Cencora (COR) risk factors, FY2024 10-K

Business and Operational Risks

1. 01Our revenue, financial position, results of operations, and cash flows may suffer upon the loss, or renewal at less favorable terms, of a key customer or group purchasing organization
2. 02The anticipated ongoing strategic and financial benefits of our relationship with WBA may not be realized
3. 03The closing of the variable prepaid forward transactions concerning our common stock by WBA could adversely affect prevailing market prices of our common stock
4. 04A disruption in our distribution or generic purchasing services arrangements with WBA or WBAD could adversely affect our business and financial results
5. 05Our results of operations and financial position may be adversely affected if we acquire or invest in businesses that do not perform as we expect or that are difficult for us to integrate
6. 06Our business and results of operations may be adversely affected if we fail to manage and complete divestitures
7. 07We face geopolitical and other risks associated with our international operations, which could materially adversely impact our financial position, results of operations, and cash flows
8. 08We might be adversely impacted by fluctuations in foreign currency exchange rates
9. 09We are subject to operational and logistical risks that might not be covered by insurance
10. 10We are subject to industry risks that might not be covered by insurance nor indemnification obligations of our contracted parties
11. 11We might be unable to successfully recruit and retain qualified employees
12. 12The loss or disruption of information systems could disrupt our operations and have a material adverse effect on our business
13. 13not have a material impact on us, either individually or in the aggregate, similar incidents or events in the future may materially impact our business, reputation or financial results

Industry and Economic Risks

1. 14Our results of operations could be adversely impacted by manufacturer pricing changes
2. 15Competition and industry consolidation may erode our profit
3. 16Our revenue and results of operations may suffer upon the bankruptcy, insolvency, or other credit failure of a significant customer
4. 17Our results of operations may suffer upon the bankruptcy, insolvency, or other credit failure of a significant supplier
5. 18Our stock price and our ability to access credit markets may be adversely affected by financial market volatility and disruption or a downgrade in our credit ratings
6. 19Declining economic conditions could adversely affect our results of operations and financial position
7. 20Increasing governmental efforts to regulate the pharmaceutical supply chain may increase our costs and reduce our profitability
8. 21Additionally, in 2024, the FTC issued a request for information to industry stakeholders to review the cause of and potential solutions to drug shortages. Responses were received from many stakeholders but no further action has been taken
9. 22Legal, regulatory, and legislative changes with respect to reimbursement, pricing, and contracting may adversely affect our business and results of operations, including through declining reimbursement rates
10. 23If we fail to comply with laws and regulations in respect of healthcare fraud and abuse, we could suffer penalties or be required to make significant changes to our operations
11. 24Our business, results of operations, and cash flows could be adversely affected by legal proceedings
12. 25Opioid-related legal proceedings and the Distributor Settlement Agreement that we have entered into could adversely impact our cash flows or results of operations
13. 26Public concern over the abuse of opioid medications, including increased legal and regulatory action, could negatively affect our business
14. 27Tax legislation or challenges to our tax positions could adversely affect our results of operations and financial position
15. 28Violations of anti-bribery, anti-corruption, and/or international trade laws that we are subject to could have a material adverse effect on our business, financial position, and results of operations
16. 29Our actual or perceived failure to adequately protect personal data could result in claims of liability against us, damage our reputation or otherwise materially harm our business
17. 30our third-party business partners, such as identity verification and payment processing providers, also regularly have access to customer data. Additionally, we maintain other confidential, proprietary, or otherwise sensitive information relating to our business and from third parties

Other Risks

1. 31Our third-party business partners are vulnerable to cybersecurity risks, and any cyber incident affecting our third-party business partners could significantly disrupt our operations
2. 32Our failure to protect our reputation could have a material adverse effect on our business and operations
3. 33Our intellectual property rights may not provide meaningful commercial protection for our services, solutions, or brands
4. 34We are adversely impacted by events outside of our control, such as widespread public health issues, natural disasters, government policy changes, and political events
5. 35Our goodwill or long-lived assets may become impaired, which may require us to record a significant charge to earnings in accordance with generally accepted accounting principles
6. 36Exclusive forum provisions in our amended and restated bylaws ("Bylaws") could limit our stockholders’ ability to choose their preferred judicial forum for disputes with us or our directors, officers, or employees