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News Breaks | | | | March 19, 2013 | | 11:56 EDT |  | CAH, WAG, ABC | Cardinal Health sinks after announcing loss of Walgreen business
Cardinal Health (CAH) is tumbling after the company announced that it would lose its drug procurement business with Walgreen (WAG). The drug store chain, which had previously obtained its branded drugs from Cardinal, will not renew its contract with Cardinal when their deal expires in August, Cardinal reported. Instead, Walgreen will obtain drugs from AmerisourceBergen (ABC), Walgreen announced. As part of a 10 year deal with AmerisourceBergen, Walgreen will receive the right to buy a stake of up to 23% in that company, Walgreen added. Cardinal's sales to Walgreen accounted for about 21% of its revenues in fiscal 2012, Cardinal noted. Cardinal, which said that it would not lose Walgreen as a customer until fiscal 2014, expects its fiscal 2014 earnings per share to be "at least similar" to the level in fiscal 2013. In a note to investors today, Lazard Capital analyst Tom Gallucci responded to the news by downgrading Cardinal Health to Neutral from Buy. The loss of Walgreen's business to a competitor could weigh on Cardinal's shares in the near to intermediate term, the analyst believes. Cardinal will lose at least 30c of earnings per share as a result of Walgreen's decision, but should be able to lessen the impact to the bottom line over time through cost cutting, added Gallucci. In late morning trading, Cardinal Health sank $3.10, or 6.7%, to $43, while AmeriSourceBergen jumped 7%, or $3.30, to $51.60 and Walgreen rose 5.47% to $44.75. | |
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News For CAH;ABC;WAG From The Last 14 Days Check below for free stories on CAH;ABC;WAG the last two weeks. |
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| May 20, 2013 | | 15:52 EDT |  | WAG | Walgreen downgraded to Market Perform from Outperform at Barrington
 Subscribe for More Information | | | May 17, 2013 | | 12:33 EDT | | ABC, WAG | AmerisourceBergen receives approval of Walgreens, Alliance Boots investment
AmerisourceBergen (ABC) announced that the parties have received regulatory approval of the previously disclosed agreement for Walgreen (WAG) and Alliance Boots GmbH to purchase an equity stake in the company. AmerisourceBergen continues to expect the new agreements to contribute an incremental $25B in revenues and approximately 20c in earnings per share in FY14, excluding the amortization of certain expenses related to the transaction and the warrants issued, certain non-recurring costs and a potential LIFO charge, and net of certain start up expenses. In addition, the company reiterated its expectations for financial performance for fiscal year 2013, which includes expected revenue growth in the 11%-13% range, and diluted earnings per share from continuing operations in the lower half of the range of $3.04 to $3.14, excluding certain expenses related to the relationship with Walgreens and Alliance Boots and the warrants issued, and the expected LIFO charge from onboarding of additional branded inventory. | | | May 14, 2013 | | 07:18 EDT |  | ABC, CAH | BofA/Merrill to host a conference
2013 Health Care Conference is being held in Las Vegas on May 14-16. | | | May 13, 2013 | | 08:32 EDT | | WAG | Walgreens extends CVS Caremark network provider agreement
Subscribe for More Information | | | 08:05 EDT | | ABC | Frazier Healthcare acquires AnderesonBrecon from AmerisourceBergen
Subscribe for More Information | | | 07:32 EDT | | ABC | AmerisourceBergen says divestiture of AndersonBrecon has no impact on guidance
Subscribe for More Information | | | 06:42 EDT | | CAH | Cardinal Health management to meet with ISI Group
Meetings to be held May 13-14 hosted by ISI Group. | |
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