JAPAN'S EISAI REVERSES US CARDINAL HEALTH DEAL CANCELLATION

US pharmaceuticals products distributor Cardinal Health and Japanese drugmaker Eisai have announced a new multi-year agreement, reversing Eisai's decision last week to cancel the two companies' existing arrangements. Last week, the Japanese company claimed that it had failed to reach agreement and was to transfer its US distribution to its other local operations. The two companies are now reported to be "pleased" with the new agreement, the financial terms of which were not disclosed.

The deal is already being seen as a victory for Cardinal Health, in that the US company has managed to extract a crucial fee-for-service concession from Eisai. Previously, drug wholesalers simply purchased the drugs and awaited price rises. However, wholesalers have complained that the recent failure of price rises to materialise has damaged profitability, and have now sought a transition to a new model for drug distribution.

Eisai, which produces leading Alzheimer's therapy Aricept, accounts for up to US$800mn of Cardinal Health's annual sales annually, or less than 2% of overall revenue. Meanwhile, US drug major Pfizer has claimed that the subject of fee-for-service arrangements is not under discussion with its US distributors.