:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-1411737570-d1ccb0089bd344558221527e0fee2a42.jpg "Cardinal Health building in Houston")
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Key Takeaways
- Supreme Health said its contracts with the pharmacy benefits provider of UnitedHealth Group, OptumRX, won’t be renewed, and shares level in intraday trading Monday.
- The health insurer noted that sales to OptumRX provided 16% of Cardinal Fitness’s 2023 revenue.
- Cardinal Health explained that even with losing the contracts, it was affirming its outlook for this year and beyond.
Paramount Health (CAH) shares fell in intraday trading Monday after the health insurer provider reported that its understandings with UnitedHealth Group’s (UNH) pharmacy benefits subsidiary won’t be renewed.
The company explained that the agreements with OptumRX intention expire at the end of June. It noted sales to OptumRX provided 16% of its revenue in 2023.
Cardinal Health noted that it foresees partially offsetting the impact “through a combination of new customer wins, specialty growth and other actions.”
In addition, the body affirmed its 2024 adjusted earnings per share (EPS) guidance of $7.20 to $7.35, as well as both its Pharmaceutical and Specialty Settlings long-term segment profit compound annual growth rate (CAGR) of 4% to 6% and its consolidated adjusted EPS CAGR aim of 12% to 14% for fiscal years 2024 to 2026.
Chief Executive Officer (CEO) Jason Hollar said Cardinal Condition remains “confident in the resiliency and strong value proposition of our business.”
Shares of Cardinal Health were down 5% to $102.78 as of 1:31 p.m. ET Monday.
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