At its annual investor day, healthcare services and products provider Cardinal Health laid out an ambitious plan to drive long-term growth by reshaping its business around specialty care, next-generation data platforms, and strategic investments in distribution and logistics. The company is signaling a shift in focus toward higher-margin opportunities and a more integrated healthcare ecosystem that supports physicians, patients, and manufacturers across multiple therapeutic areas.
CEO Jason Hollar described the company’s direction as the culmination of efforts to build on its foundation while unlocking future growth. “We are proud of the strong and resilient foundation we have built that enables us to deliver compelling future growth,” he said, emphasizing the company’s ongoing transformation.
At the center of Cardinal Health’s strategy is its expansion into specialty care through the creation of The Specialty Alliance—a multi-specialty management services organization that unites recent acquisitions in gastroenterology and urology. With this move, the company is not just broadening its footprint in physician services but aiming to become a more embedded partner in care delivery. The new platform will operate alongside Cardinal’s existing Navista oncology network, creating a broad national infrastructure supporting over 2,200 providers across 28 states.
Cardinal also is deepening its support for biopharmaceutical partners with continued investment in its Biopharma Solutions business. Originally focused on urology, Cardinal’s PPS Analytics and SoNaR data platforms are now being adapted for oncology, gastroenterology, and rheumatology. The company’s Sonexus™ hub, which provides access and patient support services, is expected to double the number of therapies it supports by fiscal 2028—part of a broader push to embed Cardinal deeper into the commercial and clinical workflows of life sciences companies.
Another core pillar of the strategy involves modernizing Cardinal’s pharmaceutical distribution capabilities. The company’s new Consumer Health Logistics Center in Ohio has begun receiving inventory and is expected to be fully operational in July. This facility is the first step in a multi-year plan to enhance logistics capacity and efficiency across Cardinal’s distribution network. The company also is evaluating sites for a next-generation forward distribution center, which will incorporate advanced automation technology to further streamline operations.
In parallel, Cardinal is enhancing its digital infrastructure with the rollout of Vantus HQ, a modernized ordering platform for retail customers. The system has reached critical mass and gives customers tools for product search, order tracking, and reporting—key components in the company’s effort to improve customer experience and build long-term loyalty in a highly competitive space.
Beyond pharmaceuticals, Cardinal Health continues to expand in adjacent health sectors. Its Nuclear and Precision Health Solutions division plans to invest over $150 million in the coming years to support the emerging field of theranostics and PET imaging, particularly in oncology, neurology, and urology. The nationwide expansion of its PET cyclotron network is already underway. In the at-home care market, Cardinal is integrating Advanced Diabetes Supply into its logistics system and building new automated distribution centers in Texas, the West, and the Northeast. And in freight management, OptiFreight Logistics is pushing deeper into hospital pharmacy operations.
Cardinal’s ongoing turnaround of its Global Medical Products and Distribution business is also a key part of the plan. The unit, once under pressure, is now generating positive cash flow and profit. The company continues to drive this recovery through cost optimization, simplification efforts, and stronger growth of its private-label Cardinal Health Brand products.
While executives did share financial updates, including increased earnings guidance for fiscal 2025 and long-term projections through 2028, the emphasis was clearly on strategy. CFO Aaron Alt summed it up by pointing to the company’s growing ability to fund its evolution internally. “With the benefits of our robust cash flow generation, continued investments in the business and accelerating contributions from higher-margin businesses, we are positioning our business to deliver sustainable long-term growth and value creation,” he said.
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