(Reuters) – Drug distributor Cardinal Health on Friday raised its full-year earnings forecast for the second time in nearly three months, betting on strong demand for specialty medicines.
Cardinal’s shares rose about 4% in premarket trading after the company also reported quarterly profit above Wall Street estimates like its rivals Cencora and McKesson.
Drug distributors have been benefiting from strong sales of highly priced specialty medicines that treat diseases including cancer and rheumatoid arthritis, while prices of generic medicines have fallen due to intense competition.
Cardinal now expects fiscal 2024 profit in a range of $6.75 to $7.00 per share, compared with $6.50 to $6.75 it had forecast previously.
The company expects profit for its pharmaceutical segment, through which it distributes branded drugs, generic drugs and specialty medicines, to rise 7% to 9% during the financial year 2024, up from its previous forecast of 4% to 6% growth.
The pharmaceutical segment reported an 11% year-on-year rise in quarterly revenue to $51 billion.
The drug distributor has previously said it expects growing demand for newer weight-loss drugs, including GLP-1 treatments to help boost sales in its biggest unit this year.
On an adjusted basis, Cardinal reported a profit of $1.73 per share, topping expectations of $1.40 per share, according to LSEG data.
(Reporting by Christy Santhosh; Editing by Maju Samuel)
