Cardinal Health recently released the annual report for its 2021 fiscal year, which ended on June 30. See the links below.
Today, I delve into the financials behind Cardinal’s relationship with its largest customer, CVS Health. In Cardinal’s 2021 fiscal year, CVS purchased more than $42 billion in pharmaceuticals from the wholesaler—about double the figure from 10 years ago. The new report also reveals that CVS Health’s payment terms with Cardinal give the wholesaler an often-overlooked cash flow benefit.
I also compare Cardinal’s relationship with CVS to McKesson’s relationship with CVS. The two wholesalers sell more than $90 billion in pharmaceuticals to CVS Health—making it the largest U.S. drug purchaser.
Like McKesson, however, Cardinal Health has discovered that CVS is its worst best friend.
Learn about how changes in the the provider-administered drug market affect wholesalers during DCI’s upcoming live video webinar, Drug Channels Update: Buy-and-Bill Market Trends, on September 24, 2021, from 12:00 p.m. to 1:30 p.m. ET. CLICK HERE TO LEARN MORE AND SIGN UP.
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