Some Drug Wholesalers Fall Ill From Pharma Consolidation
Drug wholesaler stock prices took a tumble last week. As the Wall Street Journal article noted:
- “[S]ome believe that the wholesalers, who are paid by the manufacturers to package and distribute products, will have less leverage when drawing up contracts with the large pharmaceutical companies.”
- “Worries about a default by retailer Rite Aid Corp. -- it was included on a list published by Moody's Investors Service highlighting companies considered likely to default on their debt -- pressured shares of McKesson.”
Astute readers will realize that I have not commented publicly on the dynamics behind the unexpectedly unresolved CVS Caremark (CVS) rebid. Last September's Wholesaler Impact of a Longs Drug Deal has some general background for the curious.