Bergen Brunswig Announces Contract Expansion with CVS ProCare Pharmacy
Under terms of the contract amendment, which is expected to generate $150 million in incremental new business the first year and to exceed $1.6 billion over the life on the contract, Bergen will provide pharmaceuticals to ProCare's retail apothecary business. Bergen currently supplies pharmaceuticals to ProCare's mail service pharmacy.
"We are excited that ProCare has chosen to expand their relationship with Bergen to become their primary provider to all of their facilities, including retail and mail order," said David Neu, president, BBDC Retail.
This partnership commenced in September when, as part of ProCare's purchase of Stadtlander, Bergen agreed to provide pharmaceuticals to both ProCare and Stadtlander.
"The way in which Bergen handled the transition of Stadtlander to ProCare exceeded our expectations and we look forward to continuing our relationship," said Dennis Burton, president of CVS ProCare.
ProCare will also take advantage of Bergen's high valued and successful programs, including Generic Purchasing Program (GPP) and Interlinx™ reporting.
CVS ProCare, a division of CVS Corporation, was created to support complex and expensive drug therapies for conditions such as HIV/AIDS, cancer, organ and bone marrow transplant and other disease states requiring biotechnology-based drugs. CVS ProCare currently operates two mail service pharmacies and 46 ProCare apothecaries in urban areas across the nation.
Bergen Brunswig Corporation, headquartered in Orange County, California, is a leading supplier of pharmaceuticals and specialty healthcare products, as well as information management solutions and consulting services. Bergen's customers include the nation's healthcare providers (hospitals, nursing homes and physicians), drug stores, manufacturers and patients. Through its subsidiaries, Bergen provides product distribution; logistics; pharmacy management programs; and Internet fulfillment strategies designed to reduce costs and improve patient outcomes across the entire healthcare spectrum.
Except for historical information, all other information set forth in this press release, such as earnings forecasts and earnings rate projections, consists of "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These "forward-looking statements" are subject to risks, uncertainties and other factors which could cause actual results to differ materially from those projected or implied. Such statements may be identified by the use of forward-looking language such as "may," "will," "should," "expect," "anticipate," "estimate," "believe," "think, "continue" or the negatives or other variations thereof or other similar terminology. Such risks and uncertainties include the risks described in exhibit 99(a) to the Company's Annual Report on Form 10-K for the year ended September 30, 2000 and in other reports and exhibits filed with the Securities and Exchange Commission. These risks and uncertainties include, but are not limited to, the costs and difficulties related to the integration of acquired businesses, the loss or disruption of one or more key customer or supplier relationships, changes in the distribution outsourcing pattern for pharmaceutical products and/or services, the ability to obtain general financing or financing rates that would be compatible with the Company's business operations, and the costs and other effects of governmental regulation and legal and administrative proceedings. The Company assumes no obligation to update the information in the release.
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