DUBLIN, Ohio and SOUTH SAN FRANCISCO, Calif., April 27 /PRNewswire/ -- OTN, a leading specialty pharmaceutical services company and the second largest distributor of products and services to the community oncology market, today announced that it has agreed to purchase the oncology distribution unit of Cardinal Health, Inc. , the leading provider of products and services supporting the health-care industry. OTN will acquire Cardinal Health's oncology distribution business, as well as contract services and physician distribution businesses.
As a result of the sale, Cardinal Health will participate in this market as a minority owner in OTN's parent company, Oncology Holdings, Inc. This acquisition increases the number of OTN customers to more than 4,000 specialty practices nationwide, including oncology and rheumatology practices.
"The oncology distribution business of Cardinal Health has an outstanding reputation of unparalleled service, competitive prices and logistics capabilities that will allow us to broaden our expertise and ability to deliver the services needed to ensure specialty drugs, coordinated reimbursement and clinical services are available to patients with complex diseases, especially cancer," said John Amos, president and CEO of OTN. "Our customers will benefit from Cardinal Health's specialty distribution and manufacturer relationships and from our group purchasing organization relationships, innovative technology platform and 15-year experience providing community oncology with a broad set of products and services that can help increase practice efficiency."
Cardinal Health's oncology distribution business provides pharmaceuticals and medical supplies to oncology practices, physician offices and hospital pharmacies. It serves members of several specialty group purchasing organizations (GPOs).
"This combination will lead to more valuable solutions for the oncology market and deliver great benefits to the customers of both OTN and Cardinal Health," said Mark Parrish, president and chief operating officer of Pharmaceutical Supply Chain Services at Cardinal Health. "From a business perspective, we elected to hold a minority position in Oncology Holdings as a demonstration of our confidence in the value OTN offers to oncologists and their patients."
Following the transaction, Cardinal Health's approximately 100 oncology distribution employees will join OTN, including key members of its current management team. The Cardinal Health Therapeutic Plasma business is not part of the sale but will continue to operate under Cardinal Health as Therapeutic Plasma Distribution business. The plasma unit, a leader in the industry, will be integrated into Cardinal Health's Specialty Pharmaceutical Services platform to create a broader and more focused specialty strategy for Cardinal Health in the future. Financial terms were not disclosed. The transaction is expected to close in May.
About Cardinal Health
Headquartered in Dublin, Ohio, Cardinal Health, Inc. is a $75 billion, global company serving the health care industry with a broad portfolio of products and services. It manufactures, packages, and distributes pharmaceuticals and medical supplies, offers a range of clinical services and develops automation products that improve the management and delivery of supplies and medication for hospitals, physician offices and pharmacies. Through this diverse offering, Cardinal Health delivers integrated health care solutions that help customers reduce their costs, improve efficiency and deliver better care to patients. Ranked No. 19 on the Fortune 500, Cardinal Health employs more than 55,000 people on six continents. More information about the company may be found at http://www.cardinalhealth.com .
About OTN
OTN, a One Equity Partners portfolio company, is a leading specialty pharmaceutical services company that provides pharmaceuticals, supportive care products and medical/surgical supplies to physicians who practice in the community-based treatment setting. OTN provides physicians and their patients with efficient delivery of medications to treat cancer, as well as rheumatoid arthritis, infertility and other chronic conditions requiring the latest intravenous, injectable and oral medicines. Through its innovative Lynx Technologies, practice management tools and unsurpassed customer service, OTN helps physicians improve practice efficiency while enabling them to focus on providing optimal patient care. Onmark, a group purchasing organization and an OTN company, offers its members competitive contracts for oncology drugs and medical/surgical supplies, practice management tools and educational programs. For more information, please visit www.myOTN.com .
Cardinal Health, Inc.
OTN;CONTACT: Angela Gardner Meleca, Corporate Communications, +1-614-757-6250,or angela.meleca@cardinal.com , or Jason Strohm, Investor Relations,+1-614-757-7542, or jason.strohm@cardinal.com , both of Cardinal Health; orStan Ades of OTN, +1-650-246-6622, or Stan.Ades@myotn.com ; or Jani Berganof WeissComm Partners, +1-415-946-1064, or jbergan@weisscommpartners.com ,for OTN
