- Transaction creates increased clinical and economic value
for 11,500 specialty providers, including more than 7,000
physicians across 1,200 independent physician practices
- Transaction creates platform for Cardinal Health expansion
across specialty therapeutic areas
- Transaction enhances capabilities of Cardinal Health
Specialty and supports ongoing build of Navista™ Network
DUBLIN,
Ohio, Jan. 31, 2024 /PRNewswire/ -- Cardinal
Health (NYSE: CAH) announced today that it has entered into a
definitive agreement to acquire Specialty Networks, a
technology-enabled multi-specialty group purchasing and practice
enhancement organization for $1.2B in
cash. Specialty Networks creates clinical and economic value for
independent specialty providers and partners across multiple
specialty GPOs: UroGPO, Gastrologix and GastroGPO, and United
Rheumatology.
The acquisition of Specialty Networks demonstrates Cardinal
Health's strategic prioritization of investing to accelerate growth
in its Specialty business and provide leading-edge technologies,
capabilities, and talent that address critical business and
customer needs. This acquisition complements Cardinal Health's
offering in key therapeutic areas by enhancing the company's
downstream provider-focused analytics capabilities and service
offerings and by accelerating its upstream data and research
opportunities with biopharma manufacturers.
"Expanding in specialty is a top priority for us and we have
been investing to expand our offering," said Jason Hollar, CEO Cardinal Health. "The
acquisition of Specialty Networks enhances our specialty strategy
by providing new capabilities that strengthen the link between our
downstream and upstream services, enabling us to create value for
customers, manufacturer partners and patients."
"Specialty Networks is a leader in specialty practice
management, research and technologies that support physicians in
delivering best-in-class care to their patients," said Debbie Weitzman, CEO, Cardinal Health
Pharmaceutical and Specialty Solutions. "Combining their unique
service offerings and advanced technology solutions like PPS
Analytics with our distribution partnerships and operations will
enhance our value proposition for our specialty GPO members across
therapeutic areas. Together, we will positively affect the lives of
countless patients."
Specialty Networks' PPS Analytics analyzes data from electronic
medical records (EMR), practice management, imaging, and dispensing
systems and transforms it into meaningful and actionable insights
for providers, researchers, payers and policymakers. Using
artificial intelligence, such as continuous-learning algorithms and
natural language processing, and modern data analytics tools, PPS
Analytics analyzes millions of data points, generating valuable
insights for diagnostic and therapeutic interventions for the right
patient at the right time. A strong complement to the distribution,
research and technology capabilities of Cardinal Health, it will
expand the holistic suite of clinical, practice management and
distribution solutions offered to support the success of specialty
practices nationwide.
Additionally, Specialty Networks' deep understanding of
independent specialty physician practices offers Cardinal Health
unique capabilities and expertise that will accelerate the
company's ongoing development of the Navista™ Network, which is
focused on supporting the clinical and operational needs of
independent community oncologists.
"Specialty Networks and Cardinal Health are united in their
mission to deliver value for specialty physician practices and
their patients and manufacturers with best-in-class offerings,"
said Shailendra Sharma, CEO,
Specialty Networks, who will continue leading the business as part
of Cardinal Health. "This partnership is a strong cultural fit and
a big win for physicians and patients."
Cardinal Health's Pharmaceutical and Specialty Solutions segment
operates one of the largest pharmaceutical supply chains in the
U.S. with strategically located distribution centers that enable
fast and efficient delivery anywhere in the country. Through its
Specialty business, Cardinal Health provides reliable distribution
and advanced technology solutions to community-based practices
across the nation.
This transaction is subject to the satisfaction of customary
closing conditions, including receipt of required regulatory
approvals. The transaction is expected to be accretive to non-GAAP
earnings per share 12 months following close.
About Cardinal Health
Cardinal Health is a distributor of pharmaceuticals, a global
manufacturer and distributor of medical and laboratory products,
and a provider of performance and data solutions for healthcare
facilities. With more than 50 years in business, operations in more
than 30 countries and approximately 48,000 employees globally,
Cardinal Health is essential to care. Information about Cardinal
Health is available at cardinalhealth.com.
About Specialty Networks
Specialty Networks is an integrated multi-specialty platform with
GPOs, life sciences, and research solutions in urology,
gastroenterology, and rheumatology. Their solutions include patient
population health management, patient engagement, clinical
research, and workflow automation technologies to achieve Center of
Excellence in Standards of Care, Clinical Research, Practice
Operations, and Value-based Care.
Contacts
Media: Kerry Christopher,
Kerry.Christopher@cardinalhealth.com and (248) 520-8377
Investors: Matt Sims,
Matt.Sims@cardinalhealth.com and (614) 553-3661
Cautions Concerning Forward-Looking Statements
This news release contains forward-looking statements addressing
expectations, prospects, estimates and other matters that are
dependent upon future events or developments. These statements may
be identified by words such as "expect," "anticipate," "intend,"
"plan," "believe," "will," "should," "could," "would," "project,"
"continue," "likely," and similar expressions, and include
statements reflecting future results or guidance, statements of
outlook, preliminary recast fiscal 2023 results and various
accruals and estimates. These matters are subject to risks and
uncertainties that could cause actual results to differ materially
from those projected, anticipated or implied. These risks and
uncertainties include risks associated with our ongoing review of
our operations, portfolio and businesses, including the risk that
our management team could become distracted or that the outcome of
such review may have unintended consequences; our ability to manage
uncertainties associated with the pricing of branded
pharmaceuticals; and risks associated with our planned acquisition
of Specialty Networks, including the risk that we may not receive
required regulatory approval or otherwise fail to complete the
acquisition and the risk that we may fail to realize the
anticipated strategic and financial benefits. Cardinal Health is
subject to additional risks and uncertainties described in Cardinal
Health's Form 10-K, Form 10-Q and Form 8-K reports and exhibits to
those reports. This news release reflects management's views as of
January 31, 2024. Except to the
extent required by applicable law, Cardinal Health undertakes no
obligation to update or revise any forward-looking statement.
Forward-looking statements are aspirational and not guarantees or
promises that goals, targets or projections will be met, and no
assurance can be given that any commitment, expectation, initiative
or plan in this news release can or will be achieved or
completed.
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SOURCE Cardinal Health