Introduction
Cardinal Health, Inc. is a major distributor and manufacturer of pharmaceuticals and various medical products. It is a giant of the pharmaceutical and healthcare industry; its products are not only used in a large number of hospitals and health care centers within the United States but also are distributed and sold in many other countries worldwide. In this paper, we will provide some information about the company. More specifically, after concisely addressing the business’ history, we will describe it as it is today, touching upon the enterprise’s mission and the vision of their activity, and looking into the products and services it offers.
We will also address some quantitative characteristics of the company, namely, the price of its shares in the stock market, the number of employees, the financial status of the business. After that, some recent news from the company will be reported, the company’s competitors will be mentioned, and the contact information will be given.
A Brief History of the Company
The company that is currently known as Cardinal Health, Inc. was established in 1971 by Robert Walter in the state of Ohio. The company was initially a food wholesaler, and it was named Cardinal Foods. By the end of the 1970s, the company bought Bailey Drug Co. (Ohio) and engaged in pharmaceuticals wholesaling; it was renamed Cardinal Distribution. During the 1980s, the company purchased other medications firms and sold its food facilities, focusing completely on drugs.
It was renamed Cardinal Health, Inc. in 1994. In 1995, the company engaged in medicine retailing; it was already present in most states. In 1997, the corporation purchased Owen Healthcare, a firm based in Houston that provided drugstores and hospitals with outsourced management services. The company continued to grow and buy other businesses. Nowadays, it is a global corporation dealing with drugs and medical products in the US and worldwide (Journal of Healthcare Contracting, 2005; “Cardinal Health” n.d.).
Description of the Company
According to the official website of the company, the business is aimed at improving “the cost-effectiveness of healthcare”, helping organizations (hospitals, drugstores, etc.) and people involved in the industry of health care to “focus on patient care while reducing costs, enhancing efficiency and improving quality” (“Cardinal Health” n.d.). Robert Walter, the founder of the business, states that the company’s vision is to “define ourselves in terms of the capabilities and solutions our customers need, not the individual businesses we’re in”; therefore identifying success as the ability to enable its clients to achieve the best results (Journal of Healthcare Contracting, 2005).
The company is public; its stocks are traded on the stock exchange. A single stock’s price was $80.55 as of September 4, 2015, 4:30 p.m. (Market Watch, 2015).
It is stated that the company employed over 32,000 people worldwide in 2014 (Becker’s Hospital Review, 2014). On the contrary, according to the corporation’s website, it has approximately 34,000 or 35,000 employees across the globe today (“Cardinal Health” n.d.). The number of workers falls in this range.
Products and Services Offered by the Company
According to the official website, the company offers a variety of services and products for both consumers and healthcare professionals (“Cardinal Health” n.d.). Professional products include medical products (infection control supplies and devices, patient care and monitoring devices, wound care and surgical products, laboratory equipment) and medications (in particular, radiopharmaceuticals, vaccines, plasma-derived products such as immune globulins).
Consumer products include wound care and first aid supplies, products that help to move (crutches, wheelchairs, walkers, and rollators), and some personal and medical hygiene products. The company also provides business solutions (management, financial, and operational) to help hospitals better organize their work and act more efficiently, as well as offers logistic services and solutions (“Cardinal Health” n.d.).
The Company’s Financial Status
It is stated that Cardinal Health has reported a significant rise in earnings during the quarter which ended in March 2015; the rise was due to the increase in sales of pharmaceutical production (Rubenfire, 2015). It is also stated that the sales of the Cardinal Health company grew by 13% in the 2015 financial year in comparison to the previous year, totaling $102.5 billion. The overall increase in profit is reported to be 4% (MDM Staff, 2015).
The amounts of production of the company are vast; the company provides approximately 75% of the US hospitals and ≈20,000 doctors’ offices with medical products (Barrett, 2014). Furthermore, the company sells its products not only in the USA but also worldwide. The types of products made by the organization were described above. It is also reported that Cardinal Health is one of the biggest supply chains in North America dealing with healthcare products (“Cardinal Health” n.d.). As was mentioned above, the company produces pharmaceuticals, medical supplies, and healthcare equipment, and offers business and logistic services related to the healthcare field; this makes main branches of the business (“Cardinal Health” n.d.).
Recent News Associated with the Company
It is reported that the company of Cardinal Health is acquiring Cordis, which is a part of Johnson & Johnson’s business that specializes in cardiology medical devices (Rubenfire, 2015). Cardinal Health was also planning to purchase 71% of naviHealth, a company that specializes in post-acute care management services, for $290 million in cash on hand (“Cardinal Health Acquisition of naviHealth”, 2015). The purchase was performed successfully (“Cardinal Health becomes majority owner of convener naviHealth”, 2015).
The Company’s Competitors
Some of the competitors of Cardinal Health are included in Table 1 (NASDAQ, 2015). Data about their shares are also provided.
Among other major rivals of the company is Henry Schein Inc., Sinopharm Group Co Ltd., Patterson Companies Inc., and others (“CAH: Cardinal Health Inc. top competitors and peers”, 2015).
Location and Contact Information
The company’s headquarters address is 7000 Cardinal Place, Dublin, OH 43017 (“Cardinal Health” n.d.). The website of the company is www.cardinalhealth.com; the URL www.cardinal.com also redirects to this site. There are also websites for the local offices of the company located worldwide.
The offices of the company are numerous; they are present in many other states of the USA, as well as worldwide. Locations of some of the departments of the corporation (for instance, the locations of radiopharmaceutical distribution centers) can be viewed on the official website (“Radiopharmacy Locations” n.d.).
Conclusion
To sum up, it should be mentioned that the company of Cardinal Health was started in 1971 under a different name as a food wholesaler, but it grew into a pharmaceutical and medical products giant nowadays. The company aims to improve the cost-effectiveness of healthcare and perceives the success of its clients as its goal. Being a public corporation, it has 32 to 35 thousand employees worldwide. The company has reported growth in its earnings in 2015, especially due to the increase in the number of pharmaceuticals sold.
In the pursuit of expansion, it continues to purchase other firms, Cordis and naviHealth being the latest acquisitions. Cardinal Health has major rivals in the US market, such as McKesson Corporation, AmerisourceBergen Corporation, and many others.
References
Barrett, G. (2014). Turnaround succeeding, Cardinal Health says. Web.
Becker’s Hospital Review. (2014). Cardinal Health – 150 Great Places to Work in Healthcare. Web.
CAH: Cardinal Health Inc. top competitors and peers. (2015). Web.
Cardinal Health Acquisition of naviHealth. (2015). Web.
Cardinal Health becomes majority owner of convener naviHealth. (2015). Web.
Cardinal Health. (n.d.). Web.
Journal of Healthcare Contracting. (2005). Executive interview: Bob Walter. Web.
Market Watch. (2015). Cardinal Health Inc. Stock Price. Web.
MDM Staff. (2015). Cardinal Health sales up 13% in fiscal 2015. Web.
NASDAQ. (2015). Cardinal Health, Inc. competitors. Web.
Radiopharmacy Locations. (n.d.). Web.
Rubenfire, A. (2015). Pharmaceuticals drive strong third quarter for Cardinal Health. Web.