Pharmacy chain CVS Caremark Corp and pharmaceutical distributor Cardinal Health Inc said on Tuesday they would form the largest U.S. generic drug sourcing operation in a 10-year agreement to serve the world's biggest market for generic drugs. The 50-50 joint venture will be operational as soon as July 1, 2014. Under the agreement, Cardinal will pay CVS $25 million on a quarterly basis for the duration of the contract, with an estimated after-tax value of $435 million.
Cardinal Health, Inc. is a healthcare services company providing products and services that help pharmacies, hospitals, surgery centers, physician offices and other healthcare providers. Shares of CAH traded higher by 3.92% or $2.52/share to $66.79. In the past year, the shares have traded as low as $40.49 and as high as $65.45. On average, 2940280 shares of CAH exchange hands on a given day and today's volume is recorded at 3715533.
CVS Caremark Corporation (CVS Caremark), together with its subsidiaries, is a pharmacy health care provider in the United States. Shares of CVS traded higher by 1.08% or $0.72/share to $67.45. In the past year, the shares have traded as low as $47.35 and as high as $67.64. On average, 5625820 shares of CVS exchange hands on a given day and today's volume is recorded at 4720522.
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