Cardinal Health reports Q3 revenue of $21.4 billion

DUBLIN, Ohio — Cardinal Health on Thursday reported fiscal year 2014 third-quarter revenue of $21.4 billion and non-GAAP diluted earnings per share from continuing operations of $1.01. Non-GAAP operating earnings decreased 3% to $561 million, reflecting the continuing impact of the previously announced Walgreens contract expiration.

"Our organization delivered a solid third quarter to our fiscal 2014, completing a first nine months of strong financial performance and excellent progress on our strategic initiatives," stated George Barrett, chairman and CEO of Cardinal Health. "During the recent period, we strengthened our medical preferred products program with the announcement of the acquisition of AccessClosure and enhanced our specialty solutions capabilities with the acquisition of Sonexus Health."

Revenue for the Pharmaceutical segment declined 15% to $18.8 billion, and segment profit decreased 9% to $452 million. The decline in both segment revenue and profit was the result of the impact of the expiration of the Walgreens contract. The decline in segment revenue was partially offset by sales growth from new and existing customers, and the decline in segment profit was partially offset by strong performance from generic programs.

Cardinal Health confirmed that the joint venture with CVS Caremark announced in December 2013, which will form the largest generic sourcing entity in the U.S., remains on track to be operational as soon as July 1, 2014. The U.S.-based joint venture will operate under the name Red Oak Sourcing and will be located in Foxborough, Mass.

The company announced an agreement to acquire AccessClosure, a leading manufacturer and distributor of extravascular closure devices in the U.S., expanding the Cardinal Health portfolio of preferred products that meets industry's increasing demand for high-quality, cost-efficient solutions. And Cardinal Health enhanced its integrated services for biopharmaceutical manufacturers by acquiring privately held Sonexus Health, which offers a broad range of patient access, support and specialty commercialization services.

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