Cardinal Health, Inc. (Cardinal Health)

Cardinal Health, Inc. (Cardinal Health)

 

Cardinal Health, Inc. (Cardinal Health) is a holding company that owns operating subsidiaries conducting business as Cardinal Health. The Company is a provider of products and services supporting the healthcare industry. As of the fiscal year ended June 3, 2007 (fiscal 2007), the Company's segments are: Healthcare Supply Chain Services - Pharmaceutical; Healthcare Supply Chain Services- Medical; Clinical Technologies and Services, and Medical Products Manufacturing. The aggregate of the Company's five largest customers, including CVS Corporation and Walgreens Co., accounted for approximately 50% of its revenue for fiscal 2007. All of the Company's business with its five largest customers is included in its Healthcare Supply Chain Services- Pharmaceutical segment. In January 2007, the Company's Healthcare Marketing Services unit was acquired by Platinum Equity Holdings. In April 2007, the Company completed the sale of its Pharmaceutical Technologies and Services segment to The Blackstone Group.

 

In June 2007, Cardinal Health completed initial tender offer for VIASYS Healthcare, and announced that more than 80% of the outstanding shares of VIASYS Healthcare have been tendered, making VIASYS a majority-owned subsidiary of Cardinal Health. During fiscal 2007, the Company divested a significant portion of the Specialty Distribution business formerly within its Medical Products and Services segment.

 

Healthcare Supply Chain Services û Pharmaceutical

 

Through its Healthcare Supply Chain Services -Pharmaceutical segment, Cardinal Health distributes a line of branded and generic pharmaceutical products, over-the-counter (OTC) healthcare products and consumer products (collectively, pharmaceutical products). The Company's pharmaceutical supply chain business (formerly, the pharmaceutical distribution business) is a full-service wholesale distributors to retail customers (including chain and independent drug stores and pharmacy departments of supermarkets and mass merchandisers), hospitals and alternate care providers (including mail order pharmacies) located throughout the United States. As a full-service wholesale distributor, the pharmaceutical supply chain business complements its distribution activities by offering a range of support services to assist its customers in maintaining and helping to improve the efficiency and quality of their services. These support services include online procurement, fulfillment and information provided through cardinal.com; computerized order entry and order confirmation systems; generic sourcing programs; product movement, inventory and management reports, and consultation on store operations and merchandising.

 

Cardinal Health's pharmaceutical supply chain business also provides services to branded pharmaceutical manufacturers through distribution service agreements, including distribution services, inventory management services, data/reporting services, new product launch support and contract and chargeback administration services. This segment also operates a pharmaceutical repackaging and distribution program for chain and independent drug store customers as well as alternate care customers. This segment operates centralized nuclear pharmacies that prepare and deliver radiopharmaceuticals for use in nuclear imaging and other procedures in hospitals and clinics. This segment also provides third-party logistics support services, distributes therapeutic plasma to hospitals, clinics and other providers located in the United States and manufactures and markets generic pharmaceutical products for sale to hospitals, clinics and pharmacies in the United Kingdom.

 

Healthcare Supply Chain Services û Medical

 

Through its Healthcare Supply Chain Services- Medical segment, Cardinal Health distributes a range of branded and private-label medical and laboratory products, as well as the Company's own line of surgical and respiratory therapy products manufactured or sold by the Medical Products Manufacturing segment to hospitals, laboratories and ambulatory care customers, such as surgery centers and physician offices. This segment distributes products both in the United States and in Canada. This segment helps assist customers to reduce costs while improving the quality of patient care in a variety of ways, including online procurement, fulfillment and information provided through cardinal.com and supply-chain management. This segment also assembles and distributes sterile and non-sterile procedure kits under the Presource brand name.

 

Clinical Technologies and Services

Through its Clinical Technologies and Services segment, Cardinal Health provides products and services to hospitals and other healthcare providers. This segment develops, manufactures, leases and sells medical technology products, including Alaris intravenous medication safety and infusion therapy delivery systems, software applications, needle-free disposables and related patient monitoring equipment and Pyxis dispensing systems that automate the distribution and management of medications in hospitals and other healthcare facilities. The segment also develops, manufactures, leases and sells dispensing systems for medical supplies.

 

This segment provides pharmacy services, including full-service department outsourcing, transitional and turn-key services for acute care hospital pharmacies, as well as remote medication order entry and review and other services. This segment also provides clinical intelligence solutions, including products and services that identify and prevent hospital-acquired infections and provide barcode-enabled patient identification systems used in hospitals. It primarily distributes its products direct to the customer, although it also distributes some products through medical products distributors, including through the Healthcare Supply Chain Services - Medical segment. This segment offers products and services principally in the United States and also in Europe, Canada and other regions.

 

Medical Products Manufacturing

 

Through its Medical Products Manufacturing segment, Cardinal Health develops and manufactures medical and surgical products for distribution to hospitals, physician offices, surgery centers and other healthcare providers. These products include infection prevention products, such as single-use surgical drapes, gowns and apparel, exam and surgical gloves and fluid suction and collection systems, and medical specialties products, such as respiratory therapy products, surgical instruments and special procedure products. It offers additional products and services directed at the critical care ventilation, respiratory diagnostics and clinical services, neurological, vascular, audio, homecare, orthopedics, sleep diagnostics and other medical and surgical products markets.

The Company competes with McKesson Corporation, AmerisourceBergen Corporation, Owens & Minor, Inc., Fisher Scientific International, Inc., Physician Sales & Service, Inc., Henry Schein, Inc., Medline Industries, Inc., Hospira, Inc., B. Braun Medical, Inc., Baxter International, Inc., Fresenius AG, Omnicell, Inc., Kimberly-Clark Corporation, Covidien Ltd., Teleflex Incorporated, Medline Industries, Inc., Ansell Limited, 3M Company, Getinge AB, Drager Medical AG & Co and KG and Respironics, Inc.