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AmerisourceBergen lands pact with Express Scripts
July 31st, 2012
NEW YORK – AmerisourceBergen Corp. has entered a multiyear agreement to supply pharmaceuticals to Express Scripts Inc., which has opted to let its current distribution pact with Cardinal Health Inc. lapse.
AmerisourceBergen said Tuesday that under the three-year deal, it will supply about $18.5 billion in pharmaceuticals to Express Scripts annually. The contract with the pharmacy benefit manager (PBM) goes into effect on Oct. 1.
"We are honored that Express Scripts has chosen AmerisourceBergen to supply the brand pharmaceuticals it needs for its recently combined mail order and specialty pharmacy business," Steven Collis, president and chief executive officer of AmerisourceBergen, said in a statement.
According to AmerisourceBergen, the contract with Express Scripts is expected to contribute about 23% of the pharmaceutical distributor's revenue and about 3% of its earnings per share. AmerisourceBergen noted that the contract has no impact on its expectations for fiscal 2012 or on its preliminary guidance for fiscal 2013, which it issued last week.
Cardinal Health disclosed the upcoming expiration of its contract with Express Scripts in an 8-K filing Tuesday with the Securities and Exchange Commission.
"In connection with the combined pharmaceutical distribution request for proposal issued following its merger with Medco Health Solutions Inc., Express Scripts Inc. has informed Cardinal Health Inc. that it has decided not to renew its pharmaceutical distribution agreement with the company," Cardinal reported in the SEC filing.
Cardinal's agreement with Express Scripts is due to expire on Sept. 30. The distributor said in the filing that the pact has provided about $9 billion in annual revenue, all of which is classified as bulk sales.