Omnicare and McKesson Expand Distribution Agreement
November 24 2014 - 8:30AM
Business Wire
Expanded relationship to drive greater
pharmaceutical sourcing efficiencies for both companies
- Leverages the strength of Omnicare as
the nation’s largest institutional pharmacy and a leading specialty
pharmaceutical services provider and McKesson as a global leader in
pharmaceutical sourcing and supply chain management
- McKesson to assume responsibility for
the sourcing and distribution of generic pharmaceuticals for
Omnicare as part of McKesson’s proprietary OneStop® generics
program
- Expanded distribution relationship to
provide Omnicare with incremental procurement savings for generic
pharmaceutical products
- Expanded distribution agreement extends
through December 2019
Omnicare Inc. (NYSE:OCR) and McKesson Corporation (NYSE:MCK)
announced the signing of an expanded agreement to include the
sourcing and distribution of branded, specialty and generic
pharmaceuticals. The new five year agreement, which extends through
December 2019, creates efficiencies for both companies by
leveraging the strength of Omnicare as the nation’s largest
institutional pharmacy and a leading specialty pharmaceutical
services provider and McKesson as a global leader in pharmaceutical
sourcing and supply chain management.
For over ten years, Omnicare has partnered with McKesson for the
distribution of branded pharmaceuticals. As part of the expanded
agreement, McKesson will now also assume responsibility for the
sourcing and distribution of generic pharmaceuticals for Omnicare
as part of McKesson’s proprietary OneStop® generics program.
“Following a thorough review of our strategic sourcing
alternatives, we determined an expanded partnership with McKesson
provided the best pathway for our company amid the rapidly evolving
pharmaceutical supply chain,” said Nitin Sahney, Omnicare’s
president and chief executive officer. “By leveraging McKesson’s
sourcing and distribution expertise across our significant scale,
we are better positioned to optimize our core competency of
providing high-quality complex patient care.”
“Omnicare has been a valued customer to McKesson for more than a
decade, and I am very pleased with the expansion of our
relationship,” said John H. Hammergren, chairman and chief
executive officer, McKesson Corporation. “I am extremely proud of
our proven global sourcing expertise, industry-leading service
levels and strong operational excellence, and I appreciate the
opportunity to deliver additional value for Omnicare through this
expanded relationship.”
Omnicare noted that it believes the benefits of its new sourcing
strategy will be a key driver in enabling it to generate a low
double-digit adjusted cash EPS growth rate in 2015.
“We have made steady progress executing our multi-layered growth
strategy, and are well positioned to continue generating favorable
results for our shareholders,” concluded Mr. Sahney.
About Omnicare
Omnicare, Inc., a Fortune 500 company based in Cincinnati, Ohio,
provides comprehensive pharmaceutical services to patients and
providers across the United States. As the market-leader in
professional pharmacy, related consulting and data management
services for skilled nursing, assisted living and other chronic
care institutions, Omnicare leverages its unparalleled clinical
insight into the geriatric market along with some of the industry's
most innovative technological capabilities to the benefit of its
long-term care customers. Omnicare also provides specialty pharmacy
and key commercialization services for the bio-pharmaceutical
industry through its Specialty Care Group. For more information,
visit www.omnicare.com
About McKesson
McKesson Corporation, currently ranked 15th on the FORTUNE 500,
is a healthcare services and information technology company
dedicated to making the business of healthcare run better. We
partner with payers, hospitals, physician offices, pharmacies,
pharmaceutical companies and others across the spectrum of care to
build healthier organizations that deliver better care to patients
in every setting. McKesson helps its customers improve their
financial, operational, and clinical performance with solutions
that include pharmaceutical and medical-surgical supply management,
healthcare information technology, and business and clinical
services. For more information, visit http://www.mckesson.com.
Risk Factors
Except for historical information contained in this press
release, matters discussed may constitute “forward-looking
statements” within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, as amended, that involve risks and
uncertainties that could cause actual results to differ materially
from those projected, anticipated or implied. These statements may
be identified by their use of forward-looking terminology such as
“believes”, “expects”, “anticipates”, “may”, “will”, “should”,
“seeks”, “approximately”, “intends”, “plans”, “estimates” or the
negative of these words or other comparable terminology. The
discussion of financial trends, strategy, plans or intentions may
also include forward-looking statements. It is not possible to
predict or identify all such risks and uncertainties; however, the
most significant of these risks and uncertainties are described in
the Form 10-K, Form 10-Q and Form 8-K reports filed by Omnicare
Inc. and McKesson Corporation with the Securities and Exchange
Commission and include, but are not limited to, achievement of the
anticipated operational and financial benefits from the expanded
distribution agreement that was announced by both companies today.
The reader should not place undue reliance on forward-looking
statements, which speak only as of the date they are first made.
Except to the extent required by law, neither Omnicare Inc. nor
McKesson undertakes any obligation to publicly release the result
of any revisions to these forward-looking statements to reflect
events or circumstances after the date hereof, or to reflect the
occurrence of unanticipated events.
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Omnicare, Inc.Patrick C. Lee,
513-719-1507patrick.lee@omnicare.comorMcKesson
CorporationErin Lampert, 415-983-8391 (Investors and Financial
Media)Erin.Lampert@mckesson.comorKris Fortner, 415-983-8352
(General and Business Media)Kris.Fortner@mckesson.com
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