Cardinal Health Inc. announced Wednesday an agreement to buy Specialty Networks for $1.2 billion in cash, as the drug distributor and medical products maker looks to enhance its data analytics capabilities.
The company said the acquisition expands its offering in therapeutic areas and increases its data and research opportunities with biopharmaceutical manufacturers.
Cardinal Health’s stock
CAH,
+0.66%
rose 0.9% in premarket trading, to put it on track to open just below the record closing price of $108.05 on Dec. 13.
“Combining [Specialty Networks’] unique service offerings and advanced technology solutions like PPS Analytics with our distribution partnerships and operations will enhance our value proposition for our specialty GPO [group purchasing organization] members across therapeutic areas,” said Debbie Weitzman, chief executive of Cardinal Health Pharmaceutical and Specialty Solutions.
Specialty Networks’ PPS Analytics analyzes data, from sources including electronic medical records, imaging and dispensing systems, and uses artificial intelligence to provide insights for providers, researchers, payers and policymakers.
The deal is expected to start adding to Cardinal Health’s adjusted earnings per share a year after the closing.
Cardinal’s stock has rallied 17.7% over the past three months through Tuesday, while the Health Care Select Sector SPDR ETF
XLV,
-0.59%
has climbed 12.9% and the S&P 500
SPX,
-1.19%
has advanced 17.4%.
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