(Reuters) -Drug distributor Cardinal Health on Thursday raised its fiscal 2025 adjusted profit forecast for the fourth time, betting on strong demand for costly specialty medicines and branded drugs.
High profit margins for specialty medicines, used to treat complex conditions like rheumatoid arthritis and cancer, have benefited drug distributors.
Sales of specialty medicines have grown a high-single-digit percentage in the first quarter of 2025, analysts at J.P. Morgan said in April, citing data from contract research firm IQVIA.
Cardinal Health now expects an adjusted profit of $8.05 per share to $8.15 per share for fiscal year 2025 ending in June 30, up from prior range of $7.85 per share to $8.00 per share. Analysts were expecting a profit of $7.96 per share, according to data compiled by LSEG.
Most of the Ohio-based company’s revenue comes from its pharmaceutical and specialty solutions unit, through which it distributes branded and generic drugs, specialty medicines and over-the-counter healthcare and consumer products.
The unit brought in sales of $50.43 billion in the third quarter ended March 31. Analysts were expecting sales of $49.81 billion.
Despite the changing macroeconomic environment, Cardinal said it expects double-digit growth in its adjusted earnings for the fiscal year 2026.
On an adjusted basis, Cardinal Health reported a profit of $2.35 per share for the quarter, beating analysts’ estimates of $2.17 per share.
But the company’s third-quarter total sales came in at $54.89 billion, missing analysts’ estimates of $55.35 billion.
(Reporting by Kamal Choudhury in Bengaluru; Editing by Sahal Muhammed)
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