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UPS gets Merck distribution contract

UPS said Tuesday it received a contract from Merck & Co. to manage part of its U.S. distribution of pharmaceuticals and vaccines and to provide package transportation services.
/ Source: The Associated Press

UPS said Tuesday it received a contract from Merck & Co. to manage part of its U.S. distribution of pharmaceuticals and vaccines and to provide package transportation services.

Financial terms were not disclosed.

UPS said it has taken control of two Merck distribution centers that provide temperature-sensitive storage, packaging and transportation services for Merck's pharmaceutical and vaccine products.

Most of Merck's U.S. vaccines and pharmaceutical volume flow through the two centers located in suburban Atlanta and Reno, Nev. The facilities add more than 200,000 square feet of automated health care logistics space to UPS's network.

UPS said the deal will allow it to leverage the new facilities for other health care customers and allow Merck to use UPS's existing health care distribution network.

UPS shares fell 93 cents to $55.18 in premarket trading Tuesday.