Cencora lifts annual profit view on strong demand for specialty medicines

Aug. 5 (Reuters) - U.S. drug distributor Cencora COR.N raised its annual adjusted profit forecast on Wednesday after quarterly results beat Wall Street expectations, driven by strong demand for specialty medicines.

Here are the details:

• The company has been sharpening its focus on drug distribution, offloading its non-core businesses while doubling down on its core segments to drive long-term performance.
• Cencora and its peers, including Cardinal Health CAH.N and McKesson MCK.N, have long benefited from strong demand for expensive specialty drugs used to treat diseases such as cancer and rheumatoid arthritis, a segment that offers more attractive profit margins.
• Last quarter, Cencora warned of softer U.S. sales, attributing the weakness to a combination of drug manufacturers lowering prices and the loss of both an oncology customer and a grocery customer in 2025.
• Third-quarter sales at Cencora's U.S. healthcare business, its largest unit by revenue, rose 4.9% to $74.86 billion, helped by strength in specialty medicines and GLP-1 drugs.
• Total third quarter revenue of $84.75 billion beat analysts' estimates of $84.32 billion.
• Cencora now expects annual profit in the range of $17.75 and $17.95 per share, higher than its previous expectation of $17.65 and $17.90 per share.
• The company earned an adjusted profit of $4.48 per share for the quarter ended June 30, beating estimates of $4.35 per share.
• Cencora kept its annual revenue growth forecast intact at 4% to 6%.