Cardinal Health 2009 Annual Report Download - page 25

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reportable segments to three segments: Pharmaceutical, Medical and CareFusion. Effective upon the Spin-Off,
the Company will change its reportable segments to two segments: Pharmaceutical and Medical. The following
business discussion is based on the three reportable segments as they were structured for the fiscal year ended
June 30, 2009.
Healthcare Supply Chain Services
Pharmaceutical Supply Chain Business. Through its pharmaceutical supply chain business, the Healthcare
Supply Chain Services segment distributes a broad line of branded and generic pharmaceutical products,
over-the-counter healthcare products and consumer products (collectively, “pharmaceutical products”). The
pharmaceutical supply chain business (also referred to as the pharmaceutical distribution business) is one of the
country’s leading full-service wholesale distributors 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 broad
range of support services to assist its customers in maintaining and helping to improve the efficiency and quality
of their services. These support services include, among others:
• 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.
The Company’s proprietary software systems feature customized databases specially designed to help its
pharmaceutical supply chain customers order more efficiently, contain costs and monitor their purchases.
In addition, the 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. The pharmaceutical supply chain
business also operates a pharmaceutical repackaging and distribution program that provides repackaged
pharmaceutical products to its customers.
Nuclear Pharmacy Services Business and Other Pharmaceutical Supply Chain Businesses. 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. The Healthcare Supply Chain Services segment also provides third-party
logistics support services, distributes therapeutic plasma to hospitals, clinics and other providers located in the
United States and manufactures and markets generic pharmaceutical products for sale to hospitals, clinics and
pharmacies in the United Kingdom. The Healthcare Supply Chain Services segment also operates a specialty
pharmacy that provides prescription fulfillment and clinical care services directly to individual patients requiring
highly intensive therapies.
Medical Supply Chain Business. Through its medical supply chain business, the Healthcare Supply Chain
Services segment distributes a broad 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.
In addition, the medical supply chain business helps customers reduce costs while improving the quality of
patient care in a variety of ways, including online procurement, fulfillment and information provided through
cardinal.com and supply-chain management. The medical supply chain business also assembles and distributes
sterile and non-sterile procedure kits under the Presource®brand name.
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