VALLEY FORGE, Pa. — AmerisourceBergen Corp. has renewed its distribution agreement with pharmacy benefit manager Express Scripts Holding Co.
AmerisourceBergen said Monday that under the new five-year agreement, it will supply branded pharmaceuticals to Express Scripts through Sept. 30, 2022.
“We are extremely pleased and proud to continue to be the strategic partner of choice and provide brand pharmaceuticals for Express Scripts,” AmerisourceBergen chairman, president and chief executive officer Steve Collis said in a statement. “AmerisourceBergen works hard to be the best possible partner, providing the highest levels of service and value to our customers and supporting their long-term growth. We believe this new agreement is a result of that dedication and an illustration of our strong customer relationships.”
The most recent supply agreement between AmerisourceBergen and Express Scripts commenced in October 2012 and was slated to lapse this September. AmerisourceBergen said the 2016 fiscal year revenue contribution from that pact totaled about $23 billion.
“Our businesses are aligned to provide the highest quality service to our pharmacies and the patients we are privileged to serve,” stated Express Scripts president and CEO Tim Wentworth. “Together, we are working to deliver more cost-effective pharmacy care, which is needed now more than ever. We are proud to extend our relationship with AmerisourceBergen.”
The renewal comes almost a year after AmerisourceBergen extended its strategic partnership with Walgreens Boots Alliance (WBA) for another three years. With the move, its drug distribution contract with WBA was extended to 2026. AmerisourceBergen and then-merger partners Walgreen Co. and Alliance Boots had announced a 10-year strategic agreement in March 2013.
In 2012, Walgreens had exited Express Scripts’ pharmacy network for nearly nine months amid a contract dispute with the PBM. Citing unsuccessful contract renewal talks, Walgreens in June 2011 announced that it would no longer participate in the Express Scripts network starting Jan. 1, 2012. The companies unveiled a settlement in July 2012, which resulted in Walgreens rejoining the PBM’s pharmacy network in mid-September 2012.
This past August, WBA exercised warrants it held in AmerisourceBergen and boosted its stake in the pharmaceutical distributor to nearly 24%.