Cardinal Health’s Optimism Despite OptumRX Contract Renewal Setback

On Monday, Cardinal Health experienced a drop in share prices during intraday trading after announcing that its contracts with OptumRX, the pharmacy benefits provider of UnitedHealth Group, will not be renewed. Despite this setback, the company remains optimistic about its outlook for the year and beyond.

Cardinal Health reaffirmed its 2024 adjusted earnings per share guidance and long-term profit growth targets for its Pharmaceutical and Specialty Solutions segments. CEO Jason Hollar expressed confidence in the resilience and value proposition of the company’s business.

Sales to OptumRX accounted for 16% of Cardinal Health’s revenue in 2023. The agreements with OptumRX are set to expire at the end of June. To offset this impact, Cardinal Health expects to grow through new customer acquisitions, specialty growth, and other strategic measures.

Shares of Cardinal Health experienced a 5% decline to $102.78 during intraday trading on Monday. Despite this challenge, the company is committed to navigating it and continuing to deliver value to its customers and shareholders.