Cardinal Health Inc. (NYSE:CAH) has received federal regulatory clearance to move ahead with its $1.3 billion purchase of New York-area drug distributor Kinray Inc.
Cardinal expects to close the deal “shortly,” according to a statement from the medical products and drug distributor in Dublin, Ohio.
The Federal Trade Commission granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. The law generally requires a 30-day waiting period for a merger or acquisition to close so regulators have enough time to investigate the deal.
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
Cardinal announced the deal last month, noting that adding Kinray would help expand its presence in the lucrative New York market.
Privately held Kinray’s annual sales exceed $3.5 billion, and the company has more than 2,000 retail independent pharmacy customers. The deal expands Cardinal’s base of independent retail pharmacy customers by 40 percent to about 7,000.
