Cardinal Health is a pharmaceutical distributor and healthcare services provider. The company operates primarily through its Pharmaceutical and Specialty Solutions segment, which distributes branded, generic, and specialty drugs to retail pharmacies, hospitals, and physician practices. Cardinal Health earns fees from manufacturers under distribution agreements and generates profit from the price spread on generic drugs. The company procures generics through Red Oak Sourcing, a joint venture with CVS Health. Beyond core distribution, Cardinal Health expands its specialty healthcare business by acquiring and managing physician practices through Managed Services Organization platforms in oncology, gastroenterology, and urology. These platforms provide administrative support and clinical services while increasing drug distribution volume. The Global Medical Products and Distribution segment manufactures and distributes branded medical and surgical supplies, including wound care and laboratory products, to healthcare providers. The company also operates nuclear pharmacies that manufacture radiopharmaceuticals for cancer therapy and an at-home business that delivers medical supplies to patients with chronic conditions. Cardinal Health's strategy focuses on growing its specialty services and biopharma support solutions while improving profitability in its medical products division by increasing the sale of its own branded products.
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