Cardinal Health forecasts full-year profit above estimates on specialty drug strength

Last month, Cardinal bought AdaptHealth's diabetes health business and medical supply provider Strive Medical in separate tuck-in deals for about $360 million in total, expanding its home care business.

The AdaptHealth transaction broadened the company's reach in diabetes care by utilizing its direct-to-consumer distribution platform for supplies including continuous glucose monitors and enhanced its position in the urology market through Strive Medical.

Cardinal also said on Tuesday it sees $1 billion in share repurchases in fiscal year 2027.

Aug. 11 (Reuters) - U.S. drug distributor Cardinal Health on Tuesday forecast fiscal 2027 profit well above Wall Street expectations after topping fourth-quarter profit estimates, driven by sustained demand for specialty drugs.

Shares of the company were up over 4% in premarket trading.

Here are some details:

• Drug distributors are capitalizing on rising demand for biosimilars and high-margin medicines treating complex conditions such as cancer, rheumatoid arthritis and autoimmune diseases.
• Cardinal Health expects 2027 adjusted profit per share between $12.40 and $12.60. Analysts on average were expecting it to be $12.04 per share.
• The Dublin, Ohio-based company's total fourth-quarter revenue rose 6% to $63.67 billion, but missed analysts' expectations of $65.03 billion, according to data compiled by LSEG.
• Cardinal Health's adjusted quarterly profit of $2.91 per share beat estimates of $2.42.
• The company's largest unit by revenue, Pharmaceutical and Specialty Solutions, reported a 6% year-over-year increase in sales to $55.4 billion during the quarter, fueled by demand for branded and specialty drugs.