Corporate News

McKesson Corporation (NYSE: MCK) announced that it has renewed its current distribution agreement to supply CVS Caremark (NYSE: CVS) with branded and generic drugs.

"CVS Caremark's decision to renew its agreement with McKesson is reflective of the trusted relationship between our two companies and the value McKesson has delivered to CVS Caremark over the years," said Paul Julian, executive vice president, group president, McKesson Corporation. "McKesson's comprehensive supply chain solutions help CVS Caremark ensure the highest levels of product availability and product integrity, empowering CVS Caremark to provide outstanding pharmaceutical care and further strengthen its competitive position."

Oclaro, Inc. (Nasdaq: OCLR) today announced it has closed the transaction announced on June 3, 2009 with Newport Corporation (Nasdaq: NEWP) under which Newport has acquired the New Focus business of Oclaro's Advanced Photonics Solutions division in exchange for the Newport Spectra Physics high power laser diodes business. Oclaro has also received $3 million in cash proceeds which is expected to fund related transition and integration costs.

With this transaction, Oclaro believes it becomes the largest merchant supplier to the high power laser diodes market. The Newport transaction complements the #1 or #2 position in the long haul and metro markets that Oclaro has achieved as a result of the merger of Bookham and Avanex. Oclaro's leading presence in key markets helps insure its ability to invest in R&D and innovate for the future. The transaction also increases the utilization of Oclaro's wafer fabrication facilities, which is expected to benefit the gross margin performance of products within its metro and long haul business as well as in its high power laser diodes business.

Cardinal Health (NYSE: CAH) today announced it has renewed its distribution agreement with CVS Caremark (NYSE: CVS) to supply pharmaceuticals to its national network of retail pharmacies through mid-2013.

"We have a long-standing partnership with CVS Caremark, and we are proud to continue this important relationship," said George Barrett, vice chairman of Cardinal Health and chief executive officer of the Healthcare Supply Chain Services segment. "The footprint of the agreement is expected to be fundamentally the same as our existing relationship, and the economic terms for Cardinal Health were already incorporated into our previous disclosure for fiscal 2010, given during our Investor Day event on June 2."

Additional terms of the agreement were not disclosed.

Caraco Pharmaceutical Laboratories, Ltd. (NYSE: CPD) announced that it is in the process of instituting an indefinite reduction in its workforce of approximately 350 employees in order to align its expenses with the current voluntary cessation of its manufacturing operations in connection with the recent action by the FDA.

The timing of the resumption of manufacturing operations, in whole or in part, depends on the outcome of discussions with the FDA. This should have no effect on distributed product sales that we market in the US. The Company may recall some employees to assist us in any remedial action plan that is developed based on such discussions.

AMR Corp.'s (NYSE: AMR) American Airlines reported a June load factor of 85.1%, a decrease of 0.3 points versus the same period last year. Traffic decreased 8.1% and capacity decreased 7.8% year over year.

Domestic traffic decreased 10.1% year over year on 10.6% less capacity. International traffic decreased by 4.5% relative to last year on a capacity decrease of 3.1%.

American boarded 7.6 million passengers in June.

Separately, AMR's American Eagle reported a June load factor of 77.9% - an increase of 2.8 points compared to the same period last year. Traffic decreased 5.0% year over year as capacity decreased 8.4%.

American Eagle boarded more than 1.7 million passengers in June.