Sector: Health Care | Focus: Health Care Distributors
HQ: Dublin, Ohio
Financial Risks
Cardinal Health faces risks from expiring OptumRx contracts, impacting revenue and operating margins. Goodwill impairment charges, particularly in the GMPD segment, are a concern. Opioid litigation settlements, with ongoing payments through 2038, represent a significant financial commitment. The pending acquisition of Integrated Oncology Network carries risks of failed integration, unrealized synergies, and potential adverse economic conditions. Uncertainties surrounding generic pharmaceutical pricing and potential legal challenges also pose risks.
Financial Upside
Increased demand for GLP-1 pharmaceuticals and the earlier launch of COVID-19 vaccine distribution positively impacted the Pharma segment's revenue and profit. Growth from existing customers in the GMPD segment is anticipated. The at-Home Solutions segment and OptiFreight Logistics are also showing growth. Share repurchases, though costly, are a positive action. The acquisition of Specialty Networks and the potential acquisition of Integrated Oncology Network could expand offerings and create new revenue streams.
