Cardinal Health Faces Contract Loss with OptumRX, Reaffirms Financial Outlook

Cardinal Health will not renew its distribution contracts with OptumRX, impacting 16% of its revenue, but maintains positive financial projections.

Cardinal Health's contracts with OptumRX, accounting for 16% of its 2023 revenue, will expire in June 2024 without renewal.
Despite the contract loss, Cardinal Health affirms its 2024 EPS guidance of $7.20 to $7.35 and long-term profit growth targets.
The company plans to mitigate the impact through new customer acquisitions and growth in specialty areas.
Cardinal Health's stock experienced a decline, dropping by approximately 5% following the announcement.
CEO Jason Hollar expresses confidence in the company's resilience and value proposition despite the setback.