Cardinal Health names new CEO, gains mixed quarter figures
Despite witnessing a slight increase in revenue, and pharmaceutical sales growing to $28.9 billion, Cardinal Health is seeing increased competition in the drugs pricing market despite its partnership with CVS Health. This is in addition to the threat of booming businesses such as Amazon, who could be set to join the industry.
At present, the business’ stock pricing is down by over 20%. To counteract such uncertainties, the business has named its new CEO. Former Chief Financial Officer Mike Kauffman is set to take the helm and replace George Barrett at the start of 2018, in order to streamline the business, enable competitive pricing and push the approval of new treatments at a quicker pace to boost further revenue and increase in stock pricing.
"Fiscal year 2018 started largely as we expected and included strong performance from many of our business lines across the segments," commented present CEO George Barrett in a statement. "With one quarter behind us, we remain comfortable with our full-year guidance. We're excited to have closed the Patient Recovery transaction during Q1 and are pleased to report the integration is going well."
- GE looks to sell its healthcare IT division
- FDA – piloting a path for digital innovation
- VitalConnect Inc has closed its final Series C round, acquiring $38 million
With extensive experience at Cardinal Health, Kauffman has worked for the business for nearly 30 years and has advanced knowledge of the business’ internal operations, in addition to the challenges the role will present both nationally and internationally. Kauffman has also played an essential part in building relationships with Cardinal Health’s partners, such as CVS Health.
“I am honoured to be selected as Cardinal Health's next chief executive,” said Kaufmann. “George has built a powerful legacy and strategy that I am proud to have helped craft.
I look forward to working with him and our incredibly talented and dedicated team to build on the strong foundation we have in place and further enhance the value we provide to all of our stakeholders, while never losing sight of our ultimate goal of supporting our partners in the critical work they do serving patients and their families.”