Bank of America Offloads Branches and 4 Stocks At 52-Week Highs
AmerisourceBergen (NYSE:ABC): Closing price $50.06
Shares of Cardinal Health (NYSE:CAH) fell after the company said that it would lose its drug procurement business with Walgreen Co. (NYSE:WAG), which will not renew its contract with Cardinal when its deal expires in Augus. Instead, Walgreen will obtain drugs from AmerisourceBergen, as part of a 10-year deal through which it will receive the right to buy a stake of up to 23 percent interest in that company. Cardinal’s sales to Walgreen comprised around 21 percent of its revenues in fiscal 2012; the firm had said that it would not lose Walgreen as a customer until fiscal 2014, and expects its fiscal 2014 earnings per share to be “at least similar” to the level in fiscal 2013. In a note to investors Tuesday, Lazard Capital analyst Tom Gallucci reacted to the news by lowering Cardinal Health to Neutral from Buy. AmerisourceBergen shares closed up 3.64 percent on Tuesday at $50.06, having been traded in a 52-week range of $35.48 to $49.39.