U.S. drug wholesaler AmerisourceBergen Corp signed a three-year supply deal, worth $18.5 billion annually, with pharmacy benefit manager Express Scripts Holding Co, replacing rival Cardinal Health Inc .
Amerisource already had a supply contract with Medco Health Solutions, which was acquired by Express Scripts for $29.1 billion earlier this year.
The deal created a massive company with about a third of the pharmacy benefits market, and led industry analysts to wonder about the fate of Amerisource’s Medco contract and who would now get the Express Scripts’ contract.
The new contract, effective Oct. 1, is expected to contribute about 23 percent to Amerisource’s revenue and about 3 percent to its earnings per share.
In a regulatory filing, Cardinal Health said it was informed by Express Scripts that its distribution agreement, which contributed about $9 billion in annual revenue, will not be renewed.
Cardinal Health’s current agreement with Express Scripts will expire on Sept. 30.
via AmerisourceBergen replaces Cardinal Health as Express Scripts supplier | The Columbus Dispatch.