Cardinal Health delivers solid Q4, full-year results amid generics pricing pressures
DUBLIN, Ohio — With its pharmaceutical segment seeing growth from both increased distribution customers and strong specialty performance, Cardinal Health delivered a 5% revenue increase for the fourth quarter and a 7% increase for the full-year. The company’s full-year revenue totaled $130 billion and its Q4 revenue hit $33 billion.
"While these last 12 months were clearly a dynamic period in healthcare and certainly presented challenges for our fiscal 17, it was also a year in which we took important actions to strengthen our market positioning, grow our scale, add new, long-term drivers of growth, and improve the overall balance of our integrated portfolio," Cardinal Health chairman and CEO George Barrett said.
In Q4, the company’s pharmaceutical segment increased its revenue 5% to $29.6 billion. Cardinal Health attributed the growth to more pharmaceutical distribution customers and growth in its Specialty Solutions business. The segment’s profit, however, decreased 7% to $505 million, which it said was driven by generics pricing and Cardinal Health’s continued investment in its Pharmaceutical IT platform.
For the full-year, the segment grew its revenue 7% to $116.5 billion, with profit falling 12% to $2.2 billion. Cardinal Health attributed the segment’s profit downturn to generics pricing and the loss of Safeway and reduced levels of branded drug price appreciation, though both to a lesser extent. In both Q4 and the full year, these downturns were partially offset by strong performance of Red Oak Sourcing.
The company’s medical segment in Q4 saw revenue grow 6% to $3.4 billion, with a profit increase fo 13% to $138 million. For the full-year, the segment’s revenue grew to $13.5 billion — a 9% increase over the same period last year — and its profit grew 25% to $572 million.