Cencora to invest $1B to expand US pharmaceutical distribution network

Pennsylvania-based global pharmaceutical solutions company Cencora announced plans to invest $1 billion through 2030 to expand and modernize its U.S. drug distribution network. The investment includes opening new facilities in Ohio and California and expanding its specialty distribution center in Alabama to increase capacity and enhance operational efficiency.

The company said the initiative will strengthen the resilience of its national network and improve access to medications for healthcare providers and patients across the United States. 

Cencora plans to open a second national distribution center in Harrison, Ohio by spring 2027. The 530,000-square-foot facility will feature automation technology, including robotic handling systems and artificial intelligence, to improve efficiency and reliability. The company also plans to open a new 430,000-square-foot distribution center in Fontana, California by fall 2026, nearly doubling the size of its current West Coast facility.

To meet rising demand for specialty pharmaceuticals, Cencora said it will expand its Dothan, Alabama distribution center by fall 2026. 

The project will reportedly increase refrigerated storage capacity by 500% and frozen storage capacity by 200%. Specialty products, which treat complex or rare conditions, are reportedly expected to represent 70% of new medicines launched through 2027, the company said.

Cencora currently operates a network of U.S. distribution centers that ship more than five million medications and healthcare products daily to healthcare providers.