Leading distributor of pharmaceutical and medical supplies,
Cardinal Health, Inc.
) recently revealed that it has inked a fresh agreement to
provide pharmaceutical products to a chain of distribution
facilities and retail pharmacies of
CVS Caremark Corporation
) till the middle of 2016. The distribution facilities and stores
to be served under the latest agreement remain similar to those
served under the previous setup.
According to the company, CVS Caremark is a long standing and
important partner. Cardinal Health plans to engage with CVS
Caremark to generate value in a dynamic health care
Cardinal Health is ranked among the Fortune 500 companies.
With about $100 billion in annual sales, the company remains one
of the largest distributors of pharmaceuticals and medical
supplies in the U.S. with a diversified product portfolio, which
may partly insulate it from economic fluctuations.
Cardinal Health stands to gain from the gradual shift in mix
from bulk to the higher margin non-bulk sector of the
Pharmaceutical segment. Its mainstay Pharmaceutical segment is
heavily influenced by the generic wave. Overall, Cardinal Health
is benefiting from a spate of tuck-in acquisitions and capital
deployment strategies. The company continues to deploy capital to
boost investor confidence via share repurchases and dividend
hikes. However, Cardinal Health faces tough competition across
all its business segments, which may continue to pressure pricing
Cardinal Health currently carries a Zacks Rank #3 (Hold).
Rite Aid Corporation
GNC Holdings Inc.
) both carry a Zacks Rank #2 (Buy) and are expected to do
CARDINAL HEALTH (CAH): Free Stock Analysis
CVS CAREMARK CP (CVS): Free Stock Analysis
GNC HOLDINGS (GNC): Free Stock Analysis
RITE AID CORP (RAD): Free Stock Analysis
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