A change in generic drug pricing is among the reasons one pharmaceutical distributor, Kohl & Frish, purchased rival AmerisourceBergen Canada
April 1, 2013
Concord, Ontario—Kohl & Frisch Limited (K&F) has a new prescription to expand its business model: buy out one of its competitors.
The competitor in question is AmerisourceBergen Canada Corporation (ABCC), a subsidiary of AmerisourceBergen Corporation. The Burlington, Ontario-based company is a supply chain technology solutions provider and a drug distribution company with operations in seven provinces. It runs three main business units: a pharmaceutical supply division, a health systems and technology solutions arm, and a specialty services unit that combines logistics management with clinical development, strategic consulting and patient assistance program development.
Concord, Ontario-based Kohl & Frischis a national pharmaceutical distribution company with over 55,742 sqm (600,000 sqf) of warehousing space spread across six DCs located in Vancouver, British Columbia; Calgary, Alberta; Regina, Saskatchewan; Toronto, Ontario; Montreal, Quebec and Moncton, New Brunswick. The company serves large chain retailers, independent pharmacies, clinics and hospitals.
A change to the generic drug pricing agreement for Canadian provinces that comes into effect April, 1 was cited by Kohl & Frisch as a driving factor in the acquisition.
The sale, which will see K&F acquire all ownership interest in ABCC and all of its assets, is expected to close by the May 30, 2013, pending approval from regulators.