisourceBergen Drug Corporation was formerly known as AmeriSourc...

1300 Morris Drive

Chesterbrook, PA 19087

United States

Founded in 1985

Phone:

610-727-7000

Fax:

610-647-0141

Key Executives for AmerisourceBergen Drug Corporation

Compensation as of Fiscal Year 2016.

AmerisourceBergen Drug Corporation Key Developments

Pharmerica Provides Update on its Ongoing Litigation against AmerisourceBergen Drug Corporation

PharMerica Corporation provided an update on its ongoing litigation against AmerisourceBergen Drug Corporation (ABDC), the company’s former wholesale supplier of pharmaceutical products. As previously disclosed, the litigation alleges breach of contract. On April 1, 2016, the Jefferson County, Kentucky Circuit Court handed down a partial summary judgment ruling that PharMerica honor outstanding invoices from ABDC for approximately $48.5 million. PharMerica had not paid the approximately $48.5 million in invoices, but instead withheld payment and applied the invoiced amounts against rebates and other amounts that PharMerica believes ABDC owes it and which are in excess of $48.5 million. The Court ruled that the contract with ABDC required PharMerica to pay drug invoices as billed by ABDC, even if ABDC failed to pay PharMerica rebates and other amounts owed to PharMerica. The Court’s ruling has not, in any way, impaired PharMerica’s ability to ultimately recover damages the Company believes it is owed by ABDC as a result of the breach of ABDC’s contractual obligations to PharMerica. PharMerica is in the process of obtaining a bond that will prevent the Company from having to pay ABDC while an appeal is pending. In addition, the Court ruled that ABDC is required to produce documentation to PharMerica that ABDC had been withholding, which PharMerica believes will be important to its case. PharMerica will appeal the Court’s partial summary judgment. The typical length of time for an appeal to be heard is six months to one year. The case will continue to proceed in the lower court while the appeal is pending. PharMerica remains confident in the merits of its case, believes the facts clearly support its position, and looks forward to the successful resolution of this matter.

AmerisourceBergen Drug Corporation Promotes Robert P. Mauch to President

AmerisourceBergen Corporation announced that Robert P. Mauch, 48, PharmD, PhD, has been promoted to Executive Vice President and President of AmerisourceBergen Drug Corporation, effective immediately. Previously, Mauch served as AmerisourceBergen Drug Corporationâ s Senior Vice President and Chief Operating Officer. David W. Neu will transition from his previous role as President of AmerisourceBergen Drug Corporation to assume the newly created position of Executive Vice President of Retail Strategy and President of Good Neighbor Pharmacy.

PharMerica Corporation Provides Legal Update in its Lawsuit with AmerisourceBergen Drug Corporation

PharMerica Corporation commenced litigation against AmerisourceBergen Drug Corporation in the Jefferson County Circuit Court of Kentucky on September 10, 2014. After the Lawsuit was filed in Kentucky, Amerisource commenced litigation against the Corporation in the Court of Chancery in the State of Delaware in an attempt to have the case heard in Delaware rather than Kentucky. On November 10, 2014, the Delaware Court of Chancery ruled that it did not have subject matter jurisdiction over the matter because Amerisource had filed the litigation in the incorrect court in Delaware. In so ruling, the Court of Chancery noted its belief that the case should be heard in Kentucky and not Delaware, while noting that the Delaware Superior Court would ultimately decide that issue. On November 20, 2014, the parties to the Delaware action stipulated to its voluntary dismissal. Following the commencement of the Lawsuit, Amerisource unilaterally instituted several changes to its obligations under the Amended and Restated Prime Vendor Agreement, as amended between the Corporation and Amerisource, which the Corporation believed were made in retaliation against the corporation for commencing the Lawsuit and seeking to enforce its rights under its Prime Vendor Agreement. On October 8, 2014, the Corporation filed a Motion for a Temporary Injunction against Amerisource to prohibit Amerisource from imposing automatic drug substitution programs on its transactions with the Corporation. The court heard the Motion for Temporary Injunction on November 13, 2014. On November 24, 2014, the court issued a temporary injunction against Amerisource. The temporary injunction will remain in effect for the duration of the litigation between the Corporation and Amerisource. Amerisource will have 20 days to appeal the injunction to the Kentucky Court of Appeals. The Corporation is pursuing claims for monetary damages that resulted from the actions of Amerisource upon which the injunction was based. At this time, the Corporation is unable to determine the ultimate impact of these litigation proceedings on its consolidated financial condition, results of operations, or liquidity. The litigation proceedings with Amerisource could continue for an extended period of time, likely longer than 18 months. Although the Corporation is confident in the merits of its case, until the resolution or settlement of such proceedings, the Corporation cannot provide any assurances about the collectability of the disputed amounts owed by Amerisource.

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