Cardinal Health, Inc. - CAH STOCK NEWS

Cardinal Health (CAH) has signed an agreement to sell its Cordis business to Hellman & Friedman for approximately $1 billion. The divestiture, expected to close in the first half of fiscal year 2022, will decrease Cardinal Health's Medical segment profit by $60 million to $70 million annually. The company anticipates a pre-tax loss of up to $120 million for Q3 of fiscal year 2021 related to this transaction. Cardinal Health retains liability for certain lawsuits associated with Cordis post-sale.

On February 18, 2021, Cardinal Health announced a partnership with HIMSS Analytics as a certified organization for the Clinically Integrated Supply Outcomes Model (CISOM). This collaboration aims to enhance healthcare supply chain management and minimize medical errors. WaveMark™ Supply Management & Workflow Solutions will assist health systems in evaluating their supply chain maturity, facilitating automation, and improving patient care efficiency. Key benefits include automated tracking for recalls, cost savings insights, and comprehensive supply documentation, aiming for better patient outcomes at lower costs.

Cardinal Health reported Q2 FY21 revenue of $41.5 billion, a 5% increase year-over-year. Operating earnings rose 38% to $461 million, primarily benefiting from a prior-year charge related to surgical gown recalls. GAAP diluted EPS increased to $2.13, while non-GAAP diluted EPS rose 14% to $1.74. The Pharmaceutical segment saw a 4% revenue increase, but segment profit dropped 11% due to COVID-19 impacts. In contrast, the Medical segment's revenue grew 7%, with profits up 21%. Cardinal Health raised its FY21 EPS guidance to $5.85-$6.10.

Cardinal Health (NYSE: CAH) launched TotalVue™ Analytics, a predictive tool for healthcare supply chain leaders to identify logistics savings and benchmark performance. This tool enhances visibility into shipping trends, helping health systems reduce freight costs. With machine learning capabilities, it enables precise benchmarking by comparing similar hospital systems. Early users like Banner Health reported substantial cost savings by improving shipping management. The tool aims to provide actionable data and long-term efficiencies in logistics management.

Cardinal Health (NYSE: CAH) will announce its second-quarter financial results for fiscal year 2021 on February 5, before market open. The webcast discussing these results is scheduled for 8:30 a.m. Eastern time. Additionally, CEO Mike Kaufmann will speak at the 39th Annual J.P. Morgan Healthcare Conference on January 11, 2021, at 9:10 a.m.. Investors can access the webcast and slides through the Investor Relations page, with the replay available until February 4, 2022.

Cardinal Health (NYSE: CAH) has been selected by the Ohio Department of Health to assist in the distribution of COVID-19 vaccines. The company's OptiFreight® Logistics division will coordinate transportation efforts across 88 counties in Ohio, providing same-day delivery services to 350 locations. Initial vaccine doses will require special handling and temperature control, which OptiFreight® is equipped to manage. This partnership highlights Cardinal Health's critical role in ensuring safe and efficient vaccine distribution to aid in combating the COVID-19 pandemic.

Cardinal Health's latest Oncology Insights report reveals significant adaptations made by U.S. oncologists in response to the COVID-19 pandemic. A notable 97% of oncologists utilized telemedicine, with 60% expressing a highly positive experience. Additionally, 65% shifted patients to oral therapies to minimize office visits. While three-fourths are confident in returning to pre-pandemic success, 50% report burnout, primarily due to reduced patient interaction. This research, based on surveys of over 190 oncologists, highlights the resilience and resourcefulness of oncologists during challenging times.

Cardinal Health (NYSE: CAH) has partnered with the CDC to act as a network administrator for Phase 2 of the Federal Pharmacy Partnership Strategy for COVID-19. This collaboration will facilitate independent retail pharmacies and long-term care facilities in vaccine distribution efforts. Cardinal Health aims to leverage its extensive pharmacy expertise to support a nationwide vaccination initiative, ensuring a safe vaccine administration network across the U.S. CEO Victor Crawford emphasized the importance of pharmacists in combating the COVID-19 pandemic.

Cardinal Health (CAH) reported Q1 FY21 revenues of $39.1 billion, a 5% increase from the previous year. While a GAAP operating loss of $624 million was recorded due to opioid litigation, non-GAAP operating earnings rose 7% to $618 million. The GAAP diluted loss per share was $0.86, but non-GAAP diluted EPS increased 19% to $1.51. The Pharmaceutical segment's revenue grew 5% to $35.1 billion, while the Medical segment's revenue rose 1% to $4.0 billion. The company also raised its FY21 guidance for non-GAAP diluted EPS to $5.65-$5.95.