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Medicare Changes Hit Bergen Brunswig Profit

July 08, 1999|Bloomberg News

Bergen Brunswig Corp., one of the largest U.S. drug wholesalers, said its third-quarter earnings will miss analysts' expectations because its PharMerica unit was hurt by changes in Medicare funding. Bergen Brunswig expects to report 25 cents to 27 cents a share for the quarter and $1.10 to $1.15 for the year. The average estimate of analysts surveyed by First Call Corp. called for it to earn 31 cents for the quarter and $1.24 for the year. Bergen bought PharMerica, a large supplier of pharmacy services to nursing homes, for $1.1 billion in stock and debt in April. But changes in Medicare are affecting revenue, as nursing homes accept fewer seriously ill patients, cutting drug usage. Shares of Orange-based Bergen Brunswig fell 81 cents to close at $16.10 on the NYSE.

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