Cardinal Health, Dublin, Ohio, said it will sell its pharmaceutical production and packaging division, a $1.7 billion annual business, to focus on its supply-chain management operations and medical-products manufacturing. The production and packaging division earns about $300 million annually, the company said. In a conference call with analysts, Kerry Clark, Cardinals president and chief executive officer, said officials believed in the divisions potential but had determined it was not a strategic fit with Cardinals long-term strategy to help healthcare providers improve safety and productivity. The company will use proceeds from the sale to repurchase shares. Clark said the company will keep two drug-related business lines: Martindale, a generic-drug developer, and Beckloff Associates, which provides consulting services to obtain marketing approval. The businesses earned $30 million on revenue of $100 million in fiscal 2006, he said. -- by Melanie Evans
Cardinal to sell $1.7 billion division
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