CARDINAL HEALTH: Profits Up – Posted on August 19, 2023 by Dr. David Edward Marcinko MBA – By Staff Reporters
Pharmaceutical distributor Cardinal Health raised its 2024 profit expectations following strong demand for generic and specialty drugs such as GLP-1 medications, the company announced in its Q4 2023 earnings call.
The Ohio-based company reported that its pharmaceutical segment profit increased 12% to $504 million in Q4 2023, up from $451 million during the same period last year. “Positive generics program performance” drove the increase, CFO Aaron Alt said during the call. Cardinal, whose fiscal year ends June 30, expects revenue from its pharmaceutical division to grow by 10%–12% in FY 2024, he added.
“Fiscal ’23 was an inflection point for Cardinal Health with improved performance, strong execution, and notable progress against both our short- and long-term plans,” CEO Jason Hollar said.
GLP-1 drugs such as Novo Nordisk-manufactured Ozempic and Wegovy were developed to treat diabetes, but have skyrocketed in popularity as a weight management tool. These medications can stimulate insulin production, which can help lower blood sugar levels and help Type-2 diabetes patients, according to the Mayo Clinic.