Welcome to our dedicated page for Cardinal Health news (Ticker: CAH), a resource for investors and traders seeking the latest updates and insights on Cardinal Health stock.
Cardinal Health, Inc. (NYSE: CAH) is a global leader in integrated healthcare services and products. With nearly 100 years of experience, the company stands as a pillar in the healthcare industry, ranking among the top 25 on the Fortune 500 list. Cardinal Health offers a comprehensive suite of services that cater to hospital systems, pharmacies, ambulatory surgery centers, clinical laboratories, and physician offices worldwide.
Operating through two main segments—Pharmaceuticals and Medical—Cardinal Health provides clinically-proven medical products and pharmaceuticals, alongside cost-effective solutions that enhance supply chain efficiency. The company is a major distributor of branded, generic, and specialty pharmaceutical products to a wide array of clients, including retail chains, independent pharmacies, hospital networks, and healthcare providers.
Recently, Cardinal Health reported strong financial results for Q2 FY2024, with a 12% increase in revenue to $57.4 billion. The company also saw significant growth in both its Pharmaceutical and Medical segments, driven by robust sales of brand and specialty pharmaceuticals, as well as improvements in at-Home Solutions and Global Medical Products and Distribution. CEO Jason Hollar highlighted the company's operational execution and strategic priorities, which include tech-enabled specialty acquisitions and a focus on supply chain resiliency.
Cardinal Health is also committed to sustainability and corporate responsibility. The company recently released its Fiscal 2023 Environmental, Social and Governance (ESG) Report, emphasizing long-term value creation through sustainable practices. The company has received approval from the Science Based Targets initiative (SBTi) for its ambitious greenhouse gas (GHG) emissions reduction targets. By FY2023, Cardinal Health had already reduced its Scope 1 and 2 emissions by 13% from a FY2019 base year.
In terms of infrastructure, Cardinal Health is expanding its logistics capabilities. The company has commenced construction on a new 350,000 square-foot Consumer Health Logistics Center in Columbus, Ohio, designed to support the distribution of over-the-counter consumer health products. This facility, expected to be operational by Summer 2025, will create approximately 100 new jobs and enhance Cardinal Health's supply chain agility.
Despite challenges such as the non-renewal of its pharmaceutical distribution contracts with OptumRx, Cardinal Health remains resilient. The company reaffirmed its fiscal 2024 non-GAAP diluted EPS guidance and is confident in its long-term growth targets.
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On December 9, 2022, Cardinal Health released the 12th edition of its Oncology Insights report, highlighting health inequities in cancer care. The study indicates that 80% of oncologists recognize inequities in healthcare, with nearly 50% citing these disparities as significant in cancer treatment. Unconscious bias among providers towards non-white and Latinx patients was reported by 60% of participants. The report emphasizes the need for greater awareness, education, and evidence-based initiatives to improve access to quality care for all patients.
Cardinal Health (NYSE: CAH) has launched Velocare™, a new supply chain solution that enables rapid delivery of medical supplies for hospital-level care at home, in collaboration with Medically Home. This pilot program aims to enhance patient care by delivering essential products within one to two hours. Utilizing Cardinal Health's logistics expertise, the initiative targets high-acuity patients who previously required hospitalization. The market for at-home healthcare could reach $265 billion by 2025, according to McKinsey, indicating significant growth potential for this venture.
Cardinal Health (NYSE: CAH) has formed a strategic collaboration with Transaction Data Systems (TDS) to integrate the Outcomes platform into over 18,000 pharmacy locations. This partnership aims to enhance pharmacist workflows by connecting payers and pharmaceutical companies for improved medication adherence and patient care. The integration is expected to drive operational efficiency and generate additional revenue through clinical services. Both companies emphasize their commitment to enhancing health outcomes in the pharmacy setting.
On November 8, 2022, Cardinal Health (NYSE: CAH) announced a quarterly dividend of $0.4957 per share, reflecting its ongoing commitment to return value to shareholders. This dividend is payable on January 15, 2023, to shareholders of record by the close of business on January 3, 2023. Cardinal Health continues to strengthen its position as a key player in the healthcare sector, with its substantial operations spanning over 30 countries and a dedicated workforce of approximately 44,000 employees.
Cardinal Health reported Q1 FY23 revenues of $49.6 billion, up 13% year-over-year, with GAAP operating earnings of $137 million and diluted EPS of $0.40. Non-GAAP operating earnings fell 20% to $423 million, mainly due to a decline in the Medical segment, while non-GAAP diluted EPS decreased 7% to $1.20. The company reaffirmed its fiscal year 2023 non-GAAP EPS guidance of $5.05 to $5.40, although it adjusted Medical segment profit outlook to expect a flat to 20% decline.
Cardinal Health (NYSE: CAH) unveiled the third edition of Rheumatology Insights, revealing a significant rise in rheumatologists' familiarity with biosimilars, increasing from 53% in 2020 to 76% in 2022. Comfort in prescribing these medications also grew from 41% to 62%. The report indicates a heightened readiness for new biosimilars anticipated in 2023, particularly for adalimumab, a key product. Additionally, the report addresses health inequities in rheumatology, with 85% of rheumatologists acknowledging their existence and 58% noting worsened mental health in patients since COVID-19.
Cardinal Health (NYSE: CAH) will release its first-quarter financial results for fiscal year 2023 on November 4, before the NYSE opens. A webcast discussion will follow at 8:30 a.m. Eastern. The presentation will be available on Cardinal Health's Investor Relations page with slides and a replay accessible until November 3, 2023. Cardinal Health, a leading distributor of pharmaceuticals and medical products, operates in over 30 countries with approximately 46,500 employees.
PayrHealth has announced a collaboration with Cardinal Health (NYSE: CAH) to simplify payor contracting for specialty physician practices, focusing on rheumatology and ophthalmology. This partnership leverages Cardinal Health's Advanced Practice Analytics Technology and PayrHealth's expertise, aiming to enhance financial performance and operational efficiency. The initiative allows practices to concentrate more on patient care by managing the complexities of payor contracts. The new service will expand to additional therapeutic areas in the future.
Cardinal Health (NYSE: CAH) appointed Debbie Weitzman as the new CEO of its Pharmaceutical Segment, effective September 19, following the resignation of Victor Crawford. Weitzman, previously President of Pharmaceutical Distribution, will oversee both the Pharmaceutical and Specialty Distribution businesses, which will report directly to her. This leadership change aims to strengthen focus on specialty distribution and streamline operations. The restructuring includes the elimination of the President role in Pharmaceutical Distribution.
On September 6, 2022, Cardinal Health (NYSE: CAH) announced significant governance enhancements, including the appointment of four new independent directors, as part of its long-term strategy influenced by Elliott Investment Management. The newly formed Business Review Committee will assess the company's strategy and operations, chaired by CEO Jason Hollar. Following the upcoming Annual Meeting, the Board will include 54% women and 23% racially or ethnically diverse members. Cardinal Health plans an investor day in 2023 to present findings and strategic guidance.
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