Cardinal Health, Cencora, and McKesson Expand Biosimilar Access Through Vertical Integration in Provider-Administered Drug Market

The three largest pharmaceutical wholesalers in the United States—Cardinal Health, Cencora, and McKesson—are leveraging vertical integration to expand their influence beyond traditional drug distribution. These companies have significantly strengthened their positions in the buy-and-bill market for provider-administered drugs by integrating with downstream customers and acquiring stakes in practice management companies. This strategy has also created new dynamics for market access to biosimilars within this segment.

Recent analysis highlights how private equity roll-up activity has provided these wholesalers with opportunities to acquire ownership stakes in practice management firms, further solidifying their presence in the healthcare supply chain. Additionally, vertical integration efforts have allowed these companies to enhance their control over provider-administered drug channels, impacting how biosimilars are accessed and distributed. These developments were discussed during a recent webinar on industry trends and challenges, which also explored broader changes affecting drug distribution and specialty pharmaceuticals.

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Source: GO-AI-ne1

Date: April 3, 2025

Author

Mark Chiang