Cardinal Health 2008 Annual Report Download - page 6

Cardinal Health 2008 Annual Report
o erings through the acquisition of Enturia, the manufacturer
of surgical skin preparation products marketed under the
ChloraPrep® brand name. And we continue to make good
progress on the remediation efforts for Alaris® infusion products.
Coming o of a breakout year in fiscal 2007, the combined
revenue* for the Clinical Technologies and Services and Medical
Products and Technologies segments grew by 24 percent to
$5.6 billion, and the combined segment profit* increased
36 percent to nearly $800 million in fiscal 2008. Under our new
segment reporting structure, Clinical and Medical Products
would have achieved even stronger performance in fiscal 2008
with a 30 percent increase in revenue to $4.6 billion, and a
37 percent increase in profit to $735 million. While the addition
of VIASYS fueled a portion of this growth, we continued to see
great execution for the technologies that help protect against
medication errors and prevent infections.
We see more of the same in fiscal 2009. Clinical and Medical
Products is expected to continue on a strong growth
trajectory based on both the momentum of current product
lines and plans to introduce approximately 50 new products or
product enhancements over the next 18 months.
Focus on the future
While I know we can continue to improve and perform
better, we are entering fiscal 2009 in a position of strength.
Cardinal Health is uniquely positioned to help improve both
patient safety and the economics of healthcare delivery.
As the United States elects its next president, there is little
doubt that healthcare will take center stage in the next
administration. With a worthy goal of expanding healthcare
coverage to more of the population, the healthcare system will
need to be even more e icient to accommodate the increased
demand that greater access will generate. And while health
systems vary from country to country, fundamentally the
same issues of cost and quality a ect hospitals and other care
providers from Boston to Barcelona to Beijing. Cardinal Health
understands the challenges healthcare providers face and has
the expertise and resources to help.
In fiscal 2009, we are resolutely focused on putting a stronger
foundation for future growth under both segments. We plan to
invest an incremental $100 million in fiscal 2009 to ensure we
continue to strengthen our position. For Clinical and Medical
Products, we are investing approximately $50 million in R&D
to develop new products that improve patient safety. And
approximately $50 million will be invested in information
technology for Healthcare Supply Chain Services to improve
how we serve our customers. These are important investments
that I believe will increase future growth for both segments.
In closing
A look at the future of the company is not complete without
reflecting on the past. We would not be in the enviable position
to change the face of healthcare without the vision, dedication
and leadership of company founder, Robert D. Walter. As many
of you know, Bob retired from the company in June. We are
very fortunate to retain his vision and leadership through his
seat on the board of directors. Though we miss Bob’s daily
presence in the hallways, his legacy and entrepreneurial spirit
will always be felt at Cardinal Health.
That spirit is evident in the dedication and passion of our
more than 40,000 employees. Each and every day, they help
providers of care deliver a safer, more productive future
in healthcare. It is an exciting future, and one in which
Cardinal Health can and will play an essential role.
Sincerely,
R. Kerry Clark
Chairman and Chief Executive O cer
* See adjacent page for definitions of non-GAAP  nancial measures and a
reconciliation of the di erences between the non-GAAP  nancial measures
and the most directly comparable GAAP  nancial measures.