ADAG, Cardinal plan drug distribution JV

Posted: Wednesday, Jun 06, 2007 at 0000 hrs IST
Updated: Wednesday, Jun 06, 2007 at 0000 hrs IST

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Mumbai, Jun 5: The Anil Dhirubhai Ambani Group (ADAG), which is eager to enter the drug distribution business, is close to setting up a joint venture with US drug retailer, the $80-billion Cardinal Health Inc, promoters of drug retail chain Medicine Shoppe.

ADAG will hold a majority stake in the JV, while Cardinal and others will own the rest. The proposed joint venture, Reliance Cardinal Health, will source medicines from pharmaceutical companies and supply them to wholesalers, replacing the current clearing & forwarding agency system.

ADAG already has a presence in the express logistics segment through a 44% stake in Bangalore-based DTDC Courier & Cargo Ltd, which handles 10 million general consignments a month. ADAG officials are in final stages of negotiations with Cardinal on the shareholding pattern of the new company.

When contacted, an ADAG spokesperson declined to comment.

Cardinal Health Inc supplies products and services to hospitals, physicians and pharmacies across the world. The company is the second-largest distributor of pharmaceuticals and other medical supplies and equipment in the US after McKesson.

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• ADAG will hold a majority stake...

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