Cardinal Health, OptumRx break up

Cardinal Health’s pharmaceutical distribution contracts with OptumRx, a subsidiary of UnitedHealth Group, will not be renewed, the medical distributor said April 22. 

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The contracts, which mainly included non-specialty bulk shipments to Optum’s mail dispensing sites, will expire in late June. In 2023, sales to OptumRx generated 16% of Cardinal Health’s consolidated revenue. 

“Total sales to OptumRx generate a meaningfully lower operating margin than the overall pharmaceutical and specialty solutions segment,” Cardinal said. 

McKesson Corp. won the contract, according to Bloomberg, which cited Evercore ISI. 

“The company expects to partially offset the impact of OptumRx through a combination of new customer wins, specialty growth and other actions,” Cardinal Health said. 

The distributor said it expects lower-than-average adjusted free cash flow but still forecasts profits in its pharmaceutical and specialty solutions segment in fiscal 2025.

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