Cardinal Health 2013 Annual Report Download - page 4

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The acquisition of AssuraMed was a major step in that
direction. Over time, more care will be delivered in the home.
All of us are likely to experience this directly ourselves, or
with members of our family, and integrated healthcare systems
and payors alike recognize that patients who are well
cared for at home are less likely to be readmitted to the
hospital. The integration is going extremely well, and results
are exceeding our expectations.
Our eorts around our preferred product portfolio address the
continuing need for lower-cost alternatives to mature medical
devices. Our activities in this area accelerated during the year,
increasing overall penetration and opening the opportunity for
greater growth. This past year, we broadened the reach of the
portfolio by adding more than 150 products in nine categories.
China scal 2013 highlights
Many of these same healthcare forces are at work in other
markets, and we recognize the opportunity to expand our
healthcare expertise.
Specically, in China, we have been using our capabilities,
scale and unique value proposition to build a strong and
sustainable reputation and enhance our strategic alignment
with biopharma and medical device companies — essential
to participating successfully, and for the long term, in this
rapidly growing healthcare system. This year, our revenues
in China grew 45 percent, reaching $2 billion. We are
tremendously excited by the opportunities to broaden the
scope of our business model to match the needs of that
market and to support our manufacturer partners who want
to grow their businesses there.
Accelerating the journey
And so we’ve turned the page on scal 2013 — a year that
was anything but ordinary, a year we regard as an important
inection point in our strategic and competitive positioning.
In many ways, the events of 2013 accelerated the journey
we began more than four years ago. This journey was focused
on driving balance and growth by diversifying our portfolio
of customers, products and channels. This required
expanding into higher-value, higher-margin settings and
higher-value, higher-margin products and services, all on
a sustainable foundation that requires rock-solid alignment
with our customers.
The progress we have made is signicant. Over these past
four years we have increased our base of independent retail
customers from 3,800 to nearly 8,000. This has added to and
diversied a pharmaceutical business already of enormous
scale — we now serve approximately 18,000 retail pharmacies,
as well as thousands of hospital and clinic pharmacies in
the U.S. And non-bulk, higher-margin business now represents
nearly 70 percent of our total pharmaceutical sales. Very
importantly, our generics sales have nearly doubled.
We have increased our position and our service and product
oerings in hospitals; clinics; surgery centers; oncology,
urology and rheumatology practices; doctors’ oces, and now
with the AssuraMed acquisition, the home. For the rst time
in our history, wherever healthcare products or services are
needed, at any stage of the patient experience, we are there.
We have continued to drive a preferred product portfolio in
our Medical Segment that addresses our customers’ needs for
more cost-eective medical products.
And nally, we have expanded into China, where our unique
value proposition allows us to build a strong brand, enhance
strategic alignment with biopharma and medical device
companies, and participate in a rapidly growing Chinese
healthcare system.
Through these eorts, we have grown our non-GAAP EPS at a
compounded double-digit rate. We’ve expanded our margin
rates and positioned Cardinal Health to create value in an
increasingly patient-centered healthcare system. And we have
deployed our capital very eectively, balancing investments to
sustain the long-term growth of the company with returning
capital to shareholders.