3 Firms Link Up in Drug-Buying Alliance
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Drug distributor Bergen Brunswig Corp. joined a group-buying alliance with hospital chain Tenet Healthcare Corp. and pharmacy services provider NCS HealthCare Inc.
The companies said they expect the deal to boost their leverage in negotiating with drug makers and help cut the cost of drugs they buy. Together, the three buy more than $1.5 billion in drugs a year.
Bergen also said it has signed a seven-year agreement worth about $3 billion to supply drugs to NCS, which provides pharmacy services to extended-care facilities.
Orange-based Bergen also extended an exclusive supplier agreement with hospital operator Tenet, valued at more than $400 million a year, to 2006. Santa Barbara-based Tenet said it expects to save at least $7 million a year in drug costs.
Tenet shares fell 38 cents to close at $23 on the New York Stock Exchange, Cleveland-based NCS shares fell 63 cents to $13.56 on Nasdaq, and Bergen shares rose 6 cents to $21 on the NYSE.
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