Cardinal Health, Inc. is a Fortune Global 500 health care services company, and the 14th highest revenue generating company in the United States. Its headquarters is based in Dublin, Ohio. The company specializes in distribution of pharmaceuticals and medical products, serving more than 100,000 locations. The company also manufactures medical and surgical products, including gloves, surgical apparel and fluid management products. In addition, it operates the largest network of radiopharmacies in the U.S. Cardinal Health provides medical products to over 75 percent of hospitals in the United States.
|Cardinal Health, Inc.|
|Headquarters||Dublin, Ohio, U.S.|
|Products||Medical and pharmaceutical products and services|
|Revenue||US$ 130 billion (2017):21|
|US$ 2.12 billion (2017):21|
|US$ 1.29 billion (2017):21|
|Total assets||US$ 40.1 billion (2017):21|
|Total equity||US$ 6.81 billion (2017):21|
Number of employees
|40,400 (global) (2017):26|
Founded in 1971 as Cardinal Foods by Robert D. Walter, the company was initially a food wholesaler. After acquiring the Bailey Drug Company in 1979, it began wholesaling drugs as Cardinal Distribution, Incorporated. The company went public on the NASDAQ stock exchange in 1983 and subsequently began a long string of acquisitions and mergers. In 1988, Walter sold Cardinal Health's food operations to Roundy's. From 1991 to 1996, the company's sales grew from $1.2 billion to $8.9 billion. In a case study for Harvard Business Review, Mary Teagarden describes Cardinal Health in this period as "one of a handful of large U.S. companies that had achieved earnings-per-share growth in excess of 20 percent for 15 years straight." The company changed its name to Cardinal Health in 1994 and became the third-largest pharmaceutical wholesaler in the United States.
R. Kerry Clark, a former executive and vice chairman at Procter & Gamble, was appointed president and CEO in April 2006, with Robert D. Walter retaining Chairmanship of the board. In September 2008, the company announced Clark and Walter would retire and George S. Barrett would become the chairman and CEO.
Cardinal Health completed the spin-off of its clinical and medical products businesses into an independent medical technology company called CareFusion in 2009 with David Schlotterbeck as CEO. Cardinal Health is now traded on the NYSE under symbol CAH. As of August 2017, it is ranked 15 on the Fortune 500 list with FY2017 annual revenue of $121.5 billion. The firm employs 37,300 people worldwide.
In December 2013, it was announced that Cardinal Health would team up with CVS Caremark, which would form the largest generic drug sourcing operation in the United States. The venture was named Red Oak Sourcing and began operations in July 2014.
In 1995, Medicine Shoppe International (St. Louis, est. 1970), the country's largest franchise of retail pharmacies, was acquired. The merger represented the first non-distribution acquisition by Cardinal Health.
In a 1997 competition between Cardinal Health and McKesson Corporation, Cardinal Health planned to purchase Bergen, to which McKesson responded with a bid to purchase Amerisource. Instead, Amerisource and Bergen merged into AmerisourceBergen. Later that year, Cardinal Health completed the acquisition of Owen Healthcare, the second-largest provider of pharmacy management services in the U.S. at the time.
In 1999, the firm acquired the Chicago-based medical products manufacturer and distributor, Allegiance Healthcare (formerly a division of Baxter Healthcare). Allegiance made surgical drapes, gloves, and gowns, and distributed customized arrangements of medical supplies (called "custom sterile packs" and "procedure-based delivery systems"). During 2001, the company spent approximately $30 billion on acquisitions, including Bindley Western Industries, wholesale distributor of pharmaceuticals based in Indianapolis.
In April 2006, Cardinal Health purchased Niagara Falls-based ParMed Pharmaceuticals for $40.1 million. ParMed's focus of selling medicine in smaller quantities complements Cardinal Health's distribution to bigger hospital and drug store chains. In June 2007, the firm announced the completion of a tender offer for VIASYS Healthcare.
In June 2010, Cardinal Health announced plans to expand its presence in specialty pharmaceutical services with an agreement to purchase Healthcare Solutions Holding for $517 million. In December 2010, the company acquired Kinray, one of the last independent pharmaceutical wholesalers in the United States, increasing Cardinal Health's presence in the independent pharmacy market by 40 percent. Kinray had annual revenue of over $3.5 billion, and served about 2,000 independent retail pharmacy customers. From 2010 to 2014, Cardinal Health acquired 18 companies including Yong Yu, a Chinese drug distributor. Cardinal Health teamed up with CVS to form Red Oak Sourcing, the largest generic drug sourcing operation in the United States, in July 2014, when the companies started buying generic drugs around the world to sell in U.S. markets.
In March 2015, Cardinal Health signed an agreement to acquire Johnson & Johnson's Cordis (medical) division, a cardiology and endovascular device manufacturer, for $1.94 billion. Cordis' largest market is in the United States, but the manufacturer employs approximately 3,000 people around the world and 70 percent of its sales are international. The acquisition was completed on October 4, 2015.
In March 2015, Cardinal Health signed an agreement to acquire Tradex International, a Cleveland-based distributor of latex and other gloves used primarily in the health care and food service industries.
In April 2017, Cardinal Health announced the plan to acquire leading patient product portfolio from Medtronic for $6.1 billion. The acquisition was completed on July 30, 2017. The acquisition was funded with a combination of $4.5 billion in new senior unsecured notes, existing cash and borrowings under its existing credit arrangements.
For the fiscal year 2017, Cardinal Health reported earnings of US$7.181 billion, with an annual revenue of US$136.809 billion, an increase of 5.3% over the previous fiscal cycle. Cardinal Health's shares traded at over $57 per share, and its market capitalization was valued at over US$15.4 billion in November 2018. As of 2018, Cardinal Health is ranked #14 Fortune 500 among the largest United States corporations by total revenue.
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In September 2004, Cardinal Health announced to restate past results for fiscal 2001, 2002, 2003 and the first three quarters of 2004 downward, after an accounting review and an ongoing federal investigation. In 2005, in connection with the Audit Committee's conclusions reached in September and October 2004, the company made certain reclassification and restatement adjustments to its fiscal 2004 and prior historical consolidated financial statements. According to the Wall Street Journal, "Analysts called the restatement decision troubling, yet limited in scope."
In August 2006, Cardinal Health ceased production of its Alaris SE infusion pump after approximately 1300 units were seized by the United States Food and Drug Administration (FDA). In February 2007, Cardinal Health signed a consent decree with the FDA which promised procedures to guarantee the safety of the Alaris SE. After FDA inspections, Cardinal Health entered into a further consent agreement with the FDA in 2009.
In 2008, Cardinal Health agreed to pay $34 million in civil penalties to settle DEA allegations that it failed to report suspicious orders of hydrocodone. The fine followed a 10-month DEA suspension of a Lakeland, Florida distribution facility and two others in New Jersey and Washington. On February 2, 2012, the Drug Enforcement Administration again suspended the license of the firm's Lakeland distribution center to distribute controlled substances on charges that it had allowed four Florida pharmacies to purchase excessive amounts of controlled substances, in particular oxycodone. Cardinal Health obtained a restraining order against the suspension, but the suspension was upheld on February 29 by a Federal district court because the court agreed with the DEA that Cardinal Health's activities represented an "imminent danger to the public." The company stated that it blocked two of the pharmacies, (Brooks Pharmacy in Bonita Springs, Florida, and Gulf Coast Medical in Panama City, Florida), and notified the corporate owners of the two pharmacies that were part of national chains, two CVS stores in Sanford, Florida.
In February 2012, Joseph Rannazzisi, chief of the Drug Enforcement Administration’s Office of Diversion Control, issued immediate suspension orders against Cardinal's supply of oxycodone to suspected pill mills. Deputy Attorney General James M. Cole then called Rannazzisi to a meeting at Justice Department headquarters where Cole warned him “it made good sense to listen to what Cardinal had to say”. Rannazzisi was fired from the drug diversion office in August 2015. Cardinal was fined $44 million.
Cardinal, alongside McKesson Corporation, and AmerisourceBergen, spent $13 million lobbying Congress to pass Congressman Tom Marino's "Ensuring Patient Access and Effective Drug Enforcement Act". The bill, which increases the burden of proof enforcers need to show against drug distributors, was signed into law by President Barack Obama in April 2016.
The Cardinal Health Foundation is the charitable arm of Cardinal Health. The company makes annual product donations of over $9 million through international relief organizations and provides up to $1,000 in matching funds for every Cardinal Health employee that makes a charitable donation. In 2008, the foundation established its E3 Grant Program. Over the past seven years, the Foundation has invested more than $7.15 million in funding to 241 hospitals, health systems or other health-related organizations.
Cardinal Health also supports organizations such as Ronald McDonald House Charities, and was named Benefactor of the Year at the 2011 Corporate Caring Awards. In 2015, the foundation contributed $3 million to the Solutions for Patient Safety project, which has raised over $11 million nationally for efforts to improve safety initiatives in children's hospitals.
Advanz Pharma, formerly known as Concordia Healthcare Corp is a publicly traded pharmaceutical company based in Canada. It changed its name in December 2018. The company focuses on Attention-Deficit Hyperactivity Disorder, cancer and asthma. The company was founded in December 2012 and has since pursued a corporate strategy of growth-through acquisition, much like fellow Canadian company Valeant Pharmaceuticals. Concordia uses Cardinal Health as its main distribution chain partner. The company also focuses on acquiring legacy pharmaceutical compounds which are usually off patent. Concordia Healthcare Corp currently comprises three companies: Concordia Pharmaceuticals Inc., Pinnacle Biologics Inc., and Complete Medical Homecare Inc.Apache Ambari
Apache Ambari is a software project of the Apache Software Foundation. Ambari enables system administrators to provision, manage and monitor a Hadoop cluster, and also to integrate Hadoop with the existing enterprise infrastructure. Ambari was a sub-project of Hadoop but is now a top-level project in its own right.
Ambari is used by companies including IBM, Hortonworks, Cardinal Health, EBay, Expedia, Kayak.com, Lending club, Neustar, Pandora Radio, Samsung, Shutterfly, and Spotify.Bexarotene
Bexarotene (brand name: Targretin) is an antineoplastic (anti-cancer) agent approved by the U.S.Food and Drug Administration (FDA) (in late 1999) and the European Medicines Agency (EMA) (early 2001) for use as a treatment for cutaneous T cell lymphoma (CTCL). It is a third-generation retinoid.Catalent
Catalent, Inc. (Catalent Pharma Solutions) is a Somerset, New Jersey company involved in technology and development for drugs, biologics and consumer health products. It claimed production of more than 70 billion doses annually for nearly 7,000 customer products in 2014.Originally created through a series of acquisitions by Cardinal Health Inc., Catalent became independent in 2007. On July 31, 2014, Catalent became a public company and is listed on the New York Stock Exchange (NYSE: CTLT).Cordis
Cordis, Latin for "of the heart", may refer to:
Community Research & Development Information Service (CORDIS)
cordis (band), an American chamber music group
Cordis (medical), a medical device company owned by Cardinal Health
Lyria cordis, a sea snail of family VolutidaeCordis (medical)
Cordis (a Cardinal Health company) develops and manufactures medical devices for diagnostics and interventional procedures to treat patients suffering from coronary and peripheral vascular diseases.
Cordis was founded in 1959 in Miami, Florida and currently operates in North America, EMEA, Asia-Pacific and Latin America markets. The Cordis global headquarters and a Europe, Middle East and Africa hub are located in Baar, Switzerland. The North American operations are based out of the San Francisco Bay area. The Asia-Pacific hub is located in Singapore, and the Latin American hub in Puerto Rico.Cypher stent
Cypher is a brand of drug-eluting coronary stent from Cordis Corporation, a Cardinal Health company. During a balloon angioplasty, the stent is inserted into the artery to provide a "scaffold" to open the artery. An anti-rejection-type medication, sirolimus, helps to limit the overgrowth of normal cells while the artery heals which reduces the chance of re-blockage in the treated area known as restenosis, and reduces the chances that another procedure is required.The Cypher stent was approved for use by the FDA in 2003. Following claims of inconsistent manufacturing processes and poor sales, Johnson & Johnson have announced that it will stop selling Cypher stents by the end of 2011.George S. Barrett
George S. Barrett is an American business executive in the health care industry. He served as chairman and chief executive officer of Cardinal Health, Inc. from 2009-2017. He joined the board of the Columbus Foundation in December 2017.John B. McCoy
John Bonnet McCoy (born June 11, 1943) is a retired American businessman.Leader Drug Stores
Leader Drug Stores is a network of over 3,100 independently owned and operated pharmacies. It has a business affiliation with Cardinal Health, which sponsors the network and owns the name "Leader Drug Stores". Cardinal Health also owns the franchise chain The Medicine Shoppe. It operates like a retailers' cooperative, though it is not owned by its members.List of largest companies by revenue
This list comprises the world's largest companies by consolidated revenue as of 2018, according to the Fortune Global 500 tally. American retail corporation Walmart has been the world's largest company since 2014.The list is limited to 50 companies, all of which have annual revenues exceeding $110 billion US dollars. 21 companies are from North America, 16 from Asia and 13 from Europe. Only companies that publish financial data and report figures to a government agency are included. Therefore, this list is incomplete as it excludes large companies such as Cargill, Koch Industries, Kuwait Petroleum Corporation, and Saudi Aramco that don't publish financial data.Olayan Group
The Olayan Group (Arabic: مجموعة العليان), is a Saudi conglomerate established in 1947 by Sulaiman S. Olayan (5 November 1918 - 4 July 2002). His son Khaled S Olayan (born July 1945) and his three daughters Lubna, Hayat and Hutham Olayan all sit on the Board of The Olayan Financing (OFC) the holding entity for the Olayan Group's operations in the Middle East.The Olayan Group traces its origins back to the General Contracting Company (GCC), founded to work on the construction of the Trans-Arabian Pipeline alongside the American contracting company Bechtel. In the 1950s, Olayan created trading and insurance companies, and began investing in New York City and London markets. Since then, the group has diversified its activities with the establishment of affiliates and partnerships in many industries. Currently, the group has activities in construction, trading, food processing and restaurants, cleaning products, paper, plastics and fiber, office equipment and other industries. The group is also the bottler and distributor of Coca-Cola in Saudi Arabia.
Among the group's international partners are AlphaGraphics, BP Solar, Credit Suisse, Carrefour, HSBC, JP Morgan, Chase Manhattan, Coca-Cola, Bechtel, Morgan Stanley, Goldman Sachs, Kimberly-Clark, Sama Airlines, Colgate-Palmolive, CS First Boston, Toshiba, Xerox, Burger King, Kraft Foods, Baxter International, Occidental Petroleum, Cardinal Health, Scania AB, Texas Chicken, and much more.
The Olayan Group invests internationally in both public and private equities, including real estate, as well as in fixed income securities. Its multibillion-dollar portfolio is concentrated in North America, Europe, Asia and the Middle East. The group prides itself on its global perspective in its approach to investing across asset classes and geographies.Pharmaceutical industry in Puerto Rico
The pharmaceutical industry in Puerto Rico encompasses more than half of all manufacturing done in Puerto Rico. As the island's most prominent industry, pharmaceutics generates more than 18,000 jobs, pays more than $3 billion USD in taxes, comprises about half of total exports, and has generated more than 25% of the island's GDP for the past four decades. Comparatively, Puerto Rico is the fifth largest area in the world for pharmaceutical manufacturing with more than 80 plants, including:
Pharmaceutical companies originally came to Puerto Rico in the late 1960s and 1970s to take advantage of the now-expired federal tax incentive known as Section 936. This incentive allowed U.S.-based manufacturers to send all profits from local plants to stateside parent plants without having to pay any federal taxes.
Several developments in the market, however, pose a challenge to the industry. These challenges include expired patents, cheaper manufacturers (such as those in Brazil, China, India, and South Korea), the rise of generic drugs, and high production costs.In terms of market share, as of 2014, Puerto Rico produces sixteen of the top twenty selling drugs in the mainland United States.Pyxis Corporation
Pyxis Corporation was a San Diego company co-founded by Ronald R. Taylor and investor Tim Wollaeger in 1987 that developed an automated dispensing cabinet under the name Pyxis.Richard Notebaert
Richard C. Notebaert (born 1947 in Montreal, Canada) is the former Chairman and CEO of Qwest, Tellabs and Ameritech. He was credited for saving Qwest from bankruptcy, and making Ameritech the most successful "Baby Bell".Notebaert is a member of the board of directors of Aon Corp., Cardinal Health Inc. and American Electric Power Company, Inc. He is also the Chair of University of Notre Dame’s Board of Trustees. In 2003, Notebaert was appointed by President Bush to the National Security Telecommunications Advisory Committee.Robert D. Walter
Robert D. Walter (born 1944) is an American businessman best known for his role in the creation of Cardinal Health.
Walter graduated from St. Charles Preparatory School and has a BA from Ohio University. After a brief and unhappy stint as an engineer, Walter attended Harvard Business School, where he received an MBA.In 1971 he purchased Cardinal Foods, a small Ohio food wholesaler, in a leveraged buyout. In 1979, the company acquired Bailey Drug Company and began wholesaling drugs. In subsequent years, the company experienced extraordinary growth, "one of a handful of large U.S. companies that had achieved earnings-per-share growth in excess of 20 percent for 15 years straight." Cardinal Health is now a Fortune 100 company and one of the largest distributors of pharmaceuticals, health & beauty products, and hospital supplies in the United States. In 2007, he was #14 on Fortune magazine's list of the 25 top-paid male executives, with total compensation of $42.7 million the previous year. He retired from Cardinal Health on June 20, 2009.
He is married to Margaret "Peggy" Walter, who also attended Ohio University. The Walters have given support to the Ohio University community including Margaret Walter Hall, and to the Columbus Museum of Art. Walter resides in Dublin, Ohio; Boca Raton, Florida; and Park City, Utah.Robert Pauli Scherer
In 1933 the prolific inventor Robert Pauli Scherer (1906–1960) invented the rotary die encapsulation process, revolutionizing the soft-gelatin encapsulation field. He founded the R. P. Scherer Corporation to commercialize his invention. R.P. Scherer Corporation was acquired by Cardinal Health, Inc. in 1998, and was a significant part of the Pharmaceutical Technologies & Services segment. Several other businesses were acquired and subsequently spun out of R.P. Scherer Corporation, including Scherer Laboratories. The Pharmaceutical Technologies & Services segment of Cardinal Health was acquired by the Blackstone Group in 2007 and subsequently named Catalent Pharma Solutions.Stewart Rahr
Stewart J. Rahr is an American entrepreneur, investor and philanthropist. A billionaire, Rahr was founder and owner of pharmaceutical and generics wholesaler Kinray, the largest privately owned pharmaceutical distributor in the world until it was bought out by Cardinal Health in 2010.