Cencora Commits $1 Billion to Bolster US Pharmaceutical Distribution Infrastructure

Cencora, the pharmaceutical distribution giant formerly known as AmerisourceBergen, has announced a substantial $1 billion investment plan to expand its operations across the United States over the next five years. This strategic move aims to enhance the company's distribution capacity, improve efficiency, and strengthen supply chain resilience in an evolving pharmaceutical landscape.

New Distribution Centers to Enhance Nationwide Coverage

At the heart of Cencora's expansion strategy is the development of two state-of-the-art distribution centers. A 530,000-square-foot facility in Harrison, Ohio, is slated to become the company's second national distribution center. Expected to be fully operational by spring 2027, this hub will incorporate cutting-edge automation technologies, including robotic handling systems, artificial intelligence, and autonomous mobile robots.

Complementing the Ohio facility, Cencora plans to open a 430,000-square-foot distribution center in Fontana, California, by November 2026. This West Coast hub will double the size of the company's current regional facility and will also feature advanced automation capabilities.

Expanding Specialty Pharmaceutical Services

Recognizing the growing demand for cold chain logistics in the pharmaceutical industry, Cencora is making significant investments in its specialty pharmaceutical services. The company plans to expand its operations in Dothan, Alabama, with a focus on increasing refrigerated and frozen storage capacities. By fall 2026, the facility is expected to boost its refrigerated storage by 500% and its frozen storage by 200%.

This expansion aligns with recent research from IQVIA, which projects that half of all pharmaceutical products launched globally through 2027 will require cold chain storage, up from 37% between 2013 and 2017.

Implications for the Pharmaceutical Supply Chain

Bob Mauch, Cencora's president and chief executive, emphasized the importance of this investment in strengthening the pharmaceutical supply chain. "This investment underscores our commitment to and role in building a resilient pharmaceutical supply chain and in ensuring patients across the United States have timely and reliable access to prescribed medications, where and when they need them," Mauch stated in a company press release.

The expansion project comes at a critical time for the pharmaceutical industry, as companies grapple with increasing demand for specialized storage and distribution services. Cencora, which currently ships more than 5 million medications and healthcare products to providers daily, is positioning itself to meet these evolving needs and maintain its leadership in pharmaceutical distribution.