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Gilead Sciences

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is getting its supply and demand equation under control, signing a series of inventory management agreements, or IMAs, with major pharmaceutical wholesalers.

The biopharmaceutical company signed IMAs with


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Cardinal Health

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to limit speculative buying of its drugs and ensure that wholesaler purchasing is consistent with user demand. The three companies distribute more than 90% of the portfolio of products offered by Gilead.

Under the agreements, Gilead will pay the wholesalers fees in exchange for their inventory management and product distribution services, along with market research information, help processing returns and counterfeit product detection.

In reaction to the news, shares of Gilead were up 57 cents, or 0.9%, to $65.90 in premarket action.

"We are pleased to have completed agreements with Amerisource-Bergen, Cardinal Health and McKesson," said John Martin, Gilead's president and CEO. "We believe that these mutually beneficial agreements will be an important component of long-term value to Gilead and our shareholders, while providing fair terms to our wholesalers, with whom we value our strong relationships."

Ultimately, Gilead said the IMAs will prevent wholesalers from stockpiling its drugs, like the HIV treatment Viread, and will reduce fluctuations in demand, giving better visibility on sales going forward. Gilead said it would provide more information about the IMAs when it releases second-quarter results on July 29.