Pharma-government deals involve McKesson and maybe Teva

Like some folks on Wall Street, some in the pharmaceutical community bemoan the existence of government.....until the government gives them money.

Two examples came Wednesday, when news emerged that Teva Pharmaceuticals might build another facility in New Jersey and and McKesson Inc. was awarded a $31 billion contract to distribute pharmaceuticals to the Veterans Administration.

Inquirer colleague Matt Katz, whose coverage of New Jersey Gov. Christie is first rate, shared a bit of pharma knowledge Wednesday as the governor mentioned that Teva Pharmaceuticals might open a facility in Florham Park.

Teva is based in Israel and company officials signed a "letter of cooperation" with Christie during his recent visit to that country. Recent New Jersey governors have made such trips.

Teva has facilities in Elmwood Park, Fairfield, Fairlawn, and Woodcliff Lakes. The state's Economic Development Authority said Teva would be eligible for $15 million in tax credits if it builds a research and development facility in Florham Park and creates 215 jobs.

Meanwhile, the Wall Street Journal and Bloomberg reported that McKesson was able to keep the contract with the VA, which could run over eight years. McKesson is the largest distributor in the United States. AmerisourceBergen, based in Valley Forge, and Cardinal Health are the other two big distributors had hoped to win the VA deal.