MCK - Why AmerisourceBergen Is The Best-In-Class Pharmaceuticals Distributor

• AmerisourceBergen is one of the "big three" distributors of pharmaceuticals in the United States. In terms of 2021 revenues, it is almost as big as McKesson.
• The business is recession-resistant, and because it has high barriers to entry due to its heavy regulation and sophisticated distribution networks. AmerisourceBergen and its peers have an economic moat.
• As middleman's businesses, these distributors operate on razor-thin margins, and it is, therefore, paramount to have excellent working capital management - AmerisourceBergen stands out in this regard.
• In the article, I discuss ABC's past performance, growth prospects, balance sheet quality, risks, and also its potential as a dividend growth stock.

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