Cardinal Health won’t renew pharmaceutical distribution contracts with OptumRx

Cardinal Health announced that its pharmaceutical distribution contracts with OptumRx, which expire at the end of June will not be renewed. Sales to OptumRx generated 16% of Cardinal Health’s consolidated revenue in fiscal year 2023. Approximately 90% of these sales were serviced by the company’s Pharmaceutical Distribution business and primarily consisted of non-specialty bulk shipments to Optum’s mail dispensing facilities. Total sales to OptumRx generate a meaningfully lower operating margin than the overall Pharmaceutical and Specialty Solutions segment.