Syncor retools supplier alliances
Radiopharmacy firm Syncor last week announced changes in its relationships with suppliers AmershamMedi-Physics and Du Pont Merck Pharmaceutical that will affectthe company's 1995 financial performance. Syncor, of Chatsworth,CA, said that Medi-Physics has
Radiopharmacy firm Syncor last week announced changes in its relationships with suppliers AmershamMedi-Physics and Du Pont Merck Pharmaceutical that will affectthe company's 1995 financial performance. Syncor, of Chatsworth,CA, said that Medi-Physics has stopped selling its radiopharmaceuticalproducts through Syncor's network. The decision was effectiveJan. 16 and is due to a distribution alliance Medi-Physics formedlate last year with Mallinckrodt Medical and Geodax Technologies(SCAN 12/28/94). Syncor earned about $2.4 million in operatingincome from sales of Medi-Physics products in 1994.
On a positive note, Syncor has restructured its distributionrelationship with Du Pont Merck, which the companies entered intolast year (SCAN 1/19/94). The costs of the alliance have provedhigher than expected and have reduced Syncor's margins from the30% range to 20%, according to the company. As a result, Syncorand Du Pont Merck restructured their pricing agreement to evenout the costs of distribution. The alliance was responsible for$64 million in new sales last year, Syncor reported.
Also under the terms of the alliance, Syncor began distributingDu Pont Merck's Neurolite product, which received Food and DrugAdministration approval last year (SCAN 12/14/94). Syncor haspreferential distribution rights for the brain SPECT imaging agent.
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