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Cardinal, Eisai Come To Terms On “Fee-For-Service” Distribution

This article was originally published in The Pink Sheet Daily

Executive Summary

Companies enter multi-year agreement under which Cardinal will be paid fees for distributing Aricept, Aciphex and Zonegran. Deal is announced one week after Cardinal discontinued purchases of Eisai products – and the day after Pfizer declares it will not pay fees to wholesalers.

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Cardinal Sees No Rx Distribution Disruptions After April 1 Fee-For-Service Deadline

Most drug manufacturers have agreed in principle to fee-for-service distribution contracts, Cardinal CEO Walter says. Negotiations are now focused on price, not the methodology for paying wholesalers, he says.

Cardinal Sees No Rx Distribution Disruptions After April 1 Fee-For-Service Deadline

Most drug manufacturers have agreed in principle to fee-for-service distribution contracts, Cardinal CEO Walter says. Negotiations are now focused on price, not the methodology for paying wholesalers, he says.

Pfizer Says No To "Fee-For-Service" Contracts With Wholesalers

The manufacturer maintains that wholesalers "purchase and resell products for their own account and not as a service to Pfizer." Cardinal will no longer distribute Eisai products, including the Alzheimer's drug Aricept, marketed in partnership with Pfizer.

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