CAH
Cardinal Health Inc
Healthcare
10/12/2015
Presented
| Date | 10/09/2015 |
| Price | $78.67 |
| Market Cap | $26.20B |
| Ent Value | $28.73B |
| P/E Ratio | 21.72x |
| Book Value | $19.07 |
| Div Yield | 1.99% |
| Shares O/S | 333.00M |
| Ave Daily Vol | 2,542,355 |
| Short Int | 2.26% |
Current
| Price | $111.98 |
| Market Cap | $27.09B |
| Cardinal Health, Inc. is a healthcare services company providing pharmaceutical and medical products and services that help pharmacies, hospitals, surgery centers, physician offices and other healthcare providers focus on patient care while reducing costs, enhancing efficiency and improving quality. The company operates its business through two segments: Pharmaceutical and Medical. The Pharmaceutical segment distributes branded and generic pharmaceutical, over-the-counter healthcare and consumer products through its pharmaceutical distribution business to retailers, hospitals, and other healthcare providers. It also operates nuclear pharmacies and cyclotron facilities that manufacture, prepare and deliver radiopharmaceuticals for use in nuclear imaging and other procedures in hospitals and clinics. This segment retails pharmacies under the Medicine Shoppe and Medicap brands. It also distributes specialty pharmaceutical products and provides services to pharmaceutical manufacturers, third-party payors and healthcare service providers supporting the marketing, distribution and payment for specialty pharmaceutical products. It also provides pharmacy services to hospitals and other healthcare facilities. The Medical segment distributes a broad range of medical, surgical and laboratory products to hospitals, surgery centers, laboratories, physician offices and other healthcare providers. This segment also manufactures sources and develops its own line of private brand medical and surgical products. The company was founded by Robert D. Walter in 1971 and is headquartered in Dublin, OH. |
Publicly traded companies mentioned herein: AmerisourceBergen Corp (ABC), Cardinal Health Inc (CAH), Mylan Inc (MYL), Perrigo (PRGO), Teva Pharmaceutical Industries Ltd (TEVA)
Highlights
With the generic price inflation game “in the 14th inning” and the FDA accelerating approvals of generics the presenter believes manufacturers of these therapeutics can no longer take price as they have over recent years. An additional issue weighing on the outlook for pricing is public perception, and many companies may not take price for fear of heightened scrutiny. In the presenter’s opinion, the Street and many investors are underestimating the contribution generic inflation makes to distributors’ profitability. He sees a short position in Cardinal Health (CAH) as a reasonable way to express this view, and added that the recent acquisition of Cordis may fail to deliver the accretion the Street is expecting.
◆Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.
◆Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.