On Monday, Cardinal Health’s shares saw a decline in intraday trading after the company announced that its contracts with OptumRX, the pharmacy benefits provider of UnitedHealth Group, will not be renewed. This news led to concerns about potential impacts on Cardinal Health’s financial performance as the agreements with OptumRX accounted for 16% of the company’s revenue in 2023.
Despite this loss, Cardinal Health expressed confidence in partially offsetting this impact through new customer acquisitions, specialty growth, and other strategic initiatives. The company reiterated its outlook for the current year and beyond, including its 2024 adjusted earnings per share guidance and long-term segment profit and consolidated adjusted EPS growth targets.
CEO Jason Hollar emphasized the resilience and value proposition of Cardinal Health’s business, expressing confidence in the company’s ability to navigate challenges and continue delivering value to customers and shareholders. Despite the share price decline, Cardinal Health remains focused on its long-term growth strategy and commitment to delivering strong financial performance in the years ahead.
