Cardinal inks deal to supply pharmacies at discount chain Fred's

The Columbus Dispatch
Under CEO George Barrett, left, Cardinal Health has managed to weather the loss in 2013 of a $22 billion a year contract to supply Walgreen pharmacies.

August 13, 2014

Dublin-based Cardinal Health announced a multiyear agreement to supply branded and generic pharmaceutical products to the 360-plus in-store pharmacies at Fred's Inc.

The deal will be worth more than $500 million a year in revenue and $15 million in profit, according to Ross Muken, an analyst with ISI Group, who called it "a positive for Cardinal."

Fred's Inc. operates 704 discount general-merchandise stores in the Southeast, including Fred's Super Dollar and Fred's Pharmacy.

The company's headquarters is in Memphis, Tenn.

The contract was held previously by AmerisourceBergen, Muken said.