Company Profile | April 2, 2001

QK Healthcare

Source: QK Healthcare
QK Healthcare QK Healthcare is a national wholesale distributor of selected healthcare products to retailers, wholesale distributors and pharmacy benefit managers. Our products currently include branded and generic pharmaceutical products and medical/surgical products. We acquire products from our extensive network of over 300 suppliers, including most of the major pharmaceutical manufacturers and wholesale distributors. We primarily stock products that we acquire on favorable terms by taking advantage of manufacturers' incentive discounts, various market opportunities and anticipated price increases. We believe that our ability to purchase significant amounts of inventory in short time periods makes us an important partner to members of our network.

Our purchasing and sales systems, together with our extensive knowledge of the pharmaceutical industry, are critical parts of our capabilities. Quality King developed these systems over 25 years and customized it to meet the needs of our pharmaceutical business. Our direct sales force, complemented by our telemarketing activities and our Internet services, ensures effective communication of our product offerings to our customers. We believe our information system provides our sales personnel with a competitive advantage in customer interactions by providing them with current information regarding product pricing and availability and manufacturers' promotional programs.

We have grown significantly over the past five years as a result of the expansion of our product line, customer base, supplier relationships and management, as well as overall industry growth. From fiscal 1995 through fiscal 1999, our annual net sales grew from $169.0 million to $1,012.8 million, representing a compound annual growth rate of 56%. Our income from operations grew over this period from $3.8 million to $55.3 million, representing a compound annual growth rate of 95%.