Full Description

Cardinal Health, Inc. (Cardinal Health) is a provider of products and services to healthcare industry. During the fiscal year ended June 30, 2009 (fiscal 2009), the Company had three segments: Healthcare Supply Chain Services, Clinical and Medical Products and All Other. Effective July 1, 2009, the Company changed its segments to three segments: Pharmaceutical, Medical and CareFusion. On August 25, 2009, the Company spun-off 80.1% of a wholly owned subsidiary, CareFusion Corporation (CareFusion). During fiscal 2009, the Company divested the Tecomet (orthopedic implants and instruments) and MedSystems (enteral devices and airway management products) businesses that were part of All Other segment. In September 2009, the Company announced the completion of the spinoff of CareFusion Corporation.

Healthcare Supply Chain Services

Through its Healthcare Supply Chain Services-Pharmaceutical segment, the Company distributes a line of branded and generic pharmaceutical products, over-the-counter healthcare products and consumer products (pharmaceutical products). The Company’s pharmaceutical supply chain business (also referred to as the pharmaceutical distribution business) is a full-service wholesale distributor to retail customers (including chain and independent drug stores and pharmacy departments of supermarkets and mass merchandisers), hospitals and alternate care providers (including mail order pharmacies) located throughout the United States. As a full-service wholesale distributor, the pharmaceutical supply chain business complements its distribution activities by offering a range of support services, such as computerized order entry (online procurement, fulfillment and information) and order confirmation systems provided through cardinal.com; generic sourcing programs; product movement, inventory and management reports, and consultation on store operations and merchandising.

Healthcare Supply Chain Services-Pharmaceutical segment's pharmaceutical supply chain business provides services to branded pharmaceutical manufacturers, including distribution services, inventory management services, data/reporting services, new product launch support and contract and chargeback administration services. This segment also operates a pharmaceutical repackaging and distribution program that provides repackaged pharmaceutical products to its customers. Through its Nuclear Pharmacy Services business, the Healthcare Supply Chain Services segment also operates centralized nuclear pharmacies that prepare and deliver radiopharmaceuticals for use in nuclear imaging and other procedures in hospitals and clinics. Through its medical supply chain business, the Company distributes a range of branded and private-label medical and laboratory products, as well as the Company’s own line of surgical and respiratory therapy products manufactured by the Clinical and Medical Products segment, to hospitals, laboratories and ambulatory care customers, such as surgery centers and physician offices.

The Company competes with McKesson Corporation, AmerisourceBergen Corporation, Owens & Minor, Inc., Thermo Fisher Scientific Inc., PSS World Medical, Inc., Henry Schein, Inc. and Medline Industries, Inc.

Clinical and Medical Products

Through its Clinical and Medical Products segment, the Company provides products and services to hospitals and other healthcare providers. This segment develops, manufactures, leases and sells medical technology products, including Alaris intravenous medication safety and infusion therapy delivery systems, software applications, needle-free disposables and related patient monitoring equipment and Pyxis dispensing systems that automate the distribution and management of medications in hospitals and other healthcare facilities. The segment also develops, manufactures, leases and sells dispensing systems for medical supplies. This segment also develops and manufactures medical and surgical products for distribution to hospitals, physician offices, surgery centers and other healthcare providers.

Clinical and Medical products include infection prevention products, such as single-use surgical drapes, gowns and apparel, exam and surgical gloves and fluid suction and collection systems; respiratory care products, such as ventilation equipment and supplies, and medical specialties products, such as reusable surgical instruments and biopsy needles. This segment also offers a line of skin disinfection products sold under the ChloraPrep brand name and provides clinical intelligence solutions, including products and services that help identify and prevent hospital-acquired infections and provide barcode-enabled patient identification systems used in hospitals.

The Company competes with Hospira, Inc., B. Braun Melsungen AG, Baxter International Inc., Fresenius SE, Kimberly-Clark Corporation, Covidien Ltd., Teleflex Incorporated, Medline Industries, Inc., Ansell Limited, 3M Company, Getinge AB, Drager Medical AG & Co. KG, Koninklijke Philips Electronics N.V, McKesson Corporation and Omnicell, Inc.

All Other

Through this segment, the Company is a franchisor of apothecary-style retail pharmacies through its Medicine Shoppe International, Inc. and Medicap Pharmacies Incorporated (Medicap), and together with Medicine Shoppe International, Inc. (Medicine Shoppe) franchise systems in the United States and abroad. This segment also provides pharmacy services to hospitals and other healthcare facilities, including full-service department outsourcing, transitional and turn-key services for acute care hospital pharmacies, as well as remote medication order entry and review and other services.

The Company competes with Comprehensive Pharmacy Services.