UPDATE 1-AmerisourceBergen sees upbeat annual profit on specialty pharma strength
(Adds share movement in paragraph 2, company comment on generic drug prices in paragraph 4, CFO comment in paragraph 6)
Aug 2 (Reuters) - Drug distributor AmerisourceBergen raised its full-year profit forecast on Wednesday, after strong demand for specialty medicines cushioned a fall in COVID-related drug sales in the third quarter.
Shares of the company rose 1.2% in noon trading, lifting shares of rivals Cardinal Health and McKesson Corp .
AmerisourceBergen has been benefiting from specialty drugs - costly medications that treat diseases including cancer and rheumatoid arthritis - at a time when prices of generic medicines keep falling due to intense competition.
The distributor said that lower prices of generic drugs were moderating in "certain pockets", which could boost the company's profits if the trend was to broaden.
The company is expected to benefit from the launch of biosimilars, or copies, of AbbVie's blockbuster arthritis treatment Humira in the United States.
Biosimilars continue to be a key growth and margin opportunity for AmerisourceBergen, CFO James Cleary said in an earnings conference call.
AmerisourceBergen now expects 2023 adjusted earnings in the range of $11.85 to $11.95 per share, compared with its prior forecast of $11.70 to $11.90 per share. Analysts were expecting an annual profit of $11.86 per share, according to Refinitiv data.
On an adjusted basis, AmerisourceBergen earned $2.92 per share in the third quarter, beating estimates of $2.82.
The company also said it will change its name to Cencora from Aug. 30.
AmerisourceBergen reported U.S. revenue of $59.9 billion in the third quarter, up more than 12% from a year earlier. Analysts had expected $57.58 billion.
Total sales came in at $66.95 billion, beating estimates of $63.95 billion. (Reporting by Mariam Sunny in Bengaluru; Editing by Shounak Dasgupta)
