- 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
