In a business where big players claw away at each other's ultra-slim operating margins, drug distributor Cardinal Health sharpened its nails with two strategic acquisitions last year.
In China, one of the world's fastest growing health care markets, Cardinal paid $470 million for Zuellig Pharma China, the country's largest pharmaceutical importer. In the U.S., it bought Kinray from billionaire Stewart Rahr for $1.3 billion, which will add some 2,000 higher-margin independent pharmacies to Cardinal's distribution channel.
A new, three-year $750 million stock repurchase plan should also give a boost to the company's shares. --P.N.
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