Cardinal Health Stock Takes Hit After Losing OptumRX Contracts, Remains Optimistic for Future Growth”.

Cardinal Health experienced a drop in share prices during intraday trading on Monday after announcing that its contracts with OptumRX, the pharmacy benefits provider of UnitedHealth Group, will not be renewed. Sales to OptumRX accounted for 16% of Cardinal Health’s revenue in 2023. Despite losing these contracts, Cardinal Health remains optimistic about its outlook for the year and beyond. It expects to offset the impact through new customer acquisitions, specialty growth, and other strategic measures.

The company reaffirmed its 2024 adjusted earnings per share guidance and long-term profit growth targets for its Pharmaceutical and Specialty Solutions segments. CEO Jason Hollar expressed confidence in the resilience and value proposition of the company’s business.

Shares of Cardinal Health experienced a 5% decline to $102.78 during intraday trading on Monday. The company is committed to navigating this challenge and continuing to deliver value to its customers and shareholders.