McKesson, Cardinal Health and CencoraNarrow moat

AbbVie (ABBV) — moat facet

Three wholesalers owed AbbVie 84% of its receivables at the end of 2025.

AbbVie sells almost all of its American drugs to three companies. In 2025 McKesson Corporation, Cardinal Health and Cencora accounted for substantially all of its pharmaceutical product sales in the United States1. No individual wholesaler exceeded 43% of American gross revenues2, up from 39% in 20243.

Largest wholesaler, cap on share of US gross revenues (%)42%201837%202139%202339%202443%2025AbbVie Forms 10-K FY2018-FY2025; no single wholesaler exceeded this share
The ceiling on any one wholesaler rose in 2025.

The concentration shows most clearly in what they owe. The three wholesalers accounted for 84% of AbbVie's receivables at the end of 2025 and 81% a year earlier4. At the end of 2021 the figure was 75%5.

The wholesalers do not choose which drugs patients receive; they distribute what doctors prescribe and payers cover. But they are a single point of failure: AbbVie's risk factors note that if one of its significant wholesale distributors encounters financial or other difficulties, it may decrease the amount of business it does with AbbVie6.

Their fees are also part of AbbVie's cost. Wholesaler chargebacks were $17,710 million in 20257, the price differences AbbVie pays when wholesalers sell to contracted buyers at lower prices.

AbbVie's relationship with the wholesalers is contractual and fee-based. The wholesalers charge distribution fees and pass through chargebacks, and they hold inventory that AbbVie tracks to manage demand. The 10-K's disclosure that no single wholesaler exceeded 43% of American gross revenue8 is the only measure of how the three split the business.

This concentration is a feature of American pharmaceuticals, not of AbbVie alone. The receivables share is the number to watch; a rise above 90% would mean even more of AbbVie's cash depends on three counterparties paying on time.

Moat trajectory: Holding steady

Concentration rising slowly, as for the whole industry.

The number that tests this moat
Reported
Three wholesalers' share of receivables
84% (end-2025); 81% at end-2024

Dependence on three distributors paying on time; above 90% would concentrate the credit risk further.

Source: AbbVie Form 10-K, FY2025 ↗
References
  1. ReportedIn 2025 McKesson Corporation, Cardinal Health and Cencora accounted for substantially all of its pharmaceutical product sales in the United States.
    AbbVie Form 10-K for fiscal 2025 - Item 7 MD&A: net revenues by product and region, and rebates. — FY2025 · publ. 20 February 2026 · source ↗
  2. ReportedNo individual wholesaler exceeded 43% of American gross revenues, up from 39% in 2024.
    AbbVie Form 10-K for fiscal 2025 - Item 1 business: products, customers, competition and research. — FY2025 · publ. 20 February 2026 · source ↗
  3. ReportedNo individual wholesaler exceeded 43% of American gross revenues, up from 39% in 2024.
    AbbVie Form 10-K for fiscal 2024 - product revenue for 2022-2024, product concentration, the CEO succession and the emraclidine impairment. — FY2024 · publ. February 2025 · source ↗
  4. ReportedThe three wholesalers accounted for 84% of AbbVie's receivables at the end of 2025 and 81% a year earlier.
    AbbVie Form 10-K for fiscal 2025 - Item 1 business: products, customers, competition and research. — FY2025 · publ. 20 February 2026 · source ↗
  5. ReportedAt the end of 2021 the figure was 75%.
    AbbVie Form 10-K for fiscal 2021 - Humira's share of revenue in 2019-2021 and rebate provisions for 2019-2021. — FY2021 · publ. February 2022 · source ↗
  6. ReportedBut they are a single point of failure: AbbVie's risk factors note that if one of its significant wholesale distributors encounters financial or other difficulties, it may decrease the amount of business it does with AbbVie.
    AbbVie Form 10-K for fiscal 2025 - Item 1A risk factors, patents and exclusivity, government pricing and legal proceedings. — FY2025 · publ. 20 February 2026 · source ↗
  7. ReportedWholesaler chargebacks were $17,710 million in 2025, the price differences AbbVie pays when wholesalers sell to contracted buyers at lower prices.
    AbbVie Form 10-K for fiscal 2025 - Item 7 MD&A: net revenues by product and region, and rebates. — FY2025 · publ. 20 February 2026 · source ↗
  8. ReportedThe 10-K's disclosure that no single wholesaler exceeded 43% of American gross revenue is the only measure of how the three split the business.
    AbbVie Form 10-K for fiscal 2025 - Item 1 business: products, customers, competition and research. — FY2025 · publ. 20 February 2026 · source ↗
Sources
Generated September 25, 2026