Cardinal Health shares fell 5% as its contracts with UnitedHealth Group's OptumRx, accounting for 16% of its fiscal 2023 revenue, will not be renewed in June.
Cardinal Health shares fell 5% after announcing its contracts with UnitedHealth Group's OptumRx will not be renewed when they expire in June. The contracts, which accounted for 16% of Cardinal's total revenue in fiscal 2023, may be secured by rival company McKesson. Cardinal Health plans to counterbalance the setback through buybacks, deals, cost cuts, and new customers, while reaffirming its profit forecast for fiscal 2024 despite the expected reduction in adjusted free cash flow for fiscal 2025 due to the contract loss.
April 22, 2024
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