Cardinal Health to spend $1.2 billion to boost ability to analyze medical data
By Tomi Kilgore
Buying Specialty Networks gives Cardinal Health access to PPS Analytics, which uses AI to analyze data from electronic medical records
Cardinal Health Inc. announced Wednesday an agreement to buy Specialty Networks for $1.2 billion in cash, as the drug distributor and medical products maker looks to enhance its data analytics capabilities.
The company said the acquisition expands its offering in therapeutic areas and increases its data and research opportunities with biopharmaceutical manufacturers.
Cardinal Health's stock (CAH) rose 0.9% in premarket trading, to put it on track to open just below the record closing price of $108.05 on Dec. 13.
"Combining [Specialty Networks'] unique service offerings and advanced technology solutions like PPS Analytics with our distribution partnerships and operations will enhance our value proposition for our specialty GPO [group purchasing organization] members across therapeutic areas," said Debbie Weitzman, chief executive of Cardinal Health Pharmaceutical and Specialty Solutions.
Specialty Networks' PPS Analytics analyzes data, from sources including electronic medical records, imaging and dispensing systems, and uses artificial intelligence to provide insights for providers, researchers, payers and policymakers.
The deal is expected to start adding to Cardinal Health's adjusted earnings per share a year after the closing.
Cardinal's stock has rallied 17.7% over the past three months through Tuesday, while the Health Care Select Sector SPDR ETF (XLV) has climbed 12.9% and the S&P 500 has advanced 17.4%.
-Tomi Kilgore
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
01-31-24 0903ET
Copyright (c) 2024 Dow Jones & Company, Inc.-
September Jobs Report Forecasts Show Moderate Hiring Gains
-
Port Strike a Headache for Shippers but a Potential Tailwind for Certain US Transport Stocks
-
13 Charts on Q3′s Roller-Coaster Rally for Stocks and Bonds
-
5 Stocks to Buy Instead of Overpriced US Equities
-
Q4 Stock Market Outlook: Where We See Opportunities for Investors
-
Markets Brief: Non-Farm Payrolls in the Spotlight Again
-
6 Top-Performing Large-Growth Funds
-
What’s the Difference Between the CPI and PCE Indexes?
-
10 Top-Performing Dividend Stocks of Q3 2024
-
33 Undervalued Stocks
-
Communication Services: Cable’s Broadband Dominance Isn’t as Strong as It Once Was
-
Technology: Strength Continues, With Software Presenting the Best Buying Opportunities
-
Best- and Worst-Performing Stocks of Q3 2024
-
Top Stocks to Own From the Best Fund Managers
-
2 Cheap Stocks Top Managers Have Been Buying
-
The 10 Best Companies to Invest in Now