Kinray acquisition drives Cardinal Health's Q2

EPS jumps 21%

DUBLIN, Ohio — Second-quarter revenue for Cardinal Health rose 2%, thanks in part to its acquisition of pharmaceutical distributor Kinray.

Revenue for the quarter ended Dec. 31, 2010, totaled $25.4 billion, compared with the prior-year period. Similarly, Cardinal Health's earnings per share from continuing operations jumped 21% to 69 cents.

Cardinal Health said its acquisition of Kinray extended the company's reach to the independent pharmacy community "by adding approximately 2,000 pharmacy customers," Cardinal Health chairman and CEO, George Barrett, said. Cardinal Health also added that its acquisition of Yong Yu in China built on the company's foray into the international healthcare market.

Breaking down its second-quarter results, the company's pharmaceutical segment experienced a 2% boost in revenue — thanks to nonbulk customers — to $23.2 billion. Segment profit increased 11% to $289 million, which was attributed to stronger generic sales and sourcing initiatives.

Revenue for the medical segment declined 1% to $2.2 billion, primarily driven by previously disclosed fiscal 2010 customer losses and a strong flu season in the prior-year period. Segment profit was $102 million, even with the prior year, Cardinal Health reported.

In related news, the healthcare services company also disclosed early renewal of a distribution agreement with Walgreens to supply pharmaceuticals to the retailer's national network of retail pharmacies.

Cardinal Health raised its full-year guidance with an earnings-per-share range of $2.54 to $2.60.

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