Will $1bn Cencora US Expansion Boost Specialty Drug Supply?

Cencora has announced a US$1bn investment in its US pharmaceutical distribution network, reinforcing its role in supporting healthcare providers through a combination of automation, cold chain expansion and strategic infrastructure.

With distribution at the heart of its operations, the company is rolling out a long-term plan to increase capacity, improve resilience and adapt to demand for specialised medicines.

Cencora will open a second national distribution centre in Ohio as a major component of the investment. Scheduled to be fully operational by spring 2027, the 530,000-square-foot facility marks a substantial increase in capacity and will introduce automation into the company’s core logistics processes.

The site will use AI, autonomous mobile robots and robotic handling systems, allowing more efficient order fulfilment and storage. By increasing throughput and overall capacity, the Ohio facility strengthens Cencora’s ability to meet demand from healthcare customers across the US. 

“Healthcare providers rely on us to provide efficient access to the medications their patients need," says Bob Mauch, President and CEO of Cencora, "and we’re able to deliver on that promise because of the robust distribution infrastructure and operations we’ve built through decades of investment.

“This investment underscores our commitment to and role in building a resilient pharmaceutical supply chain and in ensuring patients across the United States have timely and reliable access to prescribed medications, where and when they need them.”

Cencora’s expansion also reaches the West Coast, where it plans to open a new facility in Fontana, California. With 430,000 square feet of space, the centre will be nearly twice the size of the existing location. The building will be operational by autumn 2026 and is designed to include automated systems and digital tools that bring improvements to speed, accuracy and storage.

Together, the Ohio and California facilities add major scale and coverage to the company's national distribution network.

Meeting specialty pharmaceutical demand

Alongside traditional pharmaceuticals, specialty medicines are now central to Cencora’s strategy. These drugs are developed to treat complex, chronic or rare conditions, and their use continues to rise.

Data suggests that 70% of all new medicines introduced by 2027 will fall into the specialty category. Many of these require strict storage controls, particularly cold chain logistics, to maintain product integrity from warehouse to patient.

Cencora addresses this trend through the expansion of its Dothan, Alabama distribution centre. This site is one of three within the company’s network focused on specialty medicine handling.

The expansion, set to be completed by autumn 2026, increases refrigerated storage space by 500% and frozen storage by 200%. These upgrades will equip the company to store and manage a broader range of sensitive treatments, adding operational resilience and enabling support for wider patient populations.

“Specialty pharmaceuticals” refers to drugs that often need special handling or storage, such as refrigeration or freezing. They usually have strict temperature requirements and can be expensive or difficult to produce.

The growing complexity of these products puts pressure on logistics systems, particularly cold chain capabilities – a type of supply chain management focused on maintaining temperature-controlled environments throughout the shipping and handling process.

“We’re committed to delivering an industry-leading customer experience – and that starts with listening to our customers, anticipating their needs and making strategic investments to ensure we can provide the exceptional service they expect,” says Rich Tremonte, Executive Vice President and President, US Pharmaceuticals and Animal Health at Cencora.

“As demand continues to grow and more specialty pharmaceuticals reach the market, the investments we’re making today will strengthen our ability to support our customers’ current and future needs, enabling them to continue delivering high-quality patient care in their communities.”

Future-proofing operations

Through these infrastructure projects, Cencora has set out to future-proof its national distribution operations. This includes adapting to the shifting pharmaceutical landscape, where cold chain requirements are becoming more common.

Between 2013 and 2017, 37% of new pharmaceutical products required cold chain logistics. That figure is expected to increase to 50% by 2027, a trend Cencora is actively addressing through targeted investment in storage and automation.

Across the US, the company already distributes more than five million medications and healthcare products every day to tens of thousands of healthcare providers. With this expansion, Cencora strengthens its role in ensuring reliable, on-time access to treatments – even as demand rises and product types become more complex.

The combination of automation, increased square footage and improved cold chain capacity gives Cencora a supply network built to withstand disruption while remaining responsive to customers.

By embedding AI and robotic technologies into its infrastructure, the company enhances inventory accuracy and speeds up distribution workflows. These changes are designed to support a wider healthcare ecosystem facing growing patient numbers and rising demand for complex treatments.

With a US$1bn strategy in motion through to 2030, Cencora places distribution at the centre of its service offering, backing it with scale, technology and a clear focus on the medicines of the future.