On Nov. 5, pharmaceuticals distributor Cencora announced plans to invest $1 billion through 2030 to bolster and expand its U.S. pharmaceutical distribution infrastructure. The initiative is designed to increase capacity, build resilience and improve service levels as the company positions itself for evolving customer needs and growth in specialty medicines.

Key Elements

• The centerpiece of the program is the opening of a second national distribution center in Harrison, OH — a 530,000-square-foot facility expected to be fully operational by spring 2027. It will feature advanced automation, including robotic handling systems, AI and autonomous mobile robots to enhance throughput and reliability.
• On the West Coast, Cencora will open a new 430,000-square-foot distribution center in Fontana, CA, targeted to be operational by fall 2026. This new facility is nearly double the size of its current local center and will likewise incorporate highly automated technology.
• Recognizing the growing specialty-pharma trend and related cold-chain logistics demands, Cencora will expand its Dothan, AL facility (one of its three specialty medicine-dedicated sites) by fall 2026. The expansion will increase refrigerated storage capacity by 500% and frozen storage capacity by 200%, improving its ability to support complex therapies and enhance operational resilience.

The distribution network announcement came alongside Cencora reporting its 2025 fourth quarter and full year financial results, which were led by 4Q sales of $84 billion that improved 5.9% year-over-year; gross margin of 3.53% that improved 38 basis points; and a net loss of $340 million. On an adjusted basis, the company had a 4Q net profit of $751 million. For its total fiscal 2025, revenue of $321 billion increased 9.3% annually; gross profit jumped 15.8%; and net profit was $1.6 billion ($3.1 billion adjusted).

Cencora was No. 2 on MDM’s 2025 Top Distributors List for Pharmaceuticals/Health Care

Context

For the broad pharmaceutical supply-chain ecosystem, this move underscores how pharmaceutical distributors — particularly the top 3 of McKesson, Cencora and Cardinal Health — are increasingly investing in automation and cold-chain to keep pace with specialty launches, biologics and other temperature-sensitive therapies. Cencora notes that specialty pharmaceuticals are projected to account for 70% of new medicines launched through 2027; roughly half of all products launched globally through 2027 are expected to require cold-chain storage (up from 37% in the 2013–17 period).

From a competitive standpoint, Cencora’s investment signals an escalation in infrastructure arms-racing: as providers and wholesalers face pressure to deliver faster, more reliable distribution (especially in specialty, eCommerce, pharmacy fulfilment and direct-to-patient models), firms are responding with capital-intensive facility builds, automation and digitization. For customers (manufacturers, health systems, pharmacies), this may translate into improved service levels, reduced lead times, greater flexibility and more robust contingency planning against disruptions.