BERGEN BRUNSWIG: Purchases Stadtlander for $400 Million
In what highlights "plans to expand its fast-growing specialty drug business," Orange-based Bergen Brunswig Corp. announced yesterday "it will pay $300 million for a Pennsylvania company that specializes in immune medications" (Marsh, Los Angeles Times, 11/10). Bergen announced a definitive agreement yesterday to buy Stadtlander Drug from Counsel Corp. for $400 million, a move that will propel Bergen to the head of the national specialty health care distribution market, according to Investor's Business Daily (11/10). The nation's $3 billion specialty pharmacy market targets high-risk, high-cost patients with chronic diseases. Such patients constitute 3% of the population and 65% of all health care costs. Stadtlander's position as a leader in the delivery of pharmaceuticals for transplant, HIV, infertility and the mentally ill will boost Bergen's ranking in the $3 billion specialty market. Stadtlander's annual revenue approaches $500 million. Bergen's annual revenue is projected at $14 billion (Counsel release, 11/9).
A Good Fit
The Los Angeles Times reports that Stadtlander, which also provides prescription drugs for approximately 260,000 prison inmates, is perceived as a good fit for Bergen by industry analysts. Raymond James analyst Kristi Thiese said, "I obviously like it when companies add businesses that are good for profits and are growing nicely." Wall Street apparently agreed, pushing Bergen stock up $.75 to $56.06 on the NYSE yesterday. The Times reports that as part of the deal, "Bergen would receive the right to vote all of Counsel's shares" in Tampa, FL-based nursing home drugs and services company PharMercia (11/10).