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Drug Distributor Earnings: McKesson and AmerisourceBergen

Two drug distributors announced increased revenues for their quarters ending June 30, 2008.
 
San Francisco, CA-based McKesson Corp. reported first-quarter revenues of $26.7 billion, an increase of 9% over the same period a year ago. Profit remained stable at $235 million.
 
In the Distribution Solutions segment, U.S. pharmaceutical revenues increased 16% while warehouse sales declined 8% for the quarter. Canadian revenues were up 27%, primarily due to new and expanded distribution contracts and a favorable currency impact of 10%. Medical-Surgical distribution revenues were up 6% for the quarter.
 
Technology Solutions had a revenue increase of 2% for the quarter.
 
AmerisourceBergen, Valley Forge, PA, announced revenue for third quarter 2008 ...

Two drug distributors announced increased revenues for their quarters ending June 30, 2008.
 
San Francisco, CA-based McKesson Corp. reported first-quarter revenues of $26.7 billion, an increase of 9% over the same period a year ago. Profit remained stable at $235 million.
 
In the Distribution Solutions segment, U.S. pharmaceutical revenues increased 16% while warehouse sales declined 8% for the quarter. Canadian revenues were up 27%, primarily due to new and expanded distribution contracts and a favorable currency impact of 10%. Medical-Surgical distribution revenues were up 6% for the quarter.
 
Technology Solutions had a revenue increase of 2% for the quarter.
 
AmerisourceBergen, Valley Forge, PA, announced revenue for third quarter 2008 increased 10 percent over the prior year to $18 billion. The company reported a loss of $108 million, a result of poor performance from the PMSI workers’compensation business. AmerisourceBergen has agreed to sell the unit to H.I.G. Capital, LLC, for $40 million plus a contingency payment of up to $10 million.
 
Income from continuing operations, excluding the discontinued PMSI operations, declined 10% from the same period 2007 to $112.8 million.
 
Revenue for the first nine months totaled $53 billion, an increase of 7% over the same period a year ago. Profit was $135.7 million, a decrease of 64.5%.
 
We were very disappointed with PMSI’s performance in this quarter, and after re-evaluating our alternatives, we decided to sell the PMSI workers’ compensation business in order to focus our full attention on our pharmaceutical distribution and related businesses and allow H.I.G. to focus on the opportunities at PMSI,” CEO David Yost said.

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