The purpose of this case is to provide insight into the dynamics of the pharmaceutical industry and to offer one view of the changing business model in the industry. What was once a vertically integrated business model for the large drug manufacturers has now been supplanted by contract manufacturers and other intermediaries that have changed the nature of competition. Cardinal has become far more than a drug wholesaler and this case attempts to shed light on the range of services it can offer to increase its share of the overall value chain from drug discovery, through FDA trials and approval, to marketing and sales of these drugs.
