Dec 10 Pharmacy chain CVS Caremark Corp
and pharmaceutical distributor Cardinal Health Inc said
on Tuesday they would form the largest U.S. generic drug
sourcing operation in a 10-year agreement to serve the world's
biggest market for generic drugs.
The 50-50 joint venture will be operational as soon as July
1, 2014. Under the agreement, Cardinal will pay CVS $25 million
on a quarterly basis for the duration of the contract, with an
estimated after-tax value of $435 million.
The U.S. market for medicines has seen a major shift toward
cheaper generic drugs following a wave of patent expiries in
recent years for major brand-name treatments and a growing
effort to lower costs throughout the healthcare system.