Zacks Investment Research | Mar 05, 2018 09:42PM ET
Henry Schein, Inc.’s (NASDAQ:HSIC) latest deal with Grifols (NASDAQ:GRFS) adds stimulus to its distribution business. Both companies have signed a distribution agreement, enabling the former to market and distribute the latter's 500mL Normal Saline solution (0.9% Sodium Chloride Injection, USP) in U.S. market.
Notably, Grifols is a leading producer of plasma-derived medicines and a forerunner in the research and development of therapeutic alternatives. The company manufactures this 500mL Normal Saline solution at its industrial complex in Murcia (Spain) and received the FDA approval to market the product in the United States Only last year.
With growing demand for saline products in the U.S. market, we believe this partnership will be strategically beneficial for Henry Schein. Per the company, this solution by Grifols has capacity to quickly meet its customers' needs during the shortage of IV solutions.Both companies can gain an impetus from the global supply infrastructure as well as Henry Schein’s widespread network.
In this regard, we note that Henry Schein’s distribution business boasts a broad global footprint with 61 distribution centers located all over. Apart from North America and Europe, the company has presence across Australia and New Zealand as well as in the emerging markets like China, Brazil, Israel, Czech Republic and Poland being the latest target hub.
Grifols apart, the company’s significant distribution partners are Terason and DENTSPLY SIRONA. While Henry Schein exclusively distributes Terason’s uSmart 3200T NexGen, its Canadian dental subsidiary distributes the entire DENTSPLY SIRONA product line.
Share Price Movement
Over the past three months, shares of Henry Schein have underperformed the Zacks Investment Research
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