Bergen Brunswig Subsidiary Wins 3-Year Supply Contracts

Bergen Brunswig Corp. said Thursday that its main subsidiary signed a three-year agreement with BJC Health System to supply pharmaceuticals and clinical consulting services to BJC’s network of hospitals, nursing homes and ambulatory care delivery sites in Missouri and Illinois.

The agreement is expected to generate more than $300 million in revenue for Bergen Brunswig Drug Co. over the life of the contract, of which about $100 million represents incremental new business, the Orange-based company said in a press release.

In a separate release, Bergen Brunswig said it also signed a three-year distribution agreement with Promina Health Systems to provide pharmaceutical products and clinical consulting services to Promina’s network of hospitals and alternate care locations.

Promina is expected to direct about $150 million in purchases to Bergen over the life of the agreement, of which about 20% is incremental new revenue for Bergen, which sells drug and medical-surgical supplies.

In separate news involving Bergen, Counsel Corp. in Toronto said it has filed a motion to compel arbitration in a lawsuit Bergen filed over Counsel’s sale earlier this year of its Stadtlander Drug Co. subsidiary to Bergen.

The suit accuses Counsel of fraudulently overstating Stadtlander’s earnings before selling it to Bergen. Counsel called the lawsuit “completely without merit.”