Zacks Analyst Blog Highlights: Cardinal Health, Cumberland Pharmaceuticals, McKesson, AmerisourceBergen and Advance Auto Parts - Press Releases

For Immediate Release

Chicago, IL – August 18, 2010 – Zacks.com Analyst Blog features: Cardinal Health (CAH), Cumberland Pharmaceuticals (CPIX), McKesson Corporation (MCK), AmerisourceBergen Corporation (ABC) and Advance Auto Parts Inc. (AAP ).

Here are highlights from Tuesday’s Analyst Blog:

Cardinal and Cumberland Ink Deal

Cardinal Health (CAH), one of the largest distributors of pharmaceuticals and medical supplies, has reportedly inked a distribution agreement with Nashville, Tennessee-based Cumberland Pharmaceuticals (CPIX), a specialty pharmaceutical firm focused on the acute-care hospital and gastroenterology markets. Financial terms of the deal were not divulged by the companies.

Under the three-year deal, Cardinal will exclusively distribute three of Cumberland’s drugs in the U.S, Puerto Rico and other specific countries. The drugs covered by the deal are Acetadote, Caldolor and Kristalose. Cumberland will be responsible for delivering these drugs to Cardinal’s distribution center in LaVergne, Tennessee.

The deal represents another instance of the long-standing bond between the two companies. Cardinal teamed up with Cumberland in 2002 to market Kristalose (used to treat constipation and hepatic encephalopathy, a brain disorder) in the U.S. through its Specialty Pharmaceutical Services (SPS) unit. Moreover, Cardinal offered its sales force in 2004 to promote Acetadote to hospitals and poison control centers across the U.S.

Cardinal Health is one of the largest global healthcare companies that help pharmacies, hospitals and ambulatory care sites to focus on low-cost patient care. The company is also a leading manufacturer of medical and surgical products. It has a diversified product portfolio, which is a natural hedge against the risk of revenue shortfall in testing times.

Cardinal Health is one of the largest distributors of pharmaceuticals and medical supplies. Its Healthcare Supply Chain Services segment distributes pharmaceutical products, medical and surgical products, and over-the-counter healthcare products to various hospitals, surgery centers, laboratories, physician offices, alternate care providers and retail customers in North America and Puerto Rico. The division accounted for 96% of the company’s sales in fiscal 2009.

However, Cardinal is facing tough competition across all its business segments, which may pressure pricing. Its major competitors in the pharmaceutical supply chain segment are McKesson Corporation (MCK) and AmerisourceBergen Corporation (ABC). We currently have a Neutral recommendation on Cardinal.

Earnings Scorecard: Advance Auto Parts

Advance Auto Parts Inc. (AAP ) reported second-quarter results on August 11, beating the Zacks Consensus Estimate by 14 cents per share. The market reacted favorably, with its share price rising after the release.

Analysts were highly optimistic given the company’s improved results and revised their estimates upward. Below, we will cover the results of the earnings announcement, subsequent analyst estimate revisions and the Zacks ratings for both the short-term and the long-term.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com

 

 

 
ADVANCE AUTO PT (AAP): Free Stock Analysis Report
 
AMERISOURCEBRGN (ABC): Free Stock Analysis Report
 
CARDINAL HEALTH (CAH): Free Stock Analysis Report
 
MCKESSON CORP (MCK): Free Stock Analysis Report
 
Zacks Investment Research