SubscribeLoginCustomer Service


ADVANCED SEARCH
Log In
Home
Blog
Free Issue
Webcasts
Research
Databank
Current Issue
Archives
HOME
ABOUT MDM
CONTACT US
CUSTOMER SERVICE
Copyright © 2009
Gale Media, Inc.
All Rights Reserved.
E-Mail This Article
Printer-Friendly Version
Untitled Document

Stay On Top of Distribution News
Enter your email address below to receive our FREE weekly email, MDM Advisor, with industry news, trends and analysis for wholesale distribution executives.


We promise never to share your email with any third party.

October 9, 2007

McKesson to Acquire Specialty Drug Distributor

McKesson Corporation, San Francisco, CA, has agreed to buy Oncology Therapeutics Network, a U.S. distributor of specialty pharmaceuticals, for $575 million.

According to Pembroke Consulting's Adam Fein, OTN owns Onmark, a large buying group for thousands of small accounts. He says in his Distribution Trends blog: "Such forward integration makes it virtually impossible for a manufacturer to bypass and sell directly to the customer, because the distributor and the customer are the same company." The customers of OTN will continue to operate as separate businesses.
 
Sales of specialty drugs are increasing rapidly, especially oncology drugs. OTN serves more than 3,500 oncologists, 1,500 rheumatologists and other providers. Its annualized revenues are $3 billion. McKesson plans to combine the operations of OTN with the operations of McKesson Specialty, which is reported in the McKesson Distributions Solutions segment.
 
“The integration of these two businesses will enhance our position in one of the fastest-growing categories of drugs in the U.S.,” said CEO John H. Hammergren.
 
Between 2006 and 2010, sales of oncology drugs are forecast by IMS Health to increase from $30 billion to $60 billion.

More Breaking News
MDM News RSS Subscribe | What is RSS?


  • Case study: RockySoft report: Six Steps to Effective Inventory Management
  • IDEA E-Biz Forum ’09 – Buy 2 Get 1 Free and Save $100 till June 30th – Register Today!
  • Free Study: Proven Techniques -- Growth Through Point-Of-Use Vending
  • Infor whitepaper - Standing Up to a Down Economy
  • Webcast - "No-Excuses" Selling in a Recession: Why It's a Huge Opportunity and How You Can Benefit

    • HOME PRIVACY COPYRIGHT SUBSCRIBE

    GALE MEDIA OUR PRODUCTS ADVERTISING