First-quarter profits for medical products and pharmaceuticals supplier Cardinal Health Inc. (NYSE:CAH) beat analysts’ expectations, though sales slipped slightly.
The Dublin, Ohio-based company reported first quarter earnings of $295 million, with adjusted earnings per share of 64 cents. Analysts had expected earnings of 53 cents per share. In last year’s first quarter, Cardinal reported a net loss of 11 cents per share, mainly due to charges taken for the spinoff of medical technology firm CareFusion Corp.
In another bit of good news for Cardinal investors, CEO George Barrett said the company expects to finish 2011 at the higher end of its forecast of $2.38 to $2.48 earnings per share. The company’s shares rose about 2 percent to $34 in early trading Thursday.
With the Rise of AI, What IP Disputes in Healthcare Are Likely to Emerge?
Munck Wilson Mandala Partner Greg Howison shared his perspective on some of the legal ramifications around AI, IP, connected devices and the data they generate, in response to emailed questions.
Revenues fell 1 percent to $24 billion, compared to last year’s first quarter.
It was mixed news for the company’s pharmaceutical segment, which saw sales drop by 1 percent to $22 billion. The company blamed the drop on reduced sales to existing bulk customers and contract terminations from two large customers.
However, sales of generics, which rose 19 percent, were a significant bright spot for the company, and that strength could continue. “Our generic penetration continues to be a focus,” Barrett said in a conference call with analysts.
Profits in the pharmaceutical segment jumped 42 percent.
A Personalized Approach to Medication Nonadherence
At the Abarca Forward conference earlier this year, George Van Antwerp, managing director at Deloitte, discussed how social determinants of health and a personalized member experience can improve medication adherence and health outcomes.
The numbers weren’t quite as rosy for the company’s medical products segment, which saw revenues drop 3 percent and profits plummet 28 percent. Barrett attributed the declines in part to “sluggishness” in demand for elective procedures, though he said he was “guardedly optimistic that value will recover.”
During the call, one analyst premised a question on the notion that Cardinal’s medical segment was “clearly struggling,” but Barrett shot back, “We’re not struggling at all.” The company also blamed an unusually strong flu season last year and the loss of revenues from CareFusion as contributors to the declining numbers.
Bernstein analyst Helene Wolk wrote that sales in the medical segment were slightly below expectations, Reuters reported.
