Feb 5 (Reuters) - Cardinal Health on Thursday raised its expectations for annual profit after surpassing Wall Street estimates for quarterly results, as it bets on robust demand for specialty medicines and strong performance across its segments.
Shares of the Dublin, Ohio-based company rose more than 3% in premarket trading.
Drug distributors such as Cardinal Health, Cencora and McKesson are riding the wave of surging demand for high-margin medicines that treat complex conditions like cancer and autoimmune
diseases, while riding biosimilar tailwinds from patent cliffs on blockbuster drugs.
The companies are also expanding their presence in the specialty medicines market by acquiring cancer center operators to diversify beyond drug distribution and complement their core businesses.
Cardinal's pharmaceutical and specialty solutions segment generated $60.7 billion in revenue in the quarter ended December 31, up 19% year-over-year.
The company previously forecast specialty revenue topping $50 billion in 2026, fueled by strong demand in specialty drug distribution and added that growth will also stem from a projected 30%-plus surge in its biopharma solutions unit, which aids drug development and commercialization.
Jefferies analysts said earlier this week that they remain tactically positive on drug distributors into earnings, citing undervaluation and strong growth outlooks despite broader healthcare services volatility.
Cardinal expects annual adjusted per-share profit in the range of $10.15 to $10.35 per share, compared with at least $10 per share forecast previously.
Its quarterly revenue of $65.63 billion came in above analysts' average estimate of $64.14 billion, according to data compiled by LSEG.
Adjusted profit per share of $2.63 beat estimates of $2.36.
(Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Maju Samuel)
