Courier firm City Link has won a £780,000 distribution contract with Gwent-based Williams Medical Supplies.
Following a month-long trial, City Link has been awarded the deal to transport pharmaceutical goods to approximately 8,000 surgeries.
General manager of City Link's Cardiff depot, Clive Reynish, says: "William Medical Supplies is a highly respected company and has a reputation second to none as the leading provider of medical supplies and services to the healthcare market in the UK."
Earlier in December, City Link said it was "a year to 18 months" ahead of its five-year recovery plan and was on track to return to profit in 2010.
According to MD Stuart Godman, the company has walked away from unprofitable business and next year will turn the losses of 2008 and 2009, following the takeover of Target Express, into a profit.