FILE PHOTO: U.S. dollar banknotes and medicines are seen in this illustration taken, June 27, 2024. REUTERS/Dado Ruvic/Illustration//File Photo

(Reuters) -Cencora will invest over $1 billion through 2030 to expand its U.S. network, the drug distributor said on Wednesday, after forecasting adjusted profit for next year above Wall Street expectations.

The company said it will build a second national distribution center in Harrison, Ohio, and new or enlarged sites in California and Alabama.

The investment aligns with the Trump administration’s push to boost domestic pharmaceutical manufacturing and distribution, aiming to reduce foreign reliance and strengthen the U.S. supply chain for critical medicines.

The 530,000-square-foot Ohio hub, slated to be fully operational by spring 2027, will add storage and throughput and feature advanced automation, the company said.

Cencora also plans a 430,000-square-foot distribution center in Fontana, California, nearly double the size of its current site there, targeted to open by fall 2026.

Earlier in the day, the Philadelphia-based Cencora said it expects 2026 adjusted profit per share between $17.45 and $17.75. Analysts had expected a profit of $17.5 per share, according to data compiled by LSEG.

The strong forecast illustrates how Cencora and its peers such as Cardinal Health are riding surging U.S. demand for high-margin specialty medicines to treat complex conditions such as cancer and rheumatoid arthritis.

Sales at Cencora's U.S. Healthcare Solutions unit, its biggest revenue driver, jumped 5.7% to $75.79 billion in the quarter ended September 30, buoyed by strong prescription volumes of GLP-1 class weight loss and diabetes drugs, as well as higher sales of specialty medicines.

Cencora reported fourth-quarter profit of $3.84 per share on an adjusted basis, beating analysts' estimates of $3.79 per share.

Total sales were $83.73 billion during the quarter, above estimates of $83.46 billion.

(Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Sahal Muhammed)