Cencora (NYSE: COR) has unveiled an ambitious $1 billion investment plan aimed at bolstering its pharmaceutical distribution network across the United States through 2030. Central to this effort is the launch of a second national distribution center in Ohio, complemented by expanding operations in Alabama and California. The Ohio facility, spanning 530,000 square feet and equipped with advanced automation such as robotics and artificial intelligence systems, is expected to be fully operational by spring 2027, significantly increasing storage capacity and throughput. In California, Cencora plans to open a 430,000-square-foot, highly automated distribution center in Fontana by fall 2026, nearly doubling the size of the current facility there. Meanwhile, expansion efforts in Alabama focus on increasing refrigerated storage capacity by 500% and frozen storage by 200% to support the growing demand for specialty pharmaceuticals requiring cold chain logistics. These strategic investments reflect Cencora’s commitment to enhancing efficiency, resilience, and capacity in a pharmaceutical supply chain increasingly challenged by rising demand and complexity.
Cencora’s leadership emphasizes that this capital deployment goes beyond simply expanding physical footprint. The company intends to leverage technology and automation to improve accuracy and speed in delivery, factors critical for health systems and patients relying on timely access to medications. Bob Mauch, Cencora’s President and CEO, highlights the company’s role in ensuring reliable medication access throughout the U.S., underscoring this $1 billion investment as a foundational step in building a more resilient pharmaceutical supply chain.
The company itself, rebranded from AmerisourceBergen to Cencora in 2023, brings over 150 years of experience in pharmaceutical distribution and solutions. It operates in more than 50 countries and encompasses several segments including generic and specialty pharmaceuticals, over-the-counter products, home healthcare supplies, and animal health distribution. This diverse portfolio allows Cencora to serve a wide array of clients ranging from retail pharmacies to health systems and veterinary providers. The company’s history is marked by early adoption of technology, such as computerized inventory systems and electronic order placement, and strategic acquisitions that have expanded its global reach and specialty service offerings.
Looking to 2026, Cencora projects an optimistic profit outlook, expecting adjusted earnings per share to exceed Wall Street analysts’ estimates. While specifics on profit figures were not fully disclosed, the forecast signals confidence that the extensive investment in distribution infrastructure and operational enhancements will translate into positive financial results. This aligns with the company’s strategic goal not only to increase capacity but also to raise its service standards in pharmaceutical distribution, aiming to better support the healthcare market’s evolving needs. ​
The growing importance of specialty pharmaceuticals, which are projected to account for 70% of new medicines launched through 2027, underscores the urgency behind Cencora’s investment choices. Many of these therapies require specialized handling, including cold storage and careful logistics, which the company’s expanded and modernized facilities are designed to accommodate. This focus on specialty aligns with broader industry trends toward more complex therapies and the need for resilient, precise supply chains capable of meeting increased demands.
Cencora’s commitment to strengthening the backbone of pharmaceutical distribution in the U.S. through this $1 billion investment signals a long-term view focused on operational excellence and patient care. Its mix of historical expertise, broad operational footprint, and recent technological investments illustrate the ongoing transformation within the pharmaceutical logistics space, where scale and innovation are both crucial to success.
