Aug 6 (Reuters) - U.S. drug distributor Cencora ( COR )
raised its annual profit forecast on Wednesday after posting
quarterly earnings that topped Wall Street estimates, buoyed by
surging demand for specialty therapies and blockbuster
weight-loss drugs.
The Philadelphia-based company now expects its annual
adjusted profit between $15.85 and $16.00 per share, up from its
previous expectation of $15.70 to $15.95 per share. Analysts,
had expected a profit of $15.83 per share, according to LSEG
data.
The robust results underscore how Cencora ( COR ) and its peers
Cardinal Health ( CAH ) and McKesson Corp ( MCK ) are
capitalizing on the increasing U.S. demand for high-margin
medicines that treat complex conditions, such as rheumatoid
arthritis and cancer.
"Our teams are fueling our growth as they identify
opportunities and customer-centric solutions that strengthen our
value proposition as the partner of choice," CEO Robert Mauch
said in a statement.
Leerink Partners analyst Michael Cherny said "the underlying
drivers of the guidance increase were more impressive to us than
the headlines."
Sales at Cencora ( COR )' U.S. Healthcare Solutions unit, its
biggest revenue driver, jumped 8.5% to $72.9 billion in the
quarter ended June 30, buoyed by strong prescription volumes of
GLP-1 class drugs used for diabetes and weight loss, as well as
higher sales of specialty medicines to physician practices and
health systems.
The company said its improved forecast reflects "stronger
earnings growth in the U.S. Healthcare Solutions segment," which
has benefited from heightened demand for complex and costly
therapies such as GLP-1 drugs, including Novo Nordisk's
NOVOb.CO> Wegovy and Eli Lilly's ( LLY ) Zepbound.
Cencora ( COR ) reported a third-quarter profit of $4 per share,
beating analysts' estimates of $3.84 per share.
Total sales were $80.66 billion during the quarter, above
the estimates of $80.14 billion.