Cencora reaffirms guidance after Walgreens volume shift

Cencora, the pharmaceutical services and distribution company formerly known as AmerisourceBergen, said on Friday that volumes from Walgreens Boots Alliance have shifted, though it reaffirmed its full-year guidance. The company did not provide specific details on the nature or scale of the volume changes.

Shares of Cencora fell sharply following the disclosure, reflecting investor concerns over the impact of reduced orders from one of its major clients. The company’s stock was down more than 5% in early trading, underperforming broader market benchmarks.

Cencora’s guidance reaffirmation suggests confidence in offsetting the volume shift through other business segments or operational efficiencies. The company has not revised its revenue or earnings projections for the fiscal year, indicating that the impact of the Walgreens volume change is expected to be manageable within its existing framework.

Analysts noted that while Walgreens remains a significant client, Cencora’s diversified revenue streams may mitigate the effect of any single client’s volume adjustments. The company’s long-term contracts and relationships with other healthcare providers are likely to provide stability.

A spokesperson for Cencora declined to comment on the specifics of the volume shift or the rationale behind the guidance reaffirmation. The company is scheduled to release its next financial update in conjunction with its earnings report, which is expected in the coming weeks.