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Henry Schein's Bid to Move Up the Pharma Value Chain

Henry Schein, the dental and medical supplies distributor, is known for its strong relationship with physicians' offices, where it is a major supplier of med-surge products, equipment, pharma injectables and vaccines. Now it wants to fill in gaps that pharma companies aren't paying attention to--and in the process move up the value chain. It is expanding into specialty pharmacy, and seeking to strike deals with vaccine makers. It also has set up a small business development operation to look for in-licensing opportunities.

Henry Schein Inc. , the distributor of dental and other health care products, wants to expand its presence in pharma. It's already known for a strong relationship with physicians' offices, where it is a major supplier of med-surge products, equipment and pharmaceutical injectables and vaccines. Now, it sees an opportunity to fill in gaps that pharma companies aren't paying attention to for a variety of reasons—and, in the process, move up the value chain.

Schein executives believe they can make inroads where others can't due to the company's strong, constant relationships with physicians and...

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