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Wholesaler share of Rx market to top out at 85%, Cardinal predicts; mega-chains will maintain warehouses.

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Executive Summary

WHOLESALER SHARE OF Rx MARKET WILL PLATEAU AT 85%, CARDINAL Chief Operating Officer John Kane predicted at the Bear Stearns health care conference in New York City on Sept. 9. Noting that the wholesaler share of prescription drug distribution has increased to about 80% (a level reached in 1995), Kane said that Cardinal sees "this number leveling off." The limiting factor is the desire of "many of the chains [to] stay in warehousing," the Cardinal exec acknowledged. He said his firm is "still in discussions with many of [the chains] about getting out of it," but, with "the larger chains...taking over, we see about 85% being the maximum in today's health care scenario."

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