Disappointing third quarter for Cardinal Health, affected by generics price war

Very poor first quarter results have been posted by the Cardinal Health group, causing shares to lose over 18% in few hours. The Dublin, Ohio-based group’s management has stated that the generics price war ongoing in the US market has affected the results of the group, which has lowered the current year guidance, despite sales having risen by 5.7% ($33.45bn).  The group’s profit, however, has decreased by 33%–from $381m to $255m (Q1 2017) and EBITDA by 10%. There is also concern over Cordis, selling stents and catheters for cardiology. The asset was acquired from Johnson & Johnson in 2015 for $1.94bn and its sales keep shrinking.

(Source: WSJ)