Fred's And Cardinal Health Announce Primary Supply Agreement

Cardinal Health to serve as primary supply chain partner for branded and generic pharmaceuticals under new multi-year agreement

News provided by

Cardinal Health, Inc.

Aug 11, 2014, 04:05 ET

MEMPHIS, Tenn. and DUBLIN, Ohio, Aug. 11, 2014 /PRNewswire/ -- Fred's Inc. (NASDAQ: FRED), a leading provider of pharmacy services in the southeast and Cardinal Health, Inc. (NYSE:CAH), one of the nation's largest healthcare services companies, today announced a multi-year agreement for Cardinal Health to be the new primary supplier of branded and generic pharmaceutical products to all of Fred's more than 360 in-store pharmacies and EIRIS Health Services in the United States.

Under the agreement, Fred's and Cardinal Health will establish a mutually beneficial strategic alliance designed to support Fred's key initiative of rapid pharmacy growth, and build on a foundation of premier supply chain and asset management tools.

"Fred's is enthusiastic about the partnership we have forged with Cardinal Health and the inventive solutions Cardinal will provide to support our strategic growth," said Bruce A. Efird, Chief Executive Officer of Fred's. "This new alliance puts Fred's in position to achieve our aggressive pharmacy growth goals in retail locations, clinical services, and specialty pharmacy."

"We are excited about the opportunity to provide innovative services to support Fred's strategies for growth, and we look forward to growing this alliance over time," said George S. Barrett, Chairman and CEO of Cardinal Health.

About Fred's Inc.
Fred's, Inc. operates 704 discount general merchandise stores, including 21 franchised Fred's stores, in the southeastern United States. For more information about the Company, visit Fred's website at www.fredsinc.com.

About Cardinal Health, Inc.
Headquartered in Dublin, Ohio, Cardinal Health, Inc. (NYSE: CAH) is a $91 billion health care services company that improves the cost-effectiveness of health care. As the business behind health care, Cardinal Health helps pharmacies, hospitals, ambulatory surgery centers, clinical laboratories and physician offices focus on patient care while reducing costs, enhancing efficiency and improving quality. Cardinal Health is an essential link in the health care supply chain, providing pharmaceuticals and medical products and services to more than 100,000 locations each day and is also the industry-leading direct-to-home medical supplies distributor. The company is a leading manufacturer of medical and surgical products, including gloves, surgical apparel and fluid management products. In addition, the company operates the nation's largest network of radiopharmacies that dispense products to aid in the early diagnosis and treatment of disease. Ranked #22 on the Fortune 500, Cardinal Health employs 34,000 people worldwide. More information about the company may be found at www.cardinalhealth.com and @CardinalHealth on Twitter.