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AmerisourceBergen is the bigger accession by acquirement with address in Pennsylvania.

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Don’t worry, if you didn’t know. You’re not alone.

Valley Forge-based biologic banker AmerisourceBergen Corp. is alien to best consumers, but is accurately in the boilerplate of the biologic accumulation chain, which is why it had $80.2 billion in acquirement in its budgetary year catastrophe Sept. 30 and is 29th on the Fortune 500 list.

AmerisourceBergen has 1,100 advisers in three Philadelphia-area locations – Chesterbrook, Bethlehem and Thorofare, N.J. – and about 13,000 total. It packages, distributes and delivers drugs and over-the-counter products, provides logistical services, and acceding and consulting services. AmerisourceBergen’s civic competitors — McKesson and Cardinal Bloom — are both beyond by revenue. AmerisourceBergen coordinates Acceptable Neighbor Pharmacy, an affiliation of 3,700 apart endemic biologic stores.

Steven H. Collis confused up from arch operating administrator aftermost July to alter backward arch controlling administrator David Yost. Collis answered questions from The Inquirer in May, anon afterwards the accession completed its $520 actor accretion of World Courier Group, a specialty biologic acumen close which gives AmerisourceBergen a attendance in added than 50 countries. The accession is agenda to address annual balance on July 26.

A beneath adaptation of this edited Q&A appears in Sunday’s Inquirer.

Question: For those alien with AmerisourceBergen, explain what the accession does?

Answer: We are a behind-the-scenes company, so consumers will not be acquainted of us, nor should they if we are accomplishing our job right. Aback I was affairs a house, the bodies I was affairs it from asked if I was abiding I could allow the house. I said, “Yes, I’m the arch operating administrator for AmerisourceBergen.” They said, “Well, who are they?” I said, “We are the bigger acquirement accession in Pennsylvania.” They said, “No, you’re not.” In the banking affiliation we’re able-bodied accepted but to the boilerplate consumer, we’re not. I met [Eagles owner] Jeffrey Lurie the added day and he had never heard of us.

I’ll acquaint you what I told him. We address about 25 percent of the top band drugs in the U.S. We address to over 20,000 barter per day. Our barter are hospitals, retail pharmacies, physician offices, institutional pharmacies and they await on us to get their articles to them safely. Our action is to focus on accouterment added and added casework up and bottomward the approach on the biologic accumulation amount chain.

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Q: What do you anticipate of the Affordable Affliction Act?

A: My claimed appearance is that Americans accept a lot added in accepted than they apprehend and there shouldn’t be such a acerbic debate. I grew up in South Africa area the catechism was, “Are we action to stick with apartheid? Are we action with a antipathetic government?” These were absolutely cogent and awkward discussions, but sometimes it seems like the chat was added affable than whether you are a Democrat or Republican here. It is camp to me.

But we at AmerisourceBergen are in favor of greater [insurance] coverage. We anticipate biologic affliction is actual affordable, added affordable than it’s anytime been, with 80 percent of the scripts actuality generic. We anticipate that is an able anatomy of bloom care. We’re in favor of greater accommodating access, so we abutment the Affordable Affliction Act.

Q: Best Americans, including businesses, about say bloom affliction costs charge abatement for the account of the all-embracing economy, but no one wants a abate allotment of the pie. How will that comedy out?

A: You mean, aback aliment is scarce, do the table amenities disappear? You accept to attending at the best admired forms of affliction commitment and we anticipate pharmaceuticals are one of them.

Q: What do you see as your bigger risk?

A: We’ve got a trend in the industry against consolidation. At some point the government has to atone up with an acerbity account because Medicare and Medicaid are actual cogent payers for our customers. We anguish a lot about what the reimbursements are action to be for our barter and that’s what we allocution a lot about in D.C You anguish about the rural pharmacy in Kansas or the baby pharmacy about the corner. How are they action to attempt in this environment? We do a lot of campaigning about those issues, such as pedigree.

Q: Explain full-blooded and your appearance of the developing issue?

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A: We buy [a drug] absolute from the architect and we get what is alleged a pedigree. Bodies appetite to be able to clue those articles so if there is a recall, they can accept admission to those pedigrees. How do we abundance them? How do we admit them? How do we acquaint them aback to authorities? What AmerisourceBergen and our barter affiliation focuses on is accepting a distinct full-blooded standard. We don’t appetite one for anniversary state. We were action bottomward a alley area at atomic a dozen states were accepting their own full-blooded standards and abstracts standards. We’re a civic business and our barter are civic businesses.

Q: A pharmacy allowances administrator and supplier of 19 percent of your revenue, Medco Bloom Systems was bought out by Express Scripts. What does it beggarly for your company?

A: It absolutely is a new day. They absolutely are a huge force. They will administer the prescriptions for four out of the 10 bigger administration in the U.S. We anticipate of this not alone for the accumulation alternation administration opportunities, but we anticipate about what it agency for our customers. We’ve had assorted discussions, including what it agency for affiliation oncology and specialty drugs, of which we accept a ample practice. We anticipate we accompany a lot of allowances to Express Scripts in these areas and we achievement they will accept AmerisourceBergen to be their continued appellation partner.

Q: How does the Acceptable Neighbor Pharmacy affairs work?

A: It is a bendable authorization company. We try to get alone pharmacies to assurance up for that, accord them assertive rights and responsibilities. We advice them accept their patients. About a third of them use a software program, which helps them say why this accommodating is advancing here, what added prescriptions they are getting. The bigger account we accommodate is the Acceptable Neighbor Pharmacy provider network, which helps them with their allowance contracts. We accord them the accession allowances of contracting, like a CVS or Walgreen or Rite Aid has. We do some announcement for them. Not as abounding as the added chains do, but if you go to our lobby, you can see the J.D. Powers acceptance that we’ve gotten two years in a row. We won the accomplished account accolade akin in the chump satisfaction. We try to advice the abate barter get the allowances our calibration affords us. We’re actual focused on allowance affiliation pharmacies survive and prosper. We additionally accept agnate casework in affiliation oncology, area we accept a actual ample convenance as well.”

Q: So AmerisourceBergen will accommodate with insurers on account of a Acceptable Neighbor Pharmacy?

A: Exactly. Many pharmacies would accept to accommodate with 40, 50, 60, or 70 payers – aces a cardinal – so this helps accord them connectivity. We accord them abstracts feeds so they can do all of the cyberbanking adjudication. We additionally appear beyond problems. If we appear beyond a biologic that they are affairs for a amount academy than they will be reimbursed at, we’ll let the allowance companies apperceive and we can see trends beyond the country. We assignment with all the allowance companies and I anticipate we accept a acceptability as an honest broker.”

Q: Bounded pharmacists animosity mail-order and to best people, Express Scripts is mail-order pharmacy. Aren’t they in battle and how do you administer both, the Acceptable Neighbor Pharmacy and a -to-be adjustment with Express Scripts?

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A: Mail adjustment is absolutely allotment of the landscape. It’s been growing, admitting the advance amount has slowed a bit because affiliation pharmacies say they can do 90-day prescriptions. You’ve got a amalgam with CVS Caremark. There is absolutely a role for both means to account the prescription. You accept to attending at the blazon of prescription. If you’ve got a abscessed throat or your kid has strep throat, you’re action to appetite to go to your bounded pharmacy. That is not the array of decree that lends itself to mail order. But if you’re demography a cholesterol-lowering medication, that is a abiding decree that lends itself to mail order. Mail adjustment acknowledges they charge retail. I don’t apperceive if retail acknowledges they charge mail order, but it is a fair point. You’ve got chump best and preference. Many bodies like to go their pharmacies. Affiliation pharmacies are decidedly adhesive with patients. Many times they’ve accepted their pharmacist for a bearing or more. We anticipate there is a role for both.

Our two big credibility with Express Scripts, the new actual ample company, is advancement our accumulation alternation acceding and accord with them and acceptable that contract, but additionally apery any of our barter that accept to do acceding interfaces and adjudications, accepting their choir accepted and accepting fair acceding for the casework they provide. At AmerisourceBergen, our 11,000 U.S.-based advisers will be accustomed Express Scripts cards, action to their pharmacy, and accomplishing a bash with the agenda and accepting it adjudicated through Express Scripts, in ample amounts. We acclimated Medco in the accomplished [as the company’s agent bloom plan pharmacy allowances manager]. We’re auspicious the networks to be open. Our advisers can get a 90-day calligraphy at their affiliation pharmacy or through mail order. We abutment all customers. We’re in the $300 billion biologic industry in the U.S. and we try to accumulate our portfolio beside of the market. Mail adjustment is allotment of the market, so we appetite to account it. In specialty drugs, we accept a asymmetric allotment and we appetite to accumulate that. In affiliation pharmacies, we accept a asymmetric share. We assignment with hospitals. We try to assignment with all segments, all the manufacturers who accompany new drugs to bazaar and action through the complete bazaar cycles, but additionally with all-encompassing manufacturers.”

Q: World Courier Accumulation does not own its planes, but handles arena busline and added logistics. Can you altercate the World Courier acquisition?

A: World Courier is allowance administer trials and they are in 54 altered countries, generally with endemic facilities. The abstraction is whether you are in Brussels or Singapore or Tel Aviv or Johannesburg or Sydney, we will accord you the aforementioned acquaintance throughout the World Courier network, wherever you appetite to do your trial. We’ll clue the product. We’ll adviser the samples and accompany the samples aback to the class you baddest and get the after-effects aback to you your headquarters. CROs [Contract analysis organizations] would be the customers, as would biologic companies or packaging companies that are managing the analytic trial.

World Courier is administration samples for the Tour de France. Every morning, we booty samples from the cyclists and get them to the class and get the after-effects aback in the aforementioned day. Our World Courier van follows the cyclists about to a lot of adorned places like Nice and Monte Carlo. But that is a baby allotment of the business. The bigger allotment is the analytic trials.

Q: Biologic companies accept said they added will advance drugs in arising markets for arising markets. Does World Courier advice you get circuitous in that process?

A: World Courier said, ‘What are the arising needs of our customers?’ One of the things was that biking aegis is added circuitous and trials are demography longer, so what’s the aing affair we can do to advice the sponsors? World Courier invested in what they alarm depots so they can abundance the articles for the continuance of the analysis in that bounded market. The best archetype is a 200,000 square-foot centermost that was aloof opened above-mentioned to the accretion in Singapore. They are strategically amid and we anticipate there is a acceptable befalling to get in to the bartering administration of products. They are in China, Singapore and India. South Africa, Brazil, Argentina are amid the countries they are focused on. There has been a trend area you do these trials alfresco the U.S. and Europe, but afterwards the artefact is approved, you cull out of those markets. But what we’re audition from pharma companies is that governments don’t appetite us to aloof appear in and use their patients as a laboratory. If the patients are accomplishing able-bodied on the product, they appetite to continue. So we feel that as allotment of the biologic action continuum, already the articles are approved, we appetite to advice the patients break on the therapy.

We don’t apperceive if there is a bazaar for us in accepted wholesale. Those markets tend to be actual altered than in the U.S., but we anticipate we can advice authorize the specialty business. We’ve formed with specialty physicians, specialty biotech manufacturers. We’re acclimated to alive with circuitous acceding therapies. We anticipate we can appearance that role. We don’t anticipate absolute wholesalers consistently accept the specialty business and the altered requirements of the biotech manufacturers the way AmerisourceBergen does.

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Q: Do you anticipate of this as entering a targeted allotment of BRIC and added arising markets?

A: Yes, but we don’t apperceive if it will be Brazil or China or elsewhere. But one archetype came a few weeks ago, with one of the articles in our specialty group. The accepted administrator was asked by the architect to accompany them on a cruise to Brazil. But with the country administrator for World Courier, we already had somebody who understands bounded bloom care, bounded tax jurisdictions. We had expertise. Allotment of what we do is argue with manufacturers on their commercialization strategies. We were able to accord a abundant added absolute band-aid to the manufacturer’s appeal and see if there was a way to assignment with them. We accept a lot of bloom affliction is bounded and we like that we accept bounded intelligence. If we appetite to appraise a affiliation befalling with somebody in Chile, now at atomic we accept the Chile country administrator who understands the acceptable players and bad players, what pharmacies and physicians and accessories that we should be alive with. What is the arch bloom facility? It has absolutely added our knowledge.

We accept a altered way of aing all-embracing markets. As we got out and met with investors, some had a adamantine time with it, but I anticipate they accept that we apperceive how to arrangement with manufacturers. This is a adult chump we’re action in with and we’re action in with a manufacturer-sponsored casework affairs for distribution. That’s a bigger way to go appropriate now, rather than aloof saying, ‘Hello, we’re AmerisourceBergen. We’re aperture a administration centermost in Frankfurt. Will you abutment us?’

Q: What are some of things you’ve abstruse about managing people?

A: Some things I anticipate are key and axiological are apropos customers’ advice and apropos agent communication. Listening to everyone. I like to accept rather than talk. I apperceive what I know. I don’t apperceive what the being sitting beyond from me knows. I’m a big accepter in collaboration, giving bodies the account of the agnosticism and empowerment.

Q: What do you do attending for aback you’re hiring?

A: I attending for some of our amount ethics – affection and integrity. We appetite bodies who accept confidence, but are bashful and not arrogant. Arrogance is a actual alarming affair aback you accept actual important barter on both sides. Aback you sit bottomward with a customer, you can get ashamed appealing bound aback you accept their issues, the expectations and aerial standards, and alive how amount acquainted they are.

 Q: Aback you’re interviewing addition for a job, what questions do you ask?

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A: One affair I ask for is a administration acquaintance that has absolutely helped appearance who you are. If somebody in the accession was your bigger supporter, what would they acquaint us about you? If somebody was your bigger detractor, what would they say about you. I attending at people’s clue almanac and how generally they afflicted jobs. If they afflicted jobs a lot, there should be a acceptable reason.

Q: Do you get aback to South Africa much?

A: Not abundant at all. I larboard South Africa in 1998. I did my academy there. The aftermost time I went was 2002 and it was the alone time I took my family. I don’t accept abundant ancestors there now. Best of my ancestors confused to Canada. My ancestors are in California.

 Q: How do you decompress aback you leave the job?

A: I accept three kids. My oldest is action to academy in the fall. That will be a blessed day and a sad day. I accept a 15 year-old babe and a third grader. The third grader still loves to absorb time with me, so we try to do an action every week.

I’m teaching my son to comedy golf. He’s boring acquirements to like it, but he’s acutely accomplishing it to break in blow with me. I do adore golf. I acclimated to be a lot bigger than I am. I’m about a 16 or 17 handicapper. It is so complicated, it gives you a acceptable holiday.

We biking a lot. We try to do absorbing things with the kids, my wife and I. I acclimated to be a bank person, but my ancestors is not into that. They like excursions. They admired action to Thailand and benumbed elephants. That’s one way I try to accord aback to my family, absorbing trips. We’ve been on carnival in Africa. We’re planning a cruise to India. We’ve been to Israel, Peru and the Galapagos Islands. We try to do one of those every two years.

Published: July 14, 2012 — 9:00 AM EDT

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