Pact will make giant institutional pharmacy firm
Two health care giants have agreed to spin off their institutional pharmacy businesses into a publicly traded company, according to The Wall Street Journal
The spinoff of units of the Chesterbrook, Penn.-based Kindred Healthcare Inc.
will form the second largest company in the institutional pharmacy market. The units distribute and prepare patient medications for hospitals, hospices and nursing homes.
No decisions have been made yet on the new corporation’s name, its leadership or the location of the new headquarters. The deal won’t become final until early next year.
The new company would report sales of $1.9 billion through 41 states and some 330,000 patient beds. AmerisourceBergen's unit is the larger of the two, with about twice the revenue as Kindred's unit.
“There are some important trends in health care and efficiency,” Kindred Chief Executive Paul J. Diaz said in a prepared statement. “Everyone is looking for the lowest-cost provider and ways to reduce medical errors. This allows us to get scale and bring technology to bear” to solve those problems.
The move follows the acquisition of Covington, Ky.-based Omnicare Inc. and its former rival NeighborCare, which created the leader in the institutional pharmacy business (which kept the Omnicare name.)
“Our customers have ideas for automation and packaging that this new scale will allow us to bring them,” AmerisourceBergen Chief Executive David Yost said.
According to The List
database, Richardson, Texas-based OnMessage handles some marketing services for AmerisourceBergen. Wilmington, Del.-based Eureka has also handled some design and creative work for AmerisourceBergen. Ventura, Calif.-based InterFUEL handles some interactive work for Kindred.
Branding agencies should start approaching executives immediately about this merger. We’d expect executives at Amerisource Bergen to take the lead since that unit touts twice as many sales as Kindred. However, these details are usually worked out at this stage, so the lack of definitive plans may suggest some behind the scenes wrangling over who’s going to be in charge. Might be best to cast a wide net and make sure your agency’s in the mix when the branding decisions need to be made.
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