Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:
Summary: Cardinal Health, the second largest U.S. drug distributor by revenue, announced plans to sell its manufacturing/packaging unit and focus on hospital and pharmacy customers. Proceeds from the manufacturing unit, which generates $1.8 billion in annual revenue, will be used to buy back up to $3 billion in company stock. The manufacturing unit employs about 10,000 at more than 30 worldwide sites. Earlier in the month Cardinal sold its healthcare marketing services business to a private equity firm. Cardinal stock rose 4.5% on news of the planned sale and buyback program and Deutsche Bank upgraded the stock, stating the manufacturing unit "has been a drag on the company's overall performance."
Related links: Media coverage: WSJ, Reuters. Commentary: Multiple Symptoms of Excessive Pay at Cardinal Health, Jim Cramer's take on Cardinal Health
Potentially impacted stocks and ETFs: Cardinal Health (NYSE:CAH) • Competitors: AmerisourceBergen (NYSE:ABC), McKesson (NYSE:MCK)
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