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Second Manufacturer Townhall:

Responding to COVID-19

During the call, please submit questions via the chat function

• r via email to: Solutions@amerisourcebergen.com

§ April 9, 2020

Today’s Speakers

Confidential 3

Heather Zenk

• Sr. Vice President, Replenishment

& Secure Supply Chain Operations

Rich Tremonte

EVP and President, Community & Specialty Pharmacy

Dave Picard

• Sr. Vice President, Global Generics

Pharmaceuticals

Bob Mauch

EVP & Group President

Agenda 1

Opening Remarks

2

Inventory Update

3

Collaborating with Government Agencies

4

Working Together with Our Customers

5

Q&A

6

Closing Remarks

Confidential 4

Calm Thoughtfully Decisive Compassionate Fact Based Patient Focused Our Response

• Fair Share Allocations to ensure all

customers can access patient treatments

• Protecting inventory from stockpiling/hoarding

behavior

• Historical demand isn’t meeting elevated customer

needs - but we are being as responsible as we can to support the entire country as COVID-19 continues to spread

• Increased allocations in “Hot Zones”

identified by Johns Hopkins, CDC, and WHO data

• Advance deployment of product to

Distribution Centers servicing “Hot Zones”

“Hot Zones”: AmerisourceBergen Support of Acute Care

Supply Challenges

• Surge ordering across network
• Payer approval for 90-day supply scripts and early refills
• Metered Dose Inhalers (MDIs) – Shifting Uses
• Nebulizer switching to MDIs (CDC recommendations)
• Increased asthma/chronic patient refills driven by lock-downs and shelter-in-place
• Insulin & Diabetic Supplies
• Insulin for treatment of COVID-19 patients (high incidence co-morbidity)
• Increased diabetic patient refills driven by lock-downs and shelter-in-place
• Ventilation Support Drugs
• COVID specific usage vs. ongoing patient treatment

Manufacturer & Wholesaler Communications

• AmerisourceBergen continues to work closely with manufacturers to

increase inventory

• Inventory changes on an hourly basis and some information may not be timely
• Even with manufacturers increasing product in the supply chain, increased demand

means that inventory is being depleted almost immediately

• Many manufacturers keeping wholesalers to historical purchasing levels, looking at

demand in January and February ü Protecting long-term viability of the supply chain

• Definition differences of “shortages” between wholesalers and manufacturers

Staying Connected

• Working together and communicating through a difficult and emotional

period for our customers

• Understanding the concerns of generic manufacturers
• Looking to brand manufacturers to waive metrics
• Accepting short dated products
• Continuously refreshing our business continuity plans

– Recent developments in our Newburgh, New York distribution center – National Distribution Center business continuity plan

Collaborating with Government Agencies

• Pop Up Hospitals, expansions
• The Strategic National Stockpile
• Addressing grey market activity and our role with HHS OIG

4/9/20 Confidential 10

Working Together with Our Customers

• Surge ordering across all Classes of Trade early during the COVID-19

spread

• As manufacturing hubs like China and India continue to experience the effects
• f a global pandemic, manufacturers are allocating inventory to wholesalers to

sustain the supply chain on a long-term basis

• Travel bans decrease capacity of air freight carriers
• Supply Chain players continue to implement business continuity plans
• COVID-19 potential treatments include experimental drugs and existing drugs

indicated for other conditions (Need to balance existing patient treatment for chronic conditions)

Current Factors Influencing Healthcare Supply Chain

Access to the Latest Resources for Manufacturers and Customers

4/9/20 Confidential 12

WeAreGNP.com/COVID19 AmerisourceBergen.com/coronavirus- covid-19-information Oncologysupply.com/Resources/covid19 response Besse.com/pages/products- specialties/product-resources/covid-19- response

Or

Q & A

Please submit questions directly in the Skype window

We are united in our responsibility to create healthier futures.