Cardinal Raises Sterile Manufacturing Prices Despite Operational Problems
This article was originally published in The Pink Sheet Daily
Price increases, greater capacity and cost-cutting will allow Cardinal’s sterile manufacturing unit to contribute to earnings again by the second half of the fiscal year, the company says.
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Wholesaler remains optimistic that manufacturers' distribution fees will rise over time due to "built-in escalators" in existing contracts and potential to increase fees during contract renewal.
The transition from “buy and hold” distribution model to “fee-for-service” model is proceeding slowly, Cardinal acknowledges. The wholesaler also attributes earnings shortfall to delays in securing approval of its sterile manufacturing plants.
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