Cardinal Health announced on Monday that it will not renew its pharmaceutical distribution contracts with UnitedHealth Group Inc’s OptumRx unit when they expire at the end of June. Despite this, the drug distributor is confident that it will partially offset the impact of losing the contracts through new customer acquisition and growth in its specialty pharmacy business.
Debbie Weitzman, CEO of Cardinal Health’s pharmaceutical and specialty solutions division, expressed excitement about other opportunities in the marketplace beyond the OptumRx contracts. She mentioned the onboarding of new customers and the additional capabilities expected from the integration of Specialty Networks in fiscal 2025.
Cardinal Health did not provide further comment on the OptumRx contracts and their decision not to renew them. OptumRx, a pharmacy benefit manager, serves as an intermediary between insurers and drugmakers to negotiate prescription drug prices. The impact of the contract non-renewal will be closely watched in the industry.
Overall, Cardinal Health remains optimistic about its future prospects in spite of the loss of the OptumRx contracts. The company is focused on expanding its customer base and enhancing its specialty pharmacy services, which they believe will contribute to their growth in the coming years.
