By The Buffalo News, N.Y.
Mar. 9–Cardinal Health, a $75 billion Ohio company that is 16th the Fortune 500 list, announced Wednesday that it has agreed to buy Niagara Falls-based ParMed Pharmaceuticals for $40.1 million.
“We’re one of the largest distributors of pharmaceuticals in the U.S.,” said Jim Mazzola, spokesman for Cardinal Health, which has its headquarters in Dublin, outside Columbus.
ParMed, which had been owned by Alpharma Inc. of Fort Lee, N.J., has a main office in Niagara Falls and staff in West Seneca and Jamestown for a total of about 120 workers. The company’s primary customers are independent pharmacies, not chain stores.
Alpharma said ParMed has annual revenues of about $53 million.
ParMed’s focus of selling medicine in smaller quantities compliments Cardinal Health’s distribution to bigger hospital and drug store chains. “It’s still reaching a very important set of customers,” said Mazzola.
Cardinal Health’s “full line distribution business,” of interest to large clients, includes managing inventory and deliveries, sometimes multiple times a day. “CVS is one of our largest customers,” said Mazzola.
While he did not expect staffing changes at ParMed, Mazzola said the combined needs of the clients of both companies should allow Cardinal Health to get better prices for shipping and the drugs it buys.
“Our intent is to have the business operate as it has been today,” said Mazzola of ParMed. “We’re excited just to bring it on board and have it operate.”
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