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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