CVS Caremark, Cardinal create nation’s largest generic source
DUBLIN, Ohio and WOONSOCKET, R.I. – CVS Caremark and Cardinal Health have agreed on a 50-50 partnership to create the nation’s largest source of generic drugs, according to a Dec. 10 announcement. Both companies will contribute their sourcing and supply chain expertise to the joint venture and will source generic drugs through it. Over the 10-year term of the agreement, Cardinal Health will pay CVS Caremark $25 million each quarter, but neither company will contribute physical assets. “This venture is an extremely compelling combination where volume and efficiency matter,” said George Barrett, chairman and CEO of Cardinal Health, in the release. Both companies have a toe in the HME industry: Cardinal Health acquired AssuraMed earlier this year, and CVS Caremark bought Apria’s home infusion business, Coram, in November.