May 1 (Reuters) - Cencora ( COR ) beat Wall Street

estimates for second-quarter profit on Wednesday, driven by

robust demand for costly specialty medicines that treat complex

diseases such as cancer and rheumatoid arthritis.

The drug distributor has been benefiting from specialty

drugs and biosimilars - close copies of complex biotech drugs -

at a time when intense competition pulls down prices of generic

medicines.

Generic drugs are exact copies that can be easily produced

and sold once the original medicine loses patent protection,

typically leading to quick drops in the prices of the original

by 90% or more.

However, Cencora ( COR ) said last month that it has been seeing a

"moderation" in the price deflation of generic medicines.

Biosimilars, which include cheaper versions of AbbVie's ( ABBV )

Humira and Regeneron Pharmaceuticals' Eylea,

offer a compelling opportunity for drug distributors, analysts

have said.

"Biosimilars of Humira will likely set the tone in their

ability to dethrone the brand product to build a lasting

pharmacy-dispensed biosimilar market," TD Cowen analyst Charles

Rhyee wrote in a note ahead of Cencora's ( COR ) earnings report.

Rhyee estimates the biosimilar market to represent a $125

billion revenue opportunity for U.S. drug distributors by 2033.

Sales at Cencora's ( COR ) U.S. healthcare business, its largest

unit by revenue, came in at $61.3 billion in the second quarter

ended March 31, up more than 8% from a year earlier.

Total sales rose nearly 8% to $68.41 billion. Analysts were

expecting total sales of $70.65 billion, according to LSEG data.

The company also raised the lower end of its 2024 adjusted

earnings forecast to between $13.30 and $13.50 per share, from

$13.25 to $13.50 estimated previously.

Analysts were expecting an annual profit of $13.45 per

share.

On an adjusted basis, Cencora ( COR ) reported quarterly profit of

$3.80 per share, beating estimates of $3.69 per share.

(Reporting by Mariam Sunny in Bengaluru; Editing by Devika

Syamnath)