Cardinal Health Info
Cardinal Health, Inc. is a Fortune 500 health care services company based in Dublin, Ohio. The company specializes in distribution of pharmaceuticals and medical products, serving more than 100,000 locations.The company also manufactures medical and surgical products, including gloves, surgical apparel and fluid management products. In addition, it operates the nation’s largest network of radiopharmacies. Cardinal Health provides medical products to over 75 percent of hospitals in the United States. In December 2013, it was announced that Cardinal Health would team up with CVS Caremark, which would form the largest generic drug sourcing operation in the United States. The venture was named Red Oak Sourcing and began operations in July 2014.
Founded in 1971 as Cardinal Foods by Robert D. Walter, the company was initially a food wholesaler. After acquiring the Bailey Drug Company in 1979, it began wholesaling drugs as Cardinal Distribution, Incorporated. The company went public on the NASDAQ stock exchange in 1983 and subsequently began a long string of acquisitions and mergers. In 1988, Walter sold Cardinal Health's food operations to Roundy's. From 1991 to 1996, the company’s sales grew from $1.2 billion to $8.9 billion.The company changed its name to Cardinal Health in 1994 and became the third-largest pharmaceutical wholesaler in the United States.
R. Kerry Clark, a former executive and vice chairman at Procter & Gamble, was appointed president and CEO in April 2006, with Robert D. Walter retaining Chairmanship of the board. In September 2008, the company announced Clark and Walter would retire and George S. Barrett would become the chairman and CEO.
Acquisitions
In a 1997 competition between Cardinal Health and McKesson Corporation, Cardinal Health planned to purchase Bergen, to which McKesson responded with a bid to purchase Amerisource. Instead, Amerisource and Bergen merged into AmerisourceBergen. Later that year, Cardinal Health completed the acquisition of Owen Healthcare, second-largest provider of pharmacy management services in the U.S. at the time.
In 1999, the firm acquired the Chicago-based medical products manufacturer and distributor, Allegiance Healthcare (formerly a division of Baxter Healthcare). Allegiance made surgical drapes, gloves, and gowns, and distributed customized arrangements of medical supplies (called "custom sterile packs" and "procedure-based delivery systems"). During 2001, the company spent approximately $30 billion on acquisitions, including Bindley Western Industries, wholesale distributor of pharmaceuticals based in Indianapolis.
In April 2006, Cardinal Health purchased Niagara Falls-based ParMed Pharmaceuticals for $40.1 million. ParMed's focus of selling medicine in smaller quantities complements Cardinal Health's distribution to bigger hospital and drug store chains. In June 2007, the firm announced the completion of a tender offer for VIASYS Healthcare.
In June 2010, Cardinal Health announced plans to expand its presence in specialty pharmaceutical services with an agreement to purchase Healthcare Solutions Holding for $517 million. In December 2010, the company acquired Kinray, one of the last independent pharmaceutical wholesalers in the United States, increasing Cardinal Health's presence in the independent pharmacy market by 40 percent.Kinray had annual revenue of over $3.5 billion, and served about 2,000 independent retail pharmacy customers. From 2010 to 2014, Cardinal Health acquired 18 companies including Yong Yu, a Chinese drug distributor. Cardinal Health teamed up with CVS to form Red Oak Sourcing, the largest generic drug sourcing operation in the United States, in July 2014, when the companies started buying generic drugs around the world to sell in U.S. markets.
Controversy:
DEA investigation into Oxycodone diversion
See also: Drug diversion
In 2008, Cardinal Health agreed to pay $34 million in civil penalties to settle DEA allegations that it failed to report suspicious orders of hydrocodone. The fine followed a 10-month DEA suspension of a Lakeland, Florida distribution facility and two others in New Jersey and Washington. On February 2, 2012, the Drug Enforcement Administration again suspended the license of the firm's Lakeland distribution center to distribute controlled substances on charges that it had allowed four Florida pharmacies to purchase excessive amounts of controlled substances, in particular oxycodone.Cardinal Health obtained a restraining order against the suspension, but the suspension was upheld on February 29 by a Federal district court because the court agreed with the DEA that Cardinal Health's activities represented an "imminent danger to the public." The company asserts that it has blocked two of the pharmacies, (Brooks Pharmacy. in Bonita Springs, Florida and Gulf Coast Medical in Panama City, Florida), and notified the corporate owners of the two pharmacies that were part of national chains, two CVS stores in Sanford, Florida.
Cardinal Health Foundation
The Cardinal Health Foundation is the charitable arm of Cardinal Health. The company makes annual product donations of over $9 million through international relief organizations and provides up to $1,000 in matching funds for every Cardinal Health employee that makes a charitable donation.In 2008, the foundation established its E3 Grant Program. Over the past seven years, the Foundation has invested more than $7.15 million in funding to 241 hospitals, health systems or other health-related organizations.
Cardinal Health also supports organizations such as Ronald McDonald House Charities, and was named Benefactor of the Year at the 2011 Corporate Caring Awards. In 2015, the foundation contributed $3 million to the Solutions for Patient Safety project, which has raised over $11 million nationally for efforts to improve safety initiatives in children’s hospitals.
Cardinal Health, Inc. is a Fortune 500 health care services company based in Dublin, Ohio. The company specializes in distribution of pharmaceuticals and medical products, serving more than 100,000 locations.The company also manufactures medical and surgical products, including gloves, surgical apparel and fluid management products. In addition, it operates the nation’s largest network of radiopharmacies. Cardinal Health provides medical products to over 75 percent of hospitals in the United States. In December 2013, it was announced that Cardinal Health would team up with CVS Caremark, which would form the largest generic drug sourcing operation in the United States. The venture was named Red Oak Sourcing and began operations in July 2014.
Founded in 1971 as Cardinal Foods by Robert D. Walter, the company was initially a food wholesaler. After acquiring the Bailey Drug Company in 1979, it began wholesaling drugs as Cardinal Distribution, Incorporated. The company went public on the NASDAQ stock exchange in 1983 and subsequently began a long string of acquisitions and mergers. In 1988, Walter sold Cardinal Health's food operations to Roundy's. From 1991 to 1996, the company’s sales grew from $1.2 billion to $8.9 billion.The company changed its name to Cardinal Health in 1994 and became the third-largest pharmaceutical wholesaler in the United States.R. Kerry Clark, a former executive and vice chairman at Procter & Gamble, was appointed president and CEO in April 2006, with Robert D. Walter retaining Chairmanship of the board. In September 2008, the company announced Clark and Walter would retire and George S. Barrett would become the chairman and CEO.
Acquisitions
In a 1997 competition between Cardinal Health and McKesson Corporation, Cardinal Health planned to purchase Bergen, to which McKesson responded with a bid to purchase Amerisource. Instead, Amerisource and Bergen merged into AmerisourceBergen. Later that year, Cardinal Health completed the acquisition of Owen Healthcare, second-largest provider of pharmacy management services in the U.S. at the time.
In 1999, the firm acquired the Chicago-based medical products manufacturer and distributor, Allegiance Healthcare (formerly a division of Baxter Healthcare). Allegiance made surgical drapes, gloves, and gowns, and distributed customized arrangements of medical supplies (called "custom sterile packs" and "procedure-based delivery systems"). During 2001, the company spent approximately $30 billion on acquisitions, including Bindley Western Industries, wholesale distributor of pharmaceuticals based in Indianapolis.
In April 2006, Cardinal Health purchased Niagara Falls-based ParMed Pharmaceuticals for $40.1 million. ParMed's focus of selling medicine in smaller quantities complements Cardinal Health's distribution to bigger hospital and drug store chains. In June 2007, the firm announced the completion of a tender offer for VIASYS Healthcare.
In June 2010, Cardinal Health announced plans to expand its presence in specialty pharmaceutical services with an agreement to purchase Healthcare Solutions Holding for $517 million. In December 2010, the company acquired Kinray, one of the last independent pharmaceutical wholesalers in the United States, increasing Cardinal Health's presence in the independent pharmacy market by 40 percent.Kinray had annual revenue of over $3.5 billion, and served about 2,000 independent retail pharmacy customers. From 2010 to 2014, Cardinal Health acquired 18 companies including Yong Yu, a Chinese drug distributor. Cardinal Health teamed up with CVS to form Red Oak Sourcing, the largest generic drug sourcing operation in the United States, in July 2014, when the companies started buying generic drugs around the world to sell in U.S. markets.
Controversy:
DEA investigation into Oxycodone diversion
See also: Drug diversion
In 2008, Cardinal Health agreed to pay $34 million in civil penalties to settle DEA allegations that it failed to report suspicious orders of hydrocodone. The fine followed a 10-month DEA suspension of a Lakeland, Florida distribution facility and two others in New Jersey and Washington. On February 2, 2012, the Drug Enforcement Administration again suspended the license of the firm's Lakeland distribution center to distribute controlled substances on charges that it had allowed four Florida pharmacies to purchase excessive amounts of controlled substances, in particular oxycodone.Cardinal Health obtained a restraining order against the suspension, but the suspension was upheld on February 29 by a Federal district court because the court agreed with the DEA that Cardinal Health's activities represented an "imminent danger to the public." The company asserts that it has blocked two of the pharmacies, (Brooks Pharmacy. in Bonita Springs, Florida and Gulf Coast Medical in Panama City, Florida), and notified the corporate owners of the two pharmacies that were part of national chains, two CVS stores in Sanford, Florida.
Cardinal Health Foundation
The Cardinal Health Foundation is the charitable arm of Cardinal Health. The company makes annual product donations of over $9 million through international relief organizations and provides up to $1,000 in matching funds for every Cardinal Health employee that makes a charitable donation.In 2008, the foundation established its E3 Grant Program. Over the past seven years, the Foundation has invested more than $7.15 million in funding to 241 hospitals, health systems or other health-related organizations.
Cardinal Health also supports organizations such as Ronald McDonald House Charities, and was named Benefactor of the Year at the 2011 Corporate Caring Awards. In 2015, the foundation contributed $3 million to the Solutions for Patient Safety project, which has raised over $11 million nationally for efforts to improve safety initiatives in children’s hospitals.
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