Magazine article Drug Topics

FoxMeyer Drug Hits Some Bumps in the Road

Magazine article Drug Topics

FoxMeyer Drug Hits Some Bumps in the Road

Article excerpt

May you live in interesting times" is an ancient saying that could apply to the wholesale drug industry today, especially FoxMeyer Health Corp.

FoxMeyer Health Corp., Dallas, filed for bankruptcy protection on behalf of its wholesale drug distributor, FoxMeyer Drug Co., Carrollton, Texas, after plans to sell the distributor fell through.

A group of New Jersey investors led by turnaround artist William Taggart had offered to buy the drug distribution unit for $25 million. This group, in turn, was to form a joint venture with the Ridgefield, N.J., wholesaler Neuman Health Services to operate FoxMeyer Drug. But the investors backed off after facing special difficulties in raising new financial support for the company.

FoxMeyer Health Corp. clarified that the Chapter 11 bankruptcy filing applies not to itself as the holding company, but only to its drug distribution unit.

FoxMeyer Drug accounted for the lion's share of its parent company's $5.5 billion in annual sales. But major snafus stemming from the startup of a state-of-the-art national distribution center in Washington Court House, Ohio, last year bled red ink all over the firm's ledger sheets. …

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