Leading distributor of pharmaceuticals and medical supplies
Cardinal Health
( CAH) recently announced the Cardinal Health Pharmacy Scholarship
Program of nearly $1 million to fund eight pharmacy schools across
the country. The announcement underlines its commitment to support
future pharmacists.
The eight pharmacy schools were selected on the basis of
excellence and to encourage the independent pharmacy profession.
The curriculum of these schools focuses on operating the
independent pharmacy, to uphold student-run chapters of the
National Community Pharmacists Association (NCPA) and accredit
internships. These schools also exhibit a high number of placements
for post-graduates in community pharmacy settings.
Cardinal Health Pharmacy Scholarship Program has already funded
20 universities with more than $2.1 million since its inception in
June 2011. The universities were awarded scholarship funding
ranging from $50,000 to $125,000.
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
include
McKesson Corp.
(
MCK
) and
AmerisourceBergen Corp.
(
ABC
).
We have a long-term Neutral recommendation on Cardinal. The
stock currently retains a Zacks #4 Rank, which translates into a
short-term Sell rating.
AMERISOURCEBRGN (ABC): Free Stock Analysis
Report
CARDINAL HEALTH (CAH): Free Stock Analysis
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MCKESSON CORP (MCK): Free Stock Analysis Report
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