American Associated Pharmacies Selects Cardinal Health as Exclusive Pharmaceutical Distribution Partner

Multi-Year Agreement Provides Nearly 2,000 Independent Pharmacies Access to Strong Generics Program, Comprehensive Suite of Solutions to Help Improve Efficiency

Jan 06, 2010, 08:30 ET from Cardinal Health, Inc.

DUBLIN, Ohio, Jan. 6 /PRNewswire-FirstCall/ -- Cardinal Health and American Associated Pharmacies (AAP), the parent company of Associated Pharmacies, Inc. (API) and United Drugs, today announced that AAP has selected Cardinal Health to be the exclusive pharmaceutical distributor for its nearly 2,000 independent pharmacy members, nationwide.

Cardinal Health previously had separate, exclusive distribution agreements with API and United Drugs, prior to their Sept. 1, 2009 merger. The new, multi-year agreement, effective Jan. 1, 2010, solidifies Cardinal Health as the primary pharmaceutical distributor for the combined entity's nationwide pharmacy members. The new contract signifies a long-term partnership between Cardinal Health and AAP and better positions both companies to help independent retail pharmacies improve cost-effectiveness and efficiency.

"Since API and United Drugs joined together in September of this year, we have been very active establishing our new parent company, AAP, while also focusing on ways to strengthen our well-established relationships with Cardinal Health," said Jon Copeland, CEO of AAP. "Throughout the entire process, we've had only one goal: the greater success of our members. Now, with AAP's new agreement with Cardinal Health, we've made a giant step toward achieving that goal."

As part of the agreement, AAP members will have access to an extensive portfolio of branded and generic pharmaceuticals from Cardinal Health. They will also have access to a broad array of Cardinal Health solutions and services designed to help independent pharmacies improve profitability and efficiency.

"Cardinal Health, Associated Pharmacies, Inc. and United Drugs share a passionate commitment to supporting the growth of independent pharmacies," said Mike Kaufmann, CEO of Cardinal Health's Pharmaceutical segment. "Through Cardinal Health's strong generics program and our powerful, customized portfolio of supply chain, operational and financial performance solutions, we'll work hand-in-hand with AAP to help their nearly 2,000 independent pharmacy members improve cost effectiveness and efficiency so they can focus on what they do best - care for patients."

AAP members will also have access to select Cardinal Health services and solutions, including customized reimbursement consulting services, reconciliation services that ensure payors pay reimbursements in full and tools that help retailers market and increase non-prescription sales to drive diversified revenue growth.

"We're proud of our new, stronger agreement with Cardinal Health because we believe it will deliver independent pharmacies a wide array of services and programs that can help them continue to build profitable, successful businesses," said Bruce A. Semingson, R.Ph., chief operations officer of AAP.

About Associated Pharmacies, Inc. (API)

Founded in 1987, Associated Pharmacies, Incorporated (API), is a member-owned buying cooperative that provides independent pharmacy owners an opportunity to buy like a chain. API members take advantage of savings on brand, generic, and OTC products at discounted, volume prices. As a unified voice in an ever-changing environment, API designs and implements programs to give its pharmacies the tools needed to run a successful business.

About United Drugs

United Drugs is a premier pharmacy cooperative that provides industry leadership, operating expertise, third party contracting and buying services to independently-owned pharmacies throughout the nation. For over 30 years, United Drugs has been helping independent pharmacies not only compete but also thrive in a dynamic, challenging marketplace.

About American Associated Pharmacies

API and United Drugs are wholly-owned subsidiaries of American Associated Pharmacies (AAP), a member-owned cooperative representing approximately 2,000 independent pharmacies. Both companies will remain as separate operating entities owned by the newly combined memberships.

About Cardinal Health

Headquartered in Dublin, Ohio, Cardinal Health, Inc. (NYSE: CAH) is a Fortune 18 health care services company that improves the cost-effectiveness of health care. As the business behind health care, Cardinal Health helps pharmacies, hospitals and ambulatory care sites focus on patient care while reducing costs, improving efficiency and quality, and increasing profitability. As one of the largest health care companies in the world, Cardinal Health is an essential link in the health care supply chain, providing pharmaceuticals and medical products to more than 40,000 locations each day. The company is also a leading manufacturer of medical and surgical products, including gloves, surgical apparel and fluid management products. In addition, the company supports the growing diagnostic industry by supplying medical products to clinical laboratories and operating the nation's largest network of radiopharmacies that dispense products to aid in the early diagnosis and treatment of disease. Cardinal Health employs more than 30,000 people worldwide. More information about the company may be found at

SOURCE Cardinal Health, Inc.