AmerisourceBergen (NYSE:ABC) is about to finally complete its long awaited acquisition of MWI Veterinary Supply (NASDAQ:MWIV), prompting many analysts to re-evaluate its future potential. The Chesterbrook, Pennsylvania, based distributor of drugs and health supplies is one of the top three wholesale drug distribution companies in the country and along with Cardinal Health (NYSE:CAH) and McKesson Corp (NYSE:MCK), generates 85 – 90% of all revenue in the sector.

The pending acquisition of MWI Veterinary Supply will add approximately $0.08 per share in earnings and has put AmerisourceBergen, Chester County’s only Fortune 500 company, onto every investor’s radar, a place it should have been for a while now. The company has been experiencing a period of stable growth for well over a year and is far outperforming the S&P 500, with the share price up 77% over the last 52 weeks. So far this year, the share price has already increased 26.2% without showing any signs of slowing down.

The key to its most recent growth is biosimilars. A biosimilar is a biologic product that is able to gain approval based on its direct correlation to an already existing product, known as the reference product. Development of this kind of “mirror” drug has been popular in Europe for a while, and is now getting a defined regulatory approval pathway in the U.S. The first of this type of product gained approval here last month, and AmerisourceBergen is well positioned to produce its own, to compete with original biologics for a share of the existing $65 billion biologic market.

AmerisourceBergen has other arrows in its quiver as well. One of which is its 10-year contract with Walgreens Boots Alliance (NASDAQ:WBA), to provide branded and generic drug products. The agreement still has over seven years to run, and has been a sold source of revenue so far. Another key growth element is its integrated distribution network of 26 U.S. pharmaceutical centers, 4 U.S. specialty centers and 2 Canadian hubs that gives it effective supply chain efficiency.

While AmerisourceBergen is not the cheapest investment alternative, with a share price of $111.85, its conservative projected annual growth rate of 11% makes it worth serious consideration. If the biosimilar market takes off as expected, then those projections will go out of the window and it is impossible yet to predict, how much higher the actual results could be.

Read the full analysis on Seeking Alpha here.