Three-Way Contest: Prize Is $30 Billion Veterans Drug Contract
Bloomberg: McKesson In Three-Way Contest For $30 Billion U.S. Veterans Drug Contract
McKesson Corp. (MCK) is in a contest with Cardinal Health Inc. (CAH) and AmerisourceBergen Corp. (ABC) for a U.S. Department of Veterans Affairs drug distributor contract worth as much as $32 billion. ... McKesson has been the sole medicine supplier for veterans' hospitals and the department's mail-order pharmacy since 2004. The new contract, which the VA plans to award by January, will determine whether the San Francisco company keeps all or part of the work, valued at about 2 percent to 4 percent of McKesson's current earnings, according to Lisa Gill, a New York-based analyst with J.P. Morgan Securities LLC (Miller, 11/25).