The merger of AmeriSource Health Corporation and Bergen Brunswig Corporation formed Amerisource Bergen Corporation, the largest pharmaceutical wholesaler in the US. The merger combined AmeriSource's focus on drug distribution with Bergen's pharmaceutical distribution, pharmacy, and healthcare services to create synergies around supply chain efficiencies. Key goals of increased market share, cost reductions, and improved profits were achieved through streamlining operations, upgrading technology systems, and gaining purchasing power. The resulting company continues to be a leader in the pharmaceutical supply chain industry.
This document provides an overview of AmerisourceBergen's Investor Day presentation on December 11, 2008. It begins with forward-looking statements and risk factors. The agenda then outlines speakers and topics to be covered, including ABC's distribution and related services, generics, specialty distribution, health policy, packaging, and financial review. Key points are that ABC aims to be resilient through its diversification across drug distribution and services, focus on specialty drugs and generics, and investments in business transformation. It provides an update on FY2008 financial results and the current pharmaceutical market environment of slower but continued growth.
mckesson Annual Report and Letter to Stockholders 2008finance2
McKesson delivered strong financial results in fiscal year 2008, with revenues reaching over $101 billion. The company continued its track record of superior stockholder returns through strategic acquisitions that expanded its service offerings and customer base. McKesson provides a wide range of solutions to customers across the healthcare industry, including distribution services, medical supplies, clinical software, and pharmacy management tools. It aims to help all participants in healthcare succeed through innovative solutions and long-term partnerships.
This document discusses managed services and how ARAMARK provides value through various services. It highlights:
1) ARAMARK is a leading provider of food, facilities, and uniform services to business, education, healthcare, government, and sports/entertainment clients. It generates strong cash flow and returns capital to shareholders.
2) ARAMARK adds value for clients by improving customer satisfaction, outcomes important to clients, and cost efficiencies. It has opportunities for growth through additional client penetration, higher usage at existing clients, new services, and international expansion.
3) ARAMARK maintains financial discipline and targets long-term organic growth, margin expansion, and EPS growth to drive shareholder returns.
This document discusses managed services and how ARAMARK provides value as a managed services leader. It highlights ARAMARK's financial performance, growth opportunities, and operating model. The key points are:
1) ARAMARK is a leading provider of food, facilities, and uniform services to various clients. It has a diverse client base and international presence.
2) ARAMARK adds value for clients by improving customer satisfaction, outcomes important to clients, and cost efficiencies. It also has opportunities for growth through additional client penetration, service expansion, and international growth.
3) ARAMARK has a disciplined operating model and financial targets, including 6-8% organic growth and 12-14% EPS
This document summarizes a Cardinal Health investor presentation from June 17, 2016 in Dublin. The presentation included introductory comments from the Chairman and CEO George Barrett. It also featured overviews of initiatives in the Medical segment from CEO Don Casey and of the post-acute care management company naviHealth from CEO Clay Richards. The agenda allowed for question and answer sessions with leaders of both the Medical and Pharmaceutical segments as well as the CFO.
cardinal health Conference Call Presentationfinance2
Cardinal Health presented information on its planned spin-off of its clinical and medical products businesses into a separate company. It discussed the rationale for the separation, including allowing each business to focus on its strategic goals and access capital. It outlined key steps and milestones to completing the spin-off. Cardinal Health also presented overviews of the businesses that would comprise each company after the separation and their leadership teams, capital structures, and growth opportunities.
35th Annual J.P. Morgan Healthcare Conference PresentationCardinal_Health
George S. Barrett, Chairman and CEO of Cardinal Health, gave a presentation at the 35th Annual J.P. Morgan Healthcare Conference on January 9, 2017. In the presentation, Barrett discussed how Cardinal Health is changing healthcare by bringing scaled solutions to help customers navigate a complex industry. He outlined key trends shaping the next five years in healthcare and how Cardinal Health is positioned for growth and success through strategic priorities that align with these trends. Barrett also reviewed Cardinal Health's financial performance and goals over the past five years.
This document discusses Quality Systems, Inc. and its subsidiary NextGen Healthcare Information Systems. It provides an overview of the company's business, markets served, products, growth strategy, financial performance, management team, and competitive advantages in the healthcare information technology industry. Key points include Quality Systems' focus on developing practice management and electronic health record software, its track record of strong revenue and earnings growth, experienced management team, and positioning to benefit from positive industry trends driven by government initiatives.
This document provides an overview of AmerisourceBergen's Investor Day presentation on December 11, 2008. It begins with forward-looking statements and risk factors. The agenda then outlines speakers and topics to be covered, including ABC's distribution and related services, generics, specialty distribution, health policy, packaging, and financial review. Key points are that ABC aims to be resilient through its diversification across drug distribution and services, focus on specialty drugs and generics, and investments in business transformation. It provides an update on FY2008 financial results and the current pharmaceutical market environment of slower but continued growth.
mckesson Annual Report and Letter to Stockholders 2008finance2
McKesson delivered strong financial results in fiscal year 2008, with revenues reaching over $101 billion. The company continued its track record of superior stockholder returns through strategic acquisitions that expanded its service offerings and customer base. McKesson provides a wide range of solutions to customers across the healthcare industry, including distribution services, medical supplies, clinical software, and pharmacy management tools. It aims to help all participants in healthcare succeed through innovative solutions and long-term partnerships.
This document discusses managed services and how ARAMARK provides value through various services. It highlights:
1) ARAMARK is a leading provider of food, facilities, and uniform services to business, education, healthcare, government, and sports/entertainment clients. It generates strong cash flow and returns capital to shareholders.
2) ARAMARK adds value for clients by improving customer satisfaction, outcomes important to clients, and cost efficiencies. It has opportunities for growth through additional client penetration, higher usage at existing clients, new services, and international expansion.
3) ARAMARK maintains financial discipline and targets long-term organic growth, margin expansion, and EPS growth to drive shareholder returns.
This document discusses managed services and how ARAMARK provides value as a managed services leader. It highlights ARAMARK's financial performance, growth opportunities, and operating model. The key points are:
1) ARAMARK is a leading provider of food, facilities, and uniform services to various clients. It has a diverse client base and international presence.
2) ARAMARK adds value for clients by improving customer satisfaction, outcomes important to clients, and cost efficiencies. It also has opportunities for growth through additional client penetration, service expansion, and international growth.
3) ARAMARK has a disciplined operating model and financial targets, including 6-8% organic growth and 12-14% EPS
This document summarizes a Cardinal Health investor presentation from June 17, 2016 in Dublin. The presentation included introductory comments from the Chairman and CEO George Barrett. It also featured overviews of initiatives in the Medical segment from CEO Don Casey and of the post-acute care management company naviHealth from CEO Clay Richards. The agenda allowed for question and answer sessions with leaders of both the Medical and Pharmaceutical segments as well as the CFO.
cardinal health Conference Call Presentationfinance2
Cardinal Health presented information on its planned spin-off of its clinical and medical products businesses into a separate company. It discussed the rationale for the separation, including allowing each business to focus on its strategic goals and access capital. It outlined key steps and milestones to completing the spin-off. Cardinal Health also presented overviews of the businesses that would comprise each company after the separation and their leadership teams, capital structures, and growth opportunities.
35th Annual J.P. Morgan Healthcare Conference PresentationCardinal_Health
George S. Barrett, Chairman and CEO of Cardinal Health, gave a presentation at the 35th Annual J.P. Morgan Healthcare Conference on January 9, 2017. In the presentation, Barrett discussed how Cardinal Health is changing healthcare by bringing scaled solutions to help customers navigate a complex industry. He outlined key trends shaping the next five years in healthcare and how Cardinal Health is positioned for growth and success through strategic priorities that align with these trends. Barrett also reviewed Cardinal Health's financial performance and goals over the past five years.
This document discusses Quality Systems, Inc. and its subsidiary NextGen Healthcare Information Systems. It provides an overview of the company's business, markets served, products, growth strategy, financial performance, management team, and competitive advantages in the healthcare information technology industry. Key points include Quality Systems' focus on developing practice management and electronic health record software, its track record of strong revenue and earnings growth, experienced management team, and positioning to benefit from positive industry trends driven by government initiatives.
Diplomat is a specialty pharmacy company that has experienced strong growth through expansion into new therapeutic areas and services. It focuses on specialty drugs like oncology that require complex care management. Diplomat has a unique limited distribution model that gives it exclusive access to certain specialty drugs, fueling its ability to gain market share. The company plans to continue its growth strategy through organic growth, acquisitions, and expanding relationships with drug manufacturers and payors.
J.P. Morgan 34th Annual Healthcare Conference PresentationCardinal_Health
This document is a presentation from Cardinal Health's Chairman and CEO George Barrett given at the J.P. Morgan Healthcare Conference on January 12, 2016. The presentation provides an overview of Cardinal Health, including key facts about the company, its two business segments and growth drivers, financial highlights and goals, capital deployment, and positioning in the changing healthcare industry. It emphasizes Cardinal Health's focus on serving customers across the care continuum.
Cardinal Health held its 39th Annual Raymond James Institutional Investors Conference on March 6, 2018. Mike Kaufmann, Chief Executive Officer of Cardinal Health, discussed the company's financial results for FY17 and Q2FY18, highlighting revenue, operating earnings, and diluted EPS. Kaufmann also provided an overview of Cardinal Health's two reporting segments, the acquisition of Medtronic's Patient Recovery Business, and Cardinal Health's enterprise-wide capabilities in logistics solutions, business solutions, product solutions, and patient solutions.
This document is a press release from Cardinal Health announcing their fiscal 2008 results and fiscal 2009 outlook. Some key points:
- Fiscal 2008 revenue increased 5% to $91 billion and GAAP EPS increased 76% to $3.64. Non-GAAP EPS grew 11% to $3.80.
- The company is exploring a potential spin-off of their clinical and medical products businesses into a separate publicly traded company.
- For fiscal 2009, revenue is expected to grow 6-7% while non-GAAP EPS is expected to be between $3.80-$3.95, though investments in R&D and IT may impact near-term growth.
- Challenges in the
Healthcare Savings Via Pharmacy Benefit Management ProgramsThe Partners Group
Optimize your employees’ drug benefit costs, while decreasing costs and simultaneously improving overall drug benefit coverage.
Pharmacy benefit costs are the fastest growing segment of national health expenditures… rising at a rate faster than hospital care and physician services combined. Learn how employers are achieving significant savings via the TPG Proprietary Pharmacy Benefit Program.
In This Seminar We Cover:
• Options for controlling health care pharmacy costs without impacting your membership.
• Overview of the latest trends in the pharmacy benefits arena and new programs that will improve members’ RX utilization and lower your self-funded prescription drug spend.
• Methods to establish true transparency into the cost of your plan’s prescription drug program and how to continuously monitor your drug costs vs. the pharmacy contract.
• Real life case studies of actual plan savings from the 2014 plan year.
• How to become eligible for a pharmacy audit completed by The Partners Group.
- Cardinal Health reported Q4 FY2017 revenue of $32.966 billion, a 5% increase over the prior year. Operating earnings were $439 million, a 29% decrease.
- Revenue in the Pharmaceutical segment increased 5% to $29.552 billion driven by distribution customer and specialty solutions growth. Segment profit decreased 7% to $505 million due to generic pricing and IT investment.
- The Medical segment saw 6% revenue growth to $3.416 billion from new and existing customers. Segment profit rose 13% to $138 million from post-acute solutions and distribution growth.
Cardinal Health reported financial results for Q3 FY2017 with total revenue of $31.8 billion, up 4% from the previous year. Operating earnings were $605 million, down 8% due to generic drug pricing pressures and investments in IT systems. The outlook for FY2017 expects revenue to increase in the mid-to-high single digit percentage range with non-GAAP diluted EPS expected between $5.24-$5.50. Key assumptions include continued generic drug price deflation, brand drug price inflation, and contributions from acquisitions offset by lower benefits from generic launches and Red Oak Sourcing.
J.P. Morgan 33rd Annual Healthcare ConferenceCardinal_Health
This document contains the transcript from George S. Barrett's presentation at the J.P. Morgan Healthcare Conference on January 13, 2015. It discusses Cardinal Health's strategic priorities including growing its specialty pharmaceutical, generic drug sourcing, and international businesses. It also outlines opportunities in health system solutions, alternate sites of care, and the home healthcare market. The presentation notes Cardinal Health's sustained financial performance and future aspirations for metrics like operating margin and earnings growth. It emphasizes the company's focus on key trends in healthcare like increased consumerism, transition to value-based care, and continued innovation.
Cardinal Health 2016 Annual Shareholder Meeting PresentationCardinal_Health
This document summarizes the annual shareholders meeting of Cardinal Health, Inc. held on November 3, 2016. It discusses Cardinal Health's transformation of healthcare delivery through various business lines and services. In fiscal year 2016, Cardinal Health achieved $121.5 billion in revenue, a 19% increase over the previous year. Non-GAAP diluted earnings per share were $5.24, a 20% increase. For fiscal year 2017, the company expects high single-digit revenue growth and non-GAAP diluted EPS between $5.40-$5.60.
McKesson and Cardinal Health Comparative AnalysisJorge Santillan
The document provides an introduction to McKesson Corporation, describing its two business segments of pharmaceutical distribution and healthcare information technology solutions. It then states that a financial analysis of McKesson and one of its competitors, Cardinal Health, will be conducted using financial statements from 2013, 2012 and 2011 to determine which company would provide a better return on investment for investors. Descriptions of both McKesson and Cardinal Health are also provided.
Cardinal Health Q1 FY 2017 Earnings PresentationCardinal_Health
- Cardinal Health reported financial results for Q1 FY2017 with total revenue of $32.04 billion, up 14% year-over-year. However, operating earnings were $535 million, down 14% due to generic drug pricing pressures.
- The Pharmaceutical segment saw a 14% increase in revenue driven by growth from existing and new customers. However, segment profit decreased 19% to $534 million due to generic pricing declines and losing a large customer.
- The Medical segment reported a 12% revenue increase from acquisitions and new customers. Segment profit increased 26% to $127 million from contributions of acquisitions and Cardinal Health brand products.
This document summarizes Cardinal Health's investor and analyst meeting that took place on November 19, 2015. The agenda included an overview of healthcare strategy and financials, a discussion of the pharmaceutical and medical outlook, and a specialist physician panel. Cardinal Health's CEO discussed how the company is changing healthcare. Other presentations provided insights into healthcare trends, the consumer of 2020, value-based care, and Cardinal Health's financial performance and long-term growth aspirations.
CVS Health provides concise summaries of its 2017 Annual Report in 3 sentences or less:
CVS Health achieved net revenues of $184.8 billion in 2017, up 4.1% from the previous year, through innovations like same-day prescription delivery and streamlined prior authorization processes. The company invested over $100 million in community health programs to address issues like the opioid crisis. CVS Health also focused on sustainability and diversity initiatives, removing artificial trans fats and parabens from store brand products while earning a spot on the DiversityInc Top 50 Companies list.
This document discusses whether it is possible for the United States to control rising health care costs. It notes that health care spending has been growing at 2% above inflation for 40 years, and past attempts to control costs have had limited success and lasted only for short periods. The author argues that truly reducing costs will require changing the health care delivery system to improve productivity and eliminate unnecessary services, which will need reimbursement systems that support these goals rather than the current fee-for-service model. Options discussed include bundled payments, pay-for-performance programs, and gainsharing between hospitals and doctors.
Cardinal Health Q3 FY 2016 Earnings PresentationCardinal_Health
- Cardinal Health reported revenue of $30.7 billion for Q3 FY2016, a 21% increase over the previous year. Operating earnings increased 11% to $656 million.
- Revenue growth was driven by contributions from acquisitions as well as growth with new and existing customers in both the Pharmaceutical and Medical segments.
- The company updated full-year FY2016 guidance, expecting revenue growth in the mid- to high-teens percentage range over FY2015 and non-GAAP diluted EPS between $5.17 to $5.27.
- HealthWarehouse.com is an online pharmacy founded in 2007 that aims to provide affordable medications and health tools to consumers nationwide.
- It has experienced strong revenue and prescription growth in recent years and aims to further grow by enhancing its online portal and pursuing strategic acquisitions.
- The company sees opportunities in disrupting the traditional drug supply chain model by eliminating inefficiencies and providing price transparency to consumers.
- Cardinal Health reported financial results for its third quarter of fiscal year 2018, ending March 31, 2018.
- Total revenue increased 6% year-over-year to $33.6 billion. However, operating earnings decreased 10% to $546 million and net earnings decreased 33% to $255 million.
- The Pharmaceutical segment saw a 5% increase in revenue driven by sales growth, but segment profit decreased due to generic program performance. The Medical segment had a 15% revenue increase from acquisitions, and a 34% increase in segment profit.
- For fiscal year 2018, Cardinal Health expects revenue to increase by a mid-single digit percentage and non-GAAP EPS to be between $
Cardinal Health held its 39th Annual Raymond James Institutional Investors Conference on March 6, 2018. Mike Kaufmann, Chief Executive Officer of Cardinal Health, presented an overview of the company including:
- Cardinal Health is a global, integrated healthcare products and services company with two reporting segments - Pharmaceutical and Medical.
- In FY17, Cardinal Health acquired Medtronic's Patient Recovery Business for $6.1 billion to expand its medical product portfolio.
- Cardinal Health reported FY17 revenues of $129.9 billion and non-GAAP operating earnings of $2.769 billion. For Q2FY18, revenues were $35.186 billion and non-GAAP operating earnings were $730
Managed Care Sector Insights – Summer 2018Duff & Phelps
This document provides commentary and observations on trends in the managed care sector based on financial performance of publicly traded companies from 2007-2017. Key points include:
- UnitedHealth Group has significantly increased its dominance in revenue, market cap, and share price performance compared to competitors over the past decade.
- Centene Corporation transformed from a regional Medicaid company into a multi-line national and international managed care provider through acquisitions and organic growth.
- Investment income represents a meaningful percentage of pretax income for many managed care companies, and rising interest rates are expected to boost investment income.
- Managed care companies primarily invest funds conservatively in cash, cash equivalents, and debt instruments due to priorities of
Warnex is a life sciences company devoted to protecting public health by providing laboratory services to the pharmaceutical and healthcare sectors. Warnex Analytical Services provides pharmaceutical and biotechnology companies with a variety of quality control services, including chemistry, chromatography, microbiology, method development and validation, and stability studies. Warnex Bioanalytical Services specializes in bioequivalence and bioavailability studies for clinical trials. Warnex Medical Laboratories provides specialized testing for the healthcare industry as well as pharmaceutical and central laboratory services. Warnex PRO-DNA Services offers DNA identification tests for paternity, maternity and other family relationships, as well as for immigration and forensic testing purposes. Warnex has three facilities located in Laval and Blainville, Quebec, and Thunder Bay, Ontario.
Memo on ethical issue of deceiving accounting practices faced by bristol myer...Shivam Bagga
Bristol-Myers Squibb engaged in unethical accounting practices between 1999-2003 to inflate revenues and meet targets. They used channel stuffing and cookie jar accounting to overstate revenues by $2.5 billion and profits by $913 million. This misled investors by making the company seem consistently profitable when it was not. The scandal was discovered in 2003 when suppliers returned excess inventory, collapsing reported revenues. Bristol-Myers Squibb paid $150 million in civil penalties and $839 million to shareholders without admitting guilt. Top executives were also personally tried for their roles in the deception.
Key Growth Sectors in the Health Care Services M&A MarketRobert James Cimasi
The document discusses a webcast on key growth sectors in the health care M&A market. It provides an agenda that will discuss trends in hospital, physician groups, managed care, and financing. It then introduces several speakers who will provide perspectives on health care services M&A trends.
Diplomat is a specialty pharmacy company that has experienced strong growth through expansion into new therapeutic areas and services. It focuses on specialty drugs like oncology that require complex care management. Diplomat has a unique limited distribution model that gives it exclusive access to certain specialty drugs, fueling its ability to gain market share. The company plans to continue its growth strategy through organic growth, acquisitions, and expanding relationships with drug manufacturers and payors.
J.P. Morgan 34th Annual Healthcare Conference PresentationCardinal_Health
This document is a presentation from Cardinal Health's Chairman and CEO George Barrett given at the J.P. Morgan Healthcare Conference on January 12, 2016. The presentation provides an overview of Cardinal Health, including key facts about the company, its two business segments and growth drivers, financial highlights and goals, capital deployment, and positioning in the changing healthcare industry. It emphasizes Cardinal Health's focus on serving customers across the care continuum.
Cardinal Health held its 39th Annual Raymond James Institutional Investors Conference on March 6, 2018. Mike Kaufmann, Chief Executive Officer of Cardinal Health, discussed the company's financial results for FY17 and Q2FY18, highlighting revenue, operating earnings, and diluted EPS. Kaufmann also provided an overview of Cardinal Health's two reporting segments, the acquisition of Medtronic's Patient Recovery Business, and Cardinal Health's enterprise-wide capabilities in logistics solutions, business solutions, product solutions, and patient solutions.
This document is a press release from Cardinal Health announcing their fiscal 2008 results and fiscal 2009 outlook. Some key points:
- Fiscal 2008 revenue increased 5% to $91 billion and GAAP EPS increased 76% to $3.64. Non-GAAP EPS grew 11% to $3.80.
- The company is exploring a potential spin-off of their clinical and medical products businesses into a separate publicly traded company.
- For fiscal 2009, revenue is expected to grow 6-7% while non-GAAP EPS is expected to be between $3.80-$3.95, though investments in R&D and IT may impact near-term growth.
- Challenges in the
Healthcare Savings Via Pharmacy Benefit Management ProgramsThe Partners Group
Optimize your employees’ drug benefit costs, while decreasing costs and simultaneously improving overall drug benefit coverage.
Pharmacy benefit costs are the fastest growing segment of national health expenditures… rising at a rate faster than hospital care and physician services combined. Learn how employers are achieving significant savings via the TPG Proprietary Pharmacy Benefit Program.
In This Seminar We Cover:
• Options for controlling health care pharmacy costs without impacting your membership.
• Overview of the latest trends in the pharmacy benefits arena and new programs that will improve members’ RX utilization and lower your self-funded prescription drug spend.
• Methods to establish true transparency into the cost of your plan’s prescription drug program and how to continuously monitor your drug costs vs. the pharmacy contract.
• Real life case studies of actual plan savings from the 2014 plan year.
• How to become eligible for a pharmacy audit completed by The Partners Group.
- Cardinal Health reported Q4 FY2017 revenue of $32.966 billion, a 5% increase over the prior year. Operating earnings were $439 million, a 29% decrease.
- Revenue in the Pharmaceutical segment increased 5% to $29.552 billion driven by distribution customer and specialty solutions growth. Segment profit decreased 7% to $505 million due to generic pricing and IT investment.
- The Medical segment saw 6% revenue growth to $3.416 billion from new and existing customers. Segment profit rose 13% to $138 million from post-acute solutions and distribution growth.
Cardinal Health reported financial results for Q3 FY2017 with total revenue of $31.8 billion, up 4% from the previous year. Operating earnings were $605 million, down 8% due to generic drug pricing pressures and investments in IT systems. The outlook for FY2017 expects revenue to increase in the mid-to-high single digit percentage range with non-GAAP diluted EPS expected between $5.24-$5.50. Key assumptions include continued generic drug price deflation, brand drug price inflation, and contributions from acquisitions offset by lower benefits from generic launches and Red Oak Sourcing.
J.P. Morgan 33rd Annual Healthcare ConferenceCardinal_Health
This document contains the transcript from George S. Barrett's presentation at the J.P. Morgan Healthcare Conference on January 13, 2015. It discusses Cardinal Health's strategic priorities including growing its specialty pharmaceutical, generic drug sourcing, and international businesses. It also outlines opportunities in health system solutions, alternate sites of care, and the home healthcare market. The presentation notes Cardinal Health's sustained financial performance and future aspirations for metrics like operating margin and earnings growth. It emphasizes the company's focus on key trends in healthcare like increased consumerism, transition to value-based care, and continued innovation.
Cardinal Health 2016 Annual Shareholder Meeting PresentationCardinal_Health
This document summarizes the annual shareholders meeting of Cardinal Health, Inc. held on November 3, 2016. It discusses Cardinal Health's transformation of healthcare delivery through various business lines and services. In fiscal year 2016, Cardinal Health achieved $121.5 billion in revenue, a 19% increase over the previous year. Non-GAAP diluted earnings per share were $5.24, a 20% increase. For fiscal year 2017, the company expects high single-digit revenue growth and non-GAAP diluted EPS between $5.40-$5.60.
McKesson and Cardinal Health Comparative AnalysisJorge Santillan
The document provides an introduction to McKesson Corporation, describing its two business segments of pharmaceutical distribution and healthcare information technology solutions. It then states that a financial analysis of McKesson and one of its competitors, Cardinal Health, will be conducted using financial statements from 2013, 2012 and 2011 to determine which company would provide a better return on investment for investors. Descriptions of both McKesson and Cardinal Health are also provided.
Cardinal Health Q1 FY 2017 Earnings PresentationCardinal_Health
- Cardinal Health reported financial results for Q1 FY2017 with total revenue of $32.04 billion, up 14% year-over-year. However, operating earnings were $535 million, down 14% due to generic drug pricing pressures.
- The Pharmaceutical segment saw a 14% increase in revenue driven by growth from existing and new customers. However, segment profit decreased 19% to $534 million due to generic pricing declines and losing a large customer.
- The Medical segment reported a 12% revenue increase from acquisitions and new customers. Segment profit increased 26% to $127 million from contributions of acquisitions and Cardinal Health brand products.
This document summarizes Cardinal Health's investor and analyst meeting that took place on November 19, 2015. The agenda included an overview of healthcare strategy and financials, a discussion of the pharmaceutical and medical outlook, and a specialist physician panel. Cardinal Health's CEO discussed how the company is changing healthcare. Other presentations provided insights into healthcare trends, the consumer of 2020, value-based care, and Cardinal Health's financial performance and long-term growth aspirations.
CVS Health provides concise summaries of its 2017 Annual Report in 3 sentences or less:
CVS Health achieved net revenues of $184.8 billion in 2017, up 4.1% from the previous year, through innovations like same-day prescription delivery and streamlined prior authorization processes. The company invested over $100 million in community health programs to address issues like the opioid crisis. CVS Health also focused on sustainability and diversity initiatives, removing artificial trans fats and parabens from store brand products while earning a spot on the DiversityInc Top 50 Companies list.
This document discusses whether it is possible for the United States to control rising health care costs. It notes that health care spending has been growing at 2% above inflation for 40 years, and past attempts to control costs have had limited success and lasted only for short periods. The author argues that truly reducing costs will require changing the health care delivery system to improve productivity and eliminate unnecessary services, which will need reimbursement systems that support these goals rather than the current fee-for-service model. Options discussed include bundled payments, pay-for-performance programs, and gainsharing between hospitals and doctors.
Cardinal Health Q3 FY 2016 Earnings PresentationCardinal_Health
- Cardinal Health reported revenue of $30.7 billion for Q3 FY2016, a 21% increase over the previous year. Operating earnings increased 11% to $656 million.
- Revenue growth was driven by contributions from acquisitions as well as growth with new and existing customers in both the Pharmaceutical and Medical segments.
- The company updated full-year FY2016 guidance, expecting revenue growth in the mid- to high-teens percentage range over FY2015 and non-GAAP diluted EPS between $5.17 to $5.27.
- HealthWarehouse.com is an online pharmacy founded in 2007 that aims to provide affordable medications and health tools to consumers nationwide.
- It has experienced strong revenue and prescription growth in recent years and aims to further grow by enhancing its online portal and pursuing strategic acquisitions.
- The company sees opportunities in disrupting the traditional drug supply chain model by eliminating inefficiencies and providing price transparency to consumers.
- Cardinal Health reported financial results for its third quarter of fiscal year 2018, ending March 31, 2018.
- Total revenue increased 6% year-over-year to $33.6 billion. However, operating earnings decreased 10% to $546 million and net earnings decreased 33% to $255 million.
- The Pharmaceutical segment saw a 5% increase in revenue driven by sales growth, but segment profit decreased due to generic program performance. The Medical segment had a 15% revenue increase from acquisitions, and a 34% increase in segment profit.
- For fiscal year 2018, Cardinal Health expects revenue to increase by a mid-single digit percentage and non-GAAP EPS to be between $
Cardinal Health held its 39th Annual Raymond James Institutional Investors Conference on March 6, 2018. Mike Kaufmann, Chief Executive Officer of Cardinal Health, presented an overview of the company including:
- Cardinal Health is a global, integrated healthcare products and services company with two reporting segments - Pharmaceutical and Medical.
- In FY17, Cardinal Health acquired Medtronic's Patient Recovery Business for $6.1 billion to expand its medical product portfolio.
- Cardinal Health reported FY17 revenues of $129.9 billion and non-GAAP operating earnings of $2.769 billion. For Q2FY18, revenues were $35.186 billion and non-GAAP operating earnings were $730
Managed Care Sector Insights – Summer 2018Duff & Phelps
This document provides commentary and observations on trends in the managed care sector based on financial performance of publicly traded companies from 2007-2017. Key points include:
- UnitedHealth Group has significantly increased its dominance in revenue, market cap, and share price performance compared to competitors over the past decade.
- Centene Corporation transformed from a regional Medicaid company into a multi-line national and international managed care provider through acquisitions and organic growth.
- Investment income represents a meaningful percentage of pretax income for many managed care companies, and rising interest rates are expected to boost investment income.
- Managed care companies primarily invest funds conservatively in cash, cash equivalents, and debt instruments due to priorities of
Warnex is a life sciences company devoted to protecting public health by providing laboratory services to the pharmaceutical and healthcare sectors. Warnex Analytical Services provides pharmaceutical and biotechnology companies with a variety of quality control services, including chemistry, chromatography, microbiology, method development and validation, and stability studies. Warnex Bioanalytical Services specializes in bioequivalence and bioavailability studies for clinical trials. Warnex Medical Laboratories provides specialized testing for the healthcare industry as well as pharmaceutical and central laboratory services. Warnex PRO-DNA Services offers DNA identification tests for paternity, maternity and other family relationships, as well as for immigration and forensic testing purposes. Warnex has three facilities located in Laval and Blainville, Quebec, and Thunder Bay, Ontario.
Memo on ethical issue of deceiving accounting practices faced by bristol myer...Shivam Bagga
Bristol-Myers Squibb engaged in unethical accounting practices between 1999-2003 to inflate revenues and meet targets. They used channel stuffing and cookie jar accounting to overstate revenues by $2.5 billion and profits by $913 million. This misled investors by making the company seem consistently profitable when it was not. The scandal was discovered in 2003 when suppliers returned excess inventory, collapsing reported revenues. Bristol-Myers Squibb paid $150 million in civil penalties and $839 million to shareholders without admitting guilt. Top executives were also personally tried for their roles in the deception.
Key Growth Sectors in the Health Care Services M&A MarketRobert James Cimasi
The document discusses a webcast on key growth sectors in the health care M&A market. It provides an agenda that will discuss trends in hospital, physician groups, managed care, and financing. It then introduces several speakers who will provide perspectives on health care services M&A trends.
The document is a letter from the CEO of McKesson to stockholders summarizing the company's financial performance over the past year and three years. It highlights significant revenue and profit growth across key metrics like revenues, operating income, net income and EPS. It also discusses how McKesson is uniquely positioned in the healthcare industry to help address issues of quality and affordability of care through innovative solutions and technologies. The CEO expresses confidence that McKesson is well-positioned for continued growth given market opportunities, its differentiated strategy and strong execution.
This document is a letter to shareholders from McKesson outlining the company's strong financial performance over the past year and three years. Key highlights include revenue and profit growth rates ranging from 14-33% annually. Operating income increased 769% from FY00-FY03. Cash flow doubled in FY03 and the company has an extremely strong balance sheet. The letter attributes this success to McKesson's diversified business model and focus on execution. It also discusses McKesson's role in improving healthcare quality and affordability.
Presentation given to Institute of Healthcare Executives & Suppliers. Spring, 2010.
See more at: http://www.integratedhealthcarestrategies.com/knowledgecenter.aspx.
Innovations in Benefits Can Manufacture Savings - a Practical & Profit-Saving...CBIZ, Inc.
In much the same way a manufacturer sources raw materials and negotiates the procurement process, creative procurement of health care can manage program cost without sacrificing the quality of this critical employee benefit. Learn more.
My final project for NYU Stern unit for Corporate Sustainability. Using CBA as my case study with publically available information, I outlined the ESG issues facing the industry, I created a materiality matrix, stakeholder map, impact and connections to the global Sustainable Development Goals (SDG) and benchmarking against others within and outside their industry. Written and submitted in May 2019.
Tenet Healthcare's CEO presented at the J.P. Morgan Healthcare Conference on January 11, 2022. Over the past several years, Tenet has transformed its portfolio, restructured operations, and improved quality and safety outcomes. It has demonstrated resiliency during the COVID-19 pandemic by consistently meeting or beating quarterly earnings guidance. Tenet aims to continue this growth trajectory by enhancing specialty care access, scaling its ambulatory surgery platform, and leading new high acuity services in lower cost settings.
The document discusses Quality Systems, Inc. and its NextGen Healthcare subsidiary which develop and provide computer-based business applications for medical and dental group practices. It provides an overview of the company's financial performance, competitive advantages, product offerings, growth strategy, and outlook given positive healthcare industry trends and economic stimulus activities. The company has a proven track record of growth and profitability with a large, recurring customer base and leading software solutions.
Accountable Care Organizations (ACOs) and clinically integrated networks (CINs) are two types of organizations working to address the problem of rising costs. As ACOs and CINs continue to evolve, organizations moving into value-based care (VBC) face an ever-changing landscape. This article looks at the evolution of the ACO and CIN models, what new tools ACOs employ today to promote success, and lessons learned from organizations that have succeeded in alternative payment models. It also explores what healthcare experts believe the future of alternative payment models will look like and competencies to develop to meet those changing demands.
Running Head: EVALUATION OF CORPORATE PERFORMANCE 1
EVALUATION OF CORPORATE PERFORMANCE 2
Evaluation of Corporate Performance
Pro-forma Financial Statements of PepsiCo:
The pro forma income statement and balance sheet of PepsiCo incorporation areas under (annual report, 2012):
PEPSICO INCORPORATION
Pro-forma Income Statement
20132014
($000) ($000)
Revenues
Gross sales (10%) 72,041 82,041
Less: Cost Of Sales (10%)34,42044,420
Gross Profit (profit/loss) 37,62147,621
Operating expenses
Selling, General and Administrative 24,970 34,970
Amortization of intangible assets 119 219
Operating profit 12,532 22,532
Bottling equity income
Interest expense (899) (999)
Interest income and other 91 101
Income before income taxes 11,724 21,724
Provision for income tax 2,090 3,090
Net income 9,634 10,634
Less: income attributable to non controlling interest 36 46
Net income attributable to PepsiCo 9,598 10,598
Net income attributable to PepsiCo as per common share-holders:
Basic 3.96 3.99
Diluted 3.92 3.95
Weighted average common share outstanding
Basic 1,557 1,558
Diluted 1,575 1,675
Cash dividend declared per common share 2.12752.2276
PEPSICO INCORPORATION
PRO-FORMA BALANCE SHEET
20132014
($000) ($000)
ASSETS
Current Assets
Cash 6,279 7,279
Net Account Receivables 7,041 8,041
Inventory 3,581 4,581
Temporary Investment 322 422
Prepaid Expenses 1,4782,478
Total Current Assets 18,72019,441
Fixed Assets
Long Term Investments 19,136 20,136
Property, Plant &Equipment (Net) 1,781 2,781
Good will 16,971 17,971
Non-amortizable Intangible Assets 31,175 32,175
Investments in Non controlled Affiliates 1,633 2,633
Amortizable Intangible Assets, net 1,718 2,718
Total Fixed Assets 37,888 38,888
TOTAL ASSETS 72,414 82,414
LIABILITIES
Current Liabilities
Accounts Payable 10,196 11,196
Short Term Notes 4,815 5,815
Income taxes payable 317 417
Total Current Liabilities 15,328 16,328
SHAREHOLDERS’ EQUITY
Capital Stock 22,417 32,417
Retained Earnings 34,66944,669
Total Shareholders’ equity 65,57575,575
Total Liabilities &Equity 72,41482,414
These are the pro forma income statement and balance sheet of PepsiCo Incorporation as per the data taken from annual report 2012 of the corporation.
Ratio Analysis of PepsiCo:
The ratio analysis of PepsiCo incorporation as per the company financial statements reported in 2012 areas under (Annual Report, 2012):
A. LIQUIDITY .
Medicine Man Technologies provides cannabis consulting services and products to cannabis growers nationwide and internationally. Their services include consulting, cultivation optimization through their Cultivation Max program, and cannabis nutrients sold under the Success Nutrients brand. Medicine Man has acquired companies to expand their product and service offerings and pursue a strategy of building a "cannabis brand warehouse". They have experienced rapid revenue growth in recent years and expect new acquisitions and cross-selling opportunities to further drive sustainable revenue growth.
Milwaukee Growth Fund-February Client Meeting MaterialsAlexander D. Sagal
The Milwaukee Growth Fund seeks to outperform its benchmark, the Russell 3000 Growth Index, through long-term capital appreciation by investing primarily in equity securities of companies positioned for growth. It utilizes a bottom-up fundamental analysis approach combined with macroeconomic and thematic overlays to identify high-quality companies with exceptional growth potential. The portfolio is actively managed through weekly reviews and formal reviews of holdings. Since its inception in October 2010, the fund has produced a total return of 67.81%, outperforming its benchmark by 2.58%.
The document provides an overview of The Clorox Company's Q3 FY17 investor presentation. Key points include:
- Clorox has an advantaged portfolio with over 80% of sales from #1 or #2 share brands across cleaning, household, lifestyle, and international categories.
- The company is focused on strategies like innovation, digital transformation, and an engaged growth culture to drive sales growth of 3-5% annually.
- For FY17, Clorox expects sales growth of 3-4% and earnings per share growth of 7-9%, supported by factors like innovation, the Renew Life acquisition, and cost savings.
- Long-term, Clorox aims
Abbvie was interested in merging with Shire to expand its drug portfolio and reduce taxes by moving its headquarters to the UK. However, the potential tax benefits are now uncertain due to changes to tax inversion rules. Additionally, valuating Shire's drugs in development is challenging. The document recommends that Abbvie abandon the merger and instead acquire partial stakes in companies like Shire to gain access to new drugs while avoiding complex valuation issues of a full merger. It also suggests looking for acquisition targets in countries with favorable tax treatment of research and development expenses.
Healthcare Relief Funding: Five Steps to Maximize COVID-19 DollarsHealth Catalyst
While federal COVID-19 relief funding for health systems sounds good in theory, many organizations have found accessing and using these monies overwhelming and frustrating. Federal guidance has been inconsistent or incomplete, and continued changes to relief packages and policies challenge organizations to develop pragmatic financial recovery strategies. Financial leaders who are confronting more questions than answers need a simple framework to move confidently into recovery.
The following five expert financial- and healthcare-based guidelines will help organizations navigate and optimize COVID-19 relief funding:
Regularly review legislative and regulatory updates and agency activity.
Make the most of what’s available.
Use required reporting as a decision-making tool.
Prepare now for the inevitable audit.
Test compliance now to eliminate headaches (or litigation) later.
Dr. David Muhlestein and Mathew Petersen, both of whom participate with Leavitt Partners' research on Accountable Care Organizations, co-authored the article ACO Results: What We Know So Far in Health Affairs Blog column on May 30th, 2014.
- Cardinal Health reported a 5% increase in third quarter revenue to $22.9 billion and GAAP EPS of $1.02, compared to a $0.01 loss in the prior year. Non-GAAP EPS increased 13% to $1.08.
- Revenue growth was driven by the healthcare supply chain medical segment and clinical and medical products sector. However, the supply chain pharmaceutical segment faced challenges including customer disruption and slower market growth.
- The company reaffirmed its fiscal year 2008 non-GAAP EPS guidance range of $3.75 to $3.85.
Accountable Care Organization – Improving Care & Reducing CostHEALTHEC LLC
An Accountable Care Organization (ACO) is a group of healthcare providers that voluntarily work together to coordinate care for Medicare patients. The goal of an ACO is to deliver high-quality care while reducing costs. ACOs create incentives for providers to improve care coordination and help ensure patients receive the right care at the right time. If an ACO meets quality standards and reduces healthcare spending growth compared to spending targets, it will receive a share of the savings it generates for Medicare.
Similar to Amerisource Bergen Presentation V6.0 Final (20)
Accountable Care Organization – Improving Care & Reducing Cost
Amerisource Bergen Presentation V6.0 Final
1. The AmeriSource Acquisition of Bergen Brunswig to formAmerisource Bergen Corporation Presented byDavid Nordella and Victoria Pearson HSM 533 – Mergers and AcquisitionsDepartment of Health Services ManagementUniversity of La Verne Joan Branin, Ph.D.Professor and DeanFall TermNovember 2, 2010
2. Presentation Overview Introductions History of Amerisource Health Corporation (suitor) History of Bergen Brunswig Corporation (acquired) Amerisource Bergen Corp. Post Merger Analysis Key Players Financial Overview Legal Considerations Business Considerations Summary Questions
4. History of AmeriSource Health Corporation (NYSE: AHC) (Suitor)
5. History of Amerisource Health Corp. (AHC) AmeriSource was no stranger to M&A prior to the acquisition of Bergen Brunswig. AHC had a long history of aggregation and innovation. The company was originally privately incorporated as Alco Standard in 1960. Alco Standard had annual sales of $5M in 1960. Alco Standard goes public in 1977. Alco Standard builds by a conglomerate network through acquisition.
6. AHC History continued Each acquired company was provided autonomy. Alco Standard’s role was to provide legal and tax support. Emphasis of conglomerate became drug wholesaling. Third largest pharmaceutical wholesaler in the nation by early 1980s.
7. AHC History continued The drug industry was experiencing enormous changes during the early 1980s. Healthcare expenditures were rising and represented 10% of the Gross National Product. Demographics were driving the growth. Alco Standard’s drug distribution business was spun off in 1985. Newco is Alco Health Services.
8. AHC History continued Oldco, Alco Standard, held 60% of Alco Health Services after the spin-off. Alco Health offers to help independent drug retailers with marketing, merchandising and Group advertising. Independent drug retailers competed successfully with drugstore chains because of help from Alco Health Service.
9. AHC History continued Retail support, with “home use” medical equipment under Total Home Health Care brand is introduced in 1982. Marketing support includes direct-to customer delivery and accounting assistance. Health Information Management systems were offered to independent retailers in 1985. Alco Health Services also sought business chains and wholesalers during this period.
10. AHC History continued New customers in 1980s: Hospitals and Health Care Facilities. Annual sales surpassed $2B in 1988. Management attempted LBO in 1988. LBO blocked by Federal Trade Commission (FTC). McKesson Corporation offers $30 a share. FTC blocks McKesson’s offer as uncompetitive.
11. AHC History continued Alco Standard explores options with their investment banker, Drexel Burnham Lambert. Citicorp Capital Ltd. and Alco managers create ASCO Holdings Corp. to acquire 92% of Alco Health. Consolidation continues in drug wholesaling. Alco changes name to AmeriSource Health Corp. in 1994.
12. AHC History continued AmeriSource offers national telemarketing on behalf of retail customers in 1995. Retail customers sue over whether AmeriSource is giving discounts to HMOS, hospitals and mail-order pharmacies. Judge dismisses suit in District court. AmeriSource propose merger with McKesson in 1997.
13. AHC History continued AmeriSource gains contracts with Dep’t of Veteran Affairs in 1999. More acquisitions in 1999. AmeriSource becomes “Preferred Provider” of Pharmacy Providers Service Corp. representing over 1,200 independent pharmacies. AmeriSource becomes Preferred Provider of Premier, Inc., the nation’s largest alliance of hospitals and healthcare systems. AmeriSource had net revenue of $11.6B as of FYE 9/30/00.
15. Bergen Brunswig Corp. (BBC) History Started in early 1800s Three core business verticals Pharmaceutical Distribution Pharmerica Other Funder: Lucien Brunswig, emmigrant – France Apprentice druggist in USA Started wholesale drug supply $350K revenue within 5-years
16. Bergen Brunswig Corp. (BBC) History Partnerships and geographic expansion west Died 1943 before company’s explosive growth Bergen acquired Brunwig 1969 1990s wave of consolidation Multiple sole distributorship agreements Columbia/HAC Healthcare merger catalyst for domination Expanded to full service value added supplier Multi media product Proprietary catalogs and electronic ordering systems
20. Motives for The Merger Greater value for shareholders, gaining undervalued assets. Rapid, reliable growth. Synergies from combined businesses. Increased market power from horizontal merger. Cost-reductions through economies of scale. scope.
21. Motives for the Merger Cuts in expenses to improve profits from revenues, positively impacting earnings. Financing posture expected to be improved as investment banking fees were spread over a wider base. Firm could achieve lower interest expense as banks competed for larger loans. The goal was to achieve all of these objectives through superior management skills.
22. AHC & BBC Merger Process Focus was specific operational and technical systems,” information systems; sales and marketing; finance and back office operations; procurement and distribution and human resources. Fully automated sorting, distribution network Upgrade to SAP
23. AHC & BBC Merger Process Accounted as purchase method for business combinations, AmeriSource acquired Bergen. Merged company valued at $7,000,000,000. AmeriSource stockholders owned 51% of new company's 103 million shares outstanding Conversion ratio 0.37 share of AmeriSourceBergen Corporation (ABC) per share of Bergen Brunswig and 1.0 share of ABC per share of AmeriSource Health. Neither group of shareholders was taxed on the value of the merger, as no cash consideration paid.
24. AHC & BBC MergerKey Participants Goldman Sachs & Co. acted as advisor to AmeriSource Health Corporation. Merrill Lynch, Pierce, Fenner & Smith, advisor to Bergen Brunswig Both parties retained Deloitte Consulting to assess both, determine makeup integrated organization
26. AHC Accounting for the Merger AmeriSource Health Corporation (AHC) Year over Year comparison; 9/30/99 to 9/30/00. Current ratio - 1.42x to 1.32x, Unfavorable. A/R Turnover – 15.93 days to 18.61 days, Unfavorable with a caveat. Av. Collection Period – 22.91x to 19.62x, Unfavorable with a caveat. Inventory Turnover – 7.85x to 7.39x, Unfavorable.
27. AHC Accounting for the Merger Debt/Equity Ratio – 3.36x to 1.46x, Favorable with a caveat. LTD/Assets – 0.27x to 0.17x, Favorable. Times Interest Earned – 2.79x to 3.37x, Favorable. Total Margin – 0.01x to 0.01x, No change in Favorability. Return on Assets (ROA) - 0.03x to 0.04x, Very Favorable.
28. AHC Accounting for the Merger Return on Investment (ROI) – 0.41x to 0.35x, Unfavorable. Earnings per Share (EPS) – 1.32x to 1.90x, Favorable. Price/Earnings (P/E) ratio – 4.47x to 6.17x, Favorable and dirt cheap!
31. BBC Accounting for the Merger 9/30/999/30/00 LIQUIDITY Current Ratio, Favorable 1.29 1.86 ACTIVITY Accounts Receivable Turnover 13.20 18.62 Favorable trend, 141% increase in receivables turnover. Average Collection Period 27.66 19.60 Favorable, improving by 71% Inventory Turnover 11.71 11.10 The trend is Unfavorable.
32. BBC Accounting for the Merger 9/30/999/30/00 CAPITAL STRUCTURE Debt/Equity Ratio .70 1.52 Unfavorable, substantial operating loss in 2000; acquired 9 companies, depleted cash, increased debt. Long-term debt/Assets 0.19 0.24 Unfavorable with a substantial increase in Leverage. Times Interest Earned 1.86 -4.56 Unfavorable. Net loss in 2000, increased debt.
33. BBC Accounting for the Merger 9/30/999/30/00 PROFITABILITY Total Margin 0.00 (0.03) Unfavorable Return on Assets 0.01 (0.16) Unfavorable Return on Investment (ROI) 0.05 (1.04) Unfavorable INVESTMENT STATISTICS Earnings per Share (EPS) .60 (5.6) Unfavorable, net loss in revenue in 2000. Price/Earnings (P/E) ratio 10.28 (2.10) Unfavorable.
36. Amerisource Bergen Corp. Accounting for the Merger Year over Year comparison; 9/30/00 to 9/30/01. Current ratio – 1.32x to 1.36x, Favorable. A/R Turnover – 18.61x to 7.38x, Unfavorable with a caveat. Av. Collection Period – 19.62 days to 49.93 days, Unfavorable with a caveat. Inventory turnover – 7.39x to 3.13x, Unfavorable with a caveat.
37. ABC Accounting for the Merger Debt/Equity Ratio – 1.46x to 0.58x, Favorable. LTD/Assets – 0.17x to 0.16x, Favorable. Times Interest Earned – 3.37x to 3.71x, Favorable. Total Margin – 0.01x to 0.01x, No change in Favorability. Return on Assets (ROA) – 0.04x to 0.01x, Unfavorable with a caveat.
38. ABC Accounting for the Merger Return on Investment (ROI) – 0.35x to 0.04x, Unfavorable with a caveat. Earnings per Share (EPS) – 1.90x to 1.97x, Favorable. Price Earnings (P/E) ratio – 6.17x to 9.00x, Favorable and still cheap.
42. Analysis of the Merger Legal, Tax and Business Considerations
43. ABC Legal & Tax Considerations FTC resistance to possible anticompetitive move. FTC objection overcome because of history of drug price declines due to fierce competition. Purchase method of accounting. No tax impact to existing shareholders. Type A transaction, stock exchange with no cash.
44. ABC Business Considerations Both sets of shareholders benefitted. Bergen shareholders received a premium. The share price of the combined firms started an upward trend that continues today. AmeriSource Bergen became # 1. The new company continued to be competitive and innovative. The co. maintained their customer’s goodwill.
45. Successful or Failure? Very successful Resulting company, AmeriSourceBergen, largest of the Big Three pharmaceutical wholesalers in US (other two companies, McKesson, Cardinal Health) Estimated worth more than $275 billion in 2008 Note: The Big Three accounted for more than 100 buyouts, since 1980
46. Key Goals Achieved Captured increased market power from their horizontal merger, which allowed the company to achieve three key goals: Streamline online product ordering and account management Enable efficient customer support Create uniform user experience across entire supply chain
47. ABC Business Considerations Nominal cuts in sales force, no territory overlap Warehouses were centralized from 51 to 30. Laid-off employees were well-treated. Retained employees wre trained in new technology to improve productivity. Increased buying power used to customer’s advantage through low prices. Management concentrated on market share.
48. Impact on the Market “The US supply chain is set to undergo great changes in the next decade. Although a number of external factors will have an impact, the complex relationship between each of the parties in the supply chain will be the most important….they all wish to have greater control of the process of delivering medicines to patients.”
49. Impact on the Market Enhanced warehousing, distribution network Increased product offerings, lower costs Strengthened marketing function Increased supply chain efficiencies (SAP)