- Cardinal Health (CAH +4.1%) and CVS Caremark (CVS +1.9%) are teaming up to create the country's largest generic sourcing entity.
- Ultimately, this is a joint venture that combines and leverages the companies' supply chain management capabilities in order to negotiate generic supply deals.
- No physical assets are being contributed by either side and the initial term of the arrangement is 10 years.
- CAH will make quarterly payments of $25M to CVS over the life on the arrangement in order to "reflect an equitable 50/50 JV."
- The companies have also inked a three-year extension of their pharma distribution agreements. (PR)
Cardinal Health, CVS team up for generic sourcing entity
Dec 10 2013, 11:16 ET