Drug distributor Cardinal Health, Dublin, Ohio, said it is discontinuing operations of a 20-employee unit that buys and sells pharmaceuticals from secondary distributors because of declining financial results for the unit. The unit accounted for about 0.5% of Cardinal's $36 billion in drug distribution revenue in the first nine months of the company's fiscal year ending June 30, a 40% decline over the year-ago period, Cardinal spokesman James Mazzola said. The unit, based in Groveport, Ohio, has been in financial decline for more than two years, a result of stricter company procedures to prevent drug counterfeiting and exclusive agreements with pharmaceutical manufacturers, Mazzola said. New York Attorney General Eliot Spitzer reportedly is investigating the secondary wholesale market, but Mazzola said the decision to close the secondary distribution unit was a "business decision." -- by Cinda Becker
Cardinal to close small secondary distribution unit
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