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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Cardinal Health reported Q3 FY22 revenues of $44.8 billion, a 14% increase from last year. However, the company faced a GAAP operating loss of $97 million, mainly due to a $474 million non-cash goodwill impairment in the Medical segment. Non-GAAP operating earnings fell 21% to $545 million, while non-GAAP diluted EPS decreased 5% to $1.45. The company finalized an opioid settlement costing up to $6 billion over 18 years. FY22 guidance was adjusted, projecting non-GAAP EPS of $5.15 to $5.25 and Medical segment profit decline of 45-55%.
AmerisourceBergen (ABC), Cardinal Health (CAH), and McKesson (MCK) have settled opioid-related claims with the Washington Attorney General, agreeing to pay up to $518 million. This payment resolves lawsuits filed by the state and its subdivisions, allowing for the dismissal of ongoing litigation. The settlement aligns with a previously announced agreement effective April 2, 2022, aimed at addressing a significant portion of opioid claims against the distributors. The companies dispute the allegations but see this as steps toward broader resolutions and relief for impacted communities.
Cardinal Health (NYSE: CAH) will release its third-quarter financial results for fiscal year 2022 on May 5 prior to market opening. A webcast discussing these results will start at 8:30 a.m. Eastern. Investors can access the webcast and slides via the company’s Investor Relations page without an access code. Cardinal Health is a global distributor of pharmaceuticals and medical products, operating in over 30 countries with approximately 44,000 employees.
Cardinal Health (CAH) announced plans to construct a 574,670 square foot medical distribution center in Columbus, Ohio, expected to be operational by late 2022 or early 2023. This facility aims to enhance safety, service quality, and operational efficiencies while accommodating fluctuations in volume and labor. The new center will replace an existing 235,000 square foot facility in Obetz and create new job opportunities in the Ohio Valley. The project is supported by a partnership with Duke Realty and is part of a broader strategy to expand U.S. warehouse capacity, ensuring better logistic support.
Cardinal Health (CAH) has launched the first surgical incise drape featuring patented BeneHold™ CHG adhesive technology, designed to reduce surgical site contamination risks. This unique drape utilizes Chlorhexidine Gluconate (CHG), an antiseptic trusted for skin preparation, to enhance patient care. Surgical site infections (SSIs), responsible for 20% of hospital-acquired infections and associated with significant costs of over $3.3 billion annually, can be mitigated by this innovative product. The drape meets FDA requirements and has shown promising results in studies against MRSA contamination.
Settlement Announcement: AmerisourceBergen (ABC), Cardinal Health (CAH), and McKesson (MCK) have reached an agreement to settle the majority of opioid lawsuits with participation from 46 of 49 eligible states and over 90% of litigating political subdivisions. The settlement totals approximately $19.5 billion to be distributed over 18 years, with individual contributions of $6.1 billion, $6.0 billion, and $7.4 billion from AmerisourceBergen, Cardinal Health, and McKesson, respectively. The agreement aims to provide relief to communities affected by the opioid crisis.
Cue Health Inc. (Nasdaq: HLTH) has partnered with Cardinal Health (NYSE: CAH) to expand distribution of its COVID-19 tests across traditional and non-traditional healthcare settings. This collaboration aims to enhance the availability of Cue's nucleic acid amplification tests, which have shown 97.8% concordance with PCR tests, and the innovative at-home test, the first of its kind to gain Emergency Use Authorization from the FDA. Both professional and OTC/home test kits will be available, supporting healthcare providers’ evolving diagnostic needs.
Cardinal Health (NYSE: CAH) announced on February 9, 2022, a partnership with Kinaxis to enhance its medical supply chain operations. The Kinaxis RapidResponse platform will increase product visibility and improve supply chain agility. Initial implementation will focus on Cardinal Health at-Home Solutions, with a full rollout expected by the end of 2023. This integration aims to provide real-time insights, enabling better risk management and inventory capabilities while aiding in proactive decision-making for customer demand and supply balance.
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