Cardinal Health (CAH) recently revealed the commercialization of its range of standard diagnostic procedure trays, which are meant to enhance efficiencies and cut down wastage in biopsy, acute drainage and basic diagnostic procedures.
The company stated that it has created its line of diagnostic procedure trays to contain the supplies that medical practitioners require for diagnostic procedures. Its trays will ensure availability of the correct product, for the correct procedure, at the correct time.
By providing access to vital clinical supplies required for each diagnostic procedure, the trays cut down on the amount of time clinicians devote to arrange supplies for procedures and reduce remnant waste.
At present standard diagnostic procedure trays may be purchased for seven procedures, namely soft tissue biopsy, bone marrow aspiration and biopsy, paracentesis/ thoracentesis, amniocentesis, myelogram, arthrogram and lumbar puncture.
Cardinal Health is ranked in the Fortune 500. With over $100 billion in annual sales, Cardinal Health remains one of the largest distributors of pharmaceuticals and medical supplies in the U.S., with a diversified product portfolio, which may partly insulate it from the current economic uncertainty.
The company stands to gain from the gradual shift in mix from the bulk to the higher-margin non-bulk sector of the Pharmaceutical segment. It is also riding the generic wave. Overall, Cardinal is benefiting from a spate of tuck-in acquisitions and capital deployment strategies.
However, the company faces tough competition across all its business segments, which may continue to pressure pricing and margins. Its major competitors in the pharmaceutical supply chain segment include McKesson Corp. (MCK) and AmerisourceBergen Corp. (ABC). We currently have a long-term Outperform rating on Cardinal.
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