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29 June 2021
Pharmacies across England will be able to claim for COVID-19 costs in line with the recent announcement by PSNC with the HM Government funding. Alliance Healthcare and Alphega Pharmacy is pleased that community pharmacy is now recognised for its instrumental role in the fight against COVID-19 and the success of the COVID-19 vaccination success.
Speaking on the decision, Julian Mount, Managing Director, Alliance Healthcare said: “Since the start of the pandemic, pharmacy customers and patients have recognised the dedication and commitment of pharmacy teams, as the frontline for the NHS for over 15 months. It is great news that now the Department for Health and Social Care is seeing this value too, and we appreciate the hard work from the PSNC and government to support community pharmacy, and we hope to see it go even further.
“In addition to this important step, we must continue to stay focused on recognising the essential role community pharmacists have in improving the health of patients across the UK and create a reimbursement structure that reflects their positive impact.
“The next stage is how we look at the further integration of community pharmacy in England into the primary healthcare team – with autumn on the horizon, winter aliments, flu vaccinations and COVID-19 boosters – we need to ensure the treasury recognise the contribution of pharmacy. Then longer term pharmacy has a key role in helping address backlogs in health, mental health and long-term conditions – and this must be addressed and not forgotten by the relevant stakeholders.”
Raj Nutan, Head of Alphega Pharmacy UK comments: “Notwithstanding the issues surrounding the advance payments, overall, we recognise the work PSNC has done in getting a decision and welcome at long last there is a recognition by the government of the costs pharmacies have had during this difficult COVID-19 period – with community pharmacy going above and beyond, as always, for the UK patients.
The Alphega Pharmacy team will be monitoring and awaiting the detailed guidance from the Drug Tariff with further input from PSNC. In the meantime, we stand ready to support all of our pharmacists any way we can to ensure all Alphega Pharmacy members can appropriately, accurately and effectively claim their costs within a timely window.”
Alloga UK and Alliance Healthcare UK are proud to announce that they have played an instrumental role in supporting the NHS with the delivery of COVID-19 vaccines across England. To date, Alloga UK - with the support from colleagues across Alliance Healthcare – has delivered 24.6 million doses of COVID-19 vaccine. The teams have delivered vaccines to approximately 1,490 sites of care, including hospitals, major vaccination centres, care homes and prisons since December 2020, with deliveries taking place up to seven days a week.
Under the leadership of Chris Williams, Managing Director, Alloga UK, a dedicated team ensured that all necessary processes and preparations were accommodated to distribute vaccines to approximately 50% of England. This involved an area of the Alloga facility being cordoned off to keep the operation classified. The site was also visited numerous times by Government appointed security agencies to ensure safety and security of the vaccines’ storage.
Julian Mount, Managing Director, Alliance Healthcare UK said: “I am so proud that our business and our colleagues are playing such a key part in the lifesaving effort of COVID-19 vaccine distribution. Team members from multiple departments across the business, have all come together to support this national effort. I want to personally thank each and every one who has been involved. It is a fantastic joint endeavour, and it is just one more example of how Alliance Healthcare and Alloga are working together to support the NHS and patients across the UK.”
Chris Williams comments: “Alloga UK is delighted to be playing a key part in the distribution of COVID-19 vaccines across England. Our unrivalled experience in vaccine distribution has informed our approach and allowed us to work at pace with NHSE in designing and implementing this very complex supply chain within such a short period of time. This implementation has been far from easy, but our professional teams coupled with a can-do mentality has allowed us to overcome many logistics challenges and implement an excellent solution. The teams across NHSE, Alloga UK and Alliance Healthcare UK should be justifiably proud of their collective achievement.”
* As at 21 June, 2021.
Mike Smith, non-executive advisor, Alliance Healthcare UK has announced his retirement after 30 years with the company. In announcing his retirement to team members on Tuesday 22 June, Mike said: “The time has come for me to retire and it has been a privilege to meet and work with truly incredible people at Alliance Healthcare. I have long been an avid ambassador for community pharmacy and our industry's remarkable dedication in the fight against the COVID-19 pandemic has made me very proud. To my friends and peers I wish you all a very healthy and happy future.”
Alliance Healthcare Supports Vitamin Angels UK By Taking On A Colleague Cycle Challenge
Alliance Healthcare has been supporting Vitamin Angels and Vitamin Angels UK for several years. In recent months, fundraising has been difficult due to COVID-19 restrictions. However, some Alliance Healthcare team members were keen to get out to do their bit to raise vital funds for this worthwhile charity.
In 2019 Alliance Healthcare held the inaugural cycle event and this year, seven cyclists and one support driver have come together to take on another cycle challenge. This one covered over 300 miles in four days. The challenge began at Alliance Healthcare’s Coatbridge service centre, just east of Glasgow and finished at the South Normanton site in Derbyshire.
The cyclists come from various teams across the business including transport, procurement, health and safety and service centre management. Matt Addison, Director of Operations, Alliance Healthcare is one of the riders and also the instigator of the fundraising challenge. Matt said about the event: “Taking on this challenge, down from Scotland, through the Lake District and over the Pennines, was an epic undertaking. However, I felt it was important for Alliance Healthcare to continue our support of Vitamin Angels UK. They are an amazing charity and the work they do to help at-risk populations in the UK and around the world deserves our support. I’m proud to say that to date we have raised over £25,000 from this event – but we still want more!”
Roma Mirutenko, Account Manager, Vitamin Angels UK said: “We truly thank Alliance Healthcare so much for their commitment to Vitamin Angels UK and everything we do together! Their continued support and drive to go the distance means the world to all of us at Vitamin Angels UK and Vitamin Angels Global! Thank you for helping us improve nutrition for children in the UK and beyond!”
Alliance Healthcare and Vitamin Angels UK send big thanks to their most generous sponsors this year: LCM Group, Jungheinrich UK Ltd, SMI, Driver Hire Nationwide and Lexmark.
Alliance Healthcare Cycle - setting off from Coatbridge with a bagpiper
Alliance Healthcare Cycle Team with Vitamin Angels Mascot at end of challenge
About Vitamin Angels UK:
Vitamin Angels UK work towards the relief of sickness and preservation of health by providing or assisting in the provision of nutrients and services for the benefit of mothers and children and to work to end malnutrition and its consequences among at-risk, hard-to-reach populations (e.g., defined generally as individuals lost to national health services), focusing on young children under five years of age, and women of reproductive age, including especially pregnant women and their unborn child and new mothers and to advance the education of the general public in all areas relating to healthcare for mothers and children. To learn more visit: www.vitaminangels.org.uk
Acquisition Advances Role as a Key Pillar of Pharmaceutical Innovation and Access Adjusted Diluted EPS Guidance Range Raised to $8.90 to $9.10 for Fiscal 2021
CONSHOHOCKEN, PA, JUNE 2, 2021 — AmerisourceBergen Corporation (NYSE: ABC) today announced the completion of its acquisition of the majority of Walgreens Boots Alliance’s Alliance Healthcare businesses for $6.275 billion in cash, subject to a customary working capital and net debt adjustment, and 2 million shares of AmerisourceBergen common stock.
“We are excited to complete the acquisition and extend a warm welcome to the talented team at Alliance Healthcare,” said Steven H. Collis, Chairman, President and Chief Executive Officer of AmerisourceBergen. “The acquisition of Alliance Healthcare expands our reach and solutions in pharmaceutical distribution and adds to AmerisourceBergen’s breadth and depth of global manufacturer services. With Alliance Healthcare, we will advance our ability to provide innovative and global healthcare solutions and further our purpose of being united in our responsibility to create healthier futures.”
“This transaction provides great benefit for both companies and is a logical step following the continued success of our long-term strategic relationship,” said Ornella Barra, Chief Operating Officer, International, Walgreens Boots Alliance, Inc. “The Alliance Healthcare teams are joining a global pharmaceutical distribution leader and trusted partner in AmerisourceBergen, and we look forward to continuing to work together as strategic partners.
AmerisourceBergen and Walgreens Boots Alliance will also execute on the expansion and extension of commercial agreements in order to drive incremental growth and synergies.
Fiscal Year 2021 Expectations
The Company does not provide forward-looking guidance on a GAAP basis as certain financial information, the probable significance of which cannot be determined, is not available or cannot be reasonably estimated.
Fiscal Year 2021 Expectations on an Adjusted (non-GAAP) Basis
AmerisourceBergen has updated its fiscal year 2021 financial guidance to reflect the expected contribution from the closing of the Alliance Healthcare acquisition and the weighted average share count impact of the 2 million shares of AmerisourceBergen common stock that the Company delivered at closing of the transaction. The Company now expects:
• Revenue of at least $210 billion, up from revenue growth in the high-single digit percent range; and
• Adjusted diluted earnings per share (EPS) to be in the range of $8.90 to $9.10, raised from the previous range of $8.45 to $8.60.
Additional expectations now include:
• Weighted average shares of at least 208 million, raised from the previous expectation of between 207 million and 208 million for the fiscal year.
The Company continues to have strong performance across its businesses and expects to update the rest of its previously announced fiscal 2021 financial guidance when it reports results for the third quarter of fiscal 2021. Alliance Healthcare’s results will be reported in Other for the remainder of fiscal year 2021.
Please refer to the Supplemental Information Regarding Non-GAAP Financial Measures below.
AmerisourceBergen fosters a positive impact on the health of people and communities around the world by advancing the development and delivery of pharmaceuticals and healthcare products. As a leading global healthcare company, with a foundation in pharmaceutical distribution and solutions for manufacturers, pharmacies and providers, we create unparalleled access, efficiency and reliability for human and animal health. Our 41,000 global team members power our purpose: We are united in our 3 responsibility to create healthier futures. AmerisourceBergen is ranked #10 on the Fortune 500 with more than $200 billion in annual revenue. Learn more at investor.amerisourcebergen.com.
Supplemental Information Regarding Non-GAAP Financial Measures
To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses adjusted diluted EPS. Adjusted diluted EPS should be viewed in addition to, and not in lieu of, financial measures calculated in accordance with GAAP. Adjusted diluted EPS may vary from, and may not be comparable to, similarly titled measures by other companies.
Adjusted diluted EPS is presented because management uses this non-GAAP financial measure to evaluate the Company’s operating performance, to perform financial planning, and to determine incentive compensation. Therefore, the Company believes that the presentation of this non-GAAP financial measure provides useful supplementary information to, and facilitates additional analysis by, investors.
The non-GAAP fiscal year 2021 guidance for adjusted diluted EPS excludes significant items that are outside the control of the Company or inherently unusual, non-operating, unpredictable, non-recurring or non-cash in nature. The Company does not provide forward looking guidance on a GAAP basis for such metric because certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated.
For fiscal year 2021, adjusted diluted EPS excludes the per share impact of certain adjustments including gain from antitrust litigation settlements; LIFO expense (credit); acquisition-related intangibles amortization; and employee severance, litigation, and other; in each case net of the tax effect calculated using the applicable effective tax rate for those items. Management believes that this non-GAAP financial measure is useful to investors because it eliminates the per share impact of the items that are outside the control of the Company or that we consider to not be indicative of our ongoing operating performance due to their inherent unusual, non-operating, unpredictable, non-recurring, or non-cash nature.
AmerisourceBergen's Cautionary Note Regarding Forward-Looking Statements
Certain of the statements contained in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Securities Exchange Act"). Such forward-looking statements may include, without limitation, statements about the Alliance Healthcare acquisition, the benefits of the Alliance Healthcare acquisition, future opportunities for AmerisourceBergen and any other statements regarding AmerisourceBergen’s future operations, financial or operating results, anticipated business levels, future earnings, planned activities, anticipated growth, market opportunities, strategies, competitions, and other expectations and targets for future periods. Words such as "expect," "likely," "outlook," "forecast," "would," "could," "should," "can," "project," "intend," "plan," "continue," "sustain," "synergy," "on track," "believe," "seek," "estimate," "anticipate," "may," "possible," "assume," variations of such words, and similar expressions are intended to identify such forward looking statements.
These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances and speak only as of the date hereof. These statements are not guarantees of future performance and are based on assumptions and estimates that could prove 4 incorrect or could cause actual results to vary materially from those indicated. Among the factors that could cause actual results to differ materially from those projected, anticipated, or implied are the following: unfavorable trends in brand and generic pharmaceutical pricing, including in rate or frequency of price inflation or deflation; competition and industry consolidation of both customers and suppliers resulting in increasing pressure to reduce prices for our products and services; changes in the United States healthcare and regulatory environment, including changes that could impact prescription drug reimbursement under Medicare and Medicaid; increasing governmental regulations regarding the pharmaceutical supply channel; declining reimbursement rates for pharmaceuticals; continued federal and state government enforcement initiatives to detect and prevent suspicious orders of controlled substances and the diversion of controlled substances; continued prosecution or suit by federal, state and other governmental entities of alleged violations of laws and regulations regarding controlled substances, including due to failure to achieve a global resolution of the multi-district opioid litigation and other related state court litigation, and any related disputes, including shareholder derivative lawsuits; increased federal scrutiny and litigation, including qui tam litigation, for alleged violations of laws and regulations governing the marketing, sale, purchase and/or dispensing of pharmaceutical products or services, and associated reserves and costs; failure to comply with the Corporate Integrity Agreement; material adverse resolution of pending legal proceedings; the retention of key customer or supplier relationships under less favorable economics or the adverse resolution of any contract or other dispute with customers or suppliers; changes to customer or supplier payment terms, including as a result of the COVID-19 impact on such payment terms; the integration of the Alliance Healthcare businesses into the Company being more difficult, time consuming or costly than expected; the Company’s or Alliance Healthcare’s failure to achieve expected or targeted future financial and operating performance and results; the effects of disruption from the acquisition and related strategic transactions on the respective businesses of the Company and Alliance Healthcare and the fact that the acquisition and related strategic transactions may make it more difficult to establish or maintain relationships with employees, suppliers and other business partners; the acquisition of businesses, including the Alliance Healthcare businesses and related strategic transactions, that do not perform as expected, or that are difficult to integrate or control, or the inability to capture all of the anticipated synergies related thereto or to capture the anticipated synergies within the expected time period; risks associated with the strategic, long-term relationship between Walgreens Boots Alliance, Inc. and the Company, including with respect to the pharmaceutical distribution agreement and/or the global generic purchasing services arrangement; managing foreign expansion, including non-compliance with the U.S. Foreign Corrupt Practices Act, anti-bribery laws, economic sanctions and import laws and regulations; financial market volatility and disruption; changes in tax laws or legislative initiatives that could adversely affect the Company's tax positions and/or the Company's tax liabilities or adverse resolution of challenges to the Company's tax positions; substantial defaults in payment, material reduction in purchases by or the loss, bankruptcy or insolvency of a major customer, including as a result of COVID-19; the loss, bankruptcy or insolvency of a major supplier, including as a result of COVID-19; financial and other impacts of COVID-19 on our operations or business continuity; changes to the customer or supplier mix; malfunction, failure or breach of sophisticated information systems to operate as designed; risks generally associated with data privacy regulation and the international transfer of personal data; natural disasters or other unexpected events, such as additional pandemics, that affect the Company’s operations; the impairment of goodwill or other intangible assets (including any additional impairments with respect to foreign operations), resulting in a charge to earnings; the Company's ability to manage and complete divestitures; the disruption of the Company's cash flow and ability to return value to its stockholders in accordance with its past practices; interest rate and foreign currency exchange rate fluctuations; declining economic conditions in the United States and abroad; and other economic, business, competitive, legal, tax, regulatory and/or operational 5 factors affecting the Company's business generally. Certain additional factors that management believes could cause actual outcomes and results to differ materially from those described in forwardlooking statements are set forth (i) in Item 1A (Risk Factors), in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2020 and elsewhere in that report and (ii) in other reports filed by the Company pursuant to the Securities Exchange Act. The Company undertakes no obligation to publicly update or revise any forward-looking statements, except as required by the federal securities laws.
To mark Mental Health Awareness Week, Alliance Healthcare has introduced its first cohort of employee mental health first aiders.
The Mental Health First Aid (MHFA) England accredited training will help to identify people who may require help and signpost them to appropriate support services.
The first group of 24 took part in a series of virtual training programmes, which covered the issues that impact and relate to people’s mental health. These included active listening, starting a conversation about poor mental health, offering reassurance and sign posting to appropriate professional help.
Vicki Wilder, Senior HR Business Partner, who is leading on the training programme said: “We have a duty of care to support our workforce and we are committed to providing appropriate help for poor mental health, it’s equally as important as physical health. We also recognise that the pandemic has taken its toll on people, but with the introduction of mental health first aiders colleagues will have an additional avenue to be able to reach out for support.”
Alliance Healthcare will continue its mental health first aider training and by the end of 2021 every employee will have access to a trained mental health first aider.
Approximately one in four people in the UK will experience a mental health problem of some kind each year.
One in six people will also report experiencing a common mental health problem (like anxiety and depression) in any given week in England.
 Source: Mind, June 2020
 Source: Mind, June 2020
Alliance Healthcare and Alphega Pharmacy Announce Winner of the BPSA Business and Enterprise Competition
Abeer Aamir, a first year student currently studying Pharmacy at the University of Brighton, is the winner of the BPSA’s Business and Enterprise competition, sponsored by Alliance Healthcare and Alphega Pharmacy.
Abeer receives the prize of a £500 gift voucher after she successfully pitched a presentation highlighting how Alphega Pharmacy is the key to the future development of Independent Community Pharmacy. She also came up with not one, but three new ideas that could enhance the current Alphega Pharmacy B2C app.
The BPSA (British Pharmaceutical Students' Association) is an organisation that works to enhance the experience of its members by inspiring them to invest in their development, seize opportunities and become advocates for the profession. This competition is one example of that. It allows students to be innovative and explore the business aspect of pharmacy, whilst building confidence and winning prizes. The BPSA teams up with sponsors, such as Alliance Healthcare to deliver such fantastic opportunities.
The final was held virtually on Tuesday 30 March, 2021, with three out of ten students who made it through to the final round competing via Zoom, due to current Covid-19 restrictions.
Abeer Aamir, winner of this year's event, says: "I am incredibly appreciative for the opportunity I was given to compete in the Business and Enterprise competition. The competition allowed me to look at pharmacy practice in a new light and specifically focus on how we as pharmacists must adapt to the ever-changing healthcare landscape, especially so in this new online based era. As we move into a post-COVID world, I believe it is crucial for all pharmacy students to take a look at how the practice will be shifting in the next few years with the rise of digital care, and learn how to adjust without compromising patient-focused care.
“Competing in this competition also gave me the chance to be creative by creating a cohesive and interesting presentation marketing the Alphega app, as well as coming up with innovative ideas to further the development of the app and the future development of independent community pharmacies on the spot during the judge questioning round. I was also able to gain a deeper understanding about different business standards of practice, as well as appreciate the innovative concepts and designs that must be made by independent pharmacy owners to remain competitive against larger chain pharmacies. Thank you again to the BPSA, Alphega Pharmacy, and Alliance Healthcare for organizing this competition!”
The three finalists performed incredibly well and a great rapport was built with the judging panel. The panel consisted of Mike Smith, Non-executive advisor at Alliance Healthcare, Sue Dobson, Alphega Pharmacy Business Mentor, Vinay Patel, Alphega Pharmacy Services and Contract Pharmacist, plus Rob Darracott, Editor at P3pharmacy magazine who joined as a special guest judge. The event was coordinated by Trisha Dogra, a pre-registration pharmacist who graduated from Keele University and is the Competitions Coordinator of the BPSA Executive Team, plus Karen Lam and Lorna Kimberley, both from the Marketing and Communications Team at Alliance Healthcare.
Mike Smith, Non-executive advisor Alliance Healthcare UK, says: "The entries were again of the highest quality this year. The three shortlisted finalists gave excellent presentations with some really innovative and radical ideas. They demonstrated a clear understanding of the benefits of Alphega Pharmacy membership and how this will be key to the future development of independent pharmacy. These young students are the future of our profession and I have no doubt it will be continue to flourish in such safe hands. I am so proud of them all. They were all winners for me and the judging was very close.”
Rob Darracott, Editor at P3pharmacy magazine also added: “It’s never easy presenting at the best of times, but all the finalists did a great job, not only in identifying the benefits of Alphega to independent community pharmacy, but in presenting their ideas virtually too. It’s especially nice hearing innovative ideas and suggestions from those at the start of their careers in the profession, including one at the very start, our impressive winner and first year pharmacy student, Abeer.”
For over a decade, Alliance Healthcare has supported the BPSA and looks forward to seeing the positive difference our young pharmacists make in this challenging world.
Abeer Aamir, BPSA, Business and Enterprise Winner
Today marks the beginning of the Islamic holy month of Ramadan which is celebrated by Muslims all over the UK.
At Alliance Healthcare, we have a workforce that is diverse and rich in culture, like our customer base and we are proud to mark this special event.
Our Leigh Service Centre Manager, Zak Patel, has been sharing what Ramadan means to him:
“Like many Muslims, during the holy month of Ramadan I will be enjoying fasting from dawn to dusk. Ramadan is a time of self-reflection, supporting those less fortunate and it brings me closer to my religion. Ramadan also means kindness, appreciation, love, generosity and patience which makes me more appreciative of everything that I am blessed with and spurs me to support those in my community whom are struggling, especially during these COVID times.”
Matt Addison, Operations Director, says: “Across our operations network and our wider business, we have team members with many different religions and beliefs. Recognising and celebrating the cultural and religious events that are important to our people creates a welcoming and equitable workplace in which people can be their authentic selves.”
On behalf of all of us at Alliance Healthcare, Ramadan Mubarak!
We are delighted to share a fantastic thought leadership story published in WBA’s digital magazine titled ‘WBA senior leaders share COVID-19 lessons learned’, and features our very own Director or Operations, Matt Addison.
Matt shares his experience during the pandemic and praises operations colleagues who worked collaboratively to run the service centres, cross dock network and transport organisation during this time. Matt says: “The COVID-19 pandemic has seen Alliance Healthcare face possibly the most challenging period of its history. Our operations colleagues have played such a critical part in supporting the NHS and patients across the UK. We are classified as essential workers by the UK government, and without our people, the country would not have made it this far.
My Alliance Healthcare operations colleagues have astounded me throughout the last year, and their stories of resilience, teamwork, and going the extra mile are many. I’ve always believed that working collaboratively and trusting in my leadership team has been key to our combined success, and the impact of the pandemic has only served to reinforce this belief. For a portion of 2020, I also faced a personal challenge and if I hadn’t been able to leave work behind and trust my team to lead our operation to success, then I don't believe I would have been able to successfully overcome the obstacles I faced.
During the pandemic, we’ve taken steps to restructure the operations leadership team, and that is in no small part due to the management changes and responsibilities that we had to employ during this period. I have great leaders in place to run the service center network, cross dock center and transport organization. This will continue beyond the pandemic and will become the new Alliance Healthcare way of working.”
You can see all the other stories featured in this article by following the link to the WBA digital magazine here: https://www.walgreensbootsalliance.com/news-media/our-stories/wba-senior-leaders-share-covid-19-lessons-learned
To support the mass vaccination agenda, our services arm, Skills in Healthcare will be delivering interactive COVID-19 vaccination training sessions to all healthcare professionals eligible to administer COVID-19 vaccines, as well as vaccination support workers in the lead up to their anticipated involvement in the vaccination programme.
Skills in Healthcare is delighted to be offering support to community pharmacists by providing these informative webinars, in collaboration with Charles Bloe Training. In 2020, Charles Bloe Training won Coursecheck’s ‘Brilliance Award’, the highest rated training provider in their medium-sized organisation category.
The virtual sessions aim to complement their mandatory COVID-19 e-Learning and/or practical training to ensure they have the knowledge, skills and confidence to fulfil their vital role in the programme when the opportunity arises. Healthcare professionals and vaccination support workers are receiving expert knowledge and practical demonstrations, delivered by specialist nurse trainers who are administering the vaccine at present.
Sanjay Pathak, National Pharma Services Manager Skills in Healthcare, said: “As part of the Alliance Healthcare team, we are committed to supporting community pharmacy where we can. We are proud to be helping our Pharmacy COVID-19 heroes with their vaccination training and education in readiness for when their involvement in the programme begins”.
For more information on our COVID-19 vaccination training webinars, please click here.