AmerisourceBergen Shutting Down Compounding Pharmacy Business Five Years After Acquiring It

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Conshohocken-based AmerisourceBergen is shutting down PharMEDium, the compounding pharmacy business it acquired five years ago for $2.6 billion. Image via Chain Drug Review.

Chesterbrook-based AmerisourceBergen is shutting down PharMEDium, the compounding pharmacy business it acquired five years ago for $2.6 billion, writes John George for the Philadelphia Business Journal.

The move will affect around 1,000 jobs in four PharMEDium compounding facilities in New Jersey, Mississippi, Texas, and Tennessee.

Compounding pharmacies make drug formulas that are tailored to patients whose needs are not met by commercially available drugs.

In May, a federal judge blocked the Tennessee plant, the company’s most active, from further manufacturing.

This came after numerous warnings from the Food and Drug Administration over safety violations that were not addressed by PharMEDium. At the time, AmerisourceBergen ceased operations at the facility.

Meanwhile, its Texas and New Jersey facilities were required to hire an independent expert to make sure they were in compliance with the law.

AmerisourceBergen Chairman and CEO Steve Collis informed analysts on a January 30 call that the company made the difficult decision to close PharMEDium after a yearlong strategic and financial review of the business.

“We’re disappointed that PharMEDium will no longer be able to serve its customers, but believe exiting the business is the appropriate path forward for AmerisourceBergen and its shareholders,” he said.

Read more about AmerisourceBergen at the Philadelphia Business Journal by clicking here.

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