United Parcel Service, Inc. (UPS) Tuesday said it has been selected by Merck & Co. Inc. (MRK) to manage majority of its U.S. distribution of pharmaceuticals and vaccines.
Atlanta, Georgia-based United Parcel assumed control of two key distribution centers located in suburban Atlanta and Reno, which provide Merck with temperature-sensitive storage, packaging and transportation services. The acquisition was made through United Parcel subsidiary UPS Supply Chain Solutions.
The cGMP-compliant Atlanta and Reno facilities will allow Merck to utilize a broad spectrum of UPS services to gain additional supply chain flexibility needed for initiatives such as new product launches. Most of Merck's U.S. vaccines and pharmaceutical supply flow through these two facilities.
cGMP refers to current good manufacturing practice requirements for finished pharmaceuticals promulgated by the US Food and Drug Administration under the authority of the Federal Food, Drug, and Cosmetic Act.
In addition to shipping expertise, UPS services available to Merck include storage, warehousing, order fulfillment and shipping of pharmaceuticals and vaccines.
In the recently completed third quarter, United Parcel Service reported a 10% decline in profit, despite a 7% increase in revenues, hurt by higher expenses. The company, at that time, also said it expects a challenging environment for a number of quarters.
UPS closed Monday's regular trading at $55.18, down $0.93, on a volume of 3.59 million shares.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.