ADVFN - Advanced Financial Network.
HOME» NYSE » C » CAH Stock Price » CAH Stock News

Cardinal Health Share News

 Cardinal Health, Inc. Stock Price
CAH Stock Price
 Cardinal Health, Inc. Stock Chart
CAH Stock Chart
 Cardinal Health, Inc. Stock News
CAH Stock News
 Cardinal Health, Inc. Company Information
CAH Company Information
 Cardinal Health, Inc. Stock Trades
CAH Stock Trades

Express Scripts Seeks Bids For Potential $20 Billion/Year Contract

By Jon Kamp Of DOW JONES NEWSWIRES Pharmacy-benefit manager Express Scripts Holding Co. (ESRX) is seeking proposals from drug distributors to handle business for itself and newly acquired Medco Health Solutions Inc. that could be worth about $20 billion in yearly sales. Distributor AmerisourceBergen Corp. (ABC) currently serves Medco while a competitor, Cardinal Health Inc. (CAH), serves Express Scripts. Either company could lose their current business, but could also gain more if they pick up a bigger contract for the now-larger Express Scripts. An Express Scripts spokesman declined to discuss potential contract terms, including how long it will last, but confirmed the company is seeking bids. Both Cardinal and AmerisourceBergen--which estimated the annual contract value during its earnings call Thursday--said they are competing for new business that would start Oct. 1. AmerisourceBergen also indicated there could be more than one new contract. Under this type of deal, the drug distributors provide medication to home-delivery pharmacies run by Express Scripts and Medco. For AmerisourceBergen, which received about 19% of sales and 5% of earnings from Medco in its last fiscal year, the potential business loss emerged as a threat after Express Scripts announced plans to purchase Medco last summer. Those companies wrapped up their deal in early April after a long antitrust regulatory review. J.P. Morgan analyst Lisa Gill estimated the Express Scripts business amounts to about 2% to 3% of Cardinal Health's per-share earnings. Winning additional business could be worth an added 2% for either Cardinal or AmerisourceBergen earnings, although this is a lower-margin business with an earnings impact that will likely decline over time as more lower-cost generic drugs are approved, Gill said. AmerisourceBergen disclosed that Express Scripts was seeking contract proposals in an earnings release Thursday. The company had a slight fiscal second-quarter earnings decline amid severance and acquisition costs, but met Wall Street expectations. The company also backed its full-year guidance. Still, uncertainty about the Medco business weighed on shares, which declined 2.3% to close at $36.97. AmerisourceBergen said its contract with Medco could end at the end of September this year, rather than running through March next year as originally planned. "Express Scripts has issued an RFP for the combined business, and anticipates that the new contract or contracts will begin on October 1, 2012," AmerisourceBergen said. "We will participate fully in the competitive RFP process, and it is our intent to pursue the opportunity to retain or grow the business under a new contract." Chief Executive Steven Collis said AmerisourceBergen "demonstrated flexibility" by agreeing to amend the current contract and end it early, so that Express Scripts can make distribution decisions for the full business. Hopefully that "put us in a good position throughout the contracting process," he said. -By Jon Kamp, Dow Jones Newswires; 617-654-6728; [email protected]

Stock News for Cardinal Health (CAH)
01/17/201716:22:50Statement of Changes in Beneficial Ownership (4)
01/17/201716:22:15Statement of Changes in Beneficial Ownership (4)
01/11/201716:26:43Initial Statement of Beneficial Ownership (3)
01/09/201714:09:00Cardinal Health Reaches Settlement With West Virginia
01/04/201708:30:00Cardinal Health to Webcast Discussion of Second-Quarter Results...
11/14/201608:26:24Statement of Changes in Beneficial Ownership (4)
11/07/201616:45:18Statement of Changes in Beneficial Ownership (4)
11/07/201608:27:19Current Report Filing (8-k)
11/07/201608:23:52Statement of Changes in Beneficial Ownership (4)
11/07/201608:23:24Statement of Changes in Beneficial Ownership (4)
11/07/201608:22:57Statement of Changes in Beneficial Ownership (4)
11/07/201608:22:22Statement of Changes in Beneficial Ownership (4)
11/07/201608:21:53Statement of Changes in Beneficial Ownership (4)
11/07/201608:21:53Statement of Changes in Beneficial Ownership (4)
11/07/201608:21:26Statement of Changes in Beneficial Ownership (4)
11/07/201608:21:26Statement of Changes in Beneficial Ownership (4)
11/07/201608:20:57Statement of Changes in Beneficial Ownership (4)
11/03/201616:29:27Post-effective Amendment to an S-8 Filing (s-8 Pos)
11/03/201616:24:17Securities Registration: Employee Benefit Plan (s-8)
11/03/201616:05:00Cardinal Health Announces Quarterly Dividend and Preliminary...

Cardinal Health and other New York Stock Exchange stock quotes are delayed by at least 20 minutes.
All other stock price data is delayed by at least 15 minutes unless otherwise stated.
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
Contact Us | Copyright 1999-2016 ADVFN PLC. | Privacy Policy | Investment Warning | Data accreditations | Investor Relations