Cardinal posts revenue gains, considers spin-off

Cardinal Health of Dublin, OH, reported revenue gains for fiscal year 2008 and the possibility of a spin-off of its clinical and medical products businesses.

The company posted an increase in annual revenue of 5% to $91 billion. For the fourth quarter (end-June 30), Cardinal reported revenues of $23 billion, up 3% from $22 billion for the same period in 2007.

Cardinal's medical products and technologies segment reported a 46% increase in fourth-quarter revenues to $727 million, driven by the acquisitions of Viasys Healthcare and Enturia, the company said. The company's clinical technologies and services segment increased 3% to $780 million for the quarter.

Combined revenues for Cardinal's clinical technologies and services segment and medical products and technologies segment grew by 24% to $5.6 billion.

The company has directed its board of directors to explore a potential separation of the company's primary operating and reporting segments, which could involve a tax-free spin-off of the clinical and medical products businesses as a separate, publicly traded company. Cardinal Health plans to announce its decision within approximately 60 to 90 days.

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Neoprobe, Cardinal Health ink distribution deal, November 28, 2007

Copyright © 2008

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