Leading distributor of pharmaceuticals and medical supplies
) recently revealed that it strives to persuade its retail pharmacy
clients to disseminate knowledge among patients about new Medicare
options and benefits as per the Patient Protection and Affordable
Care Act, beginning in 2013.
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The Department of Health and Human Services, prior to the Medicare
open enrollment season starting from October 15, 2012, has provided
a large amount of literature to educate patients about new benefits
such as yearly wellness trips. Cardinal Health is circulating such
literature among a few hundred pharmacy locations and over 7,500
In addition, Cardinal Health holds web-based sessions for its
retail pharmacy clients. These sessions aim to ensure that
pharmacists are knowledgeable about the literature provided to
them. They strengthen the pivotal role played by pharmacists in
inculcating patient awareness about Medicare options.
More information about the educational endeavor may be obtained
from the CMS web site.
Cardinal Health is ranked among Fortune 500 companies. With over
$100 billion in annual sales, Cardinal Health remains one of the
largest distributors of pharmaceuticals and medical supplies in the
U.S. The company's diversified product portfolio may partly
insulate it from the current economic uncertainty.
The company stands to gain from the gradual shift in mix from bulk
to the higher-margin non-bulk sector of the Pharmaceutical segment.
It is also riding the generic wave. Overall, Cardinal benefits from
a spate of tuck-in acquisitions and capital deployment strategies.
However, the company faces tough competition across all business
segments, which may continue to pressure pricing and margins. Its
major competitors in the pharmaceutical supply chain segment
We have a long-term Neutral recommendation on Cardinal. The stock
currently retains a Zacks #3 Rank, which translates into a
short-term Hold rating.